Professional Documents
Culture Documents
FOR
The Proposed Real Estate organization will be based in Nairobi County or some few kilometers nearby.
The Organization will construct 50 residential housing units and offer them for sale. The housing units
will balance safety, cutting edge features and a positive atmosphere for all potential investors. These
housing units will be provided with unmatched levels of customer service and attentions, sales are
projected to be very substantial in the first year after the completion of the housing units.
With the launch of Kenya’ vision 2030 which is a new long term development blue print for the country.
The aim of Kenya’s Vision 2030 is to create “a globally competitive and prosperous country with a high
quality of life by 2030. It aims to transform Kenya into “a newly industrializing, middle-income country
providing a high quality of life to all its citizens in a clean and secure environment.
Consequently, there a few major housing developers in Nairobi but given that there are very many
opportunities in the Real Estate sector makes this proposed project worthwhile.
The Market:
The Real Estate will target three distinct customer segments these are the expatriates, the working class
We have estimated that £1(Sterling pound) will be exchanged at Kshs150 (Kenya Shillings). Therefore
using the Kenyan Shillings, we estimate that the total sales(revenue) of the sale of the 50 completed
housing units will be sold at Kshs 7,000,000 per unit which amounts to Kshs 350,000,000, which
translates to £2,333,333. We also estimate that the total costs of the entire project to be Kshs
Kshs
Details Costs Sub-Total Sub-Total
No
of Total Total
Sales units Revