Feasibility study for a 9 story building

In Maady Cairo area .

Group (1):

• Shamel Hassanien
• Mohamed Habib.
• Sherif Ayman Kamal.
• Mai Elsayed.

Supervisor
Dr, Ahmed El-Sedawey
Table of contents
1. Introduction.
2. Technical Analysis.
3. Commercial, Marketing, and Sales Analysis.
4. Organizational, Administrative, and Legal Analysis.
5. Financial Analysis.
6. Conclusion.
 1) Introduction

1-1 Name, title, and Project description:

1-2 The company Vision & Mission statement:
1-3 Project Objectives:
1-4 County review:
1-5 Project background, industry outlook, and founders’ background:
1) Introduction
1-1 Name, title, and Project description:
The company name: Shamel Investment Group (SIG)
The company is a real-estate development company it is not a construction
company, we are not contractors.
The project name: Maady golden heights (1).
Building description: It is a multi-story residential building consists of a
basement Garage, Ground floor (with a swimming pool) consists of 5
apartments, 9 current floors each have 6 apartments, and a roof area to be
the recreation and activities facility and gymnastic area for all the
residencies.
Apartments to be delivered semi-finished and all the common areas are
monitored and controlled using the IOT system (which as follows shall be our
competitive advantage since no other competitor are using this system).
1-2 The company Vision & Mission statement:
SIG Vision
The vision of SIG is to be one of the top 10 Real estate development
companies in Cairo, through our excellence in delivering residential,
commercial and administrative units that meets a wide segment of the
market needs.
SIG Mission
Is to increase the value of our investment by offering the heist variety of
quality built units to our customers in Cairo.
We do so through sales growth, coast control, wise resources investment,
and a very clear customer focus.
We believe that our success depends upon offering quality, latest
technology, safe, environmentally friendly, economically efficient, and
reasonably priced units that meets our customer's expectations and
satisfaction.
And to operate the company in a sound financial basis of profitable
growth providing fair return to our investment, and stakeholders,
creating career opportunities, and financial rewards for our employees.

1-3 Project Objectives:

3-1-1 Reach 50% sales within the next 6 months from launching the
marketing campaign and complete 100% sales within the following 6
months.
3-1-2 Finish the project to be delivered within the scheduled time (4
years) (that includes the design phase and the municipality and
electricity release documents).
3-1-3 To reach 100% profit on the invested capital within 6 years
1-4 County review:
5-1 Building civil works review to get the insurance permit (Mogamaa).
5-2 Civil Defiance review.
5-3 Municipality License (Building permit).
5-4 After finishing the project the release documents to the Electrical
Authorities shall include:
 Civil Defiance approval.
 Municipality approval.
1-5 Project background, industry outlook, and founders’
background:
The company was established in 1996 so we have multiple residential,
administrative and commercial projects in Cairo, mainly in Mokattam,
Nasr city, and New Maady.
The founder’s Owner/ CEO (Eng. Shamel M. A. Hassanien) background and
expertise: Graduated from Alexandria u. 1984, PMP certified 1996, MBA
1995, Consultant in PM 2001
 2) Technical study
2-1- Project Description.
2-2- Location analysis.
2-3- Accessibility.
2-4- Ecological conditions ( soil, site hazards, climate ).
2-5- Infrastructural conditions
2-6- Sources of supplies.
2-7- Engineering specification, systems & technology.
2)Technical study
2-1- Project Description
Our project is located in Zahraa El-Maadi plot No 27 in The new extension in front of Wady Degla Club.
The project will be a multi-story core and shell residential building consists of basement , ground , 9
typical floors and roof with the following area statement
 Land area 1178.22 m2 , its foot print 66%
 Total BUA (built up area) 10330 m2
 Total number of residential units 60 half finished apartments
 Total number of care parking is 60 car
 Will be supported with the IOT system for the units and common areas
 Using smart and green technology
 Swimming pool in the ground floor
 Gym and recreation area in the roof
2)Technical study
2-1- Project Description

