HOTEL AT AMBOSELI ESTIMATED COST OF CONSTRUCTION

HOTEL AT AMBOSELI

ESTIMATED COST OF CONSTRUCTION
Reception, offices, and Lounge: Approximately 300m2. Estimated cost of construction including consultancy fees: KES 15,000,000.
Bar: Approximately 100m2: Estimated cost of construction including consultancy fees: KES 5,000,000.00.
Restaurant: Approximately 100m2: Estimated cost of construction including consultancy fees: KES 5,000,000.00.
Kitchen: Approximately 100m2: Estimated cost of construction including consultancy fees: KES 5,000,000.00.
20 Bandas: Approximately 50m2 each: Estimated cost of construction including consultancy fees: KES 50,000,000.00.

TOTAL: KES 80,000,000.00

Architect Francis Gichuhi Kamau
info@a4architect.com
http://www.a4architect.com
+254721410684

JOINT VENTURE FOR DEVELOPMENT OF HOUSES FOR SALE IN KENYA

JOINT VENTURE FOR DEVELOPMENT OF HOUSES FOR SALE IN KENYA

Prism Designs Africa http://www.a4architect.com offers Joint Venture partnership with land owners in order to develop houses for sale within Kenya.
This Joint Venture is financed by Shelter Afrique bank on a 50-50 sharing on the proceeds from sale of the houses. The land owner is then granted an additional amount being the value of the land.

ELIGIBILITY
Prism Designs Africa will first carry our preliminary project structure to ascertain viability. Basically, the debt ratio should be as per Shelter Afrique’s requirements and the plot location should be in an area where the houses can attract buyers once constructed.
To be eligible for the Joint Venture, the land must be a minimum of 5 acres for land suitable for apartment development and 10 acres for land suitable for bungalow and maisonette development.
The larger the size of the land, the higher the chances of the project being eligible for the Joint Venture.
Lands situated in middle to low cost areas also have a higher chance of eligibility than lands in high-cost areas.

HOW IT WORKS:

LAND OWNER

1. The land owner expresses willingness to Prism Designs Africa http://www.a4architect.com to get into a Joint Venture for construction of houses for sale on his land.
2. Prism Designs Africa http://www.a4arhcitect.com visits the land site and carries out a feasibility study to determine the most viable options available and the cost of the project.

15% OF TOTAL PROJECT COST

3. Prism Designs Africa http://www.a4architect.com calculates 15% of the total construction cost. The land owner is supposed to bring in 15 % of this total cost. If the land value is less than 15% of total project cost, Prism Designs Africa will contribute Professional services [Architecture, Quantity Surveying, Structural Engineering, Mechanical Engineering, Civil Engineering and Electrical Engineering] to top up the balance.
4. Once the contribution of 15% of total project cost is reached, Shelter Afrique bank arranges for financing of the remainder of the costs.

50-50 PROFIT SHARING + REFUND OF COST OF LAND

5. Once financing is secured, construction and off-plan sales of the houses commences . Once the houses are complete and sold out, the profits are shared equally between Shelter Afrique bank and the land owner. The land owner is given a further amount to cater for the value of the land.
6. The land owner can now settle the amounts contributed by Prism Designs Africa http://www.a4architect.com in raising the contribution to 15% of the total project cost.

COMMISION AGENTS

Prism Designs Africa http://www.a4architect.com recognizes the value of commission agents in sourcing for land owners who require Joint Venture partnerships with developers.
Prism Designs Africa offers 1% of the construction cost as agency fees to these commission agents.
Usually, the construction costs run into hundreds of millions of shillings since the minimum construction costs to be eligible for this Joint Venture partnership is KES 200,000,000. In this case, 1% of KES 200,000,000=KES 2,000,000.00.

For more information regarding this, contact Prism Designs Africa http://www.a4architect.com.

Francis Gichuhi Kamau
Architect.
Prism Designs Africa
http://www.a4architect.com
+254721410684

HIGH COST HOUSING ESTATE IN NAIROBI

BUSINESS PLAN FOR A HIGH COST HOUSING ESTATE IN NAIROBI BY http://www.a4architect.com.

