Development Economics (Group Assignment) - Financial appraisal

Development
Economics
Proposed development of 26’ x 80’ d/s shop/office lots, 22’x 75’
d/s terrace houses and 20’ x 60’ d/s low cost houses in
Rawang, Selangor.
Group members
Foo Wai Nni 0328240
Pavithra Ramakrishnarao 0329126
Wan Yee Len 0330764
Yong Kang Seng 0331857
Yong May Sia 0327724
Yong Shi Qi 0327539
Yoong Ai Teng 0328347
Submission date
29 June 2020
March
2020 School of Architecture, Building and Design
Bachelor of Quantity Surveying (Honours)
QSB60303

Table of Contents
1.0 Introduction 1
1.1
1.2
1.3
1.4
Project information
Development layout
Development process
Project concept
2
6
8
12
2.0 Feasibility study of development plan 14
2.1
2.2
2.3
Analysis of number of units for each type of houses
Financial appraisal in residual method of valuation
Cash flow based on ‘Sell-then-Build’ concept
15
18
2.3.1
2.3.2
2.3.3
Quarterly cash inflow for 2018-2020
Quarterly cash outflow for 2018-2021
Quarterly-Yearly cash flow for 2015-2021
22
23
25
2.4
2.5
Net present value for 2015-2021
Analysis on viability of project
27
28
3.0 Project based on ‘Build-then-Sell’ concept 29
3.1
3.2
3.3
3.4
‘Build-then-Sell’ concept
Negative net cash flow based on ‘Build-then-Sell’ concept
Analysis on viability of project
Case study
30
31
34
36
4.0 Conclusion 37
5.0 References 38
6.0 Appendices 39

Introduction
There is an intention for a property developer to develop a piece of freehold land measuring
10.5 acres in Rawang, Selangor. Previously, the land served agricultural purposes and it was
purchased for RM15.00 per sq. ft in 2015. The developer managed to secure a 60% bank loan at
an interest rate of 7% for the purchase of the land and the balance has been paid using
internal funds which the developer plans to recover from the development revenue when the
land is eventually developed. During the last few years period, the developer had applied for
land conversion, subdivision, planning and building plans approval.
The proposed development shall be of mixed residential and commercial units comprising 26’
x 80’ double-storey shop/office lots, 22’ x 75’ double-storey terrace houses and 20’ x 60’
double-storey low cost houses. Thirty percent (30%) of the development must be of low-cost
houses and also fifteen percent (15%) of the total units to be double-storey shop/office.
Development Order has now been granted and construction is ready to proceed. The
construction shall take two years to complete.

1.1 Project information
Land Purchased @ RM15.00/fs : January 2015
Commencement of construction : January 2018
Scheduled Completion : End December 2019
Planning Constraints / Restrictions
Effective development area : 60% of Land area
Restrictions:
- Shop/Office Lots : maximum 10 units / block
- Terrace Houses : maximum 12 units / block
- Low Cost Houses : maximum 15 units / block
Low Cost quota : 30%
Development Composition
Type Build-up Area Selling Price Construction Cost
Double Storey Shop/Office :
1. D/S Shop/Office 3,600 fs RM850,000.00 RM70.00 per fs
2. Corner unit* 5,000 fs RM1,600,000.00 RM80.00 per fs
3. End unit 3,600 fs RM900,000.00 RM75.00 per fs
Double Storey Terrace :
4. D/S Terrace 1,500 fs RM400,000.00 RM100.00 per fs
5. Corner unit* 1,500 fs RM650,000.00 RM115.00 per fs
6. End unit 1,500 fs RM450,000.00 RM110.00 per fs
Double-Storey Low Cost :
7. D/S Low Cost 900 fs RM75,000.00 RM65.00 per fs
8. Corner unit* 900 fs RM85,000.00 RM70.00 per fs
9. End Units 900 fs RM77,000.00 RM67.00 per fs
Introduction
2

Development/Construction Costs
i. Land cost purchased at : RM15.00 per fs in January 2015
ii. Professional Fees : 9% of construction costs.
iii. Administrative Fees : 2% of GDV
iv. Plan Fees : RM2,000.00 per unit.
v. Contributions & Fees : 2% of construction costs
vi. Advertisement & Marketing : 1% of GDV
vii. Conversion premium
-commercial : 20% of land value of commercial lots
-residential : 15% of land value of residential lots
viii. Subdivision : RM1,500.00 per unit
ix. Legal Fees : RM2,500.00 per unit
x. Contingencies : 5% of construction costs
xi. Earth Works : 5% of building costs
xii. Infrastructure costs : 10% of building costs
Assume:
• Item (ii) is payable 60% on commencement of construction and balance payable in two equal yearly payments;
• Items (iv), (v), (vii) (viii) & (ix) are payable on commencement of construction;
• Items (iii), (vi) & (x) are payable equally throughout the construction period.
Financing Costs
Cost of Finance : 3.5% p.a.+ BLR
Interest on Loan for Purchase of Land : 1.5% p.a. + BLR
BLR assumed @ 5.5%
Introduction
3

Contractual Requirements
Payment to contractor : 30 days Stage payment with 10% retention, limit 5%
On completion of : Foundation : 10%
RC Framework : 25%
Walls, Doors & Window Frame : 15%
Roofing, Elec. Wiring & Plumbing : 15%
Internal & External Plastering : 15%
Sewerage Works : 5%
Drainage Works : 5%
Road Works : 10%
Final Certificate : 18 months from completion of construction.
Sales Information
Sales Launch : January 2018
Sales Projection Shop/Office Terrace Low Cost
- on launching : 10% 30%
- end 2nd Q. 2018 : 20% 50%
- end 3rd Q. 2018 : 30% 70% 50%
- end 4th Q. 2018 : 40% 80%
- end 1st Q. 2019 : 50% 100% 100%
- end 2nd Q. 2019 : 70%
- end 3rd Q. 2019 : 100%
- end 4th Q. 2019 :
Introduction
4

Introduction
5
Construction Work Programme
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
1 Earthworks
2 Foundation
3 R.C. Framework
4 Walls, doors & window frame
5 Roofing, elec. wiring & plumbing
6 Internal & external plastering
7 Sewerage works
8 Drainage works
9 Roadworks
10 Infrastructure works
Q3
Date of Commencement : 1 January 2018
Date of Completion : 31 December 2019
Item Description
2018 2019
Q1 Q4Q2 Q3 Q4 Q1 Q2

1.2 Development layout
Introduction
6
Low-cost house Terrace house Shop/Office

Introduction
7
Double-storey low cost house Double-storey terrace Double-storey shop/office
Intermediate/End unit
Built-up area 900sf 1500sf 3600sf
Corner unit
Built-up area 900sf 1500sf 5000sf
Total units 62 74 14
Land size 20’ – 40’ x 60’ 22’ – 42’ x 75’ 26’ – 42’ x 80’
1F
500sf
2F
400sf
1F
500sf
2F
400sf
1F
770sf
2F
730sf
1F
770sf
2F
730sf
1F
1650sf
2F
1950sf
1F
1850sf
2F
3150sf

1.3 Development process
The first stage of the development process is initiation. The development initiated
when a parcel of land is considered suitable for different or more intensive uses. The
initiation can be engaged by any of the players in the development process. The players will
anticipate a potentially higher value use for an existing site due to changing demographics,
economy, social, physical, or other circumstances. The initiator will carry out market
research, and find out the potentiality of obtaining the necessary statutory planning consent
for the change of use to determine the most appropriate use.
Evaluation. It is the most important stage of the development process as it will
affect the decision making of developer’s. Financial appraisal of the proposal and market
research is included in the evaluation process. The financial evaluation process is adopted to
ensure the cost of development is reasonable and able to maximise site value. A professional
team will provide advice to the developer but the decision to proceed and bear the risk lies
with the developer. It is a continuous process with constant monitoring, relating directly with
all the other stages, and evaluation should be conducted before any commitment is
undertaken and while the developer still has flexibility.
Introduction
8
Figure 1.1: Stages of the development process

