Corporate Center. The Group’s Board of Management is supported in its management tasks by the Corpo- rate Center. In addition to supporting BAG’s Board of Management, the Corporate Cen- ter also provides services within the scope of its responsibilities to many Bayer Group companies in return for payment. The Corporate Center is composed of the following departments: Corporate Office, Cor- porate Communications, Public Relations, Group Internal Audit, Human Resources, Cor- porate Development, Group Finance, Legal and Patents, Group Accounting, Regional Coordination, and Sustainability Management.
Corporate Center. Radnor Corporate Center consists of ---------------- approximately 57.021 acres of ground and certain buildings and other improvements thereon (including five separate office buildings, of which the Building is one, and related amenities), all located at or about Matsonford Road and King of Prussia Road in Radnor Township, Delaware County, Pennsylvania (the "Corporate Center"). Landlord reserves the right, in its sole discretion, at any time and from time to time, to expand and/or reduce the amount of ground and/or improvements of which the Corporate Center consists.
Corporate Center. In estimating the value of this property, the Purchaser performed the following analysis. The Purchaser calculated estimated annual cash flow through December 31, 2007 based on various assumptions, including, among others, (i) market rents at various points in time, as adjusted for inflation, (ii) lease expiration dates and renewals rates for existing tenants, (iii) tenant improvement allowances for new leases and lease renewals and (iv) length of new leases. The Purchaser, in order to arrive at a present value of the estimated annual cash flows for years one through ten, utilized the estimated annual cash flow for year one and applied a discount rate of 12% in order to determine the present value of the estimated annual cash flows for each of years two through ten. Next, the Purchaser capitalized the estimated net operating income amount for each of years one through ten at a 10.5% capitalization rate, then subtracted 3% for estimated sale transaction costs, resulting in an estimated net liquidation value for the property for each of years one through ten. The Purchaser, in order to arrive at a present value of the estimated net liquidation value for years one through ten, utilized the estimated net liquidation value for year one and applied a discount rate of 12% in order to determine the present value of the estimated net liquidation values for each of years two through ten. The Purchaser then calculated an annual property value for each of the ten years based on the sum of the present values of (A) estimated cash flow and (B) estimated net liquidation value. Finally, the Purchaser totalled the annual property values for each of the ten years and then divided that amount by ten, resulting in an estimated property value of $4,576,628. SOUTH CITY BUSINESS CENTER. In estimating the value of this property, the Purchaser performed the following analysis. The Purchaser calculated estimated annual cash flow through December 31, 2007 based on various assumptions, including, among others, (i) market rents at various points in time, as adjust for inflation, (ii) lease expiration dates and renewal rates for existing tenants, (iii) tenant improvement allowances for new leases and lease renewals and (iv) length of new leases. The Purchaser, in order to arrive at a present value of the estimated value of the estimated annual cash flows for years one through ten, utilized the estimated annual cash flow for year one and applied a discount rate of 12% in order to determ...
Corporate Center. In estimating the value of this property, the Purchaser reviewed the income ($516,036) generated by the property for the ten months ended October 31, 1997 (comprised of $515,249 of gross rental income and $787 of other income), and then deducted from this amount the total operating expenses of the property for the first ten months of 1997 ($230,366), resulting in the Purchaser's estimate of net operating income for the first ten months of 1997 ($285,670). The Purchaser then annualized this amount, resulting in estimated annual net operating income of $342,804. The Purchaser then capitalized that estimated annual net operating income amount at a 9.5% capitalization rate, resulting in an estimated gross property value of $3,608,463. Finally, the Purchaser reduced the estimated gross property value by $100,000 to reflect capital expenditures that the Purchaser believes a third party purchaser would deem necessary at the time of acquisition or in connection with recently executed leases, resulting in an estimated gross property value of $3,508,463. SOUTH CITY BUSINESS CENTER. In estimating the value of this property, the Purchaser reviewed the income ($882,100) generated by the property for the ten months ended October 31, 1997 (comprised of $791,787 of gross rental income and $90,313 of other income), and then deducted from this amount the total operating expenses of the property for the first ten months of 1997 ($475,564), resulting in the Purchaser's estimate of net operating income for the first ten months of 1997 ($406,536). The Purchaser then annualized this amount, resulting in estimated annual net operating income of $487,843. The Purchaser then capitalized that estimated annual net operating income amount at a 10% capitalization rate, resulting in an estimated gross property value of $4,878,430. Finally, the Purchaser reduced the estimated gross property value by $50,000 to reflect capital expenditures that the Purchaser believes a third party purchaser would deem necessary at the time of acquisition or in connection with recently executed leases, resulting in an estimated gross property value of $4,828,430. * * * Based on the individual estimates of the gross values of the Partnership's properties described above, the Purchaser estimated that the current aggregate gross real estate value of the Partnership's properties is $74,491,865 (the "Gross Real Estate Value Estimate"). The property-specific capitalization rates used by the Purchaser in the valu...
