Hotel Invt Demo Reports

PROPERTY INVESTMENT FEASIBILITY STUDY
Investment: Grand Luxury Hotel page 1
Description: Hotel Investment 15:43

Location: Sydney CBD Oct 29
Capital City: Sydney 2009
Prepared By: Devfeas Pty. Ltd. File: Hotel Invt Demo
Feastudy 6.0 was used to prepare this feasibility study. Licensed to Devfeas Pty Ltd
Profit & Loss Amounts are in $'s
Income: Investment Sale Price 64,037,636

Rent (inc. Recov Outgoings) 39,253,187
Less: GST Collected in Income -9,390,075 93,900,749
Less Purchase Price:
Building (Book) 27,500,000
Equipment (Book) 5,000,000
Imputed Land Value 7,500,000 40,000,000
Less Costs:
Purchasing (Stamp Duty, Fin. Estab., Conv.) 2,385,490
Management Fees 826,383
Selling (inc. Conv.) & Leasing 1,600,941
Council Rates 455,596
Water & Sewer 5,399
Land Tax 755,535 1,216,529
Less: GST Input Tax Credits -3,875,211
2,154,132 42,154,132
Margin Before Interest and Tax 51,746,617

Less Interest 10,803,125
Net Income Before Tax 40,943,491
Plus Income Tax Benefits:

Depreciation Tax Benefits 2,332,344
Non-Depreciation Tax Benefits -7,561,555 -5,229,212
Net Income Before Capital Gains Tax 35,714,280
Less Capital Gains Tax:

Net Sale Price 56,760,632
Less: Cost Base 31,663,236
Taxable Capital Gain 25,097,396

7,529,219
Holding Period Return After Tax 28,185,061
Internal Rate of Return After Tax 13.16%

Holding Period Return After Tax 77.51%
Equity Amount: 8,000,000 (31.09% IRR on Equity)

Margin on Equity After Tax: 28,185,061 (352.31% MoE After Tax)
Peak Level of Debt : 34,249,655 (Occurs on Oct 2008)
End of Profit and Loss (Categorised) Report


GST Summary Report Amounts are in $'s
With GST GST Pre-GST

Income:
Investment Sale Price 64,037,636 5,821,603 58,216,033

Rental (inc. Recov Outgoings) 39,253,187 3,568,472 35,684,716
Totals 103,290,823 9,390,075 93,900,749
Investment Costs:
Investment Purchase Price 40,000,000 3,636,364 36,363,636

Stamp Duty on Transfer 2,185,490 0 2,185,490
Stamp Duty on Mortgage 0 0 0
Conveyancing Fees (Purchase) 200,000 18,182 181,818
Management Fees 826,383 75,126 751,257
Leasing Fees 0 0 0
Rates and Taxes
Council Rates 455,596
Water & Sewer 5,399
Land Tax 755,535 1,216,529 0 1,216,529
Selling Fees 1,280,753 116,432 1,164,321
Conveyancing Fees (Sale) 320,188 29,108 291,080
Total Before Interest, Income Tax & CGT 46,029,343 3,875,211 42,154,132
Borrowing Interest 10,803,125 0 10,803,125
Total Cost Before Income Tax & CGT 56,832,468 3,875,211 52,957,257
Holding Period Return After Tax 28,185,061

Internal Rate of Return 13.16%
Holding Period Return (as a %) 77.51%
GST Collected with Sales and Other Income 9,390,075

GST Input Tax Credits 3,875,211
End of GST Summary Report


Categorised Cashflow Amounts are in $'s

The Investment spans 20 quarters
Investment Cashflow begins October 2008 and ends September 2013
Cashflow Period 1 2 3 4 5 Subtotals
2008 2009
Quarter Ending Dec Mar Jun Sep Dec
Inflation Factor 1.0067 1.0168 1.0270 1.0373 1.0477

