Equity Partner Required - Unkomanzi Park Residential Development, KZN, South Africa - Presentation Transcript
OCTOBER 2008
FEASIBILITY UPDATE – UMKOMANZI PARK
Erf 559 (of 536) and Rem 17 –umkomanzi drift
Development Facilitators, Property Brokerage,
Project and Construction Management to the Property Industry
Jason Wilkes and Eric Quevauvilliers
Umkomanzi Drift
Consolidated Project Summary
DEVELOPMENT: Umkomanzi Park Consolidated
ESTIMATED DEVELOPMENT COST:
Date : October-08
REVISION : 5 Revision Date : 11-Dec-08
% of % of
Land Infrastructure Cost Dev Cost Selling
Building Cost 0.0%
Bulk contribution 12,420,000 7.7% 5.4%
Service infrastructure 59,966,871 37.1% 25.8%
Entrance,Connections 16,586,614 10.2% 7.1%
Pre-tender escalation 1,750,000 1.1% 0.8%
Post-tender escalation 2,270,000 1.4% 1.0%
Estimated Infrastucture Cost 92,993,485 57.5% 40.1%
Professional fees & Costs 14,300,000 8.8% 6.2%
Interim interest on Construction Period 15.0% 17,940,263 11.1% 7.7%
Sub-total : Infrastructure 125,233,748 77.4% 54.0%
Land Cost
Purchase price of land 18,500,000 11.4% 8.0%
Transfer & Legal costs, Company etc 110,000 0.1% 0.0%
Interim Interest on Land 15.0% - 0.0% 0.0%
Sub-total : Land 18,610,000 11.5% 8.0%
Production Costs
Legal/Audit Company / Bond Fee 720,000 0.4% 0.3%
Land Surveyor Certificates 250,000 0.2% 0.1%
Rates & Taxes 360,000 0.2% 0.2%
Services Consumables 360,000 0.2% 0.2%
Contingency 3,130,000 1.9% 1.3%
NHBRC - 0.0% 0.0%
Interim Interest - 0.0% 0.0%
Bond Finanace Raising Fee 1,500,000 0.9% 0.6%
Submission Fees & Disbursments 500,000 0.3% 0.2%
Marketing 0.50% 1,000,000 0.6% 0.4%
Sales Commission & Marketing 5.00% 10,178,427 6.3% 4.4%
Sub-total : Production Costs 17,998,427 11.1% 7.8%
TOTAL DEVELOPMENT SALES VALUE COST RATIO
Land Infrastructure Cost 125,233,748 77.4% 54.0%
Land Cost 18,610,000 11.5% 8.0%
Production Costs 17,998,427 11.1% 7.8%
SUB-TOTAL 161,842,175 100.0%
Margin 25.8% 41,726,212 18.0%
203,568,387
VAT @ 14% 28,499,574 100.0% 12.3%
TOTAL Development Sales Value 232,067,961 100.0%
Revenue Breakdown 232,068,125.00
Individual Stand Selling 291 R 185,750.00 54,053,250.00
Intermediate Residential 371 R 145,000.00 53,795,000.00
General Residential 431 R 145,000.00 62,495,000.00
Commercial GROSS m2 Selling 79,645 R 775.00 61,724,875.00
Umkomanzi Park -Start Aug 07 CONSOLIDATE 11 Nov08 Present Summary Presentation]
Umkomanzi Drift
Phase 1__ Summary and Equity Cashflow
DEVELOPMENT: UMKOMANZI DRIFT
ESTIMATED DEVELOPMENT COST:
Date : December-06
REVISION : 14 Revision Date : 11-Dec-08
% of % of Cost per
Land Infrastructure Cost Dev Cost Selling Opportunity
Building Cost 0.0%
Bulk contribution 3,942,000 5.1% 3.5% R 5,490.25
Service infrastructure 29,634,833 38.3% 26.4% R 41,274.14
Entrance,Connections 3,498,376 4.5% 3.1% R 4,872.39
Pre-tender escalation 2.0% 730,000 0.9% 0.7% R 1,016.71
Post-tender escalation 2.5% 950,000 1.2% 0.8% R 1,323.12
Estimated Infrastucture Cost 38,755,210 50.1% 34.6% R 53,976.61
Professional fees & Costs 14.5% 5,620,000 7.3% 5.0% R 7,827.30
Interim interest on Construction Period 15.0% 8,340,853 10.8% 7.4% R 11,616.79
Sub-total : Infrastructure 52,716,062 68.2% 47.0% R 73,420.70
Land Cost
Purchase price of land 16,000,000 20.7% 14.3% R 22,284.12
