1. Case Study
Transaction Opportunity:
Primus Office Building
• Location: Paris CBD
• Size: 11,000 m²
• Date Building was erected: 2001
Tenancy Schedule
• 60% of space is let to SupCo Ltd for €3,250,000 p.a.
• 40% of space is vacant and needs a 9-month refurbishment programme
Price
• Anticipated Acquisition Price: [€X]
Closing Costs:
• Notary Fees: 2%
• Lawyers: €200,000 (acquisition structure, SPA, Lease, etc.)
• DD : €75,000 (environmental - pollution, lead, asbestos, etc. – and structural, architect)
• Broker’s Fee: 1%
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2. Case Study (cont’d)
Capex
• Start Date: Immediately post acquisition
• Duration: 4Q
• Cost: €3,125,000
Leasing for refurbished space
• New Rent: €600 per m² p.a.
• Single tenant
Exit
• Cap Rate: 5.50%
• Exit Period: Q8
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3. Case Study (cont’d)
Financing
• Acquisition Financing: 60% LTV
• Capex Financing: 60% of costs
• Interest : 5.0% p.a.
• Amortization: Bullet
To be produced:
• Quarterly Excel leveraged cash flow model with contemplated acquisition price and equity returns
• Sensitivity table – rent increase/decrease v.s cap rate increase/decrease – for equity IRR and
multiple
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