AUV 7,500,000 7,500,000 7,500,000 7,728,023 7,728,023
ACV 40,000,000 40,000,000 40,000,000 41,216,125 41,216,125
AAV 2,000,000 2,000,000 2,000,000 2,060,806 2,060,806
Purchase & Costs 42,385,490 42,385,490

Management Fees 38,000 38,000 38,000 38,000 39,944 191,944
Leasing & Selling 0
Council Rates 64,086 88,045 152,131
Water & Sewer 275 275 275 275 275 1,373
Land Tax 105,750 145,561 251,311
Other Costs 0
Contingency Costs 0
GST Debits in Inc. 164,091 164,091 164,091 164,091 656,364
COSTS B4 INT. 42,593,600 202,365 202,365 290,411 349,871 43,638,613
Sell-On Income 0
Rent Income -1,805,000 -1,805,000 -1,805,000 -1,805,000 -1,897,347 -9,117,347
Recov. R & T 0
Recov. Man. Fees 0
Other Income 0
GST Tax Credits -3,658,000 -3,455 -3,455 -3,455 -3,668,364
Tax Refund/Paid 425,935 425,935
INCOME B4 INT. -1,805,000 -5,463,000 -1,808,455 -1,382,520 -1,900,802 -12,359,776
Net Outlay 40,788,600 -5,260,635 -1,606,089 -1,092,109 -1,550,931 31,278,837

Equity Input -8,000,000 -8,000,000
Cum. Debt B4 Int. 32,788,600 27,527,966 25,921,877 24,829,768 23,278,837
Interest 841,495 730,091 708,008 690,392 674,940 3,644,925
Cum. Interest 841,495 1,571,586 2,279,594 2,969,986 3,644,925
Cum. Net Debt 33,630,096 29,099,552 28,201,471 27,799,754 26,923,762
NET FLOW 41,630,096 -4,530,543 -898,081 -401,717 -875,992 34,923,762

N.P.V. Factors 0.9784 0.9469 0.9165 0.8870 0.8584
N.P.V. Net Flow -41,640,152 4,373,832 830,429 362,801 760,046 -35,313,045
Cashflow (Categorised) Report continues on the next page



2010 2011
Quarter Ending Mar Jun Sep Dec Mar

AUV 7,728,023 7,728,023 8,042,875 8,042,875 8,042,875
ACV 41,216,125 41,216,125 42,895,334 42,895,334 42,895,334
AAV 2,060,806 2,060,806 2,144,767 2,144,767 2,144,767
Purchase & Costs 42,385,490

Management Fees 39,944 39,944 39,944 41,988 41,988 395,752
Leasing & Selling 0
Council Rates 91,632 243,763
Water & Sewer 275 275 275 275 275 2,745
Land Tax 151,858 403,169
Other Costs 0
Contingency Costs 0
GST Debits in Inc. 172,486 172,486 172,486 172,486 181,311 1,527,619
COSTS B4 INT. 212,705 212,705 304,337 366,606 223,573 44,958,539
Sell-On Income 0
Rent Income -1,897,347 -1,897,347 -1,897,347 -1,994,419 -1,994,419 -18,798,227
Recov. R & T 0
Recov. Man. Fees 0
Other Income 0
GST Tax Credits -3,631 -3,631 -3,631 -3,631 -3,817 -3,686,706
Tax Refund/Paid 777,776 1,203,711
INCOME B4 INT. -1,900,979 -1,900,979 -1,123,202 -1,998,050 -1,998,236 -21,281,222
Net Outlay -1,688,274 -1,688,274 -818,865 -1,631,444 -1,774,663 23,677,317

Equity Input -8,000,000
Cum. Debt B4 Int. 21,590,563 19,902,289 19,083,424 17,451,980 15,677,317
Interest 651,851 625,724 606,953 593,269 566,050 6,688,772
Cum. Interest 4,296,776 4,922,500 5,529,453 6,122,722 6,688,772
Cum. Net Debt 25,887,339 24,824,789 24,612,878 23,574,703 22,366,089
NET FLOW -1,036,423 -1,062,550 -211,912 -1,038,175 -1,208,613 30,366,089