Basement floor plan containing

to 60 car & building cores & 2 ramps

Total floor area 1178

2) Technical study
2-1- Project Description

Ground floor

Total floor net area 626 m2

2) Technical study
2-1- Project Description

Typical floor plan

Total floor net area 726 m2

 2) Technical study no of apartments 2 rooms
12
no of apartments 3 rooms
46
2-1- Project Description total 59
Floor NO Apartment Apartment Net No of No of repetition Total net area Apartment Total Saleable
type No area m2 rooms of the of the Saleable area of the
apartments apartment m2 area m2 apartments m2
Ground floor 1 128.15 3 1 128.15 166.59 166.59
Ground floor 2 99.07 2 1 99.07 128.79 128.79
Ground floor 3 116.30 2 1 116.30 151.19 151.19
Ground floor 4 118.46 2 1 118.46 153.99 153.99
Ground floor 5 114.15 2 1 114.15 148.39 148.39
From 1st floor to 9th 6 129.22 3 9
1163.02 167.99 1511.93
floor
From 1st floor to 9th 7 89.38 2 9
804.42 111.99 1045.75
floor
From 1st floor to 9th 8 107.69 3 9
969.19 139.99 1259.94
floor
From 1st floor to 9th 9 113.07 3 9
1017.65 146.99 1322.94
floor
From 1st floor to 9th 10 130.30 3 9
1172.72 169.39 1524.53
floor
From 1st floor to 9th 11 118.46 3 9
1066.11 153.99 1385.94
floor
6286.00 8800.00
 2) Technical study
2-2- Location analysis

• Project is located in the

south extention of Zahraa
El-Maadi plot.
• It is located at the corner Project site Location
of the intersection of the
Elnaser Road and the
Elkatamiaa-Cairo road
• Shaqi Althaeban ( Marble Zahraa El-
manufacturing area ) is Maadi
located in the south & Rang road
southwest of the project El Nasr Road
area Cairo Katamiaa
Roaad
 2) Technical study
2-2- Location analysis
1-Site location related to the eservices
Existing services
• Commercial
The project is surrounded by several supermarkets (more than 16 )
they are located in Zahraa El-Maddie the nearest one is fare form
the project with 600 m, in addition the project is far from Carrefour
El Maddie with 3.5 km
• Entertainments, Recreation
There is a sport club (Wady Deglaa ) far from the project 1km
• Educational services
There are 3 schools around the project far from the project 1km , 1.3
km , 1.4 km
• Healthy services
There are clinics and hospital far from the project 1km , 1.2 km , 1.4
km
 2) Technical study
2-2- Location analysis
1-Site location related to the services
Pland services
• Commercial
• Entertainments, Recreation
• Educational services

Wady Degla
club location
 2) Technical study
2-2- Location analysis
• Location of the plot
Project plot No is 27 which is located in the cornier at the
intersection between 2 street there width is 20 m which is an
advantage in our project that the all apartments in all floors
have been design to see the roads
 2) Technical study
2-2- Location analysis

• Location and Neighbors / culture

• All plots around the project are residential buildings only in order to as per the
approved master plan of this area was planed as a residential buildings except for some
plots are commercial activates
• so the ground floor in our project is residential apartments which is a marketing
constrain point, So we have a 2 design motivation points in ground floor apartments,
first one is: designer divided the set back on the ground floor, to be separate gardens,
second one is: creating a ground floor swimming pool
• The community level of this zone is an intermediate level i.e. the following points
should be considered
• Preferred apartment in the project zone; Areas between 100 m2 to 200 m2 with
the average 130 to 160 m2 ( that more requested )
• The apartments are containing to 2 bed room or 3 bed rooms only but the most
requested is the 3 bed rooms
• Rarely you fined apartments have master bed room with private toilet
 2) Technical study
2-3 Accessibility.
• Accessibility to the District (new
extenuation area )
We have 4 access points, 2 access
points from the Elnaser Road, 2
access points from the Elkatamiaa-
Cairo road or those that are
coming from Ring road