Land Value: 5.6m per acre.
Number of acres=30

View various house designs here http://www.a4architect.com/house-plans/
I have given 25 different designs of 15 categories of sizes ranging from 100m2 to 400m2.
This way, a large and diverse section of house owners will have their taste and budget fulfilled by the project.
Each house is priced to independently cater for the cost of consultancy and external works in a pro-rata basis since cost of Land is constant.
The calculation is based on the assumption that 7 houses of each of the different sizes will be chosen. The final calculations shall be done once all house buyers make their choice.
Yours faithfully,
Arch. Francis Gichuhi Kamau . B.Arch. U.o.N M.A.A.K[A]
Registered Architect No. A1085
http://www.a4architect.com
PRISM DESIGNS AFRICA.

15 DIFFERENT SIZES OF HOUSES RANGING FROM 100M2 TO 400M2 TO BE CHOSEN.

EACH OF THE 15 DIFFERENT SIZES HAS SEVERAL DIFFERENT DESIGNS TO CATER FOR DIVERSE TASTES

ASSUMPTION:AN AVERAGE OF 7 HOUSES OF EACH OF THE 15 SIZES IS CHOSEN BY THE BUYERS

Cost Item Kshs %
Land 168,000,000.00 9.64337
Construction 1,092,350,000.00 62.702
External Works[ road,sewer,water,street lighting, driveway] 137,142,857.14 7.87214
Consultancy fees
Valuation-0.05% of Construction cost 546,175.00 0.03135
Quantity Surveying-3% of Construction cost 32,770,500.00 1.88106
Architecture: 6% of Construction cost. 65,541,000.00 3.76212
Electrical engineering: 2% of Construction cost. 21,847,000.00 1.25404
Mechanical engineering: 2% of Construction cost. 21,847,000.00 1.25404
Structural engineering : 3% of Construction cost. 32,770,500.00 1.88106
Civil Engineering: 0.5% of Construction cost. 5,461,750.00 0.31351
Legal fees: 1.5% of Construction cost. 16,385,250.00 0.94053
Urban or Town Planning Consultancy: 0.3% of Construction cost. 3,277,050.00 0.18811
Administration: 0.8% of Construction cost. 8,738,800.00 0.50162
Accounting services: 0.2% of Construction cost. 2,184,700.00 0.1254
Environmental Impact Assesment[NEMA]: 0.2% of Construction cost. 2,184,700.00 0.1254

Arch. Francis Gichuhi Kamau . B.Arch. U.o.N M.A.A.K[A]
Registered Architect No. A1085
http://www.a4architect.com
PRISM DESIGNS AFRICA.

HOW TO GET 100% FINANCING FOR YOUR HOUSING CONSTRUCTION PROJECT IN KENYA.

HOW TO GET 100% FINANCING FOR YOUR HOUSING CONSTRUCTION PROJECT IN KENYA.

Construction financing is a challenge to many land owners in Kenya.
Many land owners and developers would like to construct houses for sale but the limitation usually comes due to lack of finances.
Kenyan banks require that the land owner finances the consultancy fees, marketing and sales fees and bank interest.
All the above usually form an approximate of 15% of the total construction cost but varies from project to project depending on the scope.
HALF ACRE PLOT EXAMPLE
A half acre plot in a middle income area such as Ongata Rongai to be constructed with maisonette type units will cost approximately KES 80 million in total including cost of land purchase. Therefore, 15% of such a project is around KES 12.5 million.
After raising this amount, the banks require that the land owner or developer now raises a further 15% in terms of hard cash into the actual brick and mortar construction project.
This requirement has locked out many potential developers due to the high amount.
SOLUTION.
PRISM DESIGNS AFRICA has worked out a solution to this.
PRISM DESIGNS AFRICA offers equity contribution in terms of professional services namely Architecture, Quantity Surveying, Structural Engineering, Electrical engineering, Civil Engineering, Mechanical Engineering, Legal services and Sales and Marketing.
PRISM DESIGNS AFRICA works out a Joint Venture/agreement with the land owner to offer part of these professional services as a contribution so that the land owner can reach the 15% project value contribution.
JOINT VENTURE WITH SHELTER AFRIQUE BANK
Once the land owner/developer’s equity reaches 15%, PRISM DESIGNS AFRICA then organizes for a Joint Venture with Shelter Afrique Bank.
Shelter Afrique bank offers a further contribution of 15% of the total project value as contribution.
Once the land owner/developer’s contribution now reaches 30% [15% from land value+PRISM DESIGNS AFRICA consultancy contribution AND 15% from Shelter Afrique Bank], local banks can now be approached to finance the balance of the construction project.
This way, the land owner can now get funding for their project with their only contribution being the value of their land. Consultancy fees are offered by PRISM DESIGNS AFRICA at no initial cost to the land owner/developer.
SPECIAL PURPOSE VEHICLE
Once the land owner/developer contributes their 15% of the project value with the assistance of PRISM DESIGNS AFRICA, Shelter Afrique bank forms a SPV which is a company owned jointly by Shelter Afrique and the Land Owner. The land ownership is now transferred to the SPV.
The SPV develops the project and at the end of the project, the profits realized are shared between Shelter Afrique bank and the land owner/Developer.
At this stage, PRISM DESIGNS AFRICA receives monies that it had contributed to the land owner/developer initially.
CONCLUSION