Once a decision is affirmed, there are several matters to be prepared before site
acquisition and project commencement. Such matters include legal investigation, ground
investigation, and also finance. All legal issues concerning the site must be assessed unless
the developer is the existing site owner. However, any error in establishing the extent of
ownership and the cost or the time in acquiring the rights to the site may adversely affect the
viability of the development. Besides, a site survey is needed to establish the measurement and
configuration of the site. The ground investigation includes analyzing the load-bearing
capacity of the site, access and drainage, and the existing services such as electricity and
sewerage system. If the services are inadequate, the cost of such provisions or expansions
need to be assessed. Appropriate financing for the development project on the most
favourable terms must be sourced unless the developer uses internal resources. Short term
finance and long-term finance has been recognized. Short term finance is used to cover costs
incurred during the development process while long term finance is used to cover cost of
holding the completed development as an investment. Then, the developer will appoint a team
of consultants including architects in the preparation of layout plans, drainage and sewerage
designs as well as section plans.
Design and costing. If the likely occupier is known or has been secured, the
developer may establish a detailed idea of what design is required. An architect will design the
building based on the client’s requirements. The design work will be kept to the minimum
initially to keep costs down before the developer commits to the scheme, but with sufficient
details to enable the quantity surveyor to prepare an initial cost estimate; and for the
developer to prepare financial evaluation. Planning permission is required from the local
planning authority prior to the commencement of any development which by statutory
definition involves a change of use or a building operation. In this stage, the developer needs
to submit detailed drawings and information on the actual location of the building, means of
access, design, external appearance and landscaping. Before the project commences, other
legal consents such as compensation or removal of illegal squatters, diversion or closure of a
right-of-way, agreements to secure the provision of the necessary services and infrastructure;
and building regulations on approval are required.
Introduction
9

Before any substantial commitment is made, a developer must be satisfied that all
the necessary preliminary work has been carried out. The project must be evaluated once
again to take into account any changes in the economic circumstances which determine the
success of the development after the preliminary work has been completed.
In the stage of implementation, a commitment has now been made to a particular
site and to particular buildings at a particular cost spread over a particular time. Flexibility
that was possible in the earlier phases is now vanished as the cost incurred may be very high if
any changes in design is made. The objective is to ensure that the development is completed
within the time and budget set out in the evaluation, without compromising quality.
Employing a project manager to coordinate the design and building process is very helpful in
this stage as they will anticipate problems and make prompt informed decisions to minimize
delays and extra costs.
Last but not least, it is a stage for the employer to decide whether he wants to let,
manage or dispose of the constructed property. A decision must be made at what point it would
be sensible to let or sell. It may be necessary to complete the development before seeking an
occupier.
Introduction
10

Introduction
11
Figure 1.2: Summary of the housing development process
(Source: KPKT 2012)

1.4 Project concept
There are two different types of housing delivery system adopted in Malaysia
including Sell-then-Build (STB) system and Build-then-Sell (BTS) system. Sell-then-Build is a
housing scheme wherein properties are sold before it is built.. From the developer's
viewpoint, items such as approval of the planning process, financial support, firm
characteristics need to be considered before choosing a suitable housing delivery system.
Several problems that deter people from implementing the STB system include
defect issues, late delivery, difficulties in getting Certificate Fitness for Occupation (CFO) and
land titles approval, or project abandonment. Many homebuyers have complained that houses
built under the STB system faced bad defects. Such defects include cracking of floor and wall,
sinking foundation, collapsing of retaining walls. These defects may occur frequently since
the developer already collected money from homebuyers during the construction period and
they may attempt to gain more profit by constructing the houses using cheaper building
materials. The risks of adopting STB house policy is the workmanship and design of the
actual house unit built by developers may be different with the model house.
Introduction
12
Figure 1.3: Process of Sell-then-Build (STB) system

There are also a lot of advantages of implementing STB policy. Firstly, buyers are
considered as one of the financiers to a development project under the STB system as they
partly contribute to the project’s construction costs by individual end-financing obtained
from financial institutions. Most of the Malaysian developers prefer to implement the STB
system as the housing delivery system as the developer is able to collect money from
homebuyers and use it as part of the finances for development. Hence, minimizing bridging
finance borrowed from financial institutions or banks. The purpose for a pre-sale condition is
to demonstrate the level of saleability for the development, as the developer can construct the
housing projects after they sell the houses through STB concept. Therefore, the number of
houses needed to construct in a housing project can be estimated by the developer through
pre-sale conditions. Besides, this policy enables the reduction of bridging finance required to
finance the cost of completion in case the developer fails to obtain further sales after the
disbursement of bridging finance, thus, the possibility to incur loss can be minimized.
As a summary, STB policy has its own pros and cons. Before determining which
housing delivery system to be adopted, a comprehensive study needs to be conducted to
choose the most appropriate housing delivery system. In this project, the STB concept
housing scheme is implemented based on the aforementioned advantages.
Introduction
13

Feasibility study
Assessment on the practicality of the proposed development is required to understand
thoroughly all aspects include project concept and development plan. Components reflecting
feasibility study encompass the calculation of building units on specified land area and
financial assessment through the establishment of projected cash flow. The outcome thereof
will contribute crucial information with regards to the viability of the proposed development.

Feasibility study of development plan
A Development area
Land size 10.5 acres 10.5 x 43,560 fs = 457,380.00 fs
Development area 60% 457,380.00 x 60% = 274,428.00 fs
B Double storey shop/office
Total unit 15% 274,428.00 x 15% = 41,164.20 fs
Number of unit per row
Intermediate unit 26' x 80' 2080 x 3 unit = 6,240.00 fs
Corner unit 42' x 80' 3360 x 2 unit = 6,720.00 fs
End unit 26' x 80' 2080 x 2 unit = 4,160.00 fs
17,120.00 fs
Number of blocks 41,164.20 / 17,120 fs = 2.40
≈ 2 blocks
Total number of unit
Intermediate unit 26' x 80' 3 x 2 blocks = 6 units
Corner unit 42' x 80' 2 x 2 blocks = 4 units
End unit 26' x 80' 2 x 2 blocks = 4 units
14 units
2.1 Analysis of number of units for each type of houses
15

C Double storey terrace
Total unit 55% 274,428.00 x 55% = 150,935.40 fs
Intermediate unit 22'x75' 1650 x 35 unit = 57,750.00 fs
Corner unit 42'x75' 3150 x 4 unit = 12,600.00 fs
End unit 22'x75' 1650 x 4 unit = 6,600.00 fs
76,950.00 fs
Number of blocks 150,935.40 / 76,950 fs = 1.96 blocks
≈ 2 blocks
Intermediate unit 22'x75' 35 x 2 blocks = 70 units
Corner unit 42'x75' 4 x 2 blocks = 8 units
End unit 22'x75' 4 x 2 blocks = 8 units
86 units
16

D Double storey low cost
Total unit 30% 274,428.00 x 30% = 82,328.40 fs
Intermediate unit 20'x60' 1200 x 26 unit = 31,200.00 fs
Corner unit 40'x60' 2400 x 3 unit = 7,200.00 fs
End unit 20'x60' 1200 x 2 unit = 2,400.00 fs
40,800.00 fs
Number of blocks 82,328.40 / 40,800 fs = 2.02
≈ 2 blocks
Intermediate unit 20'x60' 26 x 2 blocks = 52 units
Corner unit 40'x60' 3 x 2 blocks = 6 units
End unit 20'x60' 2 x 2 blocks = 4 units
62 units
17

RM RM RM
A Gross development value (GDV)
Selling price (RM) No. of units
Double storey shop/office
Intermediate unit 850,000.00 x 6 = 5,100,000.00
Corner unit 1,600,000.00 x 4 = 6,400,000.00
End unit 900,000.00 x 4 = 3,600,000.00
15,100,000.00
Double storey terrace
Corner unit 650,000.00 x 8 = 5,200,000.00
End unit 450,000.00 x 8 = 3,600,000.00
36,800,000.00
Double storey low cost
Corner unit 85,000.00 x 6 = 510,000.00
End unit 77,000.00 x 4 = 308,000.00
4,718,000.00
Total Gross development value (GDV) 162 56,618,000.00
2.2 Financial appraisal in residual method of valuation
18

RM RM RM
B Cost of development
B.1 Land cost
Land size (fs) Land cost (RM/fs)
Purchase of land 457,380.00 x 15.00 = 6,860,700.00
B.2 Building cost
Build-up area (fs) Construction cost (RM/fs) No. of units
i. Double storey shop/office
Intermediate unit 3,600 x 70.00 x 6 = 1,512,000.00
Corner unit 5,000 x 80.00 x 4 = 1,600,000.00
End unit 3,600 x 75.00 x 4 = 1,080,000.00
4,192,000.00
ii. Double storey terrace
Intermediate unit 1,500 x 100.00 x 70 = 10,500,000.00
Corner unit 1,500 x 115.00 x 8 = 1,380,000.00
End unit 1,500 x 110.00 x 8 = 1,320,000.00
13,200,000.00
iii. Double storey low cost
Intermediate unit 900 x 65.00 x 52 = 3,042,000.00
Corner unit 900 x 70.00 x 6 = 378,000.00
End unit 900 x 67.00 x 4 = 241,200.00
3,661,200.00
Total Building cost 21,053,200.00
iv. Earth works
5% of building cost RM 21,053,200.00 x 5% = 1,052,660.00
v. Infrastructure cost
10% of building cost RM 21,053,200.00 x 10% = 2,105,320.00
Total Construction cost 24,211,180.00
19