Project location
 2) Technical study
2-3- Accessibility.
• Accessibility to the project plot
We have 4 access points, to the
plot inside the District from the
north , south , east and west

• Accessibility to the project

during construction
In order to the new extension is
virgin and the capacity of
construction sill low the
Accessibility of the construction
raw material and its inventory
will be an advantage
 2) Technical study
2-4 Ecological conditions
• soil characteristic
Regarding to the soil investigation report that
was result from 4 boreholes testing in the plot
location the characteristic soil is a almost sand
with a strength 2.5kg/cm2, and the soil
instruction is foundation will be isolated
foundations

• site hazards
No ( storm & Earthquakes ) hazards on
the location of this project
 2) Technical study
2-4- Ecological conditions
• climate
Building & sun Direction regarding to the sun direction we have 2
elations should be treated to protect the building against heat, South
elevation (main elevation) by using a horizontal shading devices in the
architectural design of this elevation, and the west elevation using the
vertical shading devices as well
Farther more this we have to use the insolated Brick units for
constructing those 2 elevations which will make an energy saving
On the long run,
Building & wind Direction regarding to the preferred wind direction
(Northwest ) from the Neighbors sides @ north and the designer used an
internal court in Northwest direction to take the maximum Benefit from
the this wind
 2) Technical study
2-5- Infrastructural conditions
There are a complete infrastructure network around the project and it will be extended in the
new extension area at the building location as the planed, this network contains to roads ( and
transportation ), water , pluming , electrical , low-currant , gas

2-6-Sources of supplies & time frame.

• All construction items will be constructed by subcontractors that they are available more
than enough around our project zone
• All construction materials are too easy to be delivered to the project in order to there are
several suppliers around project, so it is not a constrain to be delivered or to be shortage
• There are some few items will be delivered from the outside project zoon as the following:
1- Ready-mix concrete will be delivered from Arab Company for ready Mix concert
which is far from site 15 KM
2- insolated Brick units The Egyptian Company for Modern Building Materials & Factory
Supplies PERFIX far from site 30KM built it can be delivered and stored in the site
 2) Technical study
2-6-Sources of supplies & time frame.
3- Elevators will be supplied and installed by Otis EG CO or Schneider Electric
4-Fire fighting system will be supplied and installed by Proservice CO or ALEMAM Group
(MEP contractor)
5- IOT system can be supplied and installed by Siemens Egypt or Schneider Electric
6- swimming pool will be supplied and installed by Sama Stars for swimming pools
located in Helwan @ 22 KM
• Project activates time frame as per the following schedule
 2) Technical study
2-7- Engineering specification, systems & technology
Civil works
• Excavation work: in order to the soil characteristic is sand, so the type of excavation will
be traditional methods, using the sand digger, with depth - 4.2 m for zero level excavation
out put will be conveyed to the Public landfills
• foundation: Regarding to the soil report instructions, foundation will be isolated foundation
with THK 1.2 m & above 4mm water proofing + 70 cm plan concert as a clean layer
between
• Retaining wall: Reinforced concert retaining wall with THK 30 cm & height 3.00 m to
protect the soil fall, this wall will be protected by outside 4mm water proofing
• Floor slabs Reinforced concert columns with THK 30 cm & floor slab will be beams with
width 25 cm and slabs 12 cm THK at the rooms area but it will be flat slab at the reception
area & stairs will be 25cm THK
 2) Technical study
2-7- Engineering specification, systems & technology

Architecture works ( finishing )

