INVESTMENT OPPORTUNITIES IN JORDAN
Building a 4-Storey Residential Building in the
West of Amman
Feasibility Study Version One
Tariq Al-Basha Feasibility Studies Specialist
6/24/2014
The purpose and scope of this feasibility study is to introduce the subject matter and provide a general
idea and information on the said area. All the material included in this document is based on
data/information gathered from various sources and is based on certain assumptions. Although, due
care and diligence has been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ substantially from the
presented information.
Tariq Al-Basha - 00962 7 9767 7418 - [email protected]
Contents
Introduction .................................................................................................................................................. 4
Project Description........................................................................................................................................ 4
The Spaces of the Building ............................................................................................................................ 5
Expected Land Area to be Bought................................................................................................................. 5
Construction Cost.......................................................................................................................................... 5
Project Revenues .......................................................................................................................................... 6
Total Selling Prices per Floor ......................................................................................................................... 6
Cash Flow (In & Out) ..................................................................................................................................... 7
Important Notes............................................................................................................................................ 8
About the Author .......................................................................................................................................... 9
Tariq Al-Basha - 00962 7 9767 7418 - [email protected]
23
Tariq Al-Basha - 00962 7 9767 7418 - [email protected]
Introduction
The residential building will be built on almost a land area of 787.50 m and it will be
divided into 4 floors.
The total cost of the project will be JOD 1,169,925.08 (USD 1,651,388.79).
The expected revenues from selling all the residential apartments will be between JOD
1,520,000.00 to 1,560,000.00 (USD 2,145,378.63 to 2,201,835.96).
The expected net profit before tax will be between JOD 350,074.92 to 390,074.92 (USD
494,107.40 to 550,564.74).
Project Description
The project consists of one residential building that has 8 residential apartments (flats);
spread equally over 4 floors.
The apartments size of the first, second and third floors are 150 m per each apartment
that includes 3 bedrooms, 3 bathrooms, kitchen, living room, guest room, balcony,
laundry room and corridors.
The apartments size of the ground floor is 170 m per each apartment that includes 3
bedrooms, 3 bathrooms, kitchen, living room, guest room, balcony, laundry room,
corridors, garden and car parking.
The facilities provided in the building are:
Car parking that caters 8 cars (96 m);
Guard Room (24 m);
Service Rooms including a room for water tanks, room for boilers, room for diesel
tanks and storage (160 m); and
A 6-person-elevator.
The owners of third floor apartment have the right to buy 20 m of the building roof.
The roof of the building accommodates additional water tanks, solar water heating
system (SWH) and satellites.
Tariq Al-Basha - 00962 7 9767 7418 - [email protected]
The Spaces of the Building
Entry
No. of Flats
Total Floor Area (Sqm)
Space for Sale (Sqm)
2.00
2.00
2.00
2.00
8.00
350.00
350.00
350.00
350.00
350.00
1,750.00
280.00
340.00
300.00
300.00
300.00
40.00
1,560.00
Underground Floor
Ground Floor
First Floor
Second Floor
Third Floor
Roof
Total
Expected Land Area to be Bought
Formula: Land Area in Sqm (X) x [The average of the maximum percentage of the building
(42%) from the land area of housing sector (B) and the maximum percentage of the building
(48%) from the land area of housing sector (C)] = Total built-up Area (Sqm)
X x [100 / ((42 + 48) / 2))] = 1,750
X x 100/45 = 1,750
X = 1,750 x 45/100
X = 78,750 /100
X = 787.50 sqm
Construction Cost
Entry
Measurement Unit
No. of Units
The Cost per Unit (JOD)
Total Cost (JOD)
Cost of Purchasing the Land
Designs and plans
Infrastructure Works
Structure Works
Electromechanical Works
Finishing Works
Site Supervision & Management
General & Administrative
Expenses
Licenses, Permits and Others
Reserves
Total
Square Meter
Square Meter
Square Meter
Square Meter
Square Meter
Square Meter
Construction Cost
Construction Cost
787.50
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
498,750.00
498,750.00
742.86
10
60
70
55
100
6.17%
3%
585,000.00
17,500.00
105,000.00
122,500.00
96,250.00
175,000.00
30,772.88
14,962.50
Total Cost
Total Cost
1,146,985.38
1,146,985.38
