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 thn 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.

Comments

CONSTRUCTION OF RENTAL UNITS ON A 40 FT BY 60 FT PLOT