RESIDENTIAL DEVELOPMENT IN KENYA, NAIROBI. FEASIBILITY STUDY

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Project: Residential Development in Kenya, Nairobi. Client: Mr. E.O. Location: Syokimau, Mavoko Municipality, Mombassa Road.

MARCH 2010

EXECUTIVE SUMMARY This is the devise offer for the office office building the whole of the center category residential estate upon the parcel of land situated during Syokimau in Mavoko Municipality. The devise has been conceived, written as great as will be implemented by www.a4architect.com for Mr. E.Ol .

The estimated growth price for the devise is KES 70,000,000.

The devise execution duration shall take twelve months from belligerent violation to palm over.

Returns shall be in the operation of KES 30,000,000.00 with total increase descending in the operation in in between 40 as great as 50 percent.

WWW.A4ARCHITECT.COM A4architect is the energetic skill consulting association specializing in upon condition which the one-stop use for the government as great as growth of the accumulation of skill growth projects. It provides the clients, who might be skill owners, developers or tenants, with the imagination to beam the devise by the formidable growth routine from judgment by to office office building completion. Depending upon the mandate of their client, A4architect can yield the full or prejudiced consulting service. The company’s impasse can change from sourcing befitting sites, arranging internal government approvals, handling the veteran group or upon condition which the finish devise government service. The principals during the back of the organisation have multiform years believe in conceptualizing as great as handling to execution multiform projects of assorted natures as partial of pattern as great as doing teams for heading Project Management firms in Kenya as great as the Government of the Republic of Kenya.

THE PROJECT The devise comprises the office office building the whole of residential units for during Syokimau upon the resolution measuring only about 0.5 acres. The altogether thesis of the growth would be the singular of maximizing upon the tract use whilst progressing in accord with particular privacy. The preference of the sort as great as distance of units to be erected as great as their blueprint has been finished with the foregoing being inaugural -A unfolding where the skill is grown for sale.

PHASED CONSTRUCTION In sequence to palliate the stroke of the altogether price of the growth it is due to lift out the office office building the whole in phases to be jointly concluded upon with the client. There will be 5 blocks with any retard housing 5 units so the phases can be orderly in the basement of the blocks.Each of the phases shall be programmed to broach units which have been finish as great as ready for occupation. This will promote pre-selling of the little of the units prior to to the finish of construction. This would be finished by pro-active networking with skill managers as great as estates officers in vast corporations. The foregoing will outcome in offer cushioning of the net outcome of the price of financing the project. In sequence to capacitate formulation of vital infrastructural mandate such as H2O storage as great as dirt H2O ordering right from the outset, the master devise of the complete growth shall be evolved. Thus the genius of the little of the comforts might primarily surpass the needs of the place to live provided, though this would be finished with the full believe which the growth will grow to entirely implement the comforts provided. Auxiliary facilities would embody paved driveways as great as parkings, one more H2O storage as great as planted landscaped gardens. The nation atmosphere would offer be extended by carrying strategically planted trees which would offer the combined role of behaving as breeze breaks.

DEVELOPMENT BUDGET The growth bill is as follows:

25 No. 3 room apartments in 5 blocks. Cost of office office building the whole per unit=KES 2,500,000. Total price of office office building the whole for twenty-five units = KES 62,500,000

• The growth bill includes veteran fees

1.00 Building total 1.10 Type of houses :3 room flats. 1.11 Number of blocks :5 1.12 Number of flats in any retard :5 1.13 Gross office building area per Unit m2: 100 1.14 Building Cost per m2 :25,000 1.15 Building price per section :KES 2,500,000 1.16 Overall office office building price :62,500,000.00

2.00 Construction price 2.10 Preliminaries 1,562,500.00 2.5% of object 1.16 2.11 Building functions 51,562,500.00 2.12 Infrastructure 9,375,000.00 15.00% of object 1.16

2.13 Subtotal – Construction price 62,500,000.00 3.00 Incidental costs 3.10 Professional fees 6,200,000.00 10.00% of object 1.16

