Real Estate Analyst Question:
Explain me in mixed-use development how do you allocate the infra cost / land cost / service charge?
Answer:
Infra cost and land cost can be allocated on the basis of gross floor area (GFA), net sellable area (NSA) or in proportion to the projected revenue.
Service Charges can also be allocated on similar basis.
I personally prefer the allocation based on GFA as it makes life easier (accounting reasons).
Service Charges can also be allocated on similar basis.
I personally prefer the allocation based on GFA as it makes life easier (accounting reasons).
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