The land owner/developer will now have realized profits from the sale of units with their only contribution of land.
For more information, contact PRISM DESIGNS AFRICA http://www.a4architect.com.
Francis Gichuhi Kamau.
Architect.
PRISM DESIGNS AFRICA.
http://www.a4architect.com
+254721410684

HOW TO GET 100% FINANCING FOR YOUR HOUSING CONSTRUCTION PROJECT IN KENYA.

HOW TO GET 100% FINANCING FOR YOUR HOUSING CONSTRUCTION PROJECT IN KENYA.

Construction financing is a challenge to many land owners in Kenya.
Many land owners and developers would like to construct houses for sale but the limitation usually comes due to lack of finances.
Kenyan banks require that the land owner finances the consultancy fees, marketing and sales fees and bank interest.
All the above usually form an approximate of 15% of the total construction cost but varies from project to project depending on the scope.

HALF ACRE PLOT EXAMPLE

A half acre plot in a middle income area such as Ongata Rongai to be constructed with maisonette type units will cost approximately KES 80 million in total including cost of land purchase. Therefore, 15% of such a project is around KES 12.5 million.
After raising this amount, the banks require that the land owner or developer now raises a further 15% in terms of hard cash into the actual brick and mortar construction project.
This requirement has locked out many potential developers due to the high amount.

SOLUTION.

PRISM DESIGNS AFRICA has worked out a solution to this.
PRISM DESIGNS AFRICA offers equity contribution in terms of professional services namely Architecture, Quantity Surveying, Structural Engineering, Electrical engineering, Civil Engineering, Mechanical Engineering, Legal services and Sales and Marketing.
PRISM DESIGNS AFRICA works out a Joint Venture/agreement with the land owner to offer part of these professional services as a contribution so that the land owner can reach the 15% project value contribution.

JOINT VENTURE WITH SHELTER AFRIQUE BANK

Once the land owner/developer’s equity reaches 15%, PRISM DESIGNS AFRICA then organizes for a Joint Venture with Shelter Afrique Bank.
Shelter Afrique bank offers a further contribution of 15% of the total project value as contribution.
Once the land owner/developer’s contribution now reaches 30% [15% from land value+PRISM DESIGNS AFRICA consultancy contribution AND 15% from Shelter Afrique Bank], local banks can now be approached to finance the balance of the construction project.
This way, the land owner can now get funding for their project with their only contribution being the value of their land. Consultancy fees are offered by PRISM DESIGNS AFRICA at no initial cost to the land owner/developer.

SPECIAL PURPOSE VEHICLE

Once the land owner/developer contributes their 15% of the project value with the assistance of PRISM DESIGNS AFRICA, Shelter Afrique bank forms a SPV which is a company owned jointly by Shelter Afrique and the Land Owner. The land ownership is now transferred to the SPV.
The SPV develops the project and at the end of the project, the profits realized are shared between Shelter Afrique bank and the land owner/Developer.
At this stage, PRISM DESIGNS AFRICA receives monies that it had contributed to the land owner/developer initially.

CONCLUSION

The land owner/developer will now have realized profits from the sale of units with their only contribution of land.
For more information, contact PRISM DESIGNS AFRICA http://www.a4architect.com.

Francis Gichuhi Kamau.
Architect.
PRISM DESIGNS AFRICA.
http://www.a4architect.com
+254721410684