Case Study No 4You are a CEO of a real estate development company located in Gujarat This company ow...........

You are a CEO of  a real estate development company located in Gujarat. This company owns several properties in the town of Surat. The company is near completion of the design phase of a project to renovate an old, vacant industrial and warehouse complex that it owns into a large historic museum and public market near the heart of the city redevelopment area. The project, will greatly increase the company’s revenues and save it from some recent years of financial difficulty.

About this same time, an unrelated due diligence study of one of the company’s other buildings exposed some serious seismic concerns. The 6-story office building is a reinforced concrete moment frame structure. The engineering study concluded that the building lacks both the strength and ductility to resist even a moderate sized earthquake. To make matters worse, the assessment was leaked to the local press. Company quickly contracted for a second, independent engineering study, which concurred with the initial assessment.

It would be impossible for company to finance an upgrade of the office building and complete the museum project. In addition, both the tenants and the design team have said that they would not continue with the museum project if the already tight budget were squeezed any further.

There is no legal requirement for strengthening the office building, but many tenants and several civic leaders have expressed their concern about the seismic risks associated with the building.

Critically examine all the possible courses of action before you. What your final decision. Give reasons

By: Parveen bansal