RM RM RM
B.3 Administrative cost
i. Professional fees
9% of construction cost RM 24,211,180.00 x 9% = 2,179,006.20
ii. Administrative fees
2% of GDV RM 56,618,000.00 x 2% = 1,132,360.00
iii. Plan fees
RM2,000.00 per unit RM 2,000.00 x 162 = 324,000.00
iv. Contributions & fees
2% of construction cost RM 24,211,180.00 x 2% = 484,223.60
v. Advertisement & marketing
1% of GDV RM 56,618,000.00 x 1% = 566,180.00
vi. Conversion premium
Commercial @ 20% of land value of commercial lots
41,164.20 fs x RM15.00 RM 617,463.00 x 20% = 123,492.60
Residential @ 15% of land value of residential lots
233,263.80 fs x RM15.00 RM 3,498,957.00 x 15% = 524,843.55
vii. Subdivision
RM1,500.00 per unit RM 1,500.00 x 162 = 243,000.00
viii. Legal fees
RM2,500.00 per unit RM 2,500.00 x 162 = 405,000.00
Total Administrative cost 5,982,105.95
20

RM RM RM
B.4 Financing cost
i. Cost of finance
3.5% p.a. + BLR 5.5% RM 24,211,180.00 x 2 years x 9% = 4,358,012.40
ii. Interest on loan for purchase of land
60% secured bank loan + (1.5% p.a. + BLR 5.5%) RM 4,116,420.00 x [(1+0.07)^5-1] = 1,657,270.69
0.4026
Total Financing cost 6,015,283.09
B.5 Contingencies
5% of construction cost RM 24,211,180.00 x 5% = 1,210,559.00
Total Cost of development 44,279,828.04
C Developer's profit
Gross development value (GDV) 56,618,000.00
Cost of development (44,279,828.04)
Total Developer's profit 12,338,171.96
D Profit margin
Profit/Gross development value (GDV) 21.79%
21

2.3.1 Quarterly cash inflow for 2018-2020
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24 M25 M26 M27
26.67% 15,100,000.00 10% 10% 10% 10% 10% 20% 30%
65.00% 36,800,000.00 30% 20% 20% 10% 20%
8.33% 4,718,000.00 50% 50%
100.00% 56,618,000.00
22.17% 0.00% 0.00% 15.67% 19.83% 0.00% 0.00% 9.17% 19.83% 0.00% 0.00% 5.33% 8.00% 0.00% 0.00% 0.00%
22.17% 22.17% 22.17% 22.17% 22.17% 37.83% 37.83% 37.83% 57.67% 57.67% 57.67% 66.83% 66.83% 66.83% 86.67% 86.67% 86.67% 92.00% 92.00% 92.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Months %
3 100.00 7.39% 7.39% 7.39% 15.67% 19.83% 9.17% 19.83% 5.33% 8.00%
9 100.00 2.46% 2.46% 2.46% 5.07% 5.07% 5.07% 11.68% 11.68% 11.68% 9.17% 19.83% 5.33% 8.00%
7 100.00 5.40% 5.40% 9.37% 9.37% 9.37% 13.95% 13.95% 19.83% 5.33% 8.00%
7 100.00 8.24% 8.24% 8.24% 10.53% 10.53% 10.53% 30.36% 5.33% 8.00%
8 100.00 7.21% 8.52% 8.52% 8.52% 13.48% 13.48% 13.48% 18.81% 8.00%
5 100.00 18.40% 18.40% 21.07% 21.07% 21.07%
6 100.00 14.44% 15.51% 15.51% 15.51% 19.51% 19.51%
2 100.00 50.00% 50.00%
6 100.00 14.44% 14.44% 15.78% 15.78% 15.78% 23.78%
22.17% 15.67% 19.83% 9.17% 19.83% 5.33% 8.00%
1 10.00% 5,661,800.00 1,255,000.00 887,000.00 1,122,900.00 519,000.00 1,122,900.00 302,000.00 453,000.00
7.39% 7.39% 7.39% 15.67% 19.83% 9.17% 19.83% 5.33% 8.00%
2 10.00% 5,661,800.00 418,333.33 418,333.33 418,333.33 887,000.00 1,122,900.00 519,000.00 1,122,900.00 302,000.00 453,000.00
2.46% 2.46% 2.46% 5.07% 5.07% 5.07% 11.68% 11.68% 11.68% 9.17% 19.83% 5.33% 8.00%
3 15.00% 8,492,700.00 209,166.67 209,166.67 209,166.67 430,916.67 430,916.67 430,916.67 992,366.67 992,366.67 992,366.67 778,500.00 1,684,350.00 453,000.00 679,500.00
5.40% 5.40% 9.37% 9.37% 9.37% 13.95% 13.95% 19.83% 5.33% 8.00%
4 10.00% 5,661,800.00 306,000.00 306,000.00 530,580.00 530,580.00 530,580.00 790,080.00 790,080.00 1,122,900.00 302,000.00 453,000.00
8.24% 8.24% 8.24% 10.53% 10.53% 10.53% 30.36% 5.33% 8.00%
5 10.00% 5,661,800.00 466,414.29 466,414.29 466,414.29 596,164.29 596,164.29 596,164.29 1,719,064.29 302,000.00 453,000.00
7.21% 8.52% 8.52% 8.52% 13.48% 13.48% 13.48% 18.81% 8.00%
6 10.00% 5,661,800.00 408,112.50 482,255.36 482,255.36 482,255.36 762,980.36 762,980.36 762,980.36 1,064,980.36 453,000.00
18.40% 18.40% 21.07% 21.07% 21.07%
7 5.00% 2,830,900.00 520,880.00 520,880.00 596,380.00 596,380.00 596,380.00
14.44% 15.51% 15.51% 15.51% 19.51% 19.51%
8 5.00% 2,830,900.00 408,900.00 439,100.00 439,100.00 439,100.00 552,350.00 552,350.00
50.00% 50.00%
9 5.00% 2,830,900.00 1,415,450.00 1,415,450.00
100.00%
10 12.50% 7,077,250.00 7,077,250.00
100.00%
11 2.50% 1,415,450.00 1,415,450.00
100.00%
12 5.00% 2,830,900.00 2,830,900.00
(a)
2.5% at the expiry of 8 months
after the date the Purchaser takes
vacant possession of the said
Property
(b)
Property
100.00% 56,618,000.00 1,255,000.00 418,333.33 418,333.33 627,500.00 209,166.67 1,096,166.67 1,317,916.67 736,916.67 1,859,816.67 3,112,260.95 1,989,360.95 2,916,473.45 3,165,999.64 1,868,499.64 2,201,319.64 6,412,194.64 762,980.36 1,473,880.36 2,863,080.36 959,980.00 1,412,980.00 3,640,230.00 1,148,730.00 13,335,430.00 1,415,450.00
56,618,000.00 1,255,000.00 1,673,333.33 2,091,666.67 2,719,166.67 2,928,333.33 4,024,500.00 5,342,416.67 6,079,333.33 7,939,150.00 11,051,410.95 13,040,771.90 15,957,245.36 19,123,245.00 20,991,744.64 23,193,064.29 29,605,258.93 30,368,239.29 31,842,119.64 34,705,200.00 35,665,180.00 37,078,160.00 40,718,390.00 41,867,120.00 55,202,550.00 56,618,000.00 56,618,000.00 56,618,000.00
56,618,000.00 2,091,666.67 1,932,833.33 3,914,650.00 8,018,095.36 7,235,818.93 8,649,055.36 5,236,040.36 18,124,390.00 1,415,450.00
2,091,666.67 4,024,500.00 7,939,150.00 15,957,245.36 23,193,064.29 31,842,119.64 37,078,160.00 55,202,550.00 56,618,000.00
Assumption:
- % of sales proceeds based on Schedule of Payment of Purchase Price (Clause 4 (1)) third schedule.
- Earthworks and foundation are paid simultaneously.
- Roadworks and infrastructure works are paid simultaneously.
- Item 2-9 are paid within 30 days after the receipt by the Purchaser of the Developer's written notice of the completion of such items.
Sales proceeds
Signing of S&P Agreement
The work below ground level of the
said Building comprising the said
Property including foundation of the
said Building
Internal & external plastering
Sewerage works
Drainage works
Roadworks
Infrastructure works
Construction work programme
Earthworks & Foundation
R.C. Framework
Walls, doors & window frame
Roofing, elec. wiring & plumbing
Monthly Total
% of Cummulative Sales
2020
Q1Q1 Q2
Sales projection
Q4Item Description Sales percentage Amount (RM)
2018 2019
Q3 Q4 Q1 Q2 Q3
Quarterly Total Cash Inflow
Quarterly Cummulative Cash Inflow
The structural framework of the said
Property
The walls of the said Property with
door and window frames placed in
position
The roofing, electrical wiring and
plumbing to the said Property
The internal and external finishes of
the said Property including the wall
finishes
The sewerage works serving the said
Building
The drains serving the said Building
The roads serving the said Building
On the date the Purchaser takes
possession of the said Property, with
water and electricity supply ready for
connection
vacant possession of the said Property
as in item 10 where the Developer has
executed and delivered to the
Purchaser of the Purchaser's solicitor
the instrument of transfer in favour of
the Purchaser together with the
original issue document of strata title
to the said Property
as in item 10 and to be held by the
Developer's solicitor as stakeholder
for payment to the Developer as
follows: -
Monthly Total Cash Flow
Monthly Cummulative Cash Inflow
22

