Estate bulding
I – INTRODUCTION
1.01 - This report aims to show you the project of building 1,240 economical houses envisaged by the company CLEAN HOUSE Côte d’Ivoire.
1.02 – The company CLEAN HOUSE Côte d’Ivoire has been created the 1st July 1999 and then made in company of estate building. The capital is 5,000,000 FCFA. The associates are young people graduated in management and accountancy.
1.03 – The project consists in building 1,240 economical houses on an area of 500,000 m². The site is well situated in the suburb of YOPOUGON, along the north motorway with a sigth on the Banco forest. The project is to be carried out through five (5) years. The construction of the houses will be made by enterprises having excellent references in similar matters.
1.04 – AS in all the developing countries, Côte d’Ivoire, talking about the offer and demand as far as lodging is concerning, is also to raise the characteristics which are :
i) the supply is inferior to the need;
ii) ii) the supply is dominated by informal structures;
iii) iii) the demand is composed in majority of people who are not solvent. Thus the datas given in chapter 4 are those of official statistics. It shows an important lack of lodging in the only town of Abidjan which needs are estimated at 25,000 house per year.
1.05 – After the devaluation of Francs CFA and the economical revival, we can say that the supply in lodging has caught its delay up. Moreover we can consider that thanks to the economical recovery, an important part of the population composed of junior and seniors executives, company managers make a demand for housing. This part of population is solvent because they can easily get bank loan for buying their houses. BY this project, CLEAN HOUSE want to offer lodging to the Ivorians of any class.
1.06 – The cost of investment has been carefully studied by consultants. Thus the financing required is US $ 4,000,000
The profit from this project will allow us to face all the debt and charges.
1.07 – The financing asked for is a loan or an overdrawn of US $ 4,000,000.
II PROJECT
2.1 – PRESENTATION
2.1.1 – This project aims to contribute to better the lodging system in Abidjan.
2.1.2 – It consist in fulfilling an estate building program of 1,240 economical houses.
2.2 – SITE
2.2.1 – The situation
The site area to be built is 500,000 m² is situated in YOPOUGON, behind the industrial zone.
2.2.2 – Access to the site
- By the industrial zone, taking the North-motorway
- BY the corridor in passing the prison (MACA), towards the Andokoua village
- By the express road (in project) binding the site to the north-motorway
2.2.3 – The Environment
Situated at an altitude of 34 m, the project is in an airy and safe environment. From that place we have a marvellous sigth on the town, the industrial zone and the Banco Forest.
2.2.4 – The Architecture
2.3.1 – The plan of the site has been done so that each house get a sigth on the forest. The orientation of the houses take into account the wind for the different rooms to be airy as necessary in low houses.
2.3.2 – The architecture is modern with a sloping roof in conformity with the aspect of the site. Each house acceed directly to a street of reasonable size that make easy the parking of cars and cars outrun
2.3.3 – A roadway with a width of 16 m allow any car to get there Places have been reserved for a primary school of 12 classes, gardens and play ground. All this for the well being of the residents.
2.4 – The Programme
2.4.1 – The programme includes the building of 1,240 economical houses and lanes and various networks ( telephone, electricity, water……) The programme is divided into 4 steps of 300 and 340 houses.
The building of the houses
2.4.2 – The 4 steps of houses are low houses and their characteristics are given in the board below
Board 2.1
Characteristics of the houses
See board 2.1
2.4.3 – The operation will be carried out in 4 steps as indicated in the following board
Board 2.2
Fulfilment of the programme
See board 2.2
2.4.5 – The brief description of the construction is a follow :
Foundation :
Elevation :
Floor : concrete flooring
Roof : Wooden framework,
Ceiling :
Woodwork : windows and door opening at the French way.
Plumbing : General distribution, cold water, circuit for hot water..
Electricity – Telephone : General board and underground circuit. Telephone network integrated.
