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Alexc
Group Title
Required Rate of Return on real estate investment.
Dear All,
How would you calculate the required rate of return for a special purpose vehicle which buys real estate (with 90% debt) and lends it to the government ("certain cash flows") and guaranties the maintenance of the building.
* Leveraging industry betas would give a distorted result, as the SPV is extremely geared.
* Lease/rent payments divided by the property values of similar projects would be a potential solution, but each project is unique, so it's difficult to compare/find data
* Any suggestions ?
* Could you suggest pa
 one year ago
 one year ago
Alexc Group Title
Required Rate of Return on real estate investment. Dear All, How would you calculate the required rate of return for a special purpose vehicle which buys real estate (with 90% debt) and lends it to the government ("certain cash flows") and guaranties the maintenance of the building. * Leveraging industry betas would give a distorted result, as the SPV is extremely geared. * Lease/rent payments divided by the property values of similar projects would be a potential solution, but each project is unique, so it's difficult to compare/find data * Any suggestions ? * Could you suggest pa
 one year ago
 one year ago

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