Rosebank Workspace Business Plan — Appendix C: Assumption Register

The full assumption register behind the model, stated line by line for independent testing.

Section 28 of 29

Appendix C: Assumption Register

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Every assumption used in the financial model, its value, its source and the Company’s assessment of the confidence attaching to it. Assumptions marked low confidence are the ones an investor should test first.

C.1 Revenue and pricing

Table 85 Revenue and pricing assumptions

Assumption	Value	Source	Confidence
Desk density	9.0 m² per desk inclusive of common areas	Industry standard for premium enclosed-suite product	High
Product mix	62% private suite / 20% dedicated / 18% flexible	Company commercial plan	Medium
Flexible oversell factor	1.6× nominal capacity	Operator practice in comparable markets	Medium
Private suite rate, FY2027, Rosebank	R7,100 per desk per month	Competitor rate cards at approximately 88% of global-brand pricing	Medium–high
Dedicated desk rate, FY2027, Rosebank	R4,750 per desk per month	Competitor rate cards	Medium–high
Flexible membership rate, FY2027, Rosebank	R2,650 per member per month	Competitor rate cards	Medium
Node rate index	Rosebank 1.00 / Sandton 1.06 / Waterfall 0.88	Relative achieved rents and rate cards by node	Medium
Price escalation	6.5% per annum	Below lease escalation; a deliberate conservatism	Medium
Stabilised occupancy by product	87% private / 83% dedicated / 76% flexible	Operator disclosure in comparable markets	Medium — test first
Occupancy ramp	20% at opening, +5.5pp per month	Company commercial plan; 13 months to stabilisation	Low–medium — test first
Meeting room revenue	R300 per occupied desk per month	Consumption-based; operator benchmarks	Medium
Parking	0.35 bays per occupied desk at R1,050 per bay per month	Node parking rates and observed take-up	Medium–high
Virtual office members at maturity	170 / 130 / 110 per centre at R990 per month	Company commercial plan	Medium
Other ancillary	R175 per occupied desk per month	Includes food and beverage concession commission	Medium

C.2 Cost and capital

Table 86 Cost and capital assumptions

Assumption	Value	Source	Confidence
Gross rental at commencement	R250 / R278 / R212 per m² per month	Broker quotations for the target buildings	High
Lease escalation	7.5% per annum, contracted	Standard institutional lease terms	High
Lease term	Ten years per centre	Term sheets under negotiation	Medium–high
Rent-free period	Four months from lease commencement	Term sheets under negotiation	Medium
Landlord installation allowance	R1,300 / R1,450 / R1,200 per m²	Term sheets under negotiation	Medium — test first
Fit-out cost	R5,600 / R5,300 / R4,900 per m²	Quantity surveyor estimate at concept design	Medium–high
Furniture, fittings and equipment	R7,400 / R7,100 / R6,900 per desk	Supplier quotations	High
Technology and connectivity capital	R3,400 / R3,300 / R3,200 per desk	Supplier quotations	High
Contingency	6% of capital cost	Company policy	High
Centre staffing	7 / 6 / 5 per centre	Company operating plan; 41–44 desks per centre FTE	Medium–high
Utilities	R62 per m² per month	Municipal tariffs and comparable building data	Medium–high
Cleaning and security	R34 per m² per month, outsourced	Supplier quotations	High
Connectivity and IT operating cost	R22,000 per centre per month plus R165 per occupied desk	Supplier quotations	High
Maintenance	R7.50 per m² per month	Comparable building data	Medium
Marketing	3.5% of revenue, minimum R1.4m per annum	Company commercial plan	Medium
Brokerage	7.5% of first-year contract value on introduced suite deals	Market standard	High
Corporate overhead	R2.2m in FY2027 escalating 6.0% with a step per centre	Company plan	Medium–high
Cost inflation	6.0% per annum	Consistent with medium-term inflation expectations	Medium–high
Depreciation lives	Fit-out 10 years, FF&E 6 years, technology 3 years	Company accounting policy	High

C.3 Financing, working capital and exit

Table 87 Financing, working capital, tax and exit assumptions

Assumption	Value	Source	Confidence
Prime lending rate	10.50%, held flat	Current rate; sensitivity tested in Section 22.5	Medium
Senior term debt margin	Prime + 225 basis points	Indicative lender terms	Medium
Senior debt structure	18-month moratorium then 54-month amortisation	Indicative lender terms	Medium
Asset finance rate	Prime + 300 basis points, fixed at drawdown	Indicative lender terms	Medium–high
Revolving facility rate	Prime + 400 basis points on drawn amounts	Indicative lender terms	Medium
Debt service cover covenant	1.15×	Proposed; accommodation sought per Section 21.3	Medium — test first
Debtor days	5 days	Monthly billing in advance by debit order	High
Creditor days	32 days	Standard supplier terms	High
Deferred revenue	55% of one month’s revenue	Billing cycle	High
Member deposits	One month for suite and dedicated members	Company contract terms	High
Minimum cash floor	R3.0m	Company treasury policy	High
Corporate tax rate	27%	South African statutory rate	High
Assessed loss utilisation	Capped at 80% of taxable income	Section 20, Income Tax Act as amended	High
Investor holding	53% post-money	Proposed transaction terms	Medium
Exit multiple	7.5× FY2031 EBITDA	Comparable transaction evidence in flexible workspace	Low–medium — test first
Cost of equity	20.2% (Rf 10.3% + β 1.15 × ERP 6.0% + 3.0% size premium)	Capital asset pricing model with a size premium	Medium
Weighted average cost of capital	17.2% at 30% target gearing	Derived	Medium
Terminal growth rate	4.5%	Below long-run nominal GDP growth	Medium
Distributions before exit	None	Accumulated deficit precludes distribution	High

C.4 The five assumptions to test first

The occupancy ramp of 5.5 percentage points per month. A 4.0-point ramp moves stabilisation from month 13 to month 18 and reduces the equity IRR by approximately seven points. This is the least evidenced and most consequential assumption in the model.
Stabilised occupancy of 87% on private suites. Six points lower reduces the IRR to 7.5%; twelve points lower produces a negative return.
The exit multiple of 7.5×. It carries most of the investment return and has no cash-flow support within the projection period.
The landlord installation allowances of R1,200 to R1,450 per m². These are R9.0m of the funding stack and are under negotiation rather than contracted.
The debt service cover covenant at 1.15× against a base-case FY2030 position of 1.18×. The accommodation described in Section 21.3 should be obtained before financial close.