Pricing The Priceless: Grand Central Station

Pricing The Priceless: Grand Central Station

by Simon Zohhadi on Tuesday, 23 August 2011 at 23:30 ·

 

Estimated Build Cost:
Excavation Foundations =$3.149 million
Steel Frame (29,000 US tonnes)= $56 million
Plumbing, Electrics, Finishes etc = $360 M
Total Build Cost = $419.1 million

Scrap Value:
Value of Land = $600 million approx.
Limestone = 5,000 US tonnes
Scrap Value = $20 per tonne
Steel = 29,000 US tonnes
Scrap Value of Steel = $320 per tonne
Scrap Value of Shell = $9 million for the Shell of the Terminal
Add:
Most valuable "treasures" of building (incl famous clock, Chandeliers, Train etc)

Total = $617 million

Business Value of Grand Central Station:

Revenue =
Shopping Mall + $27 million per annum

Cost =
Electricity - $5.5 million per annum
Cleaning & Maintenance - $12 per annum

Estimated Profit (taking other things into account) = $15 million per annum

Purchase Price = Willing to spend 10x as much i.e. $150 million for these profits.

* Has capacity to make more money.