HONG KONG : Build or Rent: Passport 'Peak' requirement
Assumption:
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2.
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9.
The building as per existing design will be marginally large (on average) by 820m2 for five out of every ten year cycle, for example betweem 1997 and year2001 (inclusive). The figure 820m2 has therefore been used as the area required for both options.
Furniture Costs are Common to both options and not included in either options.
Ground Rent ignored.
Service charges, maintenance costs etc. are common to both options and not included in either options.
ROE $11.75 £1.
No allowance has been made for redesign, delay, cost increases etc.
Rent of suitable space would equate to £360 per m2 p.a.
Building cost calculated at £800 per square metre.
Fit-out costs calculated at £300 per square metre inclusive of fees etc.
Conclusion:
NPV Advantage Option A, without allowing for further
'peak' rent burden.
PJJJN.257