N.P.V. Factors 0.8308 0.8041 0.7782 0.7531 0.7289
N.P.V. Net Flow 868,918 862,190 171,934 790,290 889,155 -31,730,559



2011 2012
Quarter Ending Jun Sep Dec Mar Jun

AUV 8,042,875 8,370,554 8,370,554 8,370,554 8,370,554
ACV 42,895,334 44,642,956 44,642,956 44,642,956 44,642,956
AAV 2,144,767 2,232,148 2,232,148 2,232,148 2,232,148

Management Fees 41,988 41,988 44,136 44,136 44,136 612,136
Leasing & Selling 0
Council Rates 95,366 339,129
Water & Sewer 275 275 275 275 275 4,118
Land Tax 158,412 561,581
Other Costs 0
Contingency Costs 0
GST Debits in Inc. 181,311 181,311 181,311 190,587 190,587 2,452,725
COSTS B4 INT. 223,573 318,939 384,133 234,997 234,997 46,355,179
Sell-On Income 0
Rent Income -1,994,419 -1,994,419 -2,096,457 -2,096,457 -2,096,457 -29,076,437
Recov. R & T 0
Recov. Man. Fees 0
Other Income 0
GST Tax Credits -3,817 -3,817 -3,817 -4,012 -4,012 -3,706,182
Tax Refund/Paid 999,708 2,203,419
INCOME B4 INT. -1,998,236 -998,528 -2,100,274 -2,100,470 -2,100,470 -30,579,200
Net Outlay -1,774,663 -679,589 -1,716,142 -1,865,472 -1,865,472 15,775,979

Equity Input -8,000,000
Cum. Debt B4 Int. 13,902,654 13,223,065 11,506,923 9,641,451 7,775,979
Interest 535,582 514,273 499,825 468,072 432,845 9,139,369
Cum. Interest 7,224,354 7,738,628 8,238,452 8,706,524 9,139,369
Cum. Net Debt 21,127,009 20,961,692 19,745,376 18,347,975 16,915,347
NET FLOW -1,239,081 -165,316 -1,216,317 -1,397,401 -1,432,628 24,915,347

N.P.V. Factors 0.7054 0.6827 0.6608 0.6395 0.6189
N.P.V. Net Flow 882,266 120,292 812,340 902,082 895,091 -28,118,488



Cashflow Period 16 17 18 19 20 Totals
2012 2013
Quarter Ending Sep Dec Mar Jun Sep

AUV 8,711,583 8,711,583 8,711,583 8,711,583 9,066,507
ACV 46,461,779 46,461,779 46,461,779 46,461,779 48,354,703
AAV 2,323,089 2,323,089 2,323,089 2,323,089 2,417,735

Management Fees 44,136 46,394 46,394 46,394 30,929 826,383
Leasing & Selling 1,600,941 1,600,941
Council Rates 99,251 17,216 455,596
Water & Sewer 275 275 275 275 183 5,399
Land Tax 165,232 28,722 755,535
Other Costs 0
Contingency Costs 0
GST Debits in Inc. 190,587 190,587 200,338 200,338 6,155,500 9,390,075
COSTS B4 INT. 334,249 402,488 247,006 247,006 7,833,490 55,419,418
Sell-On Income -64,037,636 -64,037,636

Rent Income -2,096,457 -2,203,716 -2,203,716 -2,203,716 -1,469,144 -39,253,187
Recov. R & T 0
Recov. Man. Fees 0
Other Income 0
GST Tax Credits -4,012 -4,012 -4,218 -4,218 -152,569 -3,875,211
Tax Refund/Paid 1,242,380 9,312,631 12,758,430
INCOME B4 INT. -858,090 -2,207,728 -2,207,934 -2,207,934 -56,346,719 -94,407,604
Net Outlay -523,841 -1,805,241 -1,960,927 -1,960,927 -48,513,229 -38,988,186