2.3.2 Quarterly cash outflow for 2018-2021
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Construction cost
Earthworks (5% of building cost) 1 4.35% 1,052,660.00 1,052,660.00
Foundation 3 8.70% 2,105,320.00 701,773.33 701,773.33 701,773.33
R.C. Framework 9 21.74% 5,263,300.00 584,811.11 584,811.11 584,811.11 584,811.11 584,811.11 584,811.11 584,811.11 584,811.11 584,811.11
Walls, doors & window frame 7 13.04% 3,157,980.00 451,140.00 451,140.00 451,140.00 451,140.00 451,140.00
Roofing, elec. wiring & plumbing 7 13.04% 3,157,980.00 451,140.00 451,140.00 451,140.00
Internal & external plastering 8 13.04% 3,157,980.00 394,747.50
Sewerage works 5 4.35% 1,052,660.00
Drainage works 6 4.35% 1,052,660.00
Roadworks 2 8.70% 2,105,320.00
Infrastructure works (10% of building cost) 6 8.70% 2,105,320.00
Total Construction cost 100.00% 24,211,180.00
Monthly Total Cash Outflow (Before Retention) 0.00 1,754,433.33 701,773.33 1,286,584.44 584,811.11 584,811.11 584,811.11 1,035,951.11 1,035,951.11 1,487,091.11 1,487,091.11 1,881,838.61
Monthly Cummulative Outflow (Before Retention) 0.00 1,754,433.33 2,456,206.67 3,742,791.11 4,327,602.22 4,912,413.33 5,497,224.44 6,533,175.56 7,569,126.67 9,056,217.78 10,543,308.89 12,425,147.50
Less Retention (10% Limit 5%) 2,421,118.00 0.00 (175,443.33) (245,620.67) (374,279.11) (432,760.22) (491,241.33) (549,722.44) (653,317.56) (756,912.67) (905,621.78) (1,054,330.89) (1,242,514.75)
Monthly Cummulative Outflow (After Retention) 0.00 1,578,990.00 2,210,586.00 3,368,512.00 3,894,842.00 4,421,172.00 4,947,502.00 5,879,858.00 6,812,214.00 8,150,596.00 9,488,978.00 11,182,632.75
Monthly Total Cash Outflow (After Retention) 0.00 1,578,990.00 631,596.00 1,157,926.00 526,330.00 526,330.00 526,330.00 932,356.00 932,356.00 1,338,382.00 1,338,382.00 1,693,654.75
Quarterly Total Cash Flow 2,210,586.00 2,210,586.00 2,391,042.00 4,370,418.75
Quarterly Cummulative Cash Flow 2,210,586.00 4,421,172.00 6,812,214.00 11,182,632.75
M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24
Construction cost
Earthworks (5% of building cost) 1 0.51% 123,492.60
Foundation 3 0.00% 0.00
R.C. Framework 9 0.00% 0.00
Walls, doors & window frame 7 0.00% 0.00 451,140.00 451,140.00
Roofing, elec. wiring & plumbing 7 0.00% 0.00 451,140.00 451,140.00 451,140.00 451,140.00
Internal & external plastering 8 0.00% 0.00 394,747.50 394,747.50 394,747.50 394,747.50 394,747.50 394,747.50 394,747.50
Sewerage works 5 0.00% 0.00 210,532.00 210,532.00 210,532.00 210,532.00 210,532.00
Drainage works 6 0.00% 0.00 175,443.33 175,443.33 175,443.33 175,443.33 175,443.33 175,443.33
Roadworks 2 0.00% 0.00 1,052,660.00
Infrastructure works (10% of building cost) 6 2.17% 524,843.55 350,886.67 350,886.67 350,886.67 350,886.67 350,886.67 350,886.67
Total Construction cost 2.68% 0.00
Monthly Total Cash Outflow (Before Retention) 1,297,027.50 1,297,027.50 845,887.50 845,887.50 745,634.17 921,077.50 921,077.50 736,862.00 736,862.00 736,862.00 385,975.33 1,263,192.00
Monthly Cummulative Outflow (Before Retention) 1,297,027.50 1,297,027.50 2,600,320.83 3,302,094.17 4,488,425.28 5,248,679.72 5,833,490.83 6,234,086.44 7,270,037.56 8,305,988.67 9,442,193.11 11,806,500.89
Less Retention (10% Limit 5%) 0.00 0.00 (175,443.33) (245,620.67) (374,279.11) (432,760.22) (491,241.33) (549,722.44) (653,317.56) (756,912.67) (905,621.78) (1,054,330.89) (1,242,514.75)
Monthly Cummulative Outflow (After Retention) 0.00 1,578,990.00 2,210,586.00 3,368,512.00 3,894,842.00 4,421,172.00 4,947,502.00 5,879,858.00 6,812,214.00 8,150,596.00 9,488,978.00 11,182,632.75
Monthly Total Cash Outflow (After Retention) 1,167,324.75 1,167,324.75 761,298.75 761,298.75 671,070.75 828,969.75 828,969.75 663,175.80 663,175.80 663,175.80 347,377.80 1,136,872.80
Quarterly Total Cash Flow 3,095,948.25 2,261,339.25 2,155,321.35 2,147,426.40
Percentage Amount (RM)
2019
Q1 Q2 Q3 Q4Item Description Months
Item Description Months Percentage
2018
Amount (RM) Q1 Q2 Q3 Q4
23

2021
Q2
M25 M26 M27 M28 M29 M30 M31 M32 M33 M34 M35 M36 M42
First Moiety Second Moiety
Construction cost
Earthworks (5% of building cost) 1 4.35% 1,052,660.00
Foundation 3 8.70% 2,105,320.00
R.C. Framework 9 21.74% 5,263,300.00
Walls, doors & window frame 7 13.04% 3,157,980.00
Roofing, elec. wiring & plumbing 7 13.04% 3,157,980.00
Internal & external plastering 8 13.04% 3,157,980.00
Sewerage works 5 4.35% 1,052,660.00
Drainage works 6 4.35% 1,052,660.00
Roadworks 2 8.70% 2,105,320.00 1,052,660.00
Infrastructure works (10% of building cost) 6 8.70% 2,105,320.00
Total Construction cost 100.00% 24,211,180.00
Monthly Total Cash Outflow (Before Retention) 1,052,660.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Monthly Cummulative Outflow (Before Retention) 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00 24,211,180.00
Less Retention (10% Limit 5%) 2,421,118.00 (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) (1,210,559.00) 0.00
Monthly Cummulative Outflow (After Retention) 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 23,000,621.00 24,211,180.00
Monthly Total Cash Outflow (After Retention) 947,394.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Quarterly Total Cash Flow 947,394.00 0.00 0.00 0.00
Q2 Q3Item Description Months Percentage
2020
Q4Q1Amount (RM)
24

2.3.1 Quarterly-Yearly cash flow for 2015-2021
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CASH INFLOW
Bank loan of land purchase 4,116,420.00 4,116,420.00
Sales projection 56,618,000.00
Total Cash Inflow 60,734,420.00 4,116,420.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cummulative Cash Inflow 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00
CASH OUTFLOW
Land cost 6,860,700.00 6,860,700.00
Construction cost 24,211,180.00
Repayment of land loan 4,116,420.00
Administrative cost
Professional fees 2,179,006.20
Administrative fees 1,132,360.00
Plan fees 324,000.00
Contribution & fees 484,223.60
Advertising & marketing 566,180.00
Conversion premium :-
i) Commercial 123,492.60
ii) Residential 524,843.55
Subdivision 243,000.00
Legal fees 405,000.00
Contingencies 1,210,559.00
Financing cost
Bridging finance 4,358,012.40
Financing cost for land 1,657,270.69 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53
Total Cash Outflow 48,396,248.04 6,943,563.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53
Cummulative Cash Outflow 6,943,563.53 7,026,427.07 7,109,290.60 7,192,154.14 7,275,017.67 7,357,881.21 7,440,744.74 7,523,608.28 7,606,471.81 7,689,335.35 7,772,198.88 7,855,062.42
Net Cash Flow 12,338,171.96 (2,827,143.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53)
Cummulative Cash Flow (2,827,143.53) (2,910,007.07) (2,992,870.60) (3,075,734.14) (3,158,597.67) (3,241,461.21) (3,324,324.74) (3,407,188.28) (3,490,051.81) (3,572,915.35) (3,655,778.88) (3,738,642.42)
Description Amount (RM)
2015 2016 2017
25

