1. Daniel Armstrong, Luke Binns, Ernesto Correa,
David Hook, Jess Rawlings, Nicole Mang-Nduka

3. • Key Deliverables
• Putting Plans into Action
• Existing Site Conditions
• The Concept
• Build Costs / Time Scales
• The Bottom Line
• Investment Summary

5. • 18% > Internal Rate of return (IRR)
• 16% ROI on Gross Development Value (GDV)
• Strength of title
• Profitability an potential for growth
• Address site constraints
• Barriers to entry

7. The Master Plan envisages for Shanghai are stated below:
• a) To become a world economic centre in financial, trading and
commercial terms, and a shipping centre by 2020.
• b) To incorporate the urban development of Shanghai with the
development of the entire Yangtze River Delta and even
Yangtze Economic Zone (from a regional perspective);
• c) To rationally restructure the allocation of resources,
population distribution, and infrastructure development;
• d) To sustainably coordinate the development of the economy,
society, population, resources and environment; and
• e) To produce a functional environment for living, working and
recreation

9. Longwei Creek enlists 4 of the 8 requirements.
• Promote the regional development strategy
• Establish an industrial structure led by service economy
• Guarantee and improve livelihood
• improve social construction and management
• improve the urban environment
• promote reform and opening up
• Improve the soft power of urban culture
• Promote Government self-improvement

20. • Cost Assumptions:
• All costing information and values have been taken from
Langdon Seah Construction Cost Handbook for China and Hong
Kong 2015
• All of the construction costs have been created in RMB currency
• It is assumed that all sustainability measures to achieve a 3 star
Green Label Certificate have been included with the larger
percentile costing bracket
• Included with the larger bracket costing percentile covers for all
mechanical & Electrical services, hydraulic services where
required, fire services and lifts / escalators

26. Planning
phase
Design
phase
construction
phase
project
close-out
First Timescale possibility 2 2 4 0.6
second ime scale
possibility
1.5 1 2 0.6
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Inyears
stages in the construction project with two alternative
possibilities

27. 0 1 2 3 4 5
Planning phase
Design phase
construction phase
project close-out
Time possibility 2
time possibility 1

29. 0
1
2
3
4
5
6
THE
CLOSE-OUT
PHASE

30. 0
1
2
3
4
5
6
THE IMPLEMENTATION PHASE

31. 0
1
2
3
4
5
6
THE PRE-CONSTRUCTION STAGE

32. 0
2
4
6
THE
DESIGN
PHASE
Series 1

33. THE
PLANNING
STAGE
Series 1

34. THE
INCEPTION
STAGE
Budget Analysis
Programming guidance
logistics
local planning authority
guidance
Site Analysis
utility requirements
valuation assessment

36. Market research
The potential uses looked into:
Office
Retail
Residential
Hotels
Retail and residential are the viable options for the location.

37. Finance
There is a limit of 30% maximum FDI imposed when doing business
in China
Cost of Borrowing is 6.5%
Unknown taxation system
Potential Investment vehicle

38. The school is moved from its existing location
Scenario 1: Residential block and achieving 3 Stars in the CBGS
Green Standard
Scenario 2: Residential/retail block achieving 3 Stars in the CBGL
Green Standard
Scenario 3: Residential/retail block and achieving 2 Stars in the
CBGS Green Standard.

39. The School remains in its existing location
Scenario 4: Residential block and achieving 3 Stars in the CBGS
Green Standard.
Scenario 5: Residential/retail block achieving 3 Stars in the CBGL
Green Standard
Scenario 6: Residential/retail block and achieving 2 Stars in the
CBGS Green Standard.

41. • Mixed use development of Residential and recreation keeping
the school in its existing location.
• Initial investment of RMB 2.3bn
• IRR: 18%
• Profit on Costs: 137%
• Profit on sale of land 10 years from now: RMB 13.2bn

42. Summary Appraisal 4
Currency in RMB
REVENUE
Investment Valuation
Redisdential (Plot 1)
Current Rent 520,353,792 YP @ 7.00% 14.2857 7,433,625,600
Residential (plot 2)
Current Rent 290,233,440 YP @ 5.00% 20 5,804,668,800
13,238,294,400
Income from Tenants
Redisdential (Plot 1) 3,252,211,200
Residential (plot 2) 1,813,959,000
5,066,170,200
NET REALISATION 18,304,464,600
OUTLAY
ACQUISITION COSTS
Residualised Price (0.97 Ha 1,234,346,378.24 pHect) 1,197,315,987
CONSTRUCTION COSTS
Construction m² Rate m² Cost
354,494,424
PROFESSIONAL FEES
265,870,818
MARKETING & LETTING
162,117,446
DISPOSAL FEES
463,340,304
FINANCE
Total Finance Cost 1,727,034,632
TOTAL COSTS 7,715,117,856
PROFIT
10,589,346,744
Performance Measures
Profit on Cost% 137.25%
Profit on GDV% 79.99%
Profit on NDV% 79.99%
Development Yield% (on Rent) 10.51%
Equivalent Yield% (Nominal) 6.12%
Equivalent Yield% (True) 6.36%
IRR 18.00%

45. • The site is a viable investment
• The next step is to contact the Local Government to discuss the
school
• We also need to contact an expert to discuss taxation issues
• The best value for the site is pure residential with mixed use
based on a sale 10 years from now.