The chief executive officer (CEO) of TriDev Realty Partners, was considering an offer of $22.5 million that she had received for TriDev's Uptown Plaza shopping centre. Although she was looking to divest the property within a year, and the offer appeared attractive based on current income levels, she knew that a number of lease renewals were pending, which could increase the value of the property. Should the CEO sell now or wait until the lease .....more

The Ciputra Group was set up by Mr. Ciputra in the 1980s, after a long entrepreneurial career with a vision to provide a business for his children. The case describes the development of this group, which evolved into a prominent and innovative player in the Indonesian property sector. Under Ciputra's guidance, the company became known for its satellite cities, in which the group combined technical, construction and urban planning qualities, along .....more

The president and chief operating officer of Cadim, the real estate arm of the Caisse de Depot et Placement du Quebec, Canada’s largest pension fund management firm, was considering whether Cadim should enter India, China or both on a long-term basis to diversify its global real estate holdings and take advantage of the growth these two countries were experiencing. The fund’s investment would potentially amount to hundreds of millions of dollars and .....more

The president and chief operating officer of Cadim, the real estate arm of the Caisse de Depot et Placement du Quebec, Canada’s largest pension fund management firm, had recently been approached with several interesting multimillion-dollar investment opportunities in India and China. Although Cadim was still deciding whether to invest in either country (see Cadim: The China and India Real Estate Market Entry Decisions case), if the company chose to .....more

As the economies of Greater China continued the process of rapid transformation and industrialization, newly industrialized countries (NICs), such as Taiwan and mainland China, experienced dramatic changes in their business settings. Accompanying the industrialization of east Asian economies, business ethics were in a state of flux, as traditional values were often swept aside to justify profit maximization. In this ever-changing business environment, .....more

This note covers the basics of real estate from a portfolio manager's perspective. It examines how money is made in real estate, how real estate is valued, the differences among various types of real estate, and how to do basic financial modelling such as net present value (NPV) and internal rate of return (IRR).

The City of London was expropriating a portion of Springbank Drive as part of a project to widen the road between Wharncliffe Road and Wonderland Road. The owner of Canning Consultants Inc. was retained by the city to assess the resultant property value loss for the affected residents. The consultant had assembled a database of residential sales along with various property attributes, and had to determine how to proceed in calculating appropriate .....more

A real estate appraiser has been hired to provide an alternate assessment on a set of office buildings in London, Ontario. Real estate assessments are often based on comparisons versus similar properties. However, because the set of comparison properties is small he cannot rely on standard quantitative techniques like linear regression. Instead he uses a technique called quality point in which the property valuation problem can be formulated as a .....more

The chief executive officer of Brent-Harbridge Developments had just received confirmation of several upcoming property auctions. Brent-Harbridge Developments was currently "asset short" after some successful recent disposals, which made the CEO keenly interested in three of the properties being auctioned. She needed to prepare a bidding strategy in order to try to acquire at least one or perhaps more of the development properties being .....more

A partner at a law firm has been given a choice by one of the firm's assistants, either increase her salary or she would give her two-week resignation notice. The firm was extremely busy with clients and could not afford a reduction in staff, however, this employee's performance had not been up to standard and the partner must decide whether or not he should agree to this pay increase or if there are other options.