ARGUS University Challenge 2022 Global Top 10 Winner:

"The Big Long" Proposal | Development of Pine Mall 

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COVID restrictions, travel bans, and e-commerce... These are some of the uncertainties and trouble for the retail sector in the last few years. Indeed, the retail and hospitality sectors hit the hardest with regard to vacancy and rent in 2020.

That said, there are good signs of recovery for the retail sector. In 2021, we saw a 19.3% increase in total retail and food services sales compared to 2020, hitting $7.4 trillion.

 

Acting as financial analysts of the fabricated company Forever Funds, My team has made a complete project proposal for a mixed-use retail, Pine Mall, in the center of the made-up city Forestville in Waterland. In this 90-page report, our team uses Argus Enterprise to model the expected cashflows for all 3 investment scenarios to evaluate the feasibility and profitability of the project.

 

The scenarios are:

1. Sit and wait for natural lease-up.

2. Minimal improvements to decrease the lease-up period undergo a set of tenant relocations and tenant resizing.

3. Major renovations and capital improvements on aspects of the office space and retail areas.

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By financial modeling with ARGUS Enterprise, our team arrived at the best investment decision. We have concluded that, with the most aggressive asset management, the most expansionary development, and the highest capital expenditure, investment scenario #3 could offer the highest IRR and PV of 21.33% and 157.8 million WLD (Waterland Dollar) respectively.