• Car parking area Flooring : far face plan concert 10 cm THK, Walls : Anti-carbon paint on cement
plaster on the retaining wall) , Ceiling : Anti-carbon paint on cement plaster
• Core areas: core lobby: Flooring : Granite tiles 60x60x2 ,Walls : Marble cladding 2cm THK, Ceiling :
Acrylic paint on cement plaster
2 stairs: steps : Granite cladding, Walls : 1.5 m height Marble cladding 2cm THK, Ceiling : Acrylic
paint on cement plaster
• Apartments finishing : (Half finishing level ) Masonry walls for the internal partitions , cement plaster ,
wooden frame for all doors except the main door will be a soled wood and all elevations windows ,
• Roof open areas: : Flooring : Mosaic tiles 30x30x3 cm, Walls : External Acrylic pant on cement plaster
• Elevations : dray mix paint on cement plaster Using the steel scaffold fore the 4 sides of elevations
 2) Technical study
2-7- Engineering specification, systems & technology
Plumbing & firefighting works:
Basement floor : fire fighting dry pipe network and the fire hose cabinets + under basement F.F
water tank + F.F pump room +Floor drain network + fire
Core areas: fire fighting dry pipe network and the fire hose cabinets
Apartments areas water riser pipes only and tie-in points for all wet areas in all apartments in all
floors, Sanitary riser pipes only and tie-in points for all wet areas in all apartments in all floors

Electrical works
Car parking area Full finished lighting fixture, Main Power control panels
Core areas: Full finished lighting fixture
Apartments : electrical conduit without wiring for lighting and power, Main Power control panels
for the apartment
Low currant works
Basement floor: Full finished smoke detectors system , fir alarm system , CCTV system , accesses
control system
Core areas: Full finished smoke detectors system , fir alarm system , CCTV system, accesses
control system
Apartments area : All conduits without wiring for audio visual , internet
 2) Technical study
2-7- Engineering specification, systems & technology
IOT ( Internet Of Things ) systems works
Selected IOT systems in our project
Through IOT we can control and monitoring the below systems for our residential building:
Inside the apartments (monitored and controlled by the apartment owner):
• Hvac system , Lighting and energy saving, Water system, Gas system, Intrusions
detection, Fire protection, Sound

In the common areas of the building (monitored or controlled by building operator):

• Lighting and energy saving, Care parking management, Air pollution , Fire protection,
Intrusions detection
IOT systems cost
• 5,000,000 EGP is the pricing for all selected systems including hardware and software in common
areas + conduits only in apartments
• supplier ( Siemens Egypt ) will train the building operator to use this system
3) Marketing, Commercial, and Sales Analysis
3-1 Market study and research.
3-2 The market mix.
3-3 The market structure.
3-4 Product market growth matrix.
3-5 The market segmentation.
3-6 SWOT analysis.
3-7 The competitive profile.
3-8 Market Share.
3-9 Advertising means policy and budget.
 3) Marketing, Commercial, and Sales Analysis
3-1 Market study and research:
Our main clients will be mainly located in Maadi, Zahraa El-Maadi and surrounding areas.
We have seven competitors working in the same area.
Our project meets the selected clients’ needs from where the building design, quality and
apartment size.

3-2 The market mix.

Product: Semi finished mid-size apartments.
Place: The project is in a prime location in Maadi.
Price & Promotions:
Sales should start when we complete the building permits.
Payment system: Down Payment 25% and installment for 6 years.
5% discount for the first 6 months from starting the sales for all SIG ex-clients.
5% discount in all real estate sales fairs and exhibitions.
 3) Marketing, Commercial, and Sales Analysis
3-3 The market structure.
Customer analysis: our project meets the client needs from where the design, privacy &
size.
Company analysis: our company is specialized and experienced in this kind of projects.

3-4 Product market growth matrix.

Market Development strategy: Launching our new project in Maadi.
Product Development strategy: Installing IOT system in our new project, a swimming pool in
the ground floor, and a recreation area and a gym in the roof.
 3) Marketing, Commercial, and Sales Analysis
3-5 The market segmentation.
We are targeting one segment, which is the middle-income people.

3-6 SWOT analysis.

Strengths Weaknesses
 Experienced sales team.  The company has a small
number of employees.
 Experienced technical team.

 Good financial status.

