| DEVELOPMENT OF RENTAL UNITS ON A 60 X 40 FEET PLOT NEAR MAIN ROAD. | ||
| PLOT SIZE-APPROX. 40X60 FT. | ||
| GROUND FLOOR 2 UNITS | ||
| Cost Item |
Kshs |
% |
| Land |
1,500,000.00 |
30.06012024 |
| Preliminary |
40,000.00 |
0.801603206 |
| Construction |
3,000,000.00 |
60.12024048 |
| External Works |
90,000.00 |
1.803607214 |
| Contingency |
60,000.00 |
1.20240481 |
| Professional fees |
240,000.00 |
4.809619238 |
| Project Management fees |
60,000.00 |
1.20240481 |
| Financial Charges[16 % of construction cost] |
0.00 |
0 |
| Total |
4,990,000.00 |
100 |
| Financing Plan |
Kshs |
% |
| Developer[Land, Professional & Project Management fees] |
1,800,000.00 |
36.07214429 |
| Debt Finance |
3,190,000.00 |
63.92785571 |
| Total |
4,990,000.00 |
100 |
| PROFESSIONAL FEES BREAKDOWN | ||
| ARCHITECTURAL-6% OF TOTAL COST | ||
|
INCEPTION-0% |
0% |
0 |
|
OUTLINE PROPOSALS-1% |
1% |
30000 |
|
SCHEME DESIGN-1.5% |
1% |
30000 |
|
DETAILED DESIGN-2% |
2% |
60000 |
|
SUPERVISION-1.5% |
1.50% |
45000 |
| 165,000.00 | ||
| ALL CONSULTANTS-10% OF TOTAL COST | ||
|
INCEPTION-0% |
0% |
0 |
|
OUTLINE PROPOSALS-1% |
1% |
30000 |
|
SCHEME DESIGN-3% |
3% |
90000 |
|
DETAILED DESIGN-3% |
3% |
90000 |
|
SUPERVISION-3% |
3.00% |
90000 |
| 300,000.00 | ||
| RETURN ON INVESTMENT[excluding cost of land] | ||
| RENT-KES 15,000 per month for 2 units |
30000 |
|
| Annual rent | 360,000.00 | |
| Construction cost |
3,190,000.00 |
|
| Number of months to repay |
106.3333333 |
|
| Number of years to repay |
8.861111111 |
|
| With an annual rent increment of 10%, the building will ROI within less than 8 years hence a viable investment. | ||
| 5LEVELS- 2 UNITS PER FLOOR | ||
| Cost Item |
Kshs |
% |
| Land |
1,500,000.00 |
7.915567282 |
| Preliminary |
200,000.00 |
1.055408971 |
| Construction |
15,000,000.00 |
79.15567282 |
| External Works |
450,000.00 |
2.374670185 |
| Contingency |
300,000.00 |
1.583113456 |
| Professional fees |
1,200,000.00 |
6.332453826 |
| Project Management fees |
300,000.00 |
1.583113456 |
| Financial Charges[16 % of construction cost] |
0.00 |
0 |
| Total |
18,950,000.00 |
100 |
| Financing Plan |
Kshs |
% |
| Developer[Land, Professional & Project Management fees] |
3,000,000.00 |
15.83113456 |
| Debt Finance |
15,950,000.00 |
84.16886544 |
| Total |
18,950,000.00 |
100 |
| PROFESSIONAL FEES BREAKDOWN | ||
| ARCHITECTURAL-6% OF TOTAL COST | ||
|
INCEPTION-0% |
0% |
0 |
|
OUTLINE PROPOSALS-1% |
1% |
150000 |
|
SCHEME DESIGN-1.5% |
1% |
150000 |
|
DETAILED DESIGN-2% |
2% |
300000 |
|
SUPERVISION-1.5% |
1.50% |
225000 |
| 825,000.00 | ||
| ALL CONSULTANTS-10% OF TOTAL COST | ||
|
INCEPTION-0% |
0% |
0 |
|
OUTLINE PROPOSALS-1% |
1% |
150000 |
|
SCHEME DESIGN-3% |
3% |
450000 |
|
DETAILED DESIGN-3% |
3% |
450000 |
|
SUPERVISION-3% |
3.00% |
450000 |
| 1,500,000.00 | ||
| RETURN ON INVESTMENT[excluding cost of land] | ||
| RENT-KES 15,000 per month for 10 units |
150000 |
|
| Annual rent | 1,800,000.00 | |
| Construction cost |
15,950,000.00 |
|
| Number of months to repay |
106.3333333 |
|
| Number of years to repay |
8.861111111 |
|
| REMARKS | ||
| With an annual rent increment of 10%, the building will ROI within less than 8 years hence a viable investment. | ||
| With the same repayment period of 8 years for both Ground floor only construction and Ground floor + 4 levels, | ||
| and potential for building to attract constant regular tenancy, construction of the complete G+4 levels is also | ||
| a viable option. | ||
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