Paint : Vinylic exterior paint
- Exterior : Vinylic exterior paint
- Interior : Vinylic exterior paint
- Water room : Vinylic exterior paint
- Wood work : Glycerophtalic paint
- Glaze : clear and translucent glass
Construction of tracks and other networks
2.4.6 – This includes :
- The digging
- The tracks and flooring
- MT-BT and EP adduction
- Telephone network
- Green space
III THE MARKET
3.1- SITUATION OF LODGING IN COTE D’IVOIRE
3.1.1- PERIOD FROM 1960 TO 1985
3.1.1.1- After the independence , the country has introduced a self-willed politic for lodging based on a direct intervention of the state and marked by three essential aspects:
institutional ,support to estate building , financial.
1st aspect: Creation of institutions
3.1.1.2-Parallel to the private sector , the state has played a great role through public organisms of estate building , arrangement of land and financing of lodging .
Thus the state created :
*For arrangement of land
The Société d’Equipement de Terrains Urbains (SETU)
*For lodging financing
The Cédit COTE D’IVOIRE
The Banque Nationale pour l’Epargne et le Crédit (BNEC)
*The Estate Building Companies
The Société Ivoirienne de Construction et de Gestion Immobilière
The Société de Gestion Financière et de l’Habitat (SOGEFIHA)
2nd aspect :The support to estate building
3.1.1.3 - In order to help people of low standard of living , the State has initiated economical programmes for them .The advantages were the following and had as basis the mobilization of the Fonds de Soutien à l’Habitat (FSH).
1-The State take into account the cost of the land , the different studies , the tracks and other networks.
2- Improvement of the financial interest in relation to borrowings for estate programmes .
3rd aspect : The financial mechanism
3.1.1.4 – The State grants its endorsement to many people to carry out estate building programmes.
3.1.1.5 – Through what we described previously , we can notice that the State has been able to support the fulfilment of more than 125,000 houses in urban areas as well as in rural areas. But the economical crisis of the years 80 has shown the limits of that politic essentially based on the State
3.1.2- PERIOD OF 1986 TO 1997
3.1.2.1- Since 1985 , under the economical crisis , the State adopts a new philosophy giving more action to the private sector . Thus , all the public companies have changed their objective and adapted their politic to the new context with the presence of private structures .
3.1.2.2-The credit de Côte d’Ivoire , the Banque Natinale pour l’Epargne and the Credit (BNEC), the Société d’Equipement et des Terrains Urbains (SETU) and the Société de Gestion Financière de l’Habitat (SOGEFIA) have then been liquidated . For the last one , solutions are being negotiated for its come back . The Société Ivoirienne de Construction et de Gestion Immobilière (SICOGI)is about to be sold.
3.1.2.3- New structures to reinforce the Estate sector have been created and they are under the control of the ‘Caisse Autonome d’Amortissement (CAA)’ .They are:
-The ‘Fonds de Soutien à l’Habitat (FSH)’
-The ‘Compte des Terrains Urbains (CTU)’
-The ‘Compte de Mobilisation pour l’Habitat (CDMH)’
a)The Fonds de Soutien à l’Habitat (FSH)
It is a Found deposited in the CAA destined to reinforce initiatives about habitation. Its priority is the social aspect of lodging in urban area as well as in rural area . The annual amount as budget is an average of FCFA 4,000,000,000 to 5,000,000,000 . In 1997, it has been 7,000,000,000 .
b)The Compte des Terrains Urbains(CTU)
This Fund created in 1987 is to finance land arrangements it make easy the access to properties to people. Since its creation , more then 4,500 plots of land have been fitted up and sold to individuals and yielded to developers over about 20,000 areas .
c)The Compte de Mobilisation pour l’Habitat (CDMH)
To support the sector , the government create this structure to refinance banks which grant credit to their customers who want to buy houses by bettering the conditions and making longer the duration of repayment until 11 to 20 years at a rate of interest not more than 11.5%
3.1.2.4-Other advantages are that all the materials of construction, tracks, other networks, the studies directly made by developers are tax-free. The licence also is tax-free.
3.1.2.5- The conditions required are:
-The house must be new and be the principal habitation of the buyer
-The cost of the house equal or inferior to FCFA 12,5 millions duty-free.
