The Cirrus Building Sensitivity Analysis

In: Business and Management

Submitted By menkinsv
Words 433
Pages 2
• “class A” building
• was built in 2006
• Location: the Mokotow district in Warsaw, adjacent to Galeria Mokotow .

• 14,007 sqm gross lease area (GLA) including 13,049 sqm of office
• space, 958 sqm of retail area, and 192 sqm of storage.
• Parking space with a ratio of 1/45.
• Highly accessible: 6 bus and 3 tram lines; 500 meters to train station and
5 minute drive to metro stations.

The Cirrus building typical floor plan

The Cirrus building excusive interior

The current tenants

Sensitivity analysis of the financial implication
Proposed purchase price: 32.1355 Million Euro (June 30 2014)
Payments vs. time
1,600,000
1,400,000
1,200,000
1,000,000
800,000

total payment

600,000

Interest

400,000
200,000
0

Remaining principal vs. time
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0

Remaining principal

Sensitivity analysis of the financial implication
Property future price at 2021 vs. YTM
60,000,000

50,000,000

48,199,892
40,425,716

Property price

40,000,000

34,811,033

30,000,000 property future price
20,000,000

10,000,000

0
6.5%

7.75%
YTM[%]

9.0%

Sensitivity analysis of the financial implication
IRR vs. YTM
25%

20%

20%

17%
14%

IRR[%]

15%

10%

5%

0%
6.50%

7.75%

YTM [%]

9.00%

Sensitivity analysis of the financial implication
Property future revenue at 2021 vs. YTM
16,000,000

15,097,433

14,000,000

Property price

12,000,000
10,000,000

7,323,256

8,000,000
6,000,000
4,000,000

1,708,574

2,000,000
0
6.5%

7.75%

9.0%

YTM[%]

The value of capital+ loan at the point of selling will be 33,102,460$ at 2021.
In the worst case scenario of yield 9.0% the revenue will be 15,097,433$
In the best case scenario of yield 6.5% the revenue will be 1,708,574$

Suggested strategy
 The Cirrus building…...

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