The document provides financial details of a proposed residential development project consisting of 20 units in Stepaside Heights, Dublin. It includes projections of development costs, residual value, developer's profit, and sensitivity analysis under different scenarios. A cash flow statement shows projected income and costs over 27 months, with the largest exposure in the first quarter determining the size of the loan required. A program of works outlines that the development is scheduled to be completed over 24 months in 9 sections.

1. Aura Investments
“an investment in knowledge
pays the best interest”
Benjamin Franklin.
 Aaron Leahy  Christian Gibney  Fergal Rafter  Roger Hayes  Jeff Hughes

2. The following two
slides show the
residual value and
developer’s profit for
the development at
Stepaside Heights,
Enniskerry Road,
Kilternan, Dublin 18.

3. Residual Value
Gross Development Value
Income (Selling price) € 625,000
No. Of units 20
Capital Value € 12,500,000
Development Costs
Building Costs
20 (186sq. Mt. x €1398 per sq. mt.) € 5,200,000
Site Development € 200,000
Professional fees
Architect (3%) € 150,660
Quantity Surveyor (3%) € 150,660
Structural Engineer (3%) € 150,660
Project Manager (3%) € 150,660
€ 602,640
Contingency (5%) € 251,100
Stamp Duty on land (1% of 1st million, 2% after) € 40,000
Marketing (2%) € 100,500
Overheads € 54,000
Planning fees (€65 x 20 units) € 1,300
Site Investigation € 17,500
Sales Cost (1%) € 125,000
Agents Acquisition fee (1%) € 25,000
Legal fees on Acquisition (2%) € 50,000
Building Certifcates € 16,600
Contributions (€21000 x 20 units) € 420,000
Social Housing (20%) € 400,000
Interest on Bank loan (8.25%) € 70,794
Total Development Cost € 7,574,434
Profit @ 20% € 1,514,887
Cost Plus Profit € 9,089,321
Residual Value € 3,410,679
Professional fees as % of Total Development Cost 7.96%
Residual Value as % of Total Development Cost 37.52%

4. Developers Profit
Net Development Value € 12,500,000
Less Purchasers Cost (2.75%) € 343,750
Net Development Value € 12,156,250
Development Cost
Land Costs
Land Price € 2,500,000
Stamp Duty (1% of 1st million, 2% after) € 40,000
Agents Acquisition fee (1%) € 25,000
Legal fees on Acquisition (2%) € 50,000
€ 2,615,000
Building Costs
20 (186sq. Mt. x €1398) € 5,200,000
Site Development € 200,000
€ 5,400,000
Professional fees
Architect (3%) € 150,660
Quantity Surveyor (3%) € 150,660
Structural Engineer (3%) € 150,660
Project Manager (3%) € 150,660
€ 602,640
Other Costs
Contingency (5%) € 251,100
Overheads € 54,000
Site Investigation € 17,500
Contributions (incl. Social Housing) € 820,000
Planning fees (€65 x 20 units) € 1,300
Advertising/Promotion (2%) € 100,500
Sales Cost (2.5%) € 125,000
Building Certificates € 16,600
€ 1,386,000
Funding fees
Bank's legal/professional fees € 5,000
Bank's arrangement fees € 5,000
Interest on Bank Loan (8.25%) €70,794
€ 80,794
Total Development Cost € 10,084,434
Developer's Profit € 2,071,816
Professional fees as % of Total Development Cost 5.98%
Developers Profit as % of Total Development Cost 20.54%

5.  For the purpose of conducting a sensitivity
analysis, we adjusted different figures
increasing and decreasing the figures to allow
for three different scenarios.
 These are shown in the next figure;

6. Sensitivity Analysis
Positive Developers Profit 5% Negative 15% Negative
Selling price rises 10%,
Construction costs
decrease 10%, Land
Price decreases 10%,
bank interest rate
down to 7%
Selling price drops 5%,
Construction costs increase
5%, Land Price increases
5%, bank interest rate up
to 9.5%
Selling price drops 15%,
Construction costs increase
15%, Land Price increases
15%, bank interest rate up to
11%
Net Development
Value €13,371,875 €12,156,250 €11,514,062 €10,332,812
Development Cost €9,259,040 €10,084,434 €10,529,047 €11,343,082
Developers Profit €4,112,835 €2,071,816 €985,015 -€ 1,010,270
98% increase 100% 53% decrease 148% decrease

7.  Along with €2,000,000 of Capital Investment,
Aura Investments require a loan facility of
€1,700,000. Including interest, this is paid off
through money raised by selling houses. When
this is paid off, the Capital Investment of
€2,000,000 must be accounted for before the
company is debt free, so to speak. The capital
investment is not debt, however if you put
€2,000,000 capital investment into a project,
and make €2,000,000 profit, this is not
actually profit as you are no better off than
before.