Equity Input 36,185,061 28,185,061
Cum. Debt B4 Int. 7,252,138 5,446,897 3,485,969 1,525,042 -45,479,729
Interest 408,744 393,445 356,719 316,279 188,569 10,803,125
Cum. Interest 9,548,113 9,941,558 10,298,277 10,614,556 10,803,125
Cum. Net Debt 16,800,250 15,388,455 13,784,247 12,139,598 -34,676,603
NET FLOW -115,097 -1,411,795 -1,604,208 -1,644,649 -48,324,659 -28,185,061

N.P.V. Factors 0.5990 0.5797 0.5611 0.5430 0.5255
N.P.V. Net Flow 76,671 827,251 908,680 901,635 25,404,251 0
End of Cashflow (Categorised) Report


Escalated Rent and Sell-On Calculation Amounts are in $'s
Final Annual Total Positive Rental Income (ex GST) : 8,013,513

Final Annual Total Negative Rental Income (ex GST) : 0
Final Annual Total Management Fees (ex GST) : -168,706
Final Annual Total Rates and Taxes : -276,723
Final Annual Recov Management Fees and R&T (ex GST) : 0
Annual Net Rent For Sell-On Calculation : 7,568,084
Cap. Rate For Sell-On Calculation : 13.00%

Pre-GST Capital Value : 58,216,033
Add GST : 5,821,603
Calculated Investment Sell-On Value : 64,037,636
Rent Item 1 Item Description: Hotel Lessee's Rent GST Applies

Vacancy Rate: 5.00% Esc. Rate: 5.00% Final Esc Factor: 1.2209
Start Theoretical Rent: 7,600,000 Rate1: 300
Final Theoretical Rent: 9,278,805 Esc. Rate1: 366
End of Escalated Rent and Sell-On Calculation Report


Taxation Calculation Summary (ex GST) Amounts are in $'s
Net Income Before Depreciation, Investment Sale and CGT Summary:

Rent (inc. rec outgoings) 35,684,716
Other Income 0
Management Fees -751,257
Leasing Fees 0
Rates & Taxes -1,216,529
Other Costs 0
Net Interest -10,803,125
Total Net Income Before Depreciation, Investment Sale and CGT 22,913,804
Depreciation Tax Deductions Summary:

Buildings Initial Book Value 27,500,000
Plant & Equipment Initial Book Value 5,000,000
Opening Balance 32,500,000
Buildings Final Book Value 24,119,792
Plant & Equipment Final Book Value 1,312,500
Closing Balance 25,432,292
Total Depreciation 7,067,708
Capital Gains Tax Summary:

Investment Sale Price (ex GST) 58,216,033
Less Selling Costs (ex GST) 1,455,401
Net Investment Sale Price 56,760,632
Less: Cost Base
IPP (ex GST) 36,363,636
Incidental Purchase Costs (ex GST) 2,367,308
Depreciation Claimed -7,067,708 31,663,236
Taxable Capital Gain 25,097,396
TAXATION TOTALS
Income Tax Refund (Before CGT) ( 15,846,096 @ 33.00% ) 5,229,212
Less Capital Gains Tax ( 25,097,396 @ 30.00% ) 7,529,219
TOTAL TAX PAID 12,758,430
End of Taxation Calculation Summary Report


Depreciation Schedule
The Investment spans 6 Financial Years
Number Of Depreciation Items Building : 1 Plant & Equipment : 1
Amounts are in $'s
Investment Year: 1 2 3 4 Subtotals
Financial Year Ending June: 2009 2010 2011 2012
BUILDING DEPRECIATION
Building 515,625 687,500 687,500 687,500 2,578,125
Total Building Depreciation 515,625 687,500 687,500 687,500 2,578,125
PLANT DEPRECIATION
All Plant & Equipment 562,500 750,000 750,000 750,000 2,812,500
Total P. & E. Depreciation 562,500 750,000 750,000 750,000 2,812,500
Total Depreciation 1,078,125 1,437,500 1,437,500 1,437,500 5,390,625
Total Tax Benefit 355,781 474,375 474,375 474,375 1,778,906
Depreciation Schedule Report continues on the next page


