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Stage 1 (2022) “Tiered Waterfall”

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Stage 1 (2022) "Tiered Waterfall"

Stage 1 (2022) "Tiered Waterfall"

Tiered Waterfall is an actual case from the Financial Modeling World Cup 2022, Stage 1 (January 28-31) competition. This case is dealing with a real estate model, forecasting cashflows for an office building. The case is split into 2 parts – part 1 deals with modeling operational cashflows and part 2 deals with the cashflow waterfall.

Case description:

The objective is to create a 10-year cashflow model and evaluate possible financing structures for a group of real estate professionals who plan to acquire the Iguazu Offices building in Amazonia. The cash flow model should include existing and new tenants’ rent, operating expenses, and other costs.

The investors have $10 million to invest but require additional financing to acquire the $350 million Iguazu Offices building. The existing tenants’ rent rates are higher than market rates, and new rent agreements must be signed when the existing ones expire. Tenants 2, 3, and 4 are expected to leave, and it will take six months to find new tenants. The market rent rate is expected to decrease in 2022 and then recover in 2024 and 2025. The new tenant rent agreements will be based on the market rent rate.

The downloadable file consists of the following:
Task: PDF file with Case Materials; PDF file with Questions; Excel file with case assumptions
Solution: Excel file with full Solution Model; PDF file with correct answers in bold

This model awarded 500 regular points + 50 Extra Points for the bonus questions, while the whole 2h Stage allowed to earn 1,250 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at info@fmworldcup.com
You can also buy tickets to participate in the future FMWC Stages here.

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