Task
You have been instructed by your client, ‘Dreamcatcher Investments’, to prepare a fully referenced client report giving recommendations and conclusions both on the performance of your client’s existing investment portfolio (‘The Athena’ portfolio) and on the key considerations for the creation of a new specialist investment portfolio to be known as ‘The Poseidon’ portfolio.
For ‘The Athena’ portfolio you should report on:
• the possible acquisition of Unit 5 Primrose Distribution Park. Prepare a discounted cashflow (DCF) appraisal on this property to determine whether your client should acquire it for the ‘Athena’ portfolio. Your appraisal should include sensitivity and probability risk analysis on this investment proposition.
• the performance of the ‘Athena’ portfolio over the last seven years benchmarked against the in-house ‘All-property’ index.
• recommendations on how to rebalance the portfolio in accordance with the new five years strategy.
For ‘The Poseidon’ portfolio you should report on:
• how to create, manage and measure the performance of the new ‘Poseidon’ portfolio of Core German and French properties.
• an investment strategy and a set of objectives for this fund. You are required to make all relevant assumptions explicit regarding the strategy and objectives.
• a summary assessment that identifies the key trends currently affecting the funding market for real estate investments in France and Germany. Your assessment should make recommendations on funding options for your client.
• a property search undertaken by you in the German and French commercial property investment markets in which you identify one ‘green’ commercial property investment currently ‘For sale’ that you believe would be a potentially suitable acquisition for the new portfolio. Prepare a profile (10–15 points) on this property summarising the key characteristics of this investment and provide recommendations to your client on why it might be suitable for this fund. (You are not required to prepare a DCF model as part of your profiling of this investment opportunity).
See attached papers for more details
