Purchase And Sale

Question 1

What yields are high street retail?

Answer 1

West End - 2.25%
Prime - 4.00%
Regional - 4.5%
Good Secondary - 6.00%
Secondary - 10.00%

Question 2

What yields are shopping centres?

Answer 2

Prime - 4.5%

Secondary - 9.5%

Question 3

What yields are warehouses

Answer 3

Prime - 4.25%

Secondary - 5.00%

Question 4

What yields are offices?

Answer 4

City - 4.25%
West End - 3.5%
Regional cities - 4.75%
Secondary - 5.00%

Question 5

What is the LIBOR rate?

Answer 5

London Interbank offer rate

2.77

Question 6

What are the current business rates?

Answer 6

Small (-£51k) - 0.48
Normal - 0.493

City - extra 0.005
Cross rail levy (+£70k) - 0.02

Question 7

When would you advise a client to use informal tender as opposed to formal tender?

Answer 7

Ultimately it’s always the clients decision however on the ec3 sale I advised my client to use informal tender as I did not feel there would be one stand out bid. So I felt a competitive bidding process would be effective.

1 George yard - main comp

Question 8

What did the building sell for?

Answer 8

£18m
4.32%
6.8%
£1,298 
835k

Question 9

What must charities do when selling a building?

Answer 9

Section 119 of the Charities Act Valuation

I had to advise them whether it is in their best interest to sell

Question 10

What are the different acquisition costs you have come across?

Answer 10

Buying shares in a UK company
1.8% - 2.3%

Normal - 5.8-6.8%

Charities have to add on 1% for red book valuation

Question 11

What is SDLT?

Answer 11

Stamp Duty Land Tax

< 150,000 = 0%
150,001 - 250,000 = 2%
250,001 > = 5%