Depreciation Schedule
The Investment spans 6 Financial Years
Number Of Depreciation Items Building : 1 Plant & Equipment : 1
Amounts are in $'s
Investment Year: 5 6 Totals
Financial Year Ending June: 2013 2014
BUILDING DEPRECIATION
Building 687,500 114,583 3,380,208
Total Building Depreciation 687,500 114,583 3,380,208
PLANT DEPRECIATION
All Plant & Equipment 750,000 125,000 3,687,500
Total P. & E. Depreciation 750,000 125,000 3,687,500
Total Depreciation 1,437,500 239,583 7,067,708
Total Tax Benefit 474,375 79,063 2,332,344
End of Depreciation Schedule Report


Sensitivity Analysis for Borrowing Interest Rate Variations

Range is -2.50% to +2.50% in 0.50% Increments Amounts are in $'s
Interest Sale Value Inv. Cost Margin HPR IRR
7.50% 64,037,636 49,791,570 30,306,071 83.34% 14.25%

8.00% 64,037,636 50,397,041 29,900,406 82.23% 14.04%
8.50% 64,037,636 51,016,051 29,485,669 81.09% 13.82%
9.00% 64,037,636 51,648,891 29,061,666 79.92% 13.60%
9.50% 64,037,636 52,295,859 28,628,198 78.73% 13.38%
10.00% 64,037,636 52,957,257 28,185,061 77.51% 13.16%
10.50% 64,037,636 53,633,397 27,732,048 76.26% 12.93%

11.00% 64,037,636 54,324,594 27,268,946 74.99% 12.69%
11.50% 64,037,636 55,031,172 26,795,538 73.69% 12.46%
12.00% 64,037,636 55,753,463 26,311,604 72.36% 12.22%
12.50% 64,037,636 56,491,802 25,816,916 71.00% 11.97%
Sensitivity Analysis for Rent Escalation Rate Variations

W/Ave Esc. Rate Sale Value Inv. Cost Margin HPR IRR
-5.00% 42,153,661 53,169,321 9,864,605 27.13% 5.45%

-3.00% 45,872,432 53,123,993 13,017,139 35.80% 6.96%
-1.00% 49,895,007 53,079,850 16,406,621 45.12% 8.49%
1.00% 54,245,633 53,037,152 20,051,182 55.14% 10.03%
3.00% 58,950,452 52,996,183 23,970,330 65.92% 11.59%
5.00% 64,037,636 52,957,257 28,185,061 77.51% 13.16%
7.00% 69,537,547 52,920,718 32,717,961 89.97% 14.74%

9.00% 75,482,902 52,886,946 37,593,331 103.38% 16.33%
11.00% 81,908,949 52,856,354 42,837,312 117.80% 17.92%
13.00% 88,853,661 52,829,399 48,478,024 133.31% 19.53%
15.00% 96,357,942 52,806,580 54,545,713 150.00% 21.15%
Sensitivity Reports continue on the next page


Sensitivity Analysis for Capitalisation Rate Variations

Cap. Rate Sale Value Inv. Cost Margin HPR IRR
11.75% 70,850,151 53,112,087 32,411,917 89.13% 14.53%

12.00% 69,374,106 53,078,541 31,496,098 86.61% 14.24%
12.25% 67,958,308 53,046,363 30,617,660 84.20% 13.96%
12.50% 66,599,142 53,015,473 29,774,359 81.88% 13.69%
12.75% 65,293,276 52,985,794 28,964,129 79.65% 13.42%
13.00% 64,037,636 52,957,257 28,185,061 77.51% 13.16%
13.25% 62,829,379 52,929,797 27,435,392 75.45% 12.90%