Transfer & Legal costs, Company etc 0.5% 80,000 0.1% 0.1% R 111.42
Interim Interest on Land - 0.0% 0.0% R -
Sub-total : Land 16,080,000 20.8% 14.3% R 22,395.54
Production Costs
0.50% 340,000 0.4% 0.3% R 473.54
Legal/Audit Company Assembly/ Bond Fe
Land Surveyor ERF Certificates 0.20% 140,000 0.2% 0.1% R 194.99
Rates & Taxes 0.25% 170,000 0.2% 0.2% R 236.77
Services Consumables 0.25% 170,000 0.2% 0.2% R 236.77
Contingency 2.50% 1,320,000 1.7% 1.2% R 1,838.44
NHBRC 0.00% - 0.0% 0.0% R -
Interim Interest - 0.0% 0.0% R -
Bond Raising Fee R 35 million 2.00% 700,000 0.9% 0.6% R 974.93
Submission Fees & Disbursments 0.35% 240,000 0.3% 0.2% R 334.26
Marketing 0.73% 500,000 0.6% 0.4% R 696.38
Sales Commission & Marketing 5.00% 4,914,748 6.4% 4.4% R 6,845.05
Sub-total : Production Costs 8,494,748 11.0% 7.6% R 11,831.13
TOTAL DEVELOPMENT SALES VALUE COST RATIO
Land Infrastructure Cost 52,716,062 68.2% 47.0% R 73,420.70
Land Cost 16,080,000 20.8% 14.3% R 22,395.54
Production Costs 8,494,748 11.0% 7.6% R 11,831.13
SUB-TOTAL 77,290,810 100.0% R 107,647.37
Margin 27.18% 21,004,002 18.7% R 29,253.48
98,294,812 R 136,900.85
VAT @ 14% 13,761,274 100.0% 12.3% R 19,166.12
TOTAL Development Sales Value 112,056,086 100.0% R 156,066.97
Variables Opportunity Analysis
Escalation = 2.50% Erf Gross Area Opportunity
Interest = 15.0% Yield
Planning period = 9 Erf 559 475,506.00 856
Construction period = 24 Erf 536 325,147.00 585
Total Professional Fees 14.5%
Marketing Cost = 1.0% 800,653.00 1441
Sales Commission = 5.0% Roads & 50%
718
Contingency = 2.5% Environmental factor
NHBRC = 1.3% R 156,066.97
Units per hectare 18
DEVELOPMENT ASSUMPTION
ACTUAL YIELD 718 Revenue
Breakdown
Average Opportunity Selling R 156,066.97 R 112,056,086.14 112,056,250.00
Individual Stand Selling 195 R 185,750.00 36,221,250.00
Intermediate Residential 210 R 145,000.00 30,450,000.00
General Residential 313 R 145,000.00 45,385,000.00
Umkomanzi Park -Start Aug 07 CONSOLIDATE 11 Nov08 Present Presentation Phase 1
Umkomanzi Drift
Phase 2__ Summary and Equity Cashflow
DEVELOPMENT: REM 17 Umkomanzi Drift
ESTIMATED DEVELOPMENT COST:
Date : March-08
REVISION : 8 Revision Date : 11-Dec-08
% of % of Cost per
Land Infrastructure Cost Dev Cost Selling Opportunity
Building Cost 0.0%
Bulk contribution 8,478,000 10.0% 7.1% R 17,127.27
Service infrastructure 30,332,037 35.9% 25.3% R 61,276.84
Entrance,Connections 13,088,238 15.5% 10.9% R 26,440.88
Pre-tender escalation 2.0% 1,020,000 1.2% 0.8% R 2,060.61
Post-tender escalation 2.5% 1,320,000 1.6% 1.1% R 2,666.67
Estimated Infrastucture Cost 54,238,275 64.1% 45.2% R 109,572.27
Professional fees & Costs 16.0% 8,680,000 10.3% 7.2% R 17,535.35
Interim interest on Construction Perio 15.0% 9,599,411 11.4% 8.0% R 19,392.75
Sub-total : Infrastructure 72,517,686 85.8% 60.4% R 146,500.38
Land Cost
Purchase price of land 2,500,000 3.0% 2.1% R 5,050.51
Transfer & Legal costs, Company etc 1.0% 30,000 0.0% 0.0% R 60.61
Interim Interest on Land - 0.0% 0.0% R -
Sub-total : Land 2,530,000 3.0% 2.1% R 5,111.11
Production Costs
0.50% 380,000 0.4% 0.3% R 767.68
Legal/Audit Company / Bond Fee
Land Surveyor Certificates 0.15% 110,000 0.1% 0.1% R 222.22
Rates & Taxes 0.25% 190,000 0.2% 0.2% R 383.84
