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Project: Development in Kenya, Nairobi.
Client:
Location: Utawala, Nairobi.
AUGUST 2018
EXECUTIVE SUMMARY
This is a project proposal for development on a parcel of land situated at Utawala, Nairobi.
OPTIONS BASED ON ONE FLOOR LEVEL DEVELOPMENT
Development has potential for 4 floor levels construction.
The income can be scaled up per floor to a maximum of 4 floor levels.
Built up area per floor. 400m2.
Number of rooms per floor. 30
Construction cost per floor. Kes 16 m
Monthly Income per floor at 30% occupancy. Kes 800,000
Return on Investment. 2 years
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- WAREHOUSE
Built up area per floor. 400m2.
Number of Warehouses per floor. 4
Construction cost per floor. Kes 7.2 m
Monthly Income per floor at 90% occupancy. Kes 108,000
Return on Investment. 5.5 years
- 2 BEDROOMED APARTMENTS
Built up area per floor. 400m2.
Number of Units per floor. 7
Construction cost per floor. Kes 12 m
Monthly Income per floor at 90% occupancy. Kes 107,000
Return on Investment. 9.5 years
- 1 BEDROOMED APARTMENTS
Built up area per floor. 400m2.
Number of Units per floor. 11
Construction cost per floor. Kes 12.3 m
Monthly Income per floor at 90% occupancy. Kes 99,000
Return on Investment. 10.4 years
- BEDSITTER APARTMENTS
Built up area per floor. 400m2.
Number of Units per floor. 20
Construction cost per floor. Kes 12.5 m
Monthly Income per floor at 90% occupancy. Kes 108,000
Return on Investment. 9.6 years
PHASED CONSTRUCTION
In order to ease the impact of the overall cost of the development it is proposed to carry out the construction in phases to be jointly agreed on with the client. The Phase can be per floor, with a maximum of 4 floor levels.
COMPETITION
In the locality of the planned development, there exist several properties which are either owned by the residents or are rental properties. The closest competition for 1 bedroomed units comes from an apartment block 50 meters further inside.
These are however further from the main road, hence less desirable.
These existing 1 bedrooms are at 100% occupancy and bedsitters have only 1 unit vacant, meaning the demand for this type of accommodation is high.
There is also a neighboring apartment block, The Trafford Centre, that is also 100% occupied, with bedsitter and 1 bedroomed units.
SALES PROJECTIONS
The plot is located on the 2nd row from the Eastern bypass, hence very convenient for access, including long lorries which can use the alternate wider access road to the land.
Wide access suitable for long lorries.
The plot is located at a high point relative to the front row plots, hence very visible from the main road, making it easy for potential tenants to view the property from the Eastern Bypass, increasing the sales/occupancy rates.
Prepared By
Francis Gichuhi
www.a4architect.com
+254 721 410684
A4architect.
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