You are on page 1of 5

New Construction Development Plan

for XYZ
By, Mr.X

XYZ EXECUTIVE SUMMARY


XYZ XYZ is a diversified group
XYZ core values of delivering experiences and products that are deeply
innovative, valued by our customers and contributions to the local society
have led to an organisation that is committed everyday to delivering
iconic products and happiness to our customers through inclusive, designdriven decisions.
XYZ will purchase and develop 2, 00,000 sqft of land in xxx. We will
develop this land into a mixed development comprising of 6 multi storey
towers of residential consisting of 300 apartments and 2 multi storey
towers of commercial. Two hundred of the apartments will be 2BHK +
Family and one hundred will be 3BHK + Family apartments. The
construction will have a fully equipped club house and the best of
recreational and entertainment facilities.
Financial highlights for the financial year of operations

Mission
XYZ is committed to the respectful, thoughtful development of living
areas. Our development provides privacy, space, amenities, and preserves
the natural beauty of land. XYZ is experienced, stable, dependable and
reliable with outstanding customer service in the forefront of our building
process.
Consumers have choices regarding apartment size or location. Lake View
apartments, with sizes ranging from 1900sft to 2300sqft are offered for
Rs.1.5Cr Rs. 1.9Cr an apartment, and other view apartments, with size
ranging from 1400sqft to 1800sqft can be offered for Rs.1.1Cr 1.5Cr.
Commercial space will be leased out to MNCs and other corporate.

Market Segmentation

XYZ has segmented their target market for this development as working
couples, retired couples and families. The lake view apartments target
market will attract an economic of level of Rs.50, 00,000 Rs.75, 00,000.
The apartments that do not have lake view will attract an economic level
of Rs.33, 00,000 Rs. 50, 00,000.

Market Needs
The level of development in the xxx area indicates a need for experienced
development companies. The respectful and thoughtful designs that XYZ
follows coupled with their expertise in construction and absolute attention
to details, reflects an experienced and appreciated developer who values
people, life and the land.

Market Trends
There is an ongoing trend for multimillion homes that showcase both
spectacular design and the wondrous natural beauty of the area.

BUSINESS STRATEGY
XYZ will seek funding from local resources; our reputation and reliability is
established with these firms. XYZ provides an outstanding value for their
clients and has successful marketing programs in place. The new
development will offer an elite living experience for average families,
upper income couples and people desiring showcase homes.

Value Proposition
The XYZ proposed development offers purchasers extended value. The
thoughtful layout of the site allows for privacy and maximum enjoyment
of the land. The construction of a park and the extensive walking/riding
trail and the extensive club house demonstrates a respect for the people
who will make this development home. XYZ is offering premier living
conditions, with scenic views, with easy access to the city and privacy.

Pricing Strategy
XYZ purchases the property for Rs.3, 500 a square foot with land
development infrastructure costing Rs. 300 per square foot. Housing
construction costs average Rs.2000 a square foot and these properties are
then sold for Rs.8300 to Rs.9800 per square foot.

SALES FORECAST
Annual sales revenue forecast

Sales

FY 1

Lake View units

255000000

Other units

325000000

Total sales

580000000

Land Cost

244888889

Sales Programs
Mr. X will be responsible for all sales activities. He will also work with
banking institutions for customer loan requirements. Sales will commence
on acquisition of land and will sell on a pre-launch phase initially.

Milestones
1. Achieve final financing for development in August 2017
2. Receive approval from local and state officials by October 2017
3. Hire new employees in July 2017
4. Complete infrastructure by late Feb 2018
5. Commence construction by Mar 2018

FINANCIAL ANALYSIS
Projected Profit and Loss

The profit and loss table shows positive net profit for the first financial
year.
Annual pro forma profit and loss

Total income
Cost of
goods sold
Gross profit
Gross profit
%
Expenses:
Payroll
Materials
Accountants
Legal
Insurance
Payroll taxes
Total
operating
expenses
Taxes incurred
Net profit
Net
profit/sales

FY1
580000000
244888889
335111111
57.78%
4000000
10000000
2000000
500000
500000
800000
17800000
35320711
281990400
48.62%

Projected Cash Flow


Positive cash flows are expected starting in the first year of operation.
Annual pro forma cash flow
On Booking 5%
Foundation
10%

Estimated by Feb
2018
Estimated by May
2018

29000000
58000000

Ground Floor
10%

18th Floor 10%

Estimated
2018
Estimated
2018
Estimated
2018
Estimated
2019
Estimated
2019
Estimated
2019
Estimated
2019
Estimated
2020

Possession 5%

Estimated by Mar
2020

2nd Floor 10%


4th Floor 10%
6th Floor 10%
8th Floor 10%
10th Floor 10%
14th Floor 10%

by Aug
by Oct
by Dec
by Mar
by May
by July
by Sep
by Jan

58000000
58000000
58000000
58000000
58000000
58000000
58000000
58000000
29000000
58000000
0

Projected cash flow is based on first year sales only. This will be
compounded with y-o-y and month on month sales.