Services Consumables 0.25% 190,000 0.2% 0.2% R 383.84
Contingency 2.50% 1,810,000 2.1% 1.5% R 3,656.57
NHBRC 0.00% - 0.0% 0.0% R -
Interim Interest - 0.0% 0.0% R -
Bond Raising Fee R 40 m 2.00% 800,000 0.9% 0.7% R 1,616.16
Submission Fees & Disbursments 0.35% 260,000 0.3% 0.2% R 525.25
Marketing 0.66% 500,000 0.6% 0.4% R 1,010.10
Sales Commission & Marketing 5.00% 5,263,679 6.2% 4.4% R 10,633.69
Sub-total : Production Costs 9,503,679 11.2% 7.9% R 19,199.35
TOTAL DEVELOPMENT SALES VALUE COST RATIO
Land Infrastructure Cost 72,517,686 85.8% 60.4% R 146,500.38
Land Cost 2,530,000 3.0% 2.1% R 5,111.11
Production Costs 9,503,679 11.2% 7.9% R 19,199.35
SUB-TOTAL 84,551,365 100.0% R 170,810.84
Margin 24.51% 20,722,210 17.3% R 41,863.05
105,273,575 R 212,673.89
VAT @ 14% 14,738,300 100.0% 12.3% R 29,774.34
TOTAL Development Sales Value 120,011,875 100.0% R 242,448.23
Variables Opportunity Analysis
Escalation = 2.50% Erf Gross Area Opportunity
Interest = 15.0% Yield
Planning period = 9 Rem 17 813,431.00 1220
Construction period = 24 - 0
Total Fees + costs = 16.0%
Marketing Cost = 1.0% 813,431.00 1220
Sales Commission = 5.0% Roads & 31%
495
Contingency = 2.5% Environmental factor
NHBRC = 1.3% R 242,448.23
Units per hectare 15
DEVELOPMENT ASSUMPTION ACTUAL YIELD 375
Commercial 30 Revenue
Breakdown
Average Opportunity Selling R 242,448.23 R 120,011,874.56 120,011,875.00
Individual Stand Selling 96 R 185,750.00 17,832,000.00
Intermediate Residential 161 R 145,000.00 23,345,000.00
General Residential 118 R 145,000.00 17,110,000.00
Commercial GROSS m2 Selling 79,645 R 775.00 61,724,875.00
Umkomanzi Park -Start Aug 07 CONSOLIDATE 11 Nov08 Present Presentation Phase 2
SUMMARY 12TH SEPTEMBER 2008
PHASE 1 R 98,294,956
Sales Value ex VAT
PHASE 1 SITES 1 TO 217 R/m2 Value Average Erf Average Yield
PROPOSED TOTAL EXTENT NUMBER F.A.R.
ZONE M2 OF SITES 1 DW / ERF 25 DW / HA 30 DW / HA FACTOR Selling Per Erf
Special
Residential 1 180789 195 195 0.35 162,938.60 R 31,773,026.32 R 162,938.60 1
Intermediate
Residential 83555 8 210 0.35 127,192.98 R 26,710,526.32 R 3,338,797.79 26
General
Residential 104122 7 313 0.75 127,192.98 R 39,811,403.51 R 5,687,343.36 45
General
Commercial 1.25
Totals 368,466 210 195 210 313 718
Mother
Total Residential Yield
Property 800,654 718
Umkomanzi Park -Start Aug 07 CONSOLIDATE 11 Nov08 Present Erf Yield
SUMMARY 12TH SEPTEMBER 2008
PHASE 2 R 105,273,575
Sales Value ex VAT
SITES 218 TO
PHASE 2 353 R/m2 Value Average Erf Average Yield
PROPOSE TOTAL EXTENT NUMBER F.A.R.
D ZONE M2 OF SITES 1 DW / ERF 25 DW / HA 30 DW / HA FACTOR Selling Per Erf
Special
Residential
1 73793 96 96 0.35 162,938.60 15,642,105.26 R 162,938.60 1
Intermediat
e
Residential 64603 9 161 0.35 127,192.98 20,478,070.18 R 2,275,341.13 18
General
Residential 39098 6 118 0.75 127,192.98 15,008,771.93 R 2,501,461.99 20
General
Commercia
79645
l 30 1.25 679.82 54,144,627.19 R 1,804,820.91 2655
Totals 257,139 141 96 161 118 375
Mother
Total Residential Yield
Property 813,431 375
Umkomanzi Park -Start Aug 07 CONSOLIDATE 11 Nov08 Present Erf Yield
SUMMARY 12TH SEPTEMBER 2008
Consolidated 203,568,530.70
Sales Value ex VAT
TOTAL SITESITES 1 TO 352 R/m2 Value Average Erf Average Yield
PROPOSE TOTAL EXTENT NUMBER F.A.R.