-The personal contribution required from the buyer is 10%
-To get those advantages , the programme must include more than 100 houses for Abidjan and 25 houses for the country side.
3.1.2.6-In the application of this mechanism , from 1985 to 1993 nearly 8,000 houses have been built for the need of the population in addition to the programmes directly financed by banks . Therefore from 1994 to 1997 we count 24,000 houses over that period .
3.1.2.7- Concerning rural habitations , the system is supported by the Fonds de Soutient à l’Habitat (FSH) and encourage lodging in rural zone through groups of persons called G.V.C (Groupement à Vocation Cooperative) . The conditions to get financing from the F.S.H are simplified to allow many people to get it thus , in rural areas people must :
1-Constitute a GVC of 10 to 30 persons
2-Pay a guarantee of US $ 5000 per person
3-Show for each member a certificate of income
4-The cost of the house is not more than US $ 6,666,66 and the plans are those agreed by the administration.
5-The duration of repayment of the loan is 15years . Moreover since 1997 , the State grant loan to townships for their need in lodging .
This action allowed to build about 2,000 houses in rural area over the period from 1990 to 1997 with 1,500 houses from 1994 to 1997
3.1.3-Needs in lodging
3.1.3.1- Côte d’Ivoire is composed of nearly 14.5 millions of inhabitants and half of this population live in urban areas and they are estimated at about 7 millions inhabitants. Abidjan, the economical capital with more than 3 millions of inhabitants has a population that grow at a rate of about 5% per year. Thus there are about 150,000 new inhabitants that is to say 20,000 new houses to provide per year for the only town of Abidjan. The supply is estimated early at 8,000 houses, so it remains 12,000 houses to provide every year. It has also been shown that 70 to 75% of the population rent the houses in which they live and of course dream of their own house.
3.1.3.2 – we should note that what is true for Abidjan as far as housing is concerned is also true for the towns of the country side
The needs in lodging are estimated at 40,000 houses to build every year with 20,000 houses for only town of Abidjan.
If we gather from this number, the yearly supply that is 8,000 houses, the remaining is 32,000 houses to provides in order to satisfy the needs of the population in urban areas. In rural areas the needs are also estimated at 40,000 houses every year.
3.2 : THE COMPETITIVE POSITION OF THE PROJECT
3.2.1 – The economical recovery in CI since 1995 and the development of the loan for housing has increased the percentage of house owners and reduce that of those who rent houses. A part of the population composed of junior and senior executives of the public and private sector is in great need of housing and the demand from this part of the population increases each year.
3.2.2 – IN relation to building project of the same kind, the project ‘HABITAT ECONOMIQUES POUR TOUS’ of CLEAN HOUSE-CI has a competitive position as showed in the following board.
Board 3.1
Comparative board with rival
See board 3.1
3.2.3 – At present, we have in addition to 600 individuals who intend to buy houses and have already get registered, the company of transport (SOTRA) and the company of oil refinery (SIR) got in touch with us in order to buy houses for their employees. All those people have been seduced by our plans.
IV – COST, FINANCING AND PROFIT
4.1 – COST OF INVESTMENT
4.1.1 – The cost of the project is US $ 23,742,800 and include :
See the cost of investment
4.1.2 – The land cost US $ 1,666,666 and all the legal papers have been established with the owners at a lawyer office.
4.1.3 – The building costs US $ 9,925,402.353 and include the 1,240 houses and the green spaces. A contract has been signed with the Chinese company of building (covec).
4.1.4 – Roads and networks Costs 3,400,000 and include digging, electricity, water, telephone, cleaning up, roads.
4.1.5 – Fees : us $ 239,888 for the studies of the architect, the land surveyor and the supervision of the site.
4.1.6 – The equipment and arrangement of offices : 23,333 include the furnishings of the head office and the equipment of the different offices.
4.1.7 – The establishment fees : us $ 66,666,66 include the studies and financing search and legal fees.
4.1.8 – The land fees : US $ 226,688 are the amount paid to the administration to get the document of ownership of the land which costs 13.60% of the cost of the land plus US $ 22,000 for stamps and other taxes.