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CASH INFLOW
Bank loan of land purchase 4,116,420.00
Sales projection 56,618,000.00 2,091,666.67 1,932,833.33 3,914,650.00 8,018,095.36 7,235,818.93 8,649,055.36 5,236,040.36 18,124,390.00 1,415,450.00
Total Cash Inflow 60,734,420.00 2,091,666.67 1,932,833.33 3,914,650.00 8,018,095.36 7,235,818.93 8,649,055.36 5,236,040.36 18,124,390.00 1,415,450.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cummulative Cash Inflow 6,208,086.67 8,140,920.00 12,055,570.00 20,073,665.36 27,309,484.29 35,958,539.64 41,194,580.00 59,318,970.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00
CASH OUTFLOW
Land cost 6,860,700.00
Construction cost 24,211,180.00 2,210,586.00 2,210,586.00 2,391,042.00 4,370,418.75 3,095,948.25 2,261,339.25 2,155,321.35 2,147,426.40 947,394.00 1,210,559.00
Repayment of land loan 4,116,420.00 4,116,420.00
Administrative cost
Professional fees 2,179,006.20 1,307,403.72 435,801.24 435,801.24
Administrative fees 1,132,360.00 141,545.00 141,545.00 141,545.00 141,545.00 141,545.00 141,545.00 141,545.00 141,545.00
Plan fees 324,000.00 324,000.00
Contribution & fees 484,223.60 484,223.60
Advertising & marketing 566,180.00 70,772.50 70,772.50 70,772.50 70,772.50 70,772.50 70,772.50 70,772.50 70,772.50
i) Commercial 123,492.60 123,492.60
ii) Residential 524,843.55 524,843.55
Subdivision 243,000.00 243,000.00
Legal fees 405,000.00 405,000.00
Contingencies 1,210,559.00 151,319.88 151,319.88 151,319.88 151,319.88 151,319.88 151,319.88 151,319.88 151,319.88
Financing cost
Bridging finance 4,358,012.40 544,751.55 544,751.55 544,751.55 544,751.55 544,751.55 544,751.55 544,751.55 544,751.55
Financing cost for land 1,657,270.69 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53
Total Cash Outflow 48,396,248.04 6,613,801.93 3,201,838.46 3,382,294.46 5,797,472.45 4,087,200.71 3,252,591.71 3,146,573.81 7,690,900.10 947,394.00 0.00 0.00 0.00 0.00 1,210,559.00 0.00 0.00
Cummulative Cash Outflow 14,468,864.34 17,670,702.80 21,052,997.26 26,850,469.71 30,937,670.42 34,190,262.13 37,336,835.94 45,027,736.04 45,975,130.04 45,975,130.04 45,975,130.04 45,975,130.04 45,975,130.04 47,185,689.04 47,185,689.04 47,185,689.04
Net Cash Flow 12,338,171.96 (4,522,135.26) (1,269,005.13) 532,355.54 2,220,622.91 3,148,618.22 5,396,463.65 2,089,466.55 10,433,489.90 468,056.00 0.00 0.00 0.00 0.00 (1,210,559.00) 0.00 0.00
Cummulative Cash Flow (8,260,777.68) (9,529,782.80) (8,997,427.26) (6,776,804.36) (3,628,186.14) 1,768,277.51 3,857,744.06 14,291,233.96 14,759,289.96 14,759,289.96 14,759,289.96 14,759,289.96 14,759,289.96 13,548,730.96 13,548,730.96 13,548,730.96
2019 2020 2021
2018
26

PV factor
9% per annum
Q1 4,116,420.00 6,943,563.53 (2,827,143.53) 0.9787 (2,766,885.80)
Q2 0.00 82,863.53 (82,863.53) 0.9578 (79,368.87)
Q3 0.00 82,863.53 (82,863.53) 0.9374 (77,677.20)
Q4 0.00 82,863.53 (82,863.53) 0.9174 (76,021.59)
Q1 0.00 82,863.53 (82,863.53) 0.8979 (74,401.27)
Q2 0.00 82,863.53 (82,863.53) 0.8787 (72,815.48)
Q3 0.00 82,863.53 (82,863.53) 0.8600 (71,263.49)
Q4 0.00 82,863.53 (82,863.53) 0.8417 (69,744.58)
Q1 0.00 82,863.53 (82,863.53) 0.8237 (68,258.04)
Q2 0.00 82,863.53 (82,863.53) 0.8062 (66,803.19)
Q3 0.00 82,863.53 (82,863.53) 0.7890 (65,379.35)
Q4 0.00 82,863.53 (82,863.53) 0.7722 (63,985.85)
Q1 2,091,666.67 6,613,801.93 (4,522,135.26) 0.7557 (3,417,491.40)
Q2 1,932,833.33 3,201,838.46 (1,269,005.13) 0.7396 (938,578.57)
Q3 3,914,650.00 3,382,294.46 532,355.54 0.7239 385,347.38
Q4 8,018,095.36 5,797,472.45 2,220,622.91 0.7084 1,573,145.25
Q1 7,235,818.93 4,087,200.71 3,148,618.22 0.6933 2,183,018.36
Q2 8,649,055.36 3,252,591.71 5,396,463.65 0.6785 3,661,761.17
Q3 5,236,040.36 3,146,573.81 2,089,466.55 0.6641 1,387,584.87
Q4 18,124,390.00 7,690,900.10 10,433,489.90 0.6499 6,781,052.55
Q1 1,415,450.00 947,394.00 468,056.00 0.6361 297,720.47
Q2 0.00 0.00 0.00 0.6225 0.00
Q3 0.00 0.00 0.00 0.6093 0.00
Q4 0.00 0.00 0.00 0.5963 0.00
Q1 0.00 0.00 0.00 0.5836 0.00
Q2 0.00 1,210,559.00 (1,210,559.00) 0.5711 (691,375.08)
Q3 0.00 0.00 0.00 0.5589 0.00
Q4 0.00 0.00 0.00 0.5470 0.00
NPV (RM)
Total 13,548,730.96 7,669,580.30
2015
2016
2017
2018
2019
2020
2021
2.4 Net present value for 2015-2021
Year Quarter Cash inflow (RM) Cash outflow (RM) Net cash flow (RM)
27

2.5 Analysis on viability of project
Figure above shows a period of cash deficit from Q2 of 2015 to 2017, owing to the
purchasing and financing of land while development has not taken place. During the Q1 of
2018, there is an extensive cash outflow amounting RM6 million as a consequence of
construction commencement immediately after Development Order is granted. Accordingly,
these funds are financed from homebuyers and schemed to underwrite the development costs.
Correspondingly, positive cash flow presents due to the STB sales launch, interpreting as the
project is generating inflow while still under construction. With a positive Net Present Value
(NPV) of RM7.7 million, it reflects a favourable return in the future, demonstrating a
worthwhile investment. On the whole, a net cash flow of RM13.5 million can be generated
upon the completion of the proposed project. In a nutshell, the proposed development is
viable due to the substantial cash flow can be capitalized by an optimistic NPV of the
proposed development in the future.
28
Figure 2.1: Net present value for 2015-2021

3.1 ‘Build-then-Sell’ concept
Build-then-Sell (BTS) concept is a new concept introduced by the Government
where housing developers have to total a housing project before selling houses to buyers. The
STB framework has long been utilized in Malaysia’s housing sector. This system and concept
has been greatly effective, eventually conveying over 70% of the total targeted housing units
for the country according to Yusoff (2009). In any case, behind this backdrop of success, the
issues such as abandoned projects, late conveyance and poor workmanship has shaded a
disgrace on this system. Realizing the injustice of the system to house buyers, the Malaysian
government agreed to supply an elective housing conveyance system that can better serve the
rights of the buyers, specifically BTS in 2006. BTS has been introduced by schedule I and J in
the Housing Development (Control and Licensing) Regulations 1989 (Amendment 2007).
Malaysia government has implemented BTS to identify the underlying issue and handle the
issue of abandoned housing in Malaysia (TAN, 2005).
The Malaysian government has advertised two somewhat different BTS
frameworks, which are the 100% BTS and 10:90 BTS system (Tong,2012). However, under 100%
BTS housing developers are required to total 100% of the housing projects before selling them
to house buyers meanwhile for 10:90 BTS which it can help in spreading and managing the
risks of the housing developers are exposed to. Under this 10:90 concept, buyers will make a
10% down installment to save a particular house unit upon signing the Sell and Purchase
Agreement (S&P). The buyer would resolve the remaining 90% when the house is prepared.
The benefits of this concept are that the rights and responsibilities of the buyers and
monetary institutions are able to fund housing projects, as there is proof of deals.
The 10:90 BTS system can advantage housing developers because real development
costs are known at the time of deal and way better-quality houses will be built since house
buyers will only look for quality houses. Certainly, complaints such as substandard
workmanship, late conveyance of houses, and abandoned projects can be decreased with the
execution of the 10:90 BTS system (Jeyaraj,2001). All this to ensure that the housing
conveyance system is actually feasible, worthy and the issue of abandoned housing is settled
to the benefit of all parties.
Project based on ‘Build-then-Sell’ concept
30

