About this video
Block C is empty, a draft committee paper says fix it up, and a buyer has offered S$16m. Ellie values all four options on the real lease.
Full description
An asset team must decide what to do with Block C, a vacant 1996 warehouse on land that ends in 2041. Ellie follows every receipt behind the approved S$2m (S$2.48m all in, including S$480k of unbudgeted fire works), values hold, enhance, redevelop and sell at the 8% policy rate with a finite terminal, traces every enhancement input to its page and cell, and opens the head lease to show why the value ends in 2041. Selling leads at about S$15.6m against S$15.0m to fix it; nothing is approved. Fictional data.
Key points
- The approved S$2m is really S$2.48m once receipts and fire works are counted
- The draft paper valued the land as if it never ends; the head lease ends 30 September 2041
- Sell S$15.6m vs fix S$15.0m vs rebuild S$14.1m vs hold S$12.5m at 8%
- The buyer's offer is non-binding and open until 31 October 2026
Part ofAsset management
Video details
- Roles
- Asset Manager, Investor / LP
- Processes
- Asset Management, Valuation
- Geographies
- APAC
- Markets
- Singapore
- Tags
- author-demo, logistics, capex, Singapore