An office block of 14,000m2 gross area with 80% lettable area in Muscat, let recently at OMR 350,000 p. a on internal repairing terms (The landlord is
responsible for 5% external repairs, 5% insurance and 3% management fees).
The block has been sold for OMR 2,800,000 with 5% cost for sale. A
development company wishes to purchase a nearby site to build an office block
with a gross floor area of 10,000 m2 (70% lettable area) that is to be let on fully
repairing and insuring terms (FRI). The development company need to avail a
loan from bank. Short-term finance of 50% of the total estimated building cost
Gm