Opportunities Threats
 The project's land payment on  Stopping the construction
installment payments. permits & construction works for
6 months.
 3) Marketing, Commercial, and Sales Analysis
3-7 The competitive profile.
Our project has a competitive advantage which is using the IOT system in the common areas
in the building, a swimming pool in the ground floor, and a recreation area and a gym in the
roof.
The competitors:
1- Maadi Company. (Leader)
2- Wadi Degla Company. (Challenger)
3- Al-Mansour Company. (Follower)
4- Egypt development Company. (Follower)
5- Future Homes Company. (Follower)
6- Degla Masr Company. (Follower)
7- Degla El-Maadi Company. (Follower)
 3) Marketing, Commercial, and Sales Analysis
3-8 Market Share.

Before entering the market:

 3) Marketing, Commercial, and Sales Analysis
3-8 Market Share.

After entering the market:

 3) Marketing, Commercial, and Sales Analysis
3-9 Advertising budget.

The estimated
advertising budget of the
project equals
approximately 5% of the
total capital.
4) Organizational, Administrative, and Legal Analysis.
4-1 Basic organization design and organization chart.
4-2 Indicate key persons skills required total employment
number and cost.
4-3 Customer relations policy
4-4 legal aspects:
4) Organizational, Administrative, and
Legal Analysis.

4-1 Basic organization design and

organization chart.
4) Organizational, Administrative, and Legal Analysis.
4-2 Indicate key persons skills required total employment number and cost.
DURATION 30.00 Month

Staff Cost
Staff cost Duration Monthly Salary

Ser. Item No. (Total Man month) Basic Salary TOTAL

Management
A Project Manager 1 24 25,000 600,000
Construction 25,000.00 600,000.00
B Senior Site Engineer 2 24 10,000 240,000
C Site Engineer 3 24 8,000 192,000
C Surveying 1 24 5,000 120,000
Technical Office 23,000.00 552,000.00
B Senior Tec. Office Eng.( Civil ) 1 12 8,000 96,000
Senior Tec. Office Eng.( ARCH ) 1 12 8,000 96,000
Contract, Planning & Cost 16,000.00 192,000.00
B Planning Eng. 1 12 5,000 60,000
MEP Team 5,000.00 60,000.00
C Elec Engineer 1 18 9,000 162,000
C Mech 1 18 8,000 144,000
Accounting & Admin Team 17,000.00 306,000.00
C Accountant 1 30 4,000 120,000
General Services Team 4,000.00 120,000.00
C Store Keeper 1 12 3,000 36,000
C IT Specialist 1 12 3,000 36,000
E Office Boy 2 30 3,000 90,000
TOTAL 17 252 9,000.00 162,000.00