1%
1%
11,469.85
11,469.85
1,169,925.08
Tariq Al-Basha - 00962 7 9767 7418 - [email protected]
Project Revenues
Entry
Underground Floor
Ground Floor
First Floor
Second Floor
Third Floor
Roof
Total
No. of
Flats
2.00
2.00
2.00
2.00
8.00
Space for
Sale (Sqm)
280.00
340.00
300.00
300.00
300.00
40.00
No. of Flats
to buy
8.00
2.00
2.00
2.00
2.00
2.00
Space for Sale
per Flat (Sqm)
35.00
170.00
150.00
150.00
150.00
20.00
Selling Price per
sqm (JOD)
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
Total Selling Price
per Flat (JOD)
35,000.00
170,000.00
150,000.00
150,000.00
150,000.00
20,000.00
Total Selling
Price (JOD)
280,000.00
340,000.00
300,000.00
300,000.00
300,000.00
40,000.00
1,560,000.00
Total Selling Prices per Floor
Entry
Notes
Ground Floor
First Floor
Second Floor
Third Floor
Total
No. of
Flats
Space for Sale per
each Flat (Sqm)
Per
Floor
Includes the
underground floor
and/or roof (Best
Case Scenario)
2.00
2.00
2.00
2.00
205.00
185.00
185.00
205.00
Space for Sale per
each Flat (Sqm)
Includes the
Underground Floor
and does not include
the roof (Worst Case
Scenario)
205.00
185.00
185.00
185.00
Selling Price
per sqm
(JOD)
1,000.00
1,000.00
1,000.00
1,000.00
Best Case
Scenario per
each Flat
Worst Case
Scenario per
each Flat
Best Case
Scenario per
each Floor
Worst Case
Scenario per
each Floor
JOD
JOD
JOD
JOD
205,000.00
185,000.00
185,000.00
205,000.00
205,000.00
185,000.00
185,000.00
185,000.00
410,000.00
410,000.00
370,000.00
370,000.00
370,000.00
370,000.00
410,000.00
370,000.00
1,560,000.00 1,520,000.00
Tariq Al-Basha - 00962 7 9767 7418 - [email protected]
Cash Flow (In & Out)
Entry
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash In
Capital
1,169,925.08
Total Cash In (Monthly)
1,169,925.08
Total Cash In (Cumulative)
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
1,169,925.08
26,250.00
26,250.00
26,250.00
30,625.00
30,625.00
30,625.00
30,625.00
24,062.50
24,062.50
24,062.50
24,062.50
35,000.00
35,000.00
35,000.00
35,000.00
35,000.00
Cash Out
Cost of Purchasing the Land
585,000.00
Designs and plans
17,500.00
Infrastructure Works
26,250.00
Structure Works
Electromechanical Works
Finishing Works
Site Supervision & Management
2,797.53
2,797.53
2,797.53
2,797.53
2,797.53
2,797.53
2,797.53
2,797.53
2,797.53
2,797.53
2,797.53
1,246.88
1,246.88
1,246.88
1,246.88
1,246.88
1,246.88
1,246.88
1,246.88
1,246.88
1,246.88
1,246.88
955.82
955.82
955.82
955.82
955.82
955.82
955.82
955.82
955.82
955.82
955.82
955.82
Total Cash Out (Monthly)
598,672.55
48,750.23
31,250.23
61,875.23
61,875.23
59,687.73
59,687.73
64,062.73
64,062.73
40,000.23
40,000.23
40,000.23
Total Cash Out (Cumulative)
598,672.55
647,422.78
678,673.01
740,548.24
802,423.47
862,111.20
921,798.93
985,861.66
1,049,924.39
1,089,924.62
1,129,924.85
1,169,925.08
Total Net Cash (Monthly)
571,252.53
(48,750.23)
(31,250.23)
(61,875.23)
(61,875.23)
(59,687.73)
(59,687.73)
(64,062.73)
(64,062.73)
(40,000.23)
(40,000.23)
(40,000.23)
Total Net Cash (Cumulative)
571,252.53
522,502.30
491,252.07
429,376.84
367,501.61
307,813.88
248,126.15
184,063.42
120,000.69
80,000.46
40,000.23
0.00
General & Administrative Expenses
1,246.88
Licenses, Permits and Others
11,469.85
Reserves
Tariq Al-Basha - 00962 7 9767 7418 - [email protected]
Important Notes
This study is subject to the Building and Planning Regulations for the city of Amman No.
67, 1979.
The land price includes all the applicable fees, charges and taxes.
The price of designs and plans includes all the possible amendments and changes on
the designs and plans.
The prices of infrastructure, structure, electromechanical and finishing works include
workers salaries and wages and the cost of all the required materials, goods, equipment
and transport to build the building.
By and large, the areas and prices are approximate.
Tariq Al-Basha - 00962 7 9767 7418 - [email protected]
About the Author
Awarded First Class Honours in Bachelor of
Arts (Honours) Business Management from
the University of Greenwich UK.
Working as a Project Finance Officer for an
Iraqi-owned Group in which representing the
CEO
and
shareholders'
interest
in
23
companies, subsidiaries and affiliates in Iraq,
Jordan, Lebanon and UAE.
Previous works related to feasibility studies:
1. Feasibility & Financial Studies for Mall
& Hotel in Basra Iraq; the total land
area is 5,810 m and the total built-up
area is 25,988 m.
2. Feasibility & Financial Studies for
Medical Diagnostic Center in Basra
Iraq; the total land area is 7,770 m
and the total built-up area is 18,350
m.
3. Financial
Studies
for
Mixed-use
Development in Basra Iraq; the total land area is 152,367 m and the total builtup area is 77,949 m.
4. Financial Studies for Mixed-use Development in Basra Iraq; the total land area
is 135,000 m and the total built-up area is 90,000 m.
5. Financial Studies for Mall & Hotel in Karbala Iraq; the total land area is 6,511
m and the total built-up area is 21,400 m.
6. Financial Studies for Medical Diagnostic Center in Baghdad Iraq; the total land
area is 2,450 m and the total built-up area is 8,245 m.
7. Financial Studies for Mixed-use Development in Baghdad Iraq; the total land
area is 115,690 m and the total built-up area is 337,665 m.