8. Month 0 3 6 9 12 15 18 .
(A) Total -€3,613,065.75 -€104,292.44 €1,578,316.04 €1,005,817.99 €374,895.74 €1,652,958.14 €402,043.59
(B) Opening Balance €0.00 -€3,613,065.75 -€3,682,966.98 -€2,068,500.75 -€1,060,470.25 -€685,574.51 €967,383.63
(C) Total (a+b) -€3,613,065.75 -€3,717,358.19 -€2,104,650.94 -€1,062,682.76 -€685,574.51 €967,383.63 €1,369,427.22
(D) Interest €0.00 €34,391.21 €36,150.19 €2,212.51 €0.00 €0.00 €0.00
Closing Balance (c+d) -€3,613,065.75 -€3,682,966.98 -€2,068,500.75 -€1,060,470.25 -€685,574.51 €967,383.63 €1,369,427.22
Closing Balance - Cap.
Investment -€1,613,065.75 -€1,682,966.98 -€68,500.75
Total
Borrowings Required €1,650,000.00 €1,700,000.00 €70,000.00
Drawdown €1,650,000.00 €50,000.00 €1,700,000.00
Repayment to Bank €1,630,000.00 €70,000.00
Capital Investment €935,817.99 €374,895.74 €689,286.27 €2,000,000.00

9. Along with €2,000,000 of Capital Investment, Aura require a loan facility of
€1,700,000. Including interest, this is paid off through money raised by
selling houses. When this is paid off, the Capital Investment of €2,000,000
must be accounted for before the company is debt free, so to speak. The
capital investment is not debt, however if you put €2,000,000 capital
investment into a project, and make €2,000,000 profit, this is not actually
profit as you are no better off than before.
€ 1,650,000.00 0.69% € 11,385.00
€ 1,661,385.00 0.69% € 11,463.56
€ 1,672,848.56 0.69% € 11,542.66 € 34,391.21
€ 1,734,391.21 0.69% € 11,967.30
€ 1,746,358.51 0.69% € 12,049.87
€ 1,758,408.38 0.69% € 12,133.02 € 36,150.19
€ 106,150.19 0.69% € 732.44
€ 106,882.63 0.69% € 737.49
€ 107,620.12 0.69% € 742.58 € 2,212.51
€ 72,753.91

10.  Cash flow analyse is spread over 27 months.
 It shows our outgoing expenses and our
incoming revenue.
 The end of the first quarter is where we’re
most exposed, thus determining the size of
the loan we must obtain.