13.50% 61,665,872 52,903,353 26,713,489 73.46% 12.65%
13.75% 60,544,674 52,877,872 26,017,837 71.55% 12.41%
14.00% 59,463,519 52,853,300 25,347,030 69.70% 12.17%
14.25% 58,420,300 52,829,590 24,699,759 67.92% 11.94%
Sensitivity Analysis for Equity Variations

Equity Sale Value Inv. Cost Margin HPR IRR
6,000,000 64,037,636 54,144,192 27,389,815 75.32% 12.77%

6,400,000 64,037,636 53,906,805 27,548,864 75.76% 12.85%
6,800,000 64,037,636 53,669,418 27,707,913 76.20% 12.92%
7,200,000 64,037,636 53,432,031 27,866,963 76.63% 13.00%
7,600,000 64,037,636 53,194,644 28,026,012 77.07% 13.08%
8,000,000 64,037,636 52,957,257 28,185,061 77.51% 13.16%
8,400,000 64,037,636 52,719,870 28,344,110 77.95% 13.23%

8,800,000 64,037,636 52,482,483 28,503,160 78.38% 13.31%
9,200,000 64,037,636 52,245,096 28,662,209 78.82% 13.39%
9,600,000 64,037,636 52,007,709 28,821,258 79.26% 13.47%
10,000,000 64,037,636 51,770,323 28,980,307 79.70% 13.54%
Sensitivity Reports continue on the next page


Sensitivity Analysis for Investment Period Variations

Range is 36 months to 156 months, in 12 month Increments Amounts are in $'s
End Date Sale Value Inv. Cost Margin HPR IRR
09/2011 57,918,173 48,727,818 16,608,211 45.67% 13.54%

09/2012 60,901,126 51,055,965 22,074,702 60.71% 13.19%
09/2013 64,037,636 52,957,257 28,185,061 77.51% 13.16%
09/2014 67,335,599 54,373,769 34,996,432 96.24% 13.28%

09/2015 70,803,313 55,247,690 42,563,458 117.05% 13.49%
09/2016 74,449,507 55,835,753 50,851,978 139.84% 13.72%
09/2017 78,283,355 56,443,149 59,831,331 164.54% 13.95%
09/2018 82,314,502 57,078,685 69,545,283 191.25% 14.16%
09/2019 86,553,089 57,743,664 80,042,487 220.12% 14.37%
09/2020 91,009,780 58,439,452 91,374,546 251.28% 14.57%
09/2021 95,695,782 59,167,477 103,596,187 284.89% 14.75%
Sensitivity Analysis for Leasing Vacancy Rate Variations

Increment Sale Value Inv. Cost Margin HPR IRR
-5.00% 67,606,407 52,642,251 31,923,074 87.79% 14.62%

-4.00% 66,892,653 52,705,253 31,175,471 85.73% 14.33%
-3.00% 66,178,899 52,768,254 30,427,869 83.68% 14.04%
-2.00% 65,465,145 52,831,255 29,680,266 81.62% 13.75%
-1.00% 64,751,390 52,894,256 28,932,664 79.56% 13.45%
0.00% 64,037,636 52,957,257 28,185,061 77.51% 13.16%
1.00% 63,323,882 53,020,258 27,437,459 75.45% 12.86%

2.00% 62,610,128 53,083,260 26,689,856 73.40% 12.56%
3.00% 61,896,374 53,146,261 25,942,254 71.34% 12.26%
4.00% 61,182,619 53,209,262 25,194,651 69.29% 11.95%
5.00% 60,468,865 53,272,263 24,447,049 67.23% 11.65%
End of Sensitivity Reports


Inputs Report Amounts are in $'s
Investment Settings
Investment Identification
Investment Name : Grand Luxury Hotel

Type of Investment : General
Capital City : Sydney
Description : Hotel Investment
Location : Sydney CBD
Prepared By : Devfeas Pty. Ltd.
Investment Dates
Reference Date : October 2008

Completion Date : September 2013
First month of financial year : July
Residual Investment Value Calculation
Residual Investment Value Calculation is NOT required.
Equity
Equity has been provisionally injected as a percentage of purchase price : 20.00%
Loans and Interest
Only Primary Debt Funds apply to any borrowings.