3.2 Negative net cash flow based on ‘Build-then-Sell’ concept
Since the period 1990-2007, a total of not less than 300 projects were abandoned,
involving 90,000 houses and over 100,000 buyers (House Buyers Association, 2008). However,
the BTS concept also is not sensible in Malaysian property scenario, which has posed so many
risks towards the potential house buyers. Based on REHDA’s past, the president stated that
under BTS system developers will face higher holding costs within the form of higher interest
as no progressive installment claims can be made until completion and delivery of houses
(Datuk Eddy Chen, 2002). The STB system, these interest costs are borne by buyers at an end
financing rate of BLR-2% in most cases. Developers would have to be compelled to bear these
interest costs beneath the BTS system, and at the next project financing cost of an normal 8%-
10% of which such costs will be passed on to buyers in the form of higher house prices.
Developers would face a negative cash flow situation for at least 24 months for landed
properties and 36 months for strata development and a bigger income lapse, in the event that
one were to take into consideration the date of land purchase. Developers will face a “lumpy
(uneven) income” each 24 to 36 months. As such, costs of construction and overall
development per unit of housing would be much higher 30% - 100% under the BTS system
compared to the cost of creating the same housing sort in the same location under the STB
system.
Other than that, Citibank Venture analysts (2007) argued developers might suffer a
cash-flow squeeze since they would not be collecting advance payments from the buyers
before a project's completion. And they might be strapped for cash if they happened to be
working on a couple of projects at the same time beneath the BTS plot. In any case, SHL
Consolidated Bhd. and See Hoy Chan Property Gather are among the few property developers
that have effectively utilized the BTS method. Analysts accept IOI Properties Berhad and SP
Setia Berhad have the financial quality to do that (The Star, 2007).
31

However, the adequacy of the 10:90 BTS system is undermined relative to several
critical concerns highlighted by the housing developers. There are some stated in below:
1. Lack of support from financial institutions
The most concern about the 10:90 BTS system is the difficulty of getting subsidizing
from the banks. Other than from the developers’ own internal funding, they still need to
approach the banks as their main source of financing. The support from banks in
providing financing to embark on the 10:90 BTS system is crucial to create the
implementation of the system a success. But the small-scale developers will not be able
to create any projects as house buyers will only pay the 10% store, whereas the balance
will only be paid after the properties are completed. As a result, housing developers
cannot collect advance instalment from house buyers to support their improvement
costs. However, the viability of the project is a vital element that banks will take into
consideration during the credit evaluation and assessment process.
2. Higher financing costs for the BTS system
Many housing developers probably will look for higher bridging loans from the banks to
begin their housing projects. Their primary concern is the absence of advance payments
from the house buyers under the 10:90 BTS system. There is always the possibility that
house buyers may not bother to purchase the house once it is completed since there is
no guarantee that they will settle the remaining 90% of the house cost. Based on the
research, stated that the large-scale adoption of the 10:90 BTS system is dim within the
near term since not all housing developers have adequate financial strength or the
capability to implement this system. Usually this is the uncertainty over house buyers
settling the remaining 90% of the cost of the house once the house is 100% completed.
32

3. Decreases the supply of housing
Based on the research, the 10:90 BTS system can be a cause for the housing market to
slow down. Basically, developers will only be able to build limited amounts of housing
units, which may result in an inevitable shortage of housing supply. Besides, there is an
inadequate supply of housing particularly for the low-income groups as land in urban
areas is limited and costly.
4. Lack of interest in the incentives given by the government
The Malaysian government had offered several incentives to empower housing
developers to adopt the 10:90 BTS system. But the response from the housing engineers
to require advantage of the incentives is poor. It shows that not many housing
developers are keen to require advantage of the Government’s incentives to implement
this system. The reason might be due to the fear of alter for the housing developers from
the conventional STB framework which they have practiced for more than some
decades, to a reasonably new 10:90 BTS system.
5. BTS alongside STB
The BTS framework is an effort to control housing projects from being abandoned mid-
way, but it is very impossible to be totally embraced by the developers as many of them
still think that utilizing it as one system is not a viable solution. Housing developers
consider that the Government should allow the housing developers to adopt the
framework voluntarily alongside the existing STB system. As pointed by Yam (2013), the
current STB system still plays a vital part in meeting the housing demand by providing
access to adequate housing in Malaysia.
33

3.3 Analysis on viability of project
In relation to the project, if the project is based on a ‘build-then-sell’ concept, the
cash flow is basically the main factor in looking at the viability of the entire project. This is
important as the developer is required to have the funds to sustain the construction costs
without any cash inflow prior to the completion. Therefore, a prediction towards the cash
flow of the project is conducted which includes a few assumptions. The assumptions made
were that all of the property was sold upon the completion of the construction as well as it is
based on the 100% BTS concept.
34
Figure 3.1: Projected cash flow under BTS concept

The chart above projects the net cash flow of the proposed development based on
the BTS concept. According to the chart, it shows that there is a constant cash outflow from
the beginning of 2015 until the end of 2019. The expenses are basically on the purchasing of
land, financing for land as well as the construction activities. The expenditure from Q1 of
2015 until Q4 of 2019 comes up to a total amount of approximately RM41 million. Although
so, this is considered a norm for 100% BTS concept as no properties will be sold during the
construction period. However, with no cash inflow during the construction process means
that the developer has to have sufficient amount of money to be able to make payment for
those parties involved in the construction where the developer could either have his own
capital, loans from financial institutions or both.
Despite the continuous outflow until Q4 of 2019, there is a cash inflow during Q1
of 2020. The inflow is due to the launching of the sales for the project where 100% of the sales
are achieved. The total amount of the net cash flow during the beginning of 2020 is
approximately RM 55.6 million. This is basically the only cash inflow the developer has from
the purchase of land through the sales of the property.
In conclusion, 100% BTS concept is still viable for this development as long as the
developer has sufficient cash on hand to retain the project. Although there is no difference in
the net cash flow which amounts to the same total of RM 13,548,730.96, nonetheless, when the
NPV is taken into account, there will be a difference which will be a decrease compared to the
STB concept. Therefore, it can be concluded that the viability of this project based on a 100%
BTS concept would be lower than the STB concept as this also means that the developer’s
profit would also decrease. This is due to the decrease in value of money as time passes. In
such case, the sales can only be launched after the construction work is completed which
means there will be a drop in value of money during the 2 years of construction period where
no money is received unlike the STB concept.
35

Bandar Utama is known as a township that has developed in the past 20 years.
Besides, the developer has won many awards no matter locally or internationally for
transforming the area from a plantation into an integrated development. The development is
considered successful containing a variety of amenities as well as landmarks. For instance, the
1 Utama Shopping Centre and One World Hotel. The capital value has been constantly
growing, making it one of the most sought after in the Petaling Jaya area. Bandar Utama’s
first phase of the 2-storey terraced houses, also known as BU1 were launched during the
1990’s with a cost of RM 178,000, however, they are now going for higher than RM 1 million
on the secondary market according to the managing director of Bandar Utama Development
Sdn Bhd and Bandar Utama City Corporation Sdn Bhd, Tan Sri Dato’ Teo Chiang Hong.
The courageous decision to use the BTS concept in the development leads to the
success of the developers. As other developers went for the STB concept which provides a
quick turnover on their investments, however, the Bandar Utama developer has opted to take
it slow and steady by building and launching its township phase by phase.
Bandar Utama has many successful developments. One of the examples is The
Effingham which consists of 3-storey zero lot bungalows and it is the township’s most
luxurious landed houses. The bungalows have received an overwhelming response which is
similar as previous houses launched. The Effingham which comprises 212 units in the project
have received a few thousand registrants. Another example is a development during April
2001 which comprises 2-storey link houses ranging from RM 550,000 to RM 780,000. This is
where the developer managed to sell 100 units within four hours.
36
3.4 Case study

Conclusion
The implementation of ‘Build-then-Sell’ (BTS) housing scheme concept in this project is not
recommended as it is highly demanding on the client's initial capital for construction
commencement, which may contribute to financial difficulty in initiating the project.
Accordingly, the BTS concept may pique impracticability due to a significant cash outflow at
the beginning of the development period while sales launching is not strategized to stimulate
cash inflow. Henceforth, client may confront with financial pressure arising from the low
assurance of sales unit being sold after the completion of the project. On the contrary, the
‘Sell-then-Build’ (STB) housing scheme concept allows the developer to safeguard himself
against severe cash flow issue during the construction period, as sales proceeds received along
with the commencement of construction will facilitate financial transactions. STB system
thereof will greatly improve cash flow as such funding from sales can be used as working
capital for construction. To summarize, the initiation of STB housing scheme is demonstrated
as viable for the project development.

