Mgt602 Industrial Valuation - Free Assessment Answer

Title: ABC Textile industry

Tenure: Freehold

Description: The industry is capable of performing its manufacturing operation due to the management of supply and demand of resources at the site location.

Proprietor: K.M. Williams

Source: Xaviours Trading Company

The following table shows the boundary map of the undertaken industry.

The shape of the plot is illustrated in the diagram below:

Challenges related to Environment

The survey of the project site helps in analysing some environmental issues which exist with the ABC textile industry.

• The analysis of the environmental audits helps in exploring that the contamination from the industry is dumped into nearby location.
• The valuation of the industry gets affected with the accumulation of environmental risks associated with the project.
• The environmental audits help in initializing the fact that the cleaning activity program should be proposed for minimising its effect on the environmental premises.
• The negative aspect of the site depends on the contamination deposition in the premises of the industry.

The value of the premises can be increased by minimizing the challenges which exist with the management of the environmental issues.

The industrial area is facilitated with the availability of services like water, transportation, electricity, well-constructed road for the supply or resources and equipment, and better connectivity with various governmental agencies.

Town Planning

 The industry is located at the North Highway road, Ashfield, Sydney. The objective of the town planning is as follows:

• To divide the land for various purposes such as store house for handling of the resources, site location to carry out the manufacturing process, and the warehouse for the management of finished goods for supply.
• The new opportunities are opened for fresher and youth to become a part of the esteemed industry.
• The efficiency of handling resources and equipment can be enhanced with the proper synchronization of the product at store house and warehouse.
• The contamination collected in the nearby area of the industry can be reduced for managing the ecological balance and resolve the issues with the environmental audits.
• Providing various facilities such as water, transportation, electricity, well-constructed road for the supply or resources and equipment, and better connectivity with various governmental agencies.
• Availability of the marketing agent helps in exploring the goods to the local market which increases the sale value of the product.

The agreement should be signed for providing on demand supply of resources, raw material, and etc. for carrying out manufacturing process to develop finish goods.

Prohibition Rules:

• The contamination of the waste from the industry should be not be accumulated in the industry.
• The prohibition rule should be developed for animal entry into the premises.
• Minimization of noise and air pollution

Overlays:

• Identification of the flood areas
• Protection plan for resolving flood problem
• Agreement with the water act 1989
• Environmental clause 33 and 35 should be followed

Approval:

The final certification is required for resolving the environmental and social issues which exist with the industry. The project approval plan is required for the division of land for various purposes such as store house for handling of the resources, site location to carry out the manufacturing process, and the warehouse for the management of finished goods for supply. The environmental experts should perform the audits on environment to generate the agreement with the company for minimizing waste collected into the premises which can have an adverse effect on the environment.  

Cost Value Estimation:

The following table shows the cost value estimation of the ABC textile industry:

Areas of Improvement

The project improvement plan is required for the division of land for various purposes such as

• Store house for handling of the resources
• Site location to carry out the manufacturing process
• The warehouse for the management of finished goods for supply.

Construction Program

The following components are required to be renovated for increasing the value of the industry.

Layout of the construction

Ground floor of the building is composed of

• Store house
• Ware house
• Workshop for manufacturing of the products
• Kitchen
• Male and Female toilets
• Rest room
• Medical Room
• Facilities of water and electricity

Level 1:

• Administrative office
• Inspection office
• Quality Management office

The following diagram shows the renovation of the industrial building of the ABC textile company:

The following diagram shows the management of the warehouse and storage house for the management of raw material and finished goods of the industry.

The following picture represents the outlook of the administrative office and inspection room:

The following picture represents the outlook of the reception counter

The following picture represents the outlook of the store house for managing supply and demand of the resources.

Required division of building areas:

The following table shows the division of area with respect to the partition of area required to develop a specific building location.

Market Analysis

The analysis of the market helps in exploring the area of improvement required in the industry. The market survey should have been done before undergoing the construction program.

• Analysis of the transportation helps in measuring the ease of managing the supply and demand of the resources
• Analysis of the facilities and services provided to that location in terms of water, electricity, sewage system, and others.
• Analysis of the rental value
• Analysis of the lease value
• Analysis of the availability of the expert labour, foremen, and workmen
• Profitability in investing
• Requirement of the textile in the nearby market of the finished goods
• Analysis of the availability of the raw material required for the processing of the industry.
• The value of the land depends on the increasing sale of the finished goods in the local market
• Planning of the advertising schemes for increasing the sale value of the property.

Sales improvement plan

Management of the supply and demand of the raw material and the finished good helps in enhancing the sales of the goods. The increasing sale of the product helps in increasing land value of the industry. From the survey of the sale report, it is analysed that the rate of sale get increased from the year 2017 to 2018 due to high availability of raw material and supply of it into the local market.

Land Value

The value of the land gets increased with the increased sale of the products in the market. It open opportunity for the developer to invest in the property in order to achieve long term sustainability.

The property of the industry is near to the highway for managing the sale of the annual market. The relationship should be maintained between topography and the zoning area.

Approach of capital income:

The valuation of the market depends on

• The availability of expert labour
• Supply of finished goods for sale,
• Availability of local agents for marketing of the finished goods.

Analysis of the market Approach

Comparison of Sale evidences

The following table shows the comparison of difference in land cost allocated and building cost