Total Staff 1,800,000.00

4) Organizational, Administrative, and Legal Analysis.
4-3 Customer relations policy
Customer relations policy (The organization has about 800 previous
customers):
4-5-1 Before baying: We explain to our potential customers the advantages
of our product and the facilities we give them and what is the difference
between our product and the competitors.
4-5-2 After baying and before delivery: We keep them updated with the stages
of the construction monthly.
4-5-3 Through the delivery period: We give them the delivery date and take
their notes to the engineering department to be done ASAP max within one
week.
4-5-4 After delivery: We collect their notes about the building maintenance to
be fixed immediately according to the size of the problem.
We send them information about our new projects.
We usually give discount in the new projects to our previous customers.
4) Organizational, Administrative, and Legal Analysis.
4-4 legal aspects:
4-6-1 Company formation law (Law 156).
4-6-2 commercial law:
4-6-2-1 We are registered on the commercial register.
4-6-2-2 All our employees have social insurance.
4-6-2-3 All our employees have medical insurance.
4-6-2-4 We are registered in the tax department.
5) Financial Analysis.
5-1 Methods of resources estimate.
5-2 Source of Finance.
5-3 Estimated total cost.
5-4 Total sales.
5-5 Estimated start up budget.
5-6 Profitability and profit percentage to the
invested capital.
5) Financial Analysis.
5-1 Methods of resources estimate:
2-5-1 The bases of the resources estimate are Analogous and
Parametric estimating combined which includes:
2-5-1-1 Past Experience in the field.
2-5-1-2 Similar executed and delivered projects.
2-5-1-3 Range of estimate accuracy from 90% up to 95%.
2-5-1-4 Qualifications of the owner CEO and the
organization experience.
5-2 Source of Finance.
Source of finance is funded from the company no loans or banks
are involved.
5) Financial Analysis.
5-3 Estimated total cost ( construction cost )
Item Unit U. Price Quty. Total
1- Civil Works
Excavation Works m3 85 2,400 204,000
Backfilling Works m3 75 2,000 150,000
Formworks Works m3 300 3,000 900,000
Steel Reinforcement Works ton 10,500 429 4,500,000
Concrete Works m3 700 5,429 3,800,000
1- Total Civil works 9,554,000
2- Architecture Works
Masonry Works m2 150 1,875 281,250
Wooden Works NO 450 450 202,500
Thermal and Moisture Protection Works m2 180 1,667 300,000
Plastering Works m2 60 8,287 497,225
External Painting Works m3 120 8,636 1,036,364
Marble m2 450 2,571 1,157,143
2-Total Architecture Works 3,474,481
5) Financial Analysis.
5-3 Estimated total cost ( construction cost )
Item Unit U. Price Quty. Total
3- Building Materials
Cement ton 800 2,125 1,700,000
Sand m3 50 6,000 300,000
Water m3 25 10,000 250,000
3- Total Building Materials 2,250,000
4- MEP Works
Plumbing Works ls 1,200,000
Electrical Works ls 1,280,000
4- Total MEP Works 2,480,000
5- Networks(IOT& All systems
Electrical Networks ls 5,000,000
5-NetWorks(IOT& All systems 5,000,000
6- Staff Cost
Staff Cost ls 1,800,000
6- Total Staff Cost 1,800,000
5) Financial Analysis.
5-3 Estimated total cost ( construction cost )
item Unit U. Price Quty. Total
7- Site Supporting
Shop Drawings and As-Built Drawings ls 200,000
Design Checks ls 50,000
7- Total Site Supporting 250,000
8- Fees & Sponsorship
With holding tax 0.5% 166,577
Insurance (Policies) 0.15% 49,973

Social Insurance 2.16% 719,611

Risk .2% 66,631

Contingency & Others 0.2% 189,897
F- Total Fees & Sponsorship 1,192,688
9- PRICE OF LAND
27,099,000
Total Estimated cost 53,100,170
5) Financial Analysis.
5-4 Total sales.
Selling price according to the market analysis in the area is between
(7000 LE to 9000LE) we shall consider the average of 8000 LE taking
into consideration that all our apartments are facing streets we don’t
have backyard apartments.

Apts. Selling price = 8800 m2 * 8000 LE = 70,400,000 LE

Garage sales = 60 * 100,000 = 6,000,000 LE

Total Sales = 76,400,000 LE.

5) Financial Analysis.
5-5 Budget & starting Capital:
Land cost = 27,099,000 LE.
Starting budget for the following:
Arch. & civil design.
Building license.
Marketing launch event.
Mobilization & Site preparation.
Excavation works.
Start the PC & RC works for the foundation.
Estimated startup budget = 7,901,000 LE
Startup capital = 33,000,000 LE.
5) Financial Analysis.
5-6 Profitability:

Profit = Total sales- Total cost

= 76,400,000 – 53,100,000 = 23,300,000 LE

Profit percentage to the total cost = 23,300,000/53,100,000 = 30%

It shall be collected over the lifetime of the project (6 years), so the
annual profit rate based on the total cost of the project shall be 5%.

Profit percentage to the startup capital = 23,300,000/33,000,000 = 70%

It also shall be collected over the lifetime of the project (6 years), so
the annual profit rate based on the startup budget of the project shall
be 11.7%.
 6) Conclusion (Final Decision).
The final result of the detailed feasibility study of this project is that
we are not going to build it, obviously the profit rate is less than the
bank’s rate nowadays, moreover the long time of installments make
it more risky to collect the money from the clients.

No Go