Business Complex
| Type of realty , location and surface |
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The plot is situated in Republic of Armenia, Yerevan city, 53/3 Tigran Mets Avenue on the cross with Glinka street. The distance to central square of Republic is 1750m. The general surface of the plot is 3100sq.m. Facade along Tigran Mets Avenue is 74m, and along Glinka street is 45m. |
| Description of the project |
Construction of Business Centre is planned on the plot on the territory of where is planned to dispose office premises, elite shops and territories of public eating. After giving the territory into exploitation mentioned premises will be given for rent or sold. The parking lot will be situated on the territory for 34 cars. Planned surface for construction will make 11.395,0sq.m.
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| Necessary investments |
The structure of essential expenses is: The purchase of the plot and preparation of project and permission documents 4.500.000.0 c.u. Realizing of construction- assembling works 7.000.000,0c.u. |
| Cash flows from functionality of Complex | In the first case the generation of financial means is expecting from leasing payment for given premises. During calculation we accept that filling of the Complex will make 70%. Possible measures from leasing are given below. Fixed size of monthly leasing for 1 sq.m. will make: For premises in Trade Centre. – 65,0c.u. For premises in Business Centre – 25,0c.u. |
| Sales proceeds fro leasing |
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The amount of annual entered financial means has the following structure. |
| Realization terms of the project |
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By the estimation of our specialists the construction assembling will be finished in 2 years, in course of it the realization of premises is possible. It provides the full realization of construction work content in 3 years |
| Fixed prices and sales proceeds from realization | In the case of realization of situated premises in the building of Business Centre the following price gradation is: Premises which are situated in Trade Centre: For the 1st and 2nd floors the limit price is 5.000,0c.u. for 1 sq.m. the sum realization will make 10.152.000,0c.u. (5.000,0c.u. õ 1.015,2sq.m x 2 floors). From 3rd to 5th floors the fixed price is 3.500,0c.u. for1 sq.m., the realization sum will make 10.659.000,0c.u. (3.500,0c.u. õ 1.015,2sq.m x 3 floors). Altogether 20.811.600,0c.u. (10.152.000,0c.u. + 10.659.000,0c.u.). investments from realization of premises in Trade Centre. Premises which are situated in Business Centre From the 1st to 2nd floors the limit price is 2.500,0c.u. for 1 sq.m. the sum realization will make 3.565.500,0c.u. (2.500,0c.u. õ 621,8sq.m. +2.500,0c.u. õ 804,4sq.m). From 3rd to 5th floors the limit price is 2.000,0c.u. for 1 sq.m. the realization amount will make 4.826.400,0c.u. (2.000,0c.u. õ 804,4sq.m x 3 floors ). Altogether 8.391.900,0c.u. (3.565.500,0c.u..+ 4.826.400,0c.u.) investments from realization of premises in Business Centre. Price for each garage situated under the building of Business Centre will make 15.500,0c.u. and price will make 527.000,0c.u. (15.500,0c.u. õ 34places ). Altogether 527.000,0 c.u. investments from realization of garages . All in all the sum realization from premises will make 29.730.500,0c.u. (20.811.600,0c.u..+8.391.900,0c.u.+ 527.000,0 c.u.). |
| Gross revenue of sales | From material above mentioned the gross revenue of sales is 18.230.500,0c.u. (29.730.500,0c.u.-11.500.000c.u.). |
| Company proposals |
The stage realization of project is possible by the self - financing. The required initial investment rate is 7.000.000.0 c.u. |
| Business estimation | To estimate investment effectiveness of proceeds mentioned price of future returns (price increasing is planned at the end of the period 15%-îâ). Under review – 5 ëåò Amount of annual receipts – 3.577.714,0ó.å. Discount rate – 12% Realizing the amounts, mentioned price of future returns will make .297.225,0c.u. |
| Conclusions | For realization of project necessary initial investments will make 11.500.000,0c.u. General receipts from realization of project will make 29.730.500,0c.u. Gross revenue of sales will make 18.230.500,0c.u in the term of realization 3 years. General receipts from leasing of premises are 3.577.714,0c.u. Necessary initial investments will make 7.000.000,0c.u. Mentioned price of future returns will make 32.297.225,0c.u. |
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