Primary Debt interest rate per annum throughout cashflow : 10.00%
Primary Debt Finance Establishment Fee has NOT been selected.
Lending interest rate per annum : 6.00%
Inflation Rate
Inflation rate per annum : 4.00%
Tax Rates
Marginal/Company tax rate : 33.00%

Effective Capital gains tax rate : 30.00%
Inputs Report continues on the next page


Inputs Report (continued) Amounts are in $'s
GST Settings
This Investment is a Non-Residential Property.

GST rate : 10.00%
GST is remitted/refunded quarterly.
Other Settings
Contingency as a percentage of all costs before interest : 0.00%
Monetary amounts are shown to the nearest dollar.
Investment Purchase Price
Investment Purchase Price: 40,000,000
An Input Tax Credit is Available for the Investment Purchase Price.
Building Depreciation
Total Building Depreciation : 3,380,208
Building Depreciation Item 1 of 1
Description : Building
Original Cost : 27,500,000
Starting Book Value : 27,500,000
Depreciation Start Date : Oct 2008
Depreciation Rate : 2.50%
Plant & Equipment Depreciation
Total Plant & Equipment Depreciation : 3,687,500
Plant & Equipment Depreciation Item 1 of 1
Description : All Plant & Equipment

Original Cost / Starting Book Value : 5,000,000
Depreciation Start Date : Oct 2008
Depreciation Rate : 15.00%
Depreciation is calculated using the 'P' method.


Rates and Taxes
Total Rates and Taxes : 1,216,529
Rates and Taxes Item 1 of 3
Description : Council Rates

Fee Basis : Assessed Unimproved Value
Fee Frequency : Annual
Fee Paid : August
Fee Method : As Percentage
Percentage : 1.14%
Description : Water & Sewer

Fee Basis : Assessed Annual Value
Fee Frequency : Quarterly
Fee Paid : August
Fee Method : Use Tax Scales
Description : Land Tax

Fee Basis : Assessed Unimproved Value
Fee Frequency : Annual
Fee Paid : December
Fee Method : Use Tax Scales
Assessed Values for Rates and Taxes
Assessed Unimproved Value is calculated as a percentage

of Escalated Imputed Land Value: 100.00%
Assessed Capital Value is calculated as a percentage
of Escalated Imputed Capital Value: 100.00%
Assessed Annual Value is calculated as a percentage
of Assessed Capital Value: 5.00%
Stamp Duty on Transfer and Conveyancing Fees
Stamp Duty on Transfer is calculated using the tax library. 2,185,490
Purchaser's Conveyancing Fees : 0.50% 200,000

Vendor's Conveyancing Fees : 0.50% 320,188


Selling, Leasing and Management Fees
Selling Fees : 2.00% 1,280,753

Leasing Fees : 0.00% 0
Management Fees : 2.00% 826,383
Capitalisation or CV Escalation Rate
Cap. Rate for Sell-On: 13.00%
GST Applies to the Investment Sale Price.
Rent Income Items
Total Rent Income Received : 39,253,187
Rent Income Item 1 of 1
Description : Hotel Lessee's Rent

Leasing Vacancy : 5.00%
Escalation Rate : 5.00%
Leasing Fees Date : Oct 2008 Leasing Fees apply to this item.
Rent Start Date : Oct 2008
First Review Date : Oct 2008
Quarters Between Reviews : 4
This tenant does NOT pay pro-rata Rates and Taxes.
This tenant does NOT pay pro-rata Management Fees.
GST applies to this item
... from the rent start date.
Amount : 7,600,000
End of Inputs Report

Hotel Invt Demo Reports

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Hotel Invt Demo Reports

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PROPERTY INVESTMENT FEASIBILITY STUDY