11. Column1 Month 0 Month 3 Month 6 Month 9 Month 12 Month 15 Month 18 Month 21 Month 24 Month 27 Total
Cash Flow Statement Aura
Income
Sales €0.00 €0.00 €1,875,000.00 €1,875,000.00 €1,250,000.00 €2,500,000.00 €1,250,000.00 €1,250,000.00 €2,500,000.00 €0.00
€12,500,000.0
0
Total Income €0.00 €0.00 €1,875,000.00 €1,875,000.00 €1,250,000.00 €2,500,000.00 €1,250,000.00 €1,250,000.00 €2,500,000.00 €0.00
€12,500,000.0
0
Costs €
Site Cost -€2,590,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€2,590,000.00
Site Development -€28,571.44 -€42,857.16 -€7,142.86 -€7,142.86 -€7,142.86 -€78,571.46 -€7,142.86 -€14,285.72 -€7,142.86 -€200,000.08
Building Costs -€19,149.00 -€96,289.80 -€786,653.40 -€800,329.40 -€759,257.00 -€701,079.20 -€612,012.00 -€743,059.00 -€682,171.20 -€5,200,000.00
Professional Fees -€180,792.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€602,640.00
Other Fees -€18,800.00 -€2,490.00 -€2,490.00 -€1,660.00 -€3,320.00 -€1,660.00 -€1,660.00 -€3,320.00 -€35,400.00
Contributions -€420,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€420,000.00
Overheads -€2,000.00 -€4,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€54,000.00
Social Housing -€400,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€400,000.00
Marketing -€1,473.75 -€5,700.00 -€83,425.00 -€1,273.75 -€600.00 -€5,700.00 -€1,273.75 -€500.00 -€500.00 €0.00 -€100,446.25
Sales Fees €0.00 €0.00 -€18,750.00 -€18,750.00 -€12,500.00 -€18,750.00 -€12,500.00 -€18,750.00 -€12,500.00 -€12,500.00 -€125,000.00
Total Costs -€3,613,065.75 -€104,292.44 -€296,683.96 -€869,182.01 -€875,104.26 -€847,041.86 -€847,956.41 -€692,936.86 -€826,536.72 -€754,686.06 -€9,727,486.33
(A) Total -€3,613,065.75 -€104,292.44 €1,578,316.04 €1,005,817.99 €374,895.74 €1,652,958.14 €402,043.59 €557,063.14 €1,673,463.28 -€754,686.06 €2,772,513.67
(B) Opening Balance €0.00 -€3,613,065.75 -€3,683,203.19 -€2,069,697.15 -€1,062,430.16 -€687,534.42 €965,423.72 €1,367,467.31 €1,924,530.45 €3,597,993.73 €0.00
(C) Total (a+b) -€3,613,065.75 -€3,717,358.19 -€2,104,887.15 -€1,063,879.16 -€687,534.42 €965,423.72 €1,367,467.31 €1,924,530.45 €3,597,993.73 €2,843,307.67 €2,772,513.67
(D) Interest €0.00 €34,155.00 €35,190.00 €1,449.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €70,794.00
Closing Balance (c+d) -€3,613,065.75 -€3,683,203.19 -€2,069,697.15 -€1,062,430.16 -€687,534.42 €965,423.72 €1,367,467.31 €1,924,530.45 €3,597,993.73 €2,843,307.67 €2,843,307.67

13.  A Program of Works shows what work will be
taking place over a certain time.
 It is estimated that this project of 20 houses
will take 24 months to complete.
 The project is divided into 9 sections. The
first 2 sections represent 3 house each. The 7
other Green sections represent 2 house each.
 It is planned that the houses will close in the
month that they are complete.

14. 3 Houses = Blues INDICATIVE PROGRAMME OF WORKS
2 Houses = Greens
Works Description Duration WK Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8Month 9
Month
10
Month
11
Mont
h 12
Month
13
Month
14
Month
15
Month
16
Month
17
Month
18
Month
19
Month
20
Month
21
Month
22
Month
23
Month
24
NR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 95 96 97 98
Site Development
SUBSTRUCTURES
Excavate Top Soil
Excavate
Foundations
Foundations Poured
Blockwork
Floor Slab
HOUSE
SUPERSTRUCTUR
E
Blockwork
Joisting
Roof Finishes
Windows
Plaster Works
External
Additional External
Finishes
Carpentry 1st Fix
M & E First Fix
Plastering Works
Internal
Carpentry Works
2nd Fix
M & E 2nd Fix
Fixtures & Fittings
Kitchens
Tiling
Painting
Final Clean
EXTERNAL
WORKS
Pavings
Landscaping

15. 13.6% of a Loan to Value ratio is
very healthy. The majority of the
money required for the
Construction of the units is being
provided through the sale of
completed houses.

16. • We have a very healthy interest cover ratio.

17. The break-even selling price of the project
is the price we have to sell the houses at to
cover our costs. If we sell each house for
€486374.32 then we will not make a loss or
a profit. This is a good indication of how
reasonable our selling price of €625000 is.

18.  The design for the houses were developed by
studying the design of houses in the
surrounding area and adapting a similar style.
 Dun Laoghaire/ Rathdown County Council for
pre planning consultation informed us, via
email, that the development would be viable.
 The were happy that we satisfied the Kilternan
Glenamuck Local Area Plan, as well as the
Government Guidance for ‘Sustainable
Residential Development in Urban Areas’

21.  Develop a marketing plan.
 Using local demographics and recent statistics
we plan to expose our catchment market and
develop our market plan around this.
 Relating back to our SWOT analysis, a
strategic plan can be optimised to exploit the
sites strengths and opportunities.
 Create business cards for each member of the
company

