DEVELOPMENT OF RENTAL UNITS ON A 60 X 40 FEET PLOT NEAR MAIN ROAD.

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.

 

Francis Gichuhi (692 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email info@a4architect.com. Telephone +254721410684


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