Reference no: EM13999561 , Length: word count:3500

Topic: commercial asset management.

Details:

There are two part in this assignment, one is a case study the other journal article.

Case study - AIMS

The aims of the module are to:

? Develop students' knowledge in the law and practice of strategic asset, corporate real estate, commercial property and facilities management matters where this can be applied to a complex range of real estate issues, scenarios and landlord and tenant relationships allowing reasoned solutions and critical understanding based on academic and practice research to be presented.

? Engage students in various debates of how to achieve best value in applying sound and defensible strategic real estate and asset/investment management policies including developing a critical ability to assess the role of strategic asset management within various types of property ownerships patterns and structures.

? Introduce students to the fundamental and advanced principles of property and facilities management and their evolving roles within corporate organisations including gaining a systematic knowledge of benchmarking and performance measurement techniques, such as whole life-cycle costing and benchmarking and their use in establishing building and corporate performance.

Commercial Property and Asset Management

? Provide students with the opportunity to research and develop a critical appraisal of the role professional bodies and the organs of state have to play in encouraging, regulating and shaping property management policies and strategies through the entire spectrum of real estate activity and to understand the implications of failure mechanisms and legal liabilities.

Task 1: Case Study

Billy Allyson owns three former aircraft hangars which sit on the edge of a disused airstrip (known as Aircraft Estate). He purchased the 7.5 acre site and units from the Ministry of Defence in 1999 and has let them out to the same three tenants since then. The tenants are:

All leases are on effective full repairing and insuring terms. Leases on units 001 and 002 are due to expire in 2.5 years' time with that on unit 003 in 21 months (you may take the valuation date for calculations at 4 February 2016). There is a shared private access road (coloured light blue) from the public highway (coloured olive green) into the small estate of 3 units which otherwise sit on a freehold self-contained site. A small estate charge of 60 pence per sq. ft. applies based on the tenants paying their proportionate share relative to floor area.

Billy Allyson has had an approach from Smith Enterprises (Scotland) Ltd to purchase the freehold site outright for developing an out of town research laboratory in connection with their photovoltaic cell development and production business. Your research suggests that the capital rate for a research establishment of 112,000 sq. ft. would be in the region of £95 - 110 per sq. ft. Smith Enterprises are prepared to enter into a pre-purchase agreement and pay Billy Allyson a capital sum to build the unit for them with a hand over date 15 months from now.

Your other research reveals that current headline rents for older aircraft hangars vary between £3.35 and £5.65 per sq. ft. depending on size with tenants often negotiating 2 months' rent free for each year term certain.

Other than the information given in this scenario, you may use whatever assumptions you need in order to complete the two questions below:

(a) From both a landlord's and tenants' perspectives (NB there are three tenants), calculate the minimum and maximum premium the landlord could offer the tenants collectively and appraise the deal he could do with each of the tenants (on the basis that all three vacated now and surrendered their leases).

(b) If Car Breakers (UK) Ltd decided it did not want to move but to agree a new 5 year lease with 12 months' rent free on a new 3,000 sq. ft. unit and Smith Enterprises were prepared to accede to this and accept a new laboratory building of 110,000 sq. ft., appraise two different ways Billy Allyson could do the deal with the two respective parties who wish to take premises on the estate (you may assume that the figures you have calculated under part (a) before for Beetles UK Ltd and Mushrooms Ltd remain unchanged).

Task 2: Journal Article

"Asset Management: is it all it is cracked up to be?"

You should develop a journal article which aims to provide an appraisal of asset management strategies and how these are shaped by the successes or failures of those instigating and running them.

Your article must NOT be a mere production of other articles with some supporting ideas but should aim to demonstrate a framework of potentially interlinked areas of processes which lead to success - or otherwise!

You should note that your article must be in relation to the management and use of property and does NOT need to consider any issues associated with employment law.

You should ensure that the journal article conforms to standard practice in content and style. In this regard, you may wish to consult the Journal of Facilities Management to follow a house style.

we did in class on the calculations and formulas on excel and notes.if you can use the samples to get the concept.after the calculations we are to write a report about it and explaining it. i strongly recommend you look at the surrender and renewal pdf i uploaded and the sample work....

Please refer to the OSCOLA referencing system to be used for all law studies

All referencing, bibliography and footnotes are excluded from the word count

Full referencing and bibliography (including a separate legal citation) should be supplied at the end of each question (you must NOT append a single composite bibliography)

No# of Pages:14 pages (3,500 words)

Subject Area:Real Estate/Property

Paper Style:Harvard

No# of Sources Required:20

Language:English (U.K)

Attachment:- Assignment.rar