References
Essays, UK. (November 2018). The Concept Of Sell-then-Build. Retrieved from
https://www.ukessays.com/essays/information-technology/the-concept-of-sell-then-build-information-
technology-essay.php?vref=1
Essays, UK. (18 March, 2019). Sell-then-Build Concept Analysis. Retrieved from
https://www.ukessays.com/essays/economics/sell-then-build-concept-economics-essay.php
Ibrahim, Fazdliel & Wira, Mohd & Mohd Shafiei, Mohd Wira & Jusoh, Hanafi. (2014). Sell-then-build and
Build-then-sell: House Buyers Preferences. International Journal of Applied Engineering Research. 9. 2923-
2936.
KPKT. (2012, June 14). Towards Successful Housing Development in Malaysia. Retrieved from Portal Rasmi
Jabatan Perumahan Negara: https://ehome.kpkt.gov.my/index.php/pages/view/229
The Star Online (2007). Build then sell, April 14. Retrieved from
https://www.thestar.com.my/news/nation/2007/06/26/buildthensell-concept-to-benefit-all
Tan, R. (2005). To sell-and-build or build-and-sell? The Star, September 9. Retrieved from
http://www.hba.org.my/news/2005/905/to_sell.htm
Real Estate and Housing Development Association, (2014). Members’ Handbook. Retrieved from
http://rehda.com/wp-content/uploads/2014/06/Members-Handbook-.pdf.
Yam, M. (2013). Challenges and changes in the industry, housing the nation: Policies, issues and prospects
(pp. 79 - 94). Kuala Lumpur: Cegamas Holding
Lai, I. (2014). REHDA: GST will push up home prices by 206%, The Star Online, Business News, October 21.
Retrieved from http://www.thestar.com.my/Business/Business-News/2014/10/21/Rehda-GST-will-push-up-
home-prices-by-26-But-it-says-still-too-early-to-determine-exact-increase/?style=biz.
The Edge (November 19, 2001). Build-then-sell works for Bandar Utama. Retrieved from
https://www.hba.org.my/news/2001/1101/build.htm
The Edge (February 14, 2013). Targeting the well-heeled for Klang Valley. Retrieved from
https://www.theedgemarkets.com/article/targeting-well-heeled-klang-valley

Appendices
• Manual Guideline and Selangor State Planning Standards
• Schedule of Payment of Purchase Price
• Projected cash flow based on ‘Build-then-Sell’ concept
• Meeting minutes

Appendices
40
Manual Guideline and Selangor State Planning Standards

Appendices
41

Appendices
42

Appendices
43
Schedule of Payment of Purchase Price

Projected cash flow based on ‘Build-then-Sell’ concept
Quarterly cash inflow for 2018-2020
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24 M25 M26 M27
26.67% 15,100,000.00 100%
65.00% 36,800,000.00 100%
8.33% 4,718,000.00 100%
100.00% 56,618,000.00
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 100.00%
Months %
3 100.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
9 100.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
7 100.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
7 100.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
8 100.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
5 100.00 0.00% 0.00% 0.00% 0.00% 0.00%
6 100.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 100.00 0.00% 0.00%
6 100.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
100%
1 10.00% 5,661,800.00 5,661,800.00
100%
2 10.00% 5,661,800.00 5,661,800.00
100%
3 15.00% 8,492,700.00 8,492,700.00
100%
4 10.00% 5,661,800.00 5,661,800.00
100%
5 10.00% 5,661,800.00 5,661,800.00
100%
6 10.00% 5,661,800.00 5,661,800.00
100%
7 5.00% 2,830,900.00 2,830,900.00
100%
8 5.00% 2,830,900.00 2,830,900.00
100%
9 5.00% 2,830,900.00 2,830,900.00
100%
10 12.50% 7,077,250.00 7,077,250.00
100%
11 2.50% 1,415,450.00 1,415,450.00
100%
12 5.00% 2,830,900.00 2,830,900.00
(a)
Property
(b)
Property
100.00% 56,618,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 56,618,000.00 0.00 0.00
56,618,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 56,618,000.00 56,618,000.00 56,618,000.00
56,618,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 56,618,000.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 56,618,000.00
Assumption:
- % of sales proceeds based on Schedule of Payment of Purchase Price (Clause 4 (1)) third schedule.
- Earthworks and foundation are paid simultaneously.
- Roadworks and infrastructure works are paid simultaneously.
- Item 2-9 are paid within 30 days after the receipt by the Purchaser of the Developer's written notice of the completion of such items.
Sales proceeds
Signing of S&P Agreement
The work below ground level of the
said Building comprising the said
Property including foundation of the
said Building
Internal & external plastering
Sewerage works
Drainage works
Roadworks
Infrastructure works
Construction work programme
Earthworks & Foundation
R.C. Framework
Walls, doors & window frame
Roofing, elec. wiring & plumbing
Monthly Total
% of Cummulative Sales
2020
Q1Q1 Q2
Sales projection
Q4Item Description Sales percentage Amount (RM)
2018 2019
Q3 Q4 Q1 Q2 Q3
Quarterly Total Cash Inflow
Quarterly Cummulative Cash Inflow
The structural framework of the said
Property
The walls of the said Property with
door and window frames placed in
position
The roofing, electrical wiring and
plumbing to the said Property
The internal and external finishes of
the said Property including the wall
finishes
The sewerage works serving the said
Building
The drains serving the said Building
The roads serving the said Building
possession of the said Property, with
water and electricity supply ready for
connection
as in item 10 where the Developer has
executed and delivered to the
Purchaser of the Purchaser's solicitor
the instrument of transfer in favour of
the Purchaser together with the
original issue document of strata title
to the said Property
as in item 10 and to be held by the
Developer's solicitor as stakeholder
for payment to the Developer as
follows: -
Monthly Total Cash Flow
Monthly Cummulative Cash Inflow
44

Quarterly-Yearly cash flow for 2018-2021
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CASH INFLOW
Bank loan of land purchase 4,116,420.00 4,116,420.00
Sales projection 56,618,000.00
Total Cash Inflow 60,734,420.00 4,116,420.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cummulative Cash Inflow 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00
CASH OUTFLOW
Land cost 6,860,700.00 6,860,700.00
Construction cost 24,211,180.00
Repayment of land loan 4,116,420.00
Administrative cost
Professional fees 2,179,006.20
Administrative fees 1,132,360.00
Plan fees 324,000.00
Contribution & fees 484,223.60
Advertising & marketing 566,180.00
i) Commercial 123,492.60
ii) Residential 524,843.55
Subdivision 243,000.00
Legal fees 405,000.00
Contingencies 1,210,559.00
Financing cost
Bridging finance 4,358,012.40
Financing cost for land 1,657,270.69 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53
Total Cash Outflow 48,396,248.04 6,943,563.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53
Cummulative Cash Outflow 6,943,563.53 7,026,427.07 7,109,290.60 7,192,154.14 7,275,017.67 7,357,881.21 7,440,744.74 7,523,608.28 7,606,471.81 7,689,335.35 7,772,198.88 7,855,062.42
Net Cash Flow 12,338,171.96 (2,827,143.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53) (82,863.53)
Cummulative Cash Flow (2,827,143.53) (2,910,007.07) (2,992,870.60) (3,075,734.14) (3,158,597.67) (3,241,461.21) (3,324,324.74) (3,407,188.28) (3,490,051.81) (3,572,915.35) (3,655,778.88) (3,738,642.42)
2015 2016 2017
45