4.2 – FINANCING AND PROFITS
Period of fulfilment of the project
4.2.1 - the operation will be by steps of 150 houses each over 3 months. Between each step there is a break of 2 months. Thus the period of fulfilment of the 1,240 houses will be 38 months.
THE TURNOVER (us $)
4.2.2 – the selling price of the houses and the turnover are :
See the turnover
4.2.3 – The customers will pay according to this way :
• 25% of the selling price at the beginning of the work.
• 75% Of the selling price at the end.
All the details concerning the turnover are in annexe 4.The total amount is us $ 20,930,400
THE COST PRICE
4.2.4 – The cost price is us $ 18,064,569.03and these are the details :
See the cost price
4.2.5 - The running charges are composed of charges of the staff, electricity, telephone, insurance, transport, rental. The previous running charges are the expenses of the company from the company from 1st july 1999, date of creation of the company to December 31st 2001. The details are in annex 6; the commissions represent 1% of the turn over. The others commissions are for administrative purposes.
4.2.6 – It has been established in a board (annex 7) a foresight of the expenses month after month.
FINANCING
4.2.7 – The board in annex 7 shows the amount required month by month for the carrying out of the project.
Board 4.1
Forcast accounts for exploitation ( US $)
See board 4.1
4.2.10 – The first year of exploitation shows a net negative result of US $ 51,266.67. This deficit is due to the fact that the construction of the road and various networks ( water, electricity, telephone…) are made the first year. The cost of those works added to the cost of the land ( $ 1,666,666.67) and the running fees which include the running charges of the company since the beginning weighted the charges of exploitation of the first year in relation to the expected turnover the second year of exploitation has a positive result of US $ 3,840,226.67
4.2.11 – The board of resources-use is as follow
Board 4.2
See board 4.2
CONCLUSION
Taking into account the profits of this project, we ask for a financing of US $ 4,000,000 according to the following guarantees.
CONDITIONS
- Duration = 2 years
- Rate of interest = 4%
GUARANTEES
Mortgage of the land
See the annexes
1.01 - This report aims to show you the project of building 1,240 economical houses envisaged by the company CLEAN HOUSE Côte d’Ivoire.
1.02 – The company CLEAN HOUSE Côte d’Ivoire has been created the 1st July 1999 and then made in company of estate building. The capital is 5,000,000 FCFA. The associates are young people graduated in management and accountancy.
1.03 – The project consists in building 1,240 economical houses on an area of 500,000 m². The site is well situated in the suburb of YOPOUGON, along the north motorway with a sigth on the Banco forest. The project is to be carried out through five (5) years. The construction of the houses will be made by enterprises having excellent references in similar matters.
1.04 – AS in all the developing countries, Côte d’Ivoire, talking about the offer and demand as far as lodging is concerning, is also to raise the characteristics which are :
i) the supply is inferior to the need;
ii) ii) the supply is dominated by informal structures;
iii) iii) the demand is composed in majority of people who are not solvent. Thus the datas given in chapter 4 are those of official statistics. It shows an important lack of lodging in the only town of Abidjan which needs are estimated at 25,000 house per year.
1.05 – After the devaluation of Francs CFA and the economical revival, we can say that the supply in lodging has caught its delay up. Moreover we can consider that thanks to the economical recovery, an important part of the population composed of junior and seniors executives, company managers make a demand for housing. This part of population is solvent because they can easily get bank loan for buying their houses. BY this project, CLEAN HOUSE want to offer lodging to the Ivorians of any class.
1.06 – The cost of investment has been carefully studied by consultants. Thus the financing required is US $ 4,000,000
The profit from this project will allow us to face all the debt and charges.
1.07 – The financing asked for is a loan or an overdrawn of US $ 4,000,000.
II PROJECT
2.1 – PRESENTATION
2.1.1 – This project aims to contribute to better the lodging system in Abidjan.
2.1.2 – It consist in fulfilling an estate building program of 1,240 economical houses.