23. Current Property Market Prices For Listed Properties In The Surrounding 5km Radius
PROPERTY ADDRESS NO. OF BEDS BATHROOMS TYPE SIZE PRICE PRICE PER SQ.M
1 1 Sleeping Meadow, Enniskerry Road, Kilternan, Dublin 18 4 5 Detached 337 sq.m €900,000 €2,670.62
2 5 Moss Cottages Enniskerry Road, Kilternan, Dublin 18 3 1 Semi-Detached 80 sq.m €375,000 €4,687.50
3 Hillfield, Rathmichael, Co. Dublin 5 5 Detached 370 sq.m €1,200,000 €3,243.24
4 Wheatfield, Kilternan, Co Dublin 5 4 Detached 284 sq.m €695,000 €2,447.18
5 Rathmichael Brook, Ballycorus Road, Rathmichael, Dublin 7 8 Detached 867 sq.m €1,995,000 €2,301.04
6 Four Winds, Ballycorus Road, Kilternan, Dublin 18 4 2 Detached 186 sq.m €450,000 €2,419.35
7 Seaview, Ballybetagh Road, Kilternan, Dublin 18 5 3 Detached 230 sq.m €950,000 €4,130.43
8 Rowan Hill, Ballybrack Road, Glencullen 4 2 Detached 242 sq.m €1,650,000 €6,818.18
9 59 Cairnbrook Avenue, Glenamuck Road, Carrickmines, Dublin 18 2 2 Apartment 113 sq.m €350,000 €3,097.35
10 5 Cairnbrook, Carrickmines, Dublin 18 1 1 Apartment 56 sq.m €199,000 €3,553.57
11 4 The Green, Carrickmines Manor, Dublin 18 3 2 Terrace 115 sq.m €415,000 €3,608.70
Average price per sq.m = €3,543.38
Our price per sq.m = €3,360.22
Our property is €183.16 per sq.m cheaper than the surrounding area
Sold Property Prices In The Surrounding 5km Radius Over The Last 12 Months
PROPERTY ADDRESS DATE SOLD NO. OF BEDS TYPE PRICE
A Kilternan Villa, Ballybetagh RD, Kilternan, Dublin 18 15/10/14 N/A N/A €650,000
B Carrig Dolgen, Barnaslingan Lane, Kilternan, Dublin 18 02/09/14 N/A Detached €1,217,000
C 2 Moss Cottages, Enniskerry Road, Kilternan, Dublin 18 20/08/14 1 Bungalow €285,000
D Merrifield, Barnaslingan Lane, Kilternan, Dublin 18 17/06/14 N/A N/A €625,000
E 9 Wayside Cottages, Kilternan, Dublin 18 13/06/14 4 Bungalow €415,000
F Kingston House, B arnaslingan, Kilternan, Dublin 18 21/02/14 N/A N/A €495,000
G Santa-Maria, Glencullen, Kilternan, Dublin 18 19/12/13 N/A N/A €275,000
H Verney House, Kilternan, Dublin 18 16/12/13 N/A Detached €2,060,000

24.  Social Media marketing;
◦ LinkedIn
◦ Facebook
◦ Twitter
Aura Investments
facebook.com/Aura Investments
twitter.com/Aura_Invest
◦ Website: http://c12740375.wix.com/aurainvestments

25.  Design and create a property brochure with
detailed description of the development, the
local area and the plan drawings.
 Billboards, newsletters, bus ads, newspaper
ads, property sites such as daft.ie and
myhome.ie

27. Environment Analysis
 Is there a demand in the area
 Social environment
 Competitors
 Industry structure
 Who’s in the market
Identify Options
 How much money do we have
 How much land do we have

28. Evaluate Options
 Is the option suitable
 Is the option feasible – enough money
 Will it be acceptable
Strategic Choice
 Do we have the skills and resources
 What can we do?
Planning and Allocating Resources
 Construction Programme (timing)
 Do a tactical plan
 People / finance / plan / builders – in place

29. Project Risk Assessment Project Risk Control
Identify risk Measure & control risk
Analyse risk Respond to risk
Classify risk Mitigate residual risk
Prioritise risk Establish contingencies

30. Rating Description Criteria
1 Very low or none Minor nuisance
2 Low or minor Product operable at reduced
performance
3 Moderate or significant Gradual performance degradation
4 High Loss of function
5 Very high or catastrophic Safety-related catastrophic failures

31.  Residual Value € 3,410,679
 Developers Profit € 2,071,816
 Loan to Value Ratio 13.60%
 Looked at cash flow, construction program,
compounded interest, banking financials,
marketing plan, market competition, and strategy
plan.

32.  Thank you all for your attention, we welcome
any question you may have.