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CASH INFLOW
Bank loan of land purchase 4,116,420.00
Sales projection 56,618,000.00 56,618,000.00
Total Cash Inflow 60,734,420.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 56,618,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cummulative Cash Inflow 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 4,116,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00 60,734,420.00
CASH OUTFLOW
Land cost 6,860,700.00
Construction cost 24,211,180.00 2,210,586.00 2,210,586.00 2,391,042.00 4,370,418.75 3,095,948.25 2,261,339.25 2,155,321.35 2,147,426.40 947,394.00 1,210,559.00
Repayment of land loan 4,116,420.00 4,116,420.00
Administrative cost
Professional fees 2,179,006.20 1,307,403.72 435,801.24 435,801.24
Administrative fees 1,132,360.00 141,545.00 141,545.00 141,545.00 141,545.00 141,545.00 141,545.00 141,545.00 141,545.00
Plan fees 324,000.00 324,000.00
Contribution & fees 484,223.60 484,223.60
Advertising & marketing 566,180.00 70,772.50 70,772.50 70,772.50 70,772.50 70,772.50 70,772.50 70,772.50 70,772.50
i) Commercial 123,492.60 123,492.60
ii) Residential 524,843.55 524,843.55
Subdivision 243,000.00 243,000.00
Legal fees 405,000.00 405,000.00
Contingencies 1,210,559.00 151,319.88 151,319.88 151,319.88 151,319.88 151,319.88 151,319.88 151,319.88 151,319.88
Financing cost
Bridging finance 4,358,012.40 544,751.55 544,751.55 544,751.55 544,751.55 544,751.55 544,751.55 544,751.55 544,751.55
Financing cost for land 1,657,270.69 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53 82,863.53
Total Cash Outflow 48,396,248.04 6,613,801.93 3,201,838.46 3,382,294.46 5,797,472.45 4,087,200.71 3,252,591.71 3,146,573.81 7,690,900.10 947,394.00 0.00 0.00 0.00 0.00 1,210,559.00 0.00 0.00
Cummulative Cash Outflow 14,468,864.34 17,670,702.80 21,052,997.26 26,850,469.71 30,937,670.42 34,190,262.13 37,336,835.94 45,027,736.04 45,975,130.04 45,975,130.04 45,975,130.04 45,975,130.04 45,975,130.04 47,185,689.04 47,185,689.04 47,185,689.04
Net Cash Flow 12,338,171.96 (6,613,801.93) (3,201,838.46) (3,382,294.46) (5,797,472.45) (4,087,200.71) (3,252,591.71) (3,146,573.81) (7,690,900.10) 55,670,606.00 0.00 0.00 0.00 0.00 (1,210,559.00) 0.00 0.00
Cummulative Cash Flow (10,352,444.34) (13,554,282.80) (16,936,577.26) (22,734,049.71) (26,821,250.42) (30,073,842.13) (33,220,415.94) (40,911,316.04) 14,759,289.96 14,759,289.96 14,759,289.96 14,759,289.96 14,759,289.96 13,548,730.96 13,548,730.96 13,548,730.96
2019 2020 2021
2018
46

PV factor
9% per annum
Q1 4,116,420.00 6,943,563.53 (2,827,143.53) 0.9787 (2,766,885.80)
Q2 0.00 82,863.53 (82,863.53) 0.9578 (79,368.87)
Q3 0.00 82,863.53 (82,863.53) 0.9374 (77,677.20)
Q4 0.00 82,863.53 (82,863.53) 0.9174 (76,021.59)
Q1 0.00 82,863.53 (82,863.53) 0.8979 (74,401.27)
Q2 0.00 82,863.53 (82,863.53) 0.8787 (72,815.48)
Q3 0.00 82,863.53 (82,863.53) 0.8600 (71,263.49)
Q4 0.00 82,863.53 (82,863.53) 0.8417 (69,744.58)
Q1 0.00 82,863.53 (82,863.53) 0.8237 (68,258.04)
Q2 0.00 82,863.53 (82,863.53) 0.8062 (66,803.19)
Q3 0.00 82,863.53 (82,863.53) 0.7890 (65,379.35)
Q4 0.00 82,863.53 (82,863.53) 0.7722 (63,985.85)
Q1 0.00 6,613,801.93 (6,613,801.93) 0.7557 (4,998,216.53)
Q2 0.00 3,201,838.46 (3,201,838.46) 0.7396 (2,368,136.19)
Q3 0.00 3,382,294.46 (3,382,294.46) 0.7239 (2,448,285.42)
Q4 0.00 5,797,472.45 (5,797,472.45) 0.7084 (4,107,075.64)
Q1 0.00 4,087,200.71 (4,087,200.71) 0.6933 (2,833,761.85)
Q2 0.00 3,252,591.71 (3,252,591.71) 0.6785 (2,207,040.54)
Q3 0.00 3,146,573.81 (3,146,573.81) 0.6641 (2,089,594.70)
Q4 0.00 7,690,900.10 (7,690,900.10) 0.6499 (4,998,557.36)
Q1 56,618,000.00 947,394.00 55,670,606.00 0.6361 35,410,889.38
Q2 0.00 0.00 0.00 0.6225 0.00
Q3 0.00 0.00 0.00 0.6093 0.00
Q4 0.00 0.00 0.00 0.5963 0.00
Q1 0.00 0.00 0.00 0.5836 0.00
Q2 0.00 1,210,559.00 (1,210,559.00) 0.5711 (691,375.08)
Q3 0.00 0.00 0.00 0.5589 0.00
Q4 0.00 0.00 0.00 0.5470 0.00
NPV (RM)
Total 13,548,730.96 5,116,241.36
2015
2016
2017
2018
2019
2020
2021
Net present value for 2015-2021
Year Quarter Cash inflow (RM) Cash outflow (RM) Net cash flow (RM)
47

Appendices
48
Meeting Minutes
Meeting title:
Date of meeting: Time: 2.00 pm
Minutes prepared by: Location: Virtual meeting
Attendees:
Topic: Due date:
1. Distribution of task PIC
1 Project information Shi Qi 15/6
2 Development process Shi Qi 15/6
3 Project concept - STB Shi Qi 15/6
4 Development layout Ai Teng 15/6
5 Analysis of no. of each type of houses Ai Teng 15/6
6 Financial appraisal Yee Len After (5)
7 Cash flow - inflow Yee Len
8 - outflow Kang Seng
9 - net cash flow Kang Seng After (6)
10 NPV Wai Nni After (7) (8) (9)
11 Analysis on viability of project Wai Nni After (10)
12 Build then sell concept Pavithra 20/6
13 Cash flow (STB v BTS) Pavithra 20/6
14 Analysis on viability ( v STB) Maysia After (9)
15 Case study (BTS) Maysia 20/6
16 Conclusion Shi Qi 26/6
2. Next meeting 15th June 2020, 4.00 pm
Meeting objectives:
To brief on assignment and distribute tasks to each member.
Agenda and notes, deicions, issues:
Discussion:
TOC
Meeting 1
8th June 2020
Foo Wai Nni
All 7 members

Appendices
49
Meeting Minutes
Meeting title:
Attendees:
Topic: Due date:
1. Progress of Task PIC
1 Project information Shi Qi Done
2 Development process Shi Qi Done
3 Project concept - STB Shi Qi Done
4 Development layout Ai Teng Done
5 Analysis of no. of each type of houses Ai Teng Done
6 Financial appraisal Yee Len Done
7 Cash flow - inflow Yee Len 22/6
8 - outflow Kang Seng 22/6
9 - net cash flow Kang Seng 22/6
10 NPV Wai Nni 24/6
11 Analysis on viability of project Wai Nni 24/6
12 Build then sell concept Pavithra 20/6
13 Cash flow (STB v BTS) Pavithra 20/6
14 Analysis on viability ( v STB) Maysia 24/6
15 Case study (BTS) Maysia 20/6
16 Conclusion Shi Qi 26/6
2. Next meeting
Meeting 2
15th June 2020
Foo Wai Nni
All 7 members
Meeting objectives:
Report on the progress of tasks by each member.
Discussion:
TOC
22nd June 2020, 4.00 pm

Appendices
50
Meeting Minutes
Meeting title:
Attendees:
Topic: Due date:
1. Progress of Task PIC
1 Project information Shi Qi Done
2 Development process Shi Qi Done
3 Project concept - STB Shi Qi Done
4 Development layout Ai Teng Done
5 Analysis of no. of each type of houses Ai Teng Done
6 Financial appraisal Yee Len Done
7 Cash flow - inflow Yee Len In progress
8 - outflow Kang Seng In progress
9 - net cash flow Kang Seng In progress
10 NPV Wai Nni In progress
11 Analysis on viability of project Wai Nni In progress
12 Build then sell concept Pavithra Done
13 Cash flow (STB v BTS) Pavithra Done
14 Analysis on viability ( v STB) Maysia In progress
15 Case study (BTS) Maysia Done
16 Conclusion Shi Qi In progress
2. Presentation 1 Presentation slides to be finished by 6th July 2020
2
Meeting 3
22nd June 2020
Foo Wai Nni
All 7 members
Meeting objectives:
Wrap up on the whole proposal and discussion on the presentation scheduled on 13th July 2020.
Discussion:
TOC
Rehearsal of presentation will be conducted on 10th
July 2020

Development Economics (Group Assignment) - Financial appraisal

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