Dear Olive Green Investments LTD,
Nairobi.
15th January 2015.
JOINT VENTURE AT UPPER HILL ¾ ACRE PLOT.
The above subject matter refers.
We hereby share with you our proposal on Joint Venture development for your perusal.
Initial scheme design proposals bring the cost of development to KES 2,546,753,125.00 and cost of sale to KES 3,341,250,000.00.
Profit is in the range of KES 794,496,875.00
Below is a summary of the same.
| Cost Item | Kshs | % |
| Land | 400,000,000.00 | 15.70627306 |
| Preliminary | 28,957,500.00 | 1.137036005 |
| Construction | 1,447,875,000.00 | 56.85180027 |
| External Works | 72,393,750.00 | 2.842590014 |
| Contingency | 72,393,750.00 | 2.842590014 |
| Architectural fees | 86,872,500.00 | 3.411108016 |
| Quantity Surveying | 14,478,750.00 | 0.568518003 |
| Structural Engineering | 28,957,500.00 | 1.137036005 |
| Elec/Mech Engineering | 14,478,750.00 | 0.568518003 |
| Interior Design/Landscaping | 7,239,375.00 | 0.284259001 |
| Legal fees | 14,478,750.00 | 0.568518003 |
| Project Management fees | 14,478,750.00 | 0.568518003 |
| Marketing | 83,531,250.00 | 3.279911554 |
| Financial Charges | 260,617,500.00 | 10.23332405 |
| Total | 2,546,753,125.00 | 100 |
| Financing Plan | Kshs | % |
| Developer | 1,019,245,000.00 | 40.02135071 |
| Debt Finance | 1,447,875,000.00 | 56.85180027 |
| Presales | 334,125,000.00 | 13.11964622 |
| Total | 2,546,753,125.00 | 109.9927972 |
| PROFIT | ||
| TOTAL SALES FOR 15 floors | 3,341,250,000.00 | |
| TOTAL EXPENDITURE | 2,546,753,125.00 | |
| NET PROFIT | 794,496,875.00 | |
| % Profit Margin | 31.19646216 | |
| Take home ammount. | 1,194,496,875.00 | |
| 397,248,437.50 | ||
| 797,248,437.50 | ||
| Sale: | ||
| 2 Bedroomed | 15,000,000.00 | |
| 3 Bedroomed | 30,000,000.00 | |
| 1 bedroomed | 7,500,000.00 |
We look forward to your letter of offer .
Yours faithfully,
Francis Gichuhi Kamau, B.Arch. U.o.N. M.A.A.K[A]
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