3.12 Land Cost- [0.5 acres] KES 7,500,000.00

OVERALL PROJECT COST 62,500,000.00 + 7,500,000= KES 70,000,000

SALES PROJECTIONS 1.10 3 room flats 1.11 Projected sale price/unit 4,000,000.00 1.12 Overall sales revenue=25 X 4,000,000= 100,000,000.00 1.13 Gross expected distinction =KES 100,000,000 – KES 70,000,000=KES 30,000,000.00 1.14 Gross distinction domain 42.50%

LOCATION Syokimau Estate is situated fifteen mins expostulate from Nairobi’s Central Business District along Mombassa Road. The estate is served by an all continue highway with the site of the due office office building the whole being found 0.5 kilometers from the not long ago upgraded Mombassa Road. The estate is continuous to the mains H2O supply from the Mavoko Municipal Council as great as additionally has simply continuous physical phenomenon supply. The evident post consists of subdivisions any measuring an eighth an acre. Developments in this area have been an roughly successive to brew of singular family as great as multi family residences. The occupancy is additionally roughly similarly churned with tenants as great as homeowners in sincerely successive to proportions. The infancy of the buildings here have been of pretty great assembled as great as maintained. The site will be located in tighten vicinity to the Great Wall apartments.

MARKET DESCRIPTION Given the vicinity of the site to Nairobi’s CBD as great as the great report exchnage available, the site would comprehend great earnings upon the multi family residential development. The programmed growth intends to uncover off this intensity by formulating place to live which is atmospheric whilst during the same time creation best use of the space available. At the moment, there have been identical developments in this area, particularly the Great Wall Apartments. Further, there is the change in the direction of housing purchases with intensity buyers preferring to squeeze housing in not as big courts or estates rsther than than housing in vast estates. This is partly fuelled by the taking flight distrust as great as the need to form not as big some-more closely integrated area communities. The programmed growth would to illustrate encounter an existent need.

COMPETITION In the post of the programmed development, there exist multiform properties which have been possibly owned by the residents or have been let properties. The closest foe maybe comes from the Great Wall Apartments. These have been however not considerable in conditions of the room sizes as great as series of bedrooms offered.

SALES PROJECTIONS It is programmed to begin selling the growth for sale even as the office office building the whole begins. Consequently it is expected which by the time the initial retard is finished there shall be an influx of supports which can possibly be employed to begin office office building the whole of the successive phase. The sale price for any section has been set during KES 4,000,000.00. This is somewhat aloft than the KES 3,500,000.00 asking price for the Great Wall Apartments which has 2 bed roomed units. The price is however fit by the upgraded peculiarity of the programmed growth in conditions of finishes, design, series of bedrooms[3], distance of the residence as great as location.

EXECUTION OF THE PROJECT A4architect will in this yield the customer with the full design/build service. This shall embody

1. Design as great as selection Architectural, structural, automatic as great as electrical drawings shall be rebuilt as great as compulsory approvals sought. During the assorted stages of the design, the customer shall be kept entirely sensitive as great as customer capitulation sought prior to to move to the successive stage. The engineering pattern shall be finished by purebred engineers underneath the ordering of A4architect. Detailed specifications shall be grown with tighten conference with the client.

2. Project estimates Subsequent to execution of the design, the organisation guess shall be finished for the devise

3. Preparation of offer as great as stipulate papers After last pattern has been finished as great as customer capitulation obtained, offer papers shall be drawn up for the ubiquitous as great as dilettante contractors. The dilettante stipulate papers shall be rebuilt with ordering from the applicable engineers.

4. Tendering Selected contractors shall be invited to offer for the assorted work packages. We shall afterwards investigate the tenders returned as great as brazen the letter of reference to the client.

5. Contract support With the contractors have been selected, you shall pull up the compulsory stipulate papers as great as come in in to stipulate with the contractors upon the client’s behalf.

6. Project government Subsequent to the contracts being sealed as great as mobilization to the site, you shall yield ordering as great as devise management. This will inhere ensuring which the devise is brought in upon time as great as underneath bill by consistent monitoring of operations upon site as great as remedying any issues which might forestall timely execution or means output to surpass the budget.

7. Contract administration department department We shall hoop all counts relating to the assorted contracts together with though not singular to theatre payments, opening bonds, extensions of time as great as relations in in between the assorted traded concerned in the project’s execution.

8. Sales as great as selling In as well as with an estate group certified by the client, you shall furnish the display package to be used in the sales as great as selling of the units.

PROJECT TIMELINES a) Design to Tender The pattern to offer routine will take the total of 2 months. This will embody commissioning of all engineering design, credentials of bills of quantities as great as obtaining of all applicable approvals for the development. b) Construction Construction of the complete devise is estimated to take the limit of 10 months.

MARKETING AND SALES Marketing of the properties is programmed to begin even prior to belligerent is damaged for the begin of the construction. This will offer the twin role of formulating recognition of the accessibility of peculiarity skill for sale as great as to endorse the effect of the marketplace intelligence. A befitting estate group will be consecrated after conference with the client. The group will be granted with the practical display pack which will embody the travel by film of the development. A handbill of the growth will additionally be done for placement to intensity purchasers. In sequence to yield the some-more discernible feel of the development, the uncover section will be built inside of 8 weeks of derivation of the project. This will capacitate even the puzzled intensity purchasers to conclude the peculiarity of the development.

FEES STRUCTURE Overall fees charged shall be 10% of the last stipulate sum. The fees shall be widespread over the assorted stages as follows:

Fees Due A Inception Inception as great as customer short Physical consult as great as report examination Sketch pattern as great as simple devise offer 5% of fees. B Design as great as pattern growth Final pattern as great as display with bill estimates Final specifications Engagement of consultants as great as credentials of electrical, constructional as great as automatic services drawings Development approvals 30% of fees. C Pre-tender routine Preparation of offer papers for ubiquitous as great as dilettante contractors Identification of suppliers for customer granted equipment to be bound by contractors Shortlisting of ubiquitous as great as dilettante contractors 10% of fees. D Tender routine Tendering for ubiquitous as great as dilettante contractors Tender research Contract endowment by customer upon recommendation of Project Manager 15% of fees. E Project Administration Co-ordination meetings conducted by Project Manager Close carry out of work report Monitoring of peculiarity of functions as great as ensuring correspondence with specifications 15% of fees. F Project Accounting Budget carry out Certification of stage/progress payments 10% of fees.

G Project closeout Completion investigation with customer Preparation of last comment in as well as with ubiquitous as great as dilettante contractors Preparation of report of creation great defects 10% of fees.

H Post stipulate administration department department Final investigation after elapse of defects guilt duration Confirmation of creation great defects after influence duration is over 5% of fees. Total 100% of fees.

Notes upon fees make up 1. Negotiations as great as any alternative work outset from the acquiescence of focus to the Local Authority or the acquiescence of focus to the internal government of the orthodox bodies constitutes one more services to be charged for upon the time basis. 2. Normalization of stipulate will be by the signing of both copies of the ask jointly acceptable to both parties. 3. Fee records which will be released upon execution of theatre B, C & D respectively. Fee records for theatre (A), & (B) will be formed upon Project Estimates during those stages. 4. The remuneration from stages E to H will be formed upon the last devise costs. These will be paid upon the pro-rata basement as the devise progresses as great as will be submitted rught away following the emanate of acceptance of executive theatre payments. 5. In the eventuality which the customer selects the phased doing of the project, price records for stages A, B as great as C shall be formed upon the estimated price for the complete devise whilst price records for successive phases shall be pro-rated to the worth of the proviso being implemented. 6. All price records will be processed, certified as great as paid inside of 10 monthly calendar days of the price note date. 7. Reports or opinions requiring grave customer capitulation have been to be discussed as great as certified inside of 5 operative days of taking of the ask from the devise managers by the client. 8. Disbursements ensuing from the execution of the consultant’s duties together with facsimile of drawings as great as documents, fax messages, roving as great as food as great as place to live losses outward Nairobi etc. do not form partial of this agreement as great as will be charged during cost.

Prepared By Frank Gichuhi www.a4architect.com +254 721 410684 A4architect.