2.2 – SITE
2.2.1 – The situation
The site area to be built is 500,000 m² is situated in YOPOUGON, behind the industrial zone.
2.2.2 – Access to the site
- By the industrial zone, taking the North-motorway
- BY the corridor in passing the prison (MACA), towards the Andokoua village
- By the express road (in project) binding the site to the north-motorway
2.2.3 – The Environment
Situated at an altitude of 34 m, the project is in an airy and safe environment. From that place we have a marvellous sigth on the town, the industrial zone and the Banco Forest.
2.2.4 – The Architecture
2.3.1 – The plan of the site has been done so that each house get a sigth on the forest. The orientation of the houses take into account the wind for the different rooms to be airy as necessary in low houses.
2.3.2 – The architecture is modern with a sloping roof in conformity with the aspect of the site. Each house acceed directly to a street of reasonable size that make easy the parking of cars and cars outrun
2.3.3 – A roadway with a width of 16 m allow any car to get there Places have been reserved for a primary school of 12 classes, gardens and play ground. All this for the well being of the residents.
2.4 – The Programme
2.4.1 – The programme includes the building of 1,240 economical houses and lanes and various networks ( telephone, electricity, water……) The programme is divided into 4 steps of 300 and 340 houses.
The building of the houses
2.4.2 – The 4 steps of houses are low houses and their characteristics are given in the board below
Board 2.1
Characteristics of the houses
2.4.3 – The operation will be carried out in 4 steps as indicated in the following board
Board 2.2
Fulfilment of the programme
2.4.5 – The brief description of the construction is a follow :
Foundation :
Elevation :
Floor : concrete flooring
Roof : Wooden framework,
Ceiling :
Woodwork : windows and door opening at the French way.
Plumbing : General distribution, cold water, circuit for hot water..
Electricity – Telephone : General board and underground circuit. Telephone network integrated.
Paint : Vinylic exterior paint
- Exterior : Vinylic exterior paint
- Interior : Vinylic exterior paint
- Water room : Vinylic exterior paint
- Wood work : Glycerophtalic paint
- Glaze : clear and translucent glass
Construction of tracks and other networks
2.4.6 – This includes :
- The digging
- The tracks and flooring
- MT-BT and EP adduction
- Telephone network
- Green space
III THE MARKET
3.1- SITUATION OF LODGING IN COTE D’IVOIRE
3.1.1- PERIOD FROM 1960 TO 1985
3.1.1.1- After the independence , the country has introduced a self-willed politic for lodging based on a direct intervention of the state and marked by three essential aspects:
institutional ,support to estate building , financial.
1st aspect: Creation of institutions
3.1.1.2-Parallel to the private sector , the state has played a great role through public organisms of estate building , arrangement of land and financing of lodging .
Thus the state created :
*For arrangement of land
The Société d’Equipement de Terrains Urbains (SETU)
*For lodging financing
The Cédit COTE D’IVOIRE
The Banque Nationale pour l’Epargne et le Crédit (BNEC)
*The Estate Building Companies
The Société Ivoirienne de Construction et de Gestion Immobilière
The Société de Gestion Financière et de l’Habitat (SOGEFIHA)
2nd aspect :The support to estate building
3.1.1.3 - In order to help people of low standard of living , the State has initiated economical programmes for them .The advantages were the following and had as basis the mobilization of the Fonds de Soutien à l’Habitat (FSH).
1-The State take into account the cost of the land , the different studies , the tracks and other networks.
2- Improvement of the financial interest in relation to borrowings for estate programmes .
3rd aspect : The financial mechanism
3.1.1.4 – The State grants its endorsement to many people to carry out estate building programmes.
3.1.1.5 – Through what we described previously , we can notice that the State has been able to support the fulfilment of more than 125,000 houses in urban areas as well as in rural areas. But the economical crisis of the years 80 has shown the limits of that politic essentially based on the State
3.1.2- PERIOD OF 1986 TO 1997
3.1.2.1- Since 1985 , under the economical crisis , the State adopts a new philosophy giving more action to the private sector . Thus , all the public companies have changed their objective and adapted their politic to the new context with the presence of private structures .