Investment: Grand Luxury Hotel page 1

Description: Hotel Investment 15:43

Profit & Loss Amounts are in $'s

Income: Investment Sale Price 64,037,636

Margin Before Interest and Tax 51,746,617

Net Income Before Tax 40,943,491

Plus Income Tax Benefits:

Net Income Before Capital Gains Tax 35,714,280

Less Capital Gains Tax:

Taxable Capital Gain 25,097,396

Holding Period Return After Tax 28,185,061

Internal Rate of Return After Tax 13.16%

Equity Amount: 8,000,000 (31.09% IRR on Equity)

Peak Level of Debt : 34,249,655 (Occurs on Oct 2008)

End of Profit and Loss (Categorised) Report

Description: Hotel Investment 15:43

GST Summary Report Amounts are in $'s

With GST GST Pre-GST

Investment Sale Price 64,037,636 5,821,603 58,216,033

Totals 103,290,823 9,390,075 93,900,749

Investment Purchase Price 40,000,000 3,636,364 36,363,636

Borrowing Interest 10,803,125 0 10,803,125

Holding Period Return After Tax 28,185,061

GST Collected with Sales and Other Income 9,390,075

End of GST Summary Report

Description: Hotel Investment 15:43

Categorised Cashflow Amounts are in $'s

Cashflow Period 1 2 3 4 5 Subtotals

Inflation Factor 1.0067 1.0168 1.0270 1.0373 1.0477

Purchase & Costs 42,385,490 42,385,490

COSTS B4 INT. 42,593,600 202,365 202,365 290,411 349,871 43,638,613

INCOME B4 INT. -1,805,000 -5,463,000 -1,808,455 -1,382,520 -1,900,802 -12,359,776

Net Outlay 40,788,600 -5,260,635 -1,606,089 -1,092,109 -1,550,931 31,278,837

NET FLOW 41,630,096 -4,530,543 -898,081 -401,717 -875,992 34,923,762

Cashflow (Categorised) Report continues on the next page

Description: Hotel Investment 15:43

Categorised Cashflow Amounts are in $'s

Cashflow Period 6 7 8 9 10 Subtotals

Inflation Factor 1.0582 1.0688 1.0795 1.0904 1.1013

Purchase & Costs 42,385,490

COSTS B4 INT. 212,705 212,705 304,337 366,606 223,573 44,958,539

INCOME B4 INT. -1,900,979 -1,900,979 -1,123,202 -1,998,050 -1,998,236 -21,281,222

Net Outlay -1,688,274 -1,688,274 -818,865 -1,631,444 -1,774,663 23,677,317

NET FLOW -1,036,423 -1,062,550 -211,912 -1,038,175 -1,208,613 30,366,089

Cashflow (Categorised) Report continues on the next page

Description: Hotel Investment 15:43

Categorised Cashflow Amounts are in $'s

Cashflow Period 11 12 13 14 15 Subtotals

Inflation Factor 1.1124 1.1235 1.1348 1.1462 1.1577

Purchase & Costs 42,385,490

COSTS B4 INT. 223,573 318,939 384,133 234,997 234,997 46,355,179

INCOME B4 INT. -1,998,236 -998,528 -2,100,274 -2,100,470 -2,100,470 -30,579,200

Net Outlay -1,774,663 -679,589 -1,716,142 -1,865,472 -1,865,472 15,775,979

NET FLOW -1,239,081 -165,316 -1,216,317 -1,397,401 -1,432,628 24,915,347

Cashflow (Categorised) Report continues on the next page

Description: Hotel Investment 15:43

Categorised Cashflow Amounts are in $'s

Cashflow Period 16 17 18 19 20 Totals

Inflation Factor 1.1693 1.1810 1.1929 1.2049 1.2169

Purchase & Costs 42,385,490

COSTS B4 INT. 334,249 402,488 247,006 247,006 7,833,490 55,419,418

Sell-On Income -64,037,636 -64,037,636