Golden Opportunity Case Instructions - FINAL

.pdf

School

University of Kentucky *

*We aren’t endorsed by this school

Course

464

Subject

Finance

Date

Apr 3, 2024

Type

pdf

Pages

2

Uploaded by MegaHeron3609

Report
1 FIN 464-695 Real Estate Finance and Investments Golden Opportunity Case Project Instructions Spring 2024 General Instructions This is a team assignment. Work in the teams you formed earlier in the semester for the Excel assignment. Your team will prepare a case report in the form of an “executive memo” worth 75 points, or 15 percent of your course grade. The “executive memo” will have at most 4 pages of text (1.5 spaced, 12 pt. font, default margins in Word) excluding a cover sheet and at most 5 pages of exhibits, tables, and figures. This means the document should be no longer than 10 pages in total (cover sheet, text, exhibits, tables, and figures). As an example, this document is in the specified format in terms of spacing, font, and margins. The memo should be addressed to “Hank Christofferson, CEO, Orrington Financial Partners” and should be a well-organized and integrated memo that clearly summarizes your analysis of the case questions. It should not be structured as just a series of answers to the suggested case questions. Prepare a brief slide deck summarizing your report. Be prepared to give a 15-minute briefing to Mr. Christofferson on your analysis and recommendations. On the case discussion day, I will select two teams at random to come forward and present their briefing and take some Q&A from Mr. Christofferson (the rest of the class and I will play the role of Mr. Christofferson). Everyone should come to class prepared to discuss the case. All are subject to “cold calls.” Make sure that you state and justify all assumptions. State any qualifications to your conclusions and recommendations and identify any additional data or information that would assist you in making a stronger case. You will need to develop an Excel model to address the questions most efficiently. You are required to turn in your Excel model along with your slide deck at the deadline. The Excel file is not graded but it may be reviewed to better understand the logic in your memo. It is
2 in your best interest to set up the model in a manner that is clear and well-organized in the event we refer to it when grading your memo. You are graded on the quality of your analysis, your logic in drawing conclusions based on your analysis, and the quality of the communication in your report—both narrative text and supporting exhibits or tables. The “executive memo,” slide deck, and Excel file should be submitted via Canvas (one submission of each per team) no later than Sunday, March 24 @ 11:59 pm . Case Questions Your case analysis should focus only on the properties in the San Francisco market. 1. Are CBRE’s projections in the pro forma reasonable? If not, how would you change the pro forma? Carefully justify your analysis based on the available data and facts from the case. 2. What should Aurelia recommend to Orrington Financial Partners? Purchase the entire San Francisco portfolio? Purchase only selected properties in San Francisco? Or pass on the entire opportunity? Justify your position carefully. 3. If you were Aurelia Dimas, what price would you bid for the properties selected? Which valuation approaches do you rely on and why? Again, carefully justify the assumptions leading to your conclusion. 4. Do you believe a sale-leaseback is a good or bad strategy for the State of California? Why? How might this issue affect your recommendations? Some qualitative issues to consider as appropriate (among others that are possible): Location : Advantageous relative to competitors? Age : How should age or the timing of recent renovations affect the pro forma and the value? Tenant : Given the properties are occupied by the State of California, should that affect the pro forma and the value? If so, how? Deferred maintenance : Will the buyer need to invest significant capital to position the property to market standards? If so, what is the impact on the value of the project? LEED certification : Is it already incorporated into the value?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help