Building Luxury Apartments In Colombo Construction Essay

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Building Luxury Apartments In Colombo Construction Essay

It is proposed to set up a BOI registered jointventure company to build luxury apartments in Colombo The entire project can be done in three phases while this proposal will primarily address Phase I This involves the purchase of 83 perches of preidentified land The subsequent phases will involve the purchase of 85 perches and 100 perches of land respectively Survey Plan Appendix part D

The number of units to be constructed for Phase I will be 123 units in a 30storey tower and will be aimed at the mainly local buyers in the middle to upper income brackets as well as Sri Lankan expatriates The preliminary works for Phase I will take about 12 months including presales of apartments and collection of deposits The construction period is expected to be 30 months Phase II will involve 177 units in a 35storey tower and Phase III will involve 263 units in a 45storey tower

Phase I of the project is based on an average construction cost of Rs9030 per sqft while the average selling price is expected to be Rs25800 per sqft The construction will only commence upon reaching secured sales through deposits amounting to 50 of the construction cost by sales value

The capital required for Phase I is Rs650mn Rs235 mn being in cash and Rs415 mn being land value where the cash is sufficient to cover consultants fees marketing expenses and CMC fees during the first 12 months up to pushbutton

The project is expected to generate a profit of Rs7778 mn for Phase I If the same capital is retained in the company Phase II can generate Rs18503mn and Phase III of Rs33258 mn

Background

This proposal aims to capitalize on the buoyant market for affordable yet luxury condominiums within the Colombo city limits In this regard it is proposed to set up a jointventure company for the purpose of raising equity capital to acquire land and develop a luxury condominium project

This project in to be located in the heart of downtown Colombo and is to be developed in three phases with the land to be acquired already been identified This proposal addresses the development of Phase I of this project while the remaining Phases can be developed along similar lines

The project will be developed and promoted by experienced professionals with a proven track record in the property development market

Project Plan

Preproject Planning Approval of project

Collect relevant market information and trends analyze best fit for available land base land that may become available in future supervise the preparation of preliminary project evaluation document for presentation at Board of Management BoM get approval for sending out Architects brief Guide the team in preparing architects brief study and modify preliminary design provided by architect in line with market trends make a presentation to BoM on the project in order to get the required approvals for commencement of presales and necessary funding for this purpose

MEASUREMENT CRITERIA QuantitativeQualitative

Total time taken from project conceptualization through project feasibility through project evaluation to presentation Number of project presentations made to BoM success rate of presentations

PreSales of Project and Approval to Commence Construction

Supervise the preparation of legal documentation collateral show flat advertising and promotional plans Selection of Consultant Project Manager Firm Initiate work with the local consultants including Project Manager towards obtaining building approvals in order to meet push button threshold and necessary statutory building approvals

MEASUREMENT CRITERIA QuantitativeQualitative

Actual Sales against Target

Project Construction Implementation

On achieving required sales threshold make presentation to BoM for approval of project construction phase monitor project progress weekly authorize project payments variations extensions of time negotiate with contractors on modifications in order to ensure quality and timely completion

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