My part of this group assignment for the Memo is Recommendations, Issues, and Detailed Analysis.
My partner will take this information to use for Risk/Mitigant, conclusions, and disclosures/disclaumers.
For the “Your Tasks” section, all 4 bullet points should be answered.
The Project Deutschland case study serves as the final exam for the Real Estate Portfolio Management course. It is similar to the other case studies in that it is designed to require students to qualitatively and quantitatively analyze a real estate problem or challenge, develop a strategic solution that embodies both qualitative and quantitative objectives, and prepare a written recommendation advocating that solution. The strategic solution must be quantifiable and economically justifiable and presented in memorandum format, written intelligently, prepared in a professional manner, and be free of grammatical errors. The structure of the memo must be as follows:
2. Issues (e.g., project, analysis, market, etc.).
3. Detailed Analysis* (e.g., what was considered, how were assumptions set, etc.).
6. Disclosures/disclaimers (if applicable)
Note that the analysis portion is the “meat” of the case. This MUST include a quantifiable justification for the recommendation(s) as well as defend the assumptions made. It also must include multiple scenarios and “what-ifs” as sensitivities. It is not enough to submit a recommendation based on the return expected alone; risk must be quantified, analyzed, and used within the context of recommendation support.
• Describe the situation and Veritas’ challenges and opportunities; what are Veritas’ objectives? What, in your opinion, should they be?
• What are Veritas’ strategic and execution objectives? What operational considerations should be important to Veritas?
• Who or what are the various stakeholders in this situation and how are they important or unimportant to Veritas?
• If you believe that other parties or stakeholders are important to Veritas (i.e., is Tiberius important?), how should Veritas structure a venture or compensation scheme with these parties? Why? What interests should Veritas acquire and how much should Veritas pay? Why? (Hints: Use the information provided to develop a DCF analysis. Also, think about the importance of gaining and maintaining control in this.
• How much leverage should Veritas utilize? Why?
• Based on your modeling of this opportunity, what are Veritas’ expected returns? Use sensitivity analysis to demonstrate various risks that should be acknowledged by Veritas. What you’re your analysis suggest?