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# Scenario: CORE — Paris 8e (Institutional, trophy asset, long hold, >10,000 sqm)
# Asset: prime Haussmannian office property in [[Paris 8e]], stabilised institutional tenancy.
# Strategy: buy-and-hold, minimal [[capex]], indexed rents, very low structural [[vacancy]].
# Horizon: 10 years, purchase in 2025.
# Financial stance: conservative [[leverage]], low cost of debt, mildly higher exit yield.
# ------------------------------------------------------------------------------------
purchase_year: 2025
horizon_years: 10

# Rental and pricing mechanics
index_rate: 0.010          # modest indexation
entry_yield: 0.050         # slightly wider entry yield for a more investable core case
acq_cost_rate: 0.07
exit_yield_spread_bps: 25  # exit yield = entry_yield + 25 bps → mild yield softening
exit_transaction_costs:
  brokerage: 0.01
  taxes: 0.00
ltv_base: "price_di"
capitalized_fees: true
arrangement_fee_pct: 0.00

# Discounting: keep WACC close to property yield
disc_method: "wacc"
disc_rate_wacc:
  KE: 0.050    # higher equity return requirement
  KD: 0.025    # slightly higher cost of debt
# LTV and tax shield handled below via ltv_init / scr_ratio

# Operating costs
opex_sqm: 65

# Debt stance
ltv_init: 0.40      # conservative but still representative institutional leverage
rate_annual: 0.022  # close to KD, low but not ultra-cheap
extra_amort_pct: 0.00
scr_ratio: 0.33
leasing_cost_pct: 0.05

leases:
  - unit: "U1"
    area: 3000
    events:
      # Stabilised phase, very low vacancy, no works
      - {start: 2025, end: 2030, rent: 800, free_months: 0,  capex_sqm: 0,  vac: 0.01, new_lease: 0}
      # Renewal phase, modest step-up, some vacancy and light works
      - {start: 2031, end: 2034, rent: 840, free_months: 2,  capex_sqm: 20, vac: 0.05, new_lease: 1}

stabilization_year: 1
hurdle_equity_irr: 0.045
hurdle_project_irr: 0.040
hurdle_equity_npv: 0
