ASSUMPTIONS

Property
Gross Building Area (Sq.Ft.) 13,250
Loss Factor 80%
Purchase price 5000000
Loan to value 75%
Land value 750000
Depreciable life (building) 25 Straight-line

Equity Structure
RANJIT:
Equity percentages This cell will turn red as a
- Sponsor 20.0% warning if the amount
- Equity partner 80.0% entered here exceeds the
maximum debt figure in
cell D17. D17 is calculated
Debt parameters Maximum using the LTV percentage
in cell C6 and the purchase
Debt 3750000 3750000 price in cell C7.
Amortization Schedule (years) 10
Interest Rate per annum 5.0%

Income & Expenses

Rent/SF per Year 30.00
Vacancy & Collections Loss 5.0%
Operating Expenses 95,000
Management fees 4.0% Percentage of net rental income

Assumed Rates
Growth Rate - Income 4.0%
Growth Rate - Expenses 3.0%
Terminal Capitalization Rate 9.0%
Sales Expense (Brokerage & Legal) 5.0%

Tax Rates
Marginal Tax Rate 35.0%
Tax on Gain 15.0%
Tax on Accumulated Depreciation 25.0%
 Now u can do sensitivity analysis by changing
various values, for exaample loan amount (c7) .
turn red as a
he amount
e exceeds the
ebt figure in
7 is calculated
TV percentage
d the purchase
C7.
Cash flow analysis

Year No. 0 1 2 3
Investment
Purchase cost (5,000,000.00)
Loan 3,750,000.00
Income/Expenses
Gross potential income 318,000.00 330,720.00 343,948.80
Vacancy & collections loss 15,900.00 16,536.00 17,197.44
Net rental income 302,100.00 314,184.00 326,751.36
Operating expenses 95,000.00 97,850.00 100,785.50
Management fees 12,084.00 12,567.36 13,070.05
Loan amortisation
Interest expense (187,500.00) (172,592.89) (156,940.43)
Loan repayment (298,142.16) (313,049.26) (328,701.73)
Sale of property
Sales proceeds
Sales expenses
Net cash flow (1,250,000.00) (290,626.16) (281,875.52) (272,746.35)
IRR (Pre-tax) 7.0%

Loan
Repayment
Check 1.00

Simple Musharaka Model

Total 195,016.00 203,766.64 212,895.81
IDB 146262 152824.98 159671.854
Customer 48,754.00 50,941.66 53,223.95

IDB
Customer
Total Shares IDB (3,750,000.00) 195,016.00 203,766.64 212,895.81
Customer -1,250,000.00 48,754.00 50,941.66 53,223.95
IRR 6.45%
 4 5 6 7 8 9 10

357,706.75 372,015.02 386,895.62 402,371.45 418,466.31 435,204.96 452,613.16

17,885.34 18,600.75 19,344.78 20,118.57 20,923.32 21,760.25 22,630.66
339,821.41 353,414.27 367,550.84 382,252.88 397,542.99 413,444.71 429,982.50
103,809.07 106,923.34 110,131.04 113,434.97 116,838.02 120,343.16 123,953.45
13,592.86 14,136.57 14,702.03 15,290.12 15,901.72 16,537.79 17,199.30

(140,505.34) (123,248.50) (105,128.82) (86,103.15) (66,126.20) (45,150.40) (23,125.82)

(345,136.81) (362,393.65) (380,513.34) (399,539.00) (419,515.95) (440,491.75) (462,516.34)

(263,222.66) (253,287.79) (242,924.39) (232,114.36) (220,838.90) (209,078.39) (196,812.41)

222,419.49 232,354.36 242,717.77 253,527.79 264,803.25 276,563.76 288,829.75

166814.62 174265.772 182038.328 190145.844 198602.44 207422.823 216622.31
55,604.87 58,088.59 60,679.44 63,381.95 66,200.81 69,140.94 72,207.44

222,419.49 232,354.36 242,717.77 253,527.79 264,803.25 276,563.76 288,829.75

55,604.87 58,088.59 60,679.44 63,381.95 66,200.81 69,140.94 72,207.44
- You need to have a financing structure whereby, you can earn the
highest return.
 11 12 13 14 15 16 17

470,717.68 489,546.39 509,128.25 529,493.38 550,673.11 572,700.03 595,608.04

23,535.88 24,477.32 25,456.41 26,474.67 27,533.66 28,635.00 29,780.40
447,181.80 465,069.07 483,671.83 503,018.71 523,139.45 544,065.03 565,827.63
127,672.06 131,502.22 135,447.28 139,510.70 143,696.02 148,006.90 152,447.11
17,887.27 18,602.76 19,346.87 20,120.75 20,925.58 21,762.60 22,633.11

301,622.47 314,964.09 328,877.68 343,387.26 358,517.85 374,295.53 390,747.42

301,622.47 314,964.09 328,877.68 343,387.26 358,517.85 374,295.53 390,747.42

226216.85287 236223.0674 246658.257 257540.442 268888.39 280721.645 293060.563
75,405.62 78,741.02 82,219.42 85,846.81 89,629.46 93,573.88 97,686.85

301,622.47 314,964.09 328,877.68 343,387.26 358,517.85 374,295.53 390,747.42

75,405.62 78,741.02 82,219.42 85,846.81 89,629.46 93,573.88 97,686.85
an earn the
 18 19 20

619,432.36 644,209.65 669,978.04

30,971.62 32,210.48 33,498.90
588,460.74 611,999.17 636,479.14
157,020.53 161,731.14 166,583.08
23,538.43 24,479.97 25,459.17

7,071,990.40
353,599.52
407,901.79 425,788.06 7,162,827.78

407,901.79 425,788.06 444,436.90

305926.339 319341.0463 333327.671686992
101,975.45 106,447.02 111,109.22
6,718,390.88
5038793.16053587
1,679,597.72017862
407,901.79 425,788.06 5,483,230.06
101,975.45 106,447.02 1,790,706.94