D ZONE M2 OF SITES 1 DW / ERF 25 DW / HA 30 DW / HA FACTOR Selling Per Erf
Special
Residential
1 254582 291 291 0.35 R 47,415,131.58
162,938.60 162,938.60 1
Intermediate
Residential 148158 17 371 0.35 R 127,192.98 47,188,596.49 2,775,799.79 22
General
Residential 143220 13 431 0.75 R 127,192.98 54,820,175.44 4,216,936.57 33
General
79645
Commercial 30 1.25 R 679.82 54,144,627.19 1,804,820.91 2655
TOTALS 625,605 351 291 371 431
Mother
Total Residential Yield 1093 30
Property Commercial
1,614,085
Umkomanzi Park -Start Aug 07 CONSOLIDATE 11 Nov08 Present Erf Yield
Umkomanzi Drift
EIA Status
UMKOMAZI DRIFT APPLICATION
APPROXIMATE TIMEFRAMES FOR EIA PROCESS
ITEM ACTIVITY DURATION STATUS
Blue Environmental consultant’s wetland ecologist to undertake delineation and environmental
1 13 September 2007
mapping
2 Blue Environmental Consultants to prepare environmental Mapping & distribute to team 14 September 2007
14 - 28 September
3 Allow 14 days for compilation of a draft site development plan by Town Planners 2007
4 Submission of EIA Application form and landowners consent to African Spirit Trading 18 September 2007
5 Submission of EIA Application Form to Dept of Agriculture and Environmental Affairs 19 October 2007
6 Blue to Produce image of property boundary with 100m buffer, including all erven within this zone. November 2007
Obtain PO Box Addresses for Landowners within 100m of Site from Barbara Parker/rates
7 November 2007
department.
8 Obtain EIA Reference number from DAEA 29 October 2007
Obtain all Information for the initial Public Participation Process and public meeting from 28 July 2008 – 01
9 August 2008
professional team.
Commencement of the Public Participation Process (PPP) starting with the publishing of notices in 04 – 08 August 2008
10
the local and provincial newspapers.
Compilation and distribution of Background Information Document (BID) to all I&APs including
invitation to attend public meeting. Delivery of BID to all landowners/properties within 100m of the 04 – 08 August 2008
11
boundary of the property to be developed.
12 Public Meeting 21 August 2008
13 Submission of Draft Professional & Specialist Reports to Blue Environmental (DSR) 25 October 2008
25 October 2008 -
14 Compilation of a Scoping Report and Plan of Study for EIA 10 November 2008
15 Distribution of the Scoping Report and Plan of Study for EIA to all I&APs for comment 10 November 2008
10 November 2008 -
Waiting period for comments from I&APs on the Scoping Report and Plan of Study for EIA - 30
16 10 December 2008
days
1
10 December 2008 -
17 Compile Comments Response report and Final Scoping report 16 January 2009
18 Submission of the Scoping Report and Plan of Study for EIA to DAEA 16 January 2009
Waiting period for DAEA to approve Scoping Report and Plan of Study for EIA or request 16 January 2009 -
19 16 February 2009
additional information to be submitted - 30 days
16 February 2009 -
20 Undertake any additional specialist studies identified as being required during the Scoping Process 16 March 2009
Compilation of the Environmental Impact Assessment Report and Draft Environmental 16 March 2008 – 16
21 April 2008
Management Plan
Distribution of the Environmental Impact Assessment Report and Draft Environmental
22 16 April 2009
Management Plan to all I&APs for comment
16 April 2009 – 1
23 Waiting period for comments from I&APs on the EIA Report - 45 days June 2009
Inclusion of comments from I&APs on the Environmental Impact Assessment Report (EIR) and 1 June 2009 – 15
24 June 2009
Draft Environmental Management Plan in the EIR
Submission of the Environmental Impact Assessment Report and Draft Environmental
15 June 2009 – 30
25 Management Plan to DAEA & Waiting period for DAEA to accept EIA Report & Draft EMP or July 2009
request additional information to be submitted - 60 days (possibly 45 days).
Waiting period for DAEA to grant authorisation for EIA Application i.e. receipt of a RoD - 45 days. 30 July 2009 – 14
26 September 2009
(could be 14 days)
14 September 2009
27 Publishing of Notices of Environmental Authorisation allowing 30 days for appeal. – 14 October 2009
28 Appeal period on Environmental Authorisation expires. 14 October 2009
Condition or RoD may request an Operational EMP to be compiled and submitted to certain
Note
Government Departments for comment and ultimate approval by DAEA.
2
Jason Wilkes our principle at Tyson Properties has more
Jason Wilkes our principle at Tyson Properties has launched the following development 18 months ago and is looking for an equity partner for phase two of the Umkomanzi park development, I am sure that this exciting development with secure capital investment returns would be of interest to you or some of your more serious contacts or clients. As a referral to anyone whom would be interested to come to the party on this one - as you will see from the intro letter plus attachments that there is $$$ to be made, for the client as well as commission for the referrer. Taking the current exchange rate there is no better time than the present to invest off-shore (Foreign Clients), and what better vehicle than Real Estate. less
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