3.1.2.2-The credit de Côte d’Ivoire , the Banque Natinale pour l’Epargne and the Credit (BNEC), the Société d’Equipement et des Terrains Urbains (SETU) and the Société de Gestion Financière de l’Habitat (SOGEFIA) have then been liquidated . For the last one , solutions are being negotiated for its come back . The Société Ivoirienne de Construction et de Gestion Immobilière (SICOGI)is about to be sold.
3.1.2.3- New structures to reinforce the Estate sector have been created and they are under the control of the ‘Caisse Autonome d’Amortissement (CAA)’ .They are:
-The ‘Fonds de Soutien à l’Habitat (FSH)’
-The ‘Compte des Terrains Urbains (CTU)’
-The ‘Compte de Mobilisation pour l’Habitat (CDMH)’
a)The Fonds de Soutien à l’Habitat (FSH)
It is a Found deposited in the CAA destined to reinforce initiatives about habitation. Its priority is the social aspect of lodging in urban area as well as in rural area . The annual amount as budget is an average of FCFA 4,000,000,000 to 5,000,000,000 . In 1997, it has been 7,000,000,000 .
b)The Compte des Terrains Urbains(CTU)
This Fund created in 1987 is to finance land arrangements it make easy the access to properties to people. Since its creation , more then 4,500 plots of land have been fitted up and sold to individuals and yielded to developers over about 20,000 areas .
c)The Compte de Mobilisation pour l’Habitat (CDMH)
To support the sector , the government create this structure to refinance banks which grant credit to their customers who want to buy houses by bettering the conditions and making longer the duration of repayment until 11 to 20 years at a rate of interest not more than 11.5%
3.1.2.4-Other advantages are that all the materials of construction, tracks, other networks, the studies directly made by developers are tax-free. The licence also is tax-free.
3.1.2.5- The conditions required are:
-The house must be new and be the principal habitation of the buyer
-The cost of the house equal or inferior to FCFA 12,5 millions duty-free.
-The personal contribution required from the buyer is 10%
-To get those advantages , the programme must include more than 100 houses for Abidjan and 25 houses for the country side.
3.1.2.6-In the application of this mechanism , from 1985 to 1993 nearly 8,000 houses have been built for the need of the population in addition to the programmes directly financed by banks . Therefore from 1994 to 1997 we count 24,000 houses over that period .
3.1.2.7- Concerning rural habitations , the system is supported by the Fonds de Soutient à l’Habitat (FSH) and encourage lodging in rural zone through groups of persons called G.V.C (Groupement à Vocation Cooperative) . The conditions to get financing from the F.S.H are simplified to allow many people to get it thus , in rural areas people must :
1-Constitute a GVC of 10 to 30 persons
2-Pay a guarantee of US $ 5000 per person
3-Show for each member a certificate of income
4-The cost of the house is not more than US $ 6,666,66 and the plans are those agreed by the administration.
5-The duration of repayment of the loan is 15years . Moreover since 1997 , the State grant loan to townships for their need in lodging .
This action allowed to build about 2,000 houses in rural area over the period from 1990 to 1997 with 1,500 houses from 1994 to 1997
3.1.3-Needs in lodging
3.1.3.1- Côte d’Ivoire is composed of nearly 14.5 millions of inhabitants and half of this population live in urban areas and they are estimated at about 7 millions inhabitants. Abidjan, the economical capital with more than 3 millions of inhabitants has a population that grow at a rate of about 5% per year. Thus there are about 150,000 new inhabitants that is to say 20,000 new houses to provide per year for the only town of Abidjan. The supply is estimated early at 8,000 houses, so it remains 12,000 houses to provide every year. It has also been shown that 70 to 75% of the population rent the houses in which they live and of course dream of their own house.
3.1.3.2 – we should note that what is true for Abidjan as far as housing is concerned is also true for the towns of the country side
The needs in lodging are estimated at 40,000 houses to build every year with 20,000 houses for only town of Abidjan.
If we gather from this number, the yearly supply that is 8,000 houses, the remaining is 32,000 houses to provides in order to satisfy the needs of the population in urban areas. In rural areas the needs are also estimated at 40,000 houses every year.
3.2 : THE COMPETITIVE POSITION OF THE PROJECT
3.2.1 – The economical recovery in CI since 1995 and the development of the loan for housing has increased the percentage of house owners and reduce that of those who rent houses. A part of the population composed of junior and senior executives of the public and private sector is in great need of housing and the demand from this part of the population increases each year.
3.2.2 – IN relation to building project of the same kind, the project ‘HABITAT ECONOMIQUES POUR TOUS’ of CLEAN HOUSE-CI has a competitive position as showed in the following board.
Board 3.1
Comparative board with rival
3.2.3 – At present, we have in addition to 600 individuals who intend to buy houses and have already get registered, the company of transport (SOTRA) and the company of oil refinery (SIR) got in touch with us in order to buy houses for their employees. All those people have been seduced by our plans.
IV – COST, FINANCING AND PROFIT
4.1 – COST OF INVESTMENT
4.1.1 – The cost of the project is US $ 23,742,800 and include :
4.1.2 – The land cost US $ 1,666,666 and all the legal papers have been established with the owners at a lawyer office.
4.1.3 – The building costs US $ 9,925,402.353 and include the 1,240 houses and the green spaces. A contract has been signed with the Chinese company of building (covec).
4.1.4 – Roads and networks Costs 3,400,000 and include digging, electricity, water, telephone, cleaning up, roads.
4.1.5 – Fees : us $ 239,888 for the studies of the architect, the land surveyor and the supervision of the site.
4.1.6 – The equipment and arrangement of offices : 23,333 include the furnishings of the head office and the equipment of the different offices.
4.1.7 – The establishment fees : us $ 66,666,66 include the studies and financing search and legal fees.
4.1.8 – The land fees : US $ 226,688 are the amount paid to the administration to get the document of ownership of the land which costs 13.60% of the cost of the land plus US $ 22,000 for stamps and other taxes.
4.2 – FINANCING AND PROFITS
Period of fulfilment of the project
4.2.1 - the operation will be by steps of 150 houses each over 3 months. Between each step there is a break of 2 months. Thus the period of fulfilment of the 1,240 houses will be 38 months.
THE TURNOVER (us $)
4.2.2 – the selling price of the houses and the turnover are :
4.2.3 – The customers will pay according to this way :
• 25% of the selling price at the beginning of the work.
• 75% Of the selling price at the end.
All the details concerning the turnover are in annexe 4.The total amount is us $ 20,930,400
THE COST PRICE
4.2.4 – The cost price is us $ 18,064,569.03and these are the details :
4.2.5 - The running charges are composed of charges of the staff, electricity, telephone, insurance, transport, rental. The previous running charges are the expenses of the company from the company from 1st july 1999, date of creation of the company to December 31st 2001. The details are in annex 6; the commissions represent 1% of the turn over. The others commissions are for administrative purposes.
4.2.6 – It has been established in a board (annex 7) a foresight of the expenses month after month.
FINANCING
4.2.7 – The board in annex 7 shows the amount required month by month for the carrying out of the project.
Board 4.1
Forcast accounts for exploitation ( US $)
4.2.10 – The first year of exploitation shows a net negative result of US $ 51,266.67. This deficit is due to the fact that the construction of the road and various networks ( water, electricity, telephone…) are made the first year. The cost of those works added to the cost of the land ( $ 1,666,666.67) and the running fees which include the running charges of the company since the beginning weighted the charges of exploitation of the first year in relation to the expected turnover the second year of exploitation has a positive result of US $ 3,840,226.67
4.2.11 – The board of resources-use is as follow
Board 4.2
CONCLUSION
Taking into account the profits of this project, we ask for a financing of US $ 4,000,000 according to the following guarantees.
CONDITIONS
- Duration = 2 years
- Rate of interest = 4%
GUARANTEES
Mortgage of the land
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