Provide a draft report for submission by your line manager to Cathedral Properties Ltd, dealing with the following points.1. Concerning the shop; Cathedral Properties are thinking of selling their interest. They require an estimate of market value and your view as to a suitable asking price. Your line manager has recommended you adopt the dual rate approach. Cathedral Properties have also asked you to explain and constructively criticise this approach as they are only familiar with single rate valuation.2. For the hotel, compare and contrast the profit method with the investment method for valuing investment properties. As part of your explanation, you will need to outline the basic model for each method, explaining and discussing any technical terms and conceptions adopted. Cathedral properties requires a brief discussion on what is meant by the notions of business ethics, corporate responsibility and sustainability, and whether they are interrelated.3. For the proposed office acquisition, stating all reasonable assumptions, what is the minimum average annual rate of rental growth that must be achieved to justify offering the asking price? In order to demonstrate your conclusion you must explain and set out full discounted cashflow calculations, and manually calculate the growth rate using linear interpolation. Cathedral Properties have stated they intend to hold the property for 20 years, and you are to assume the lease can be readily renewed at lease renewal. It is suggested you base your initial trial growth rate using the basic formula:e k + g Where: e = Equated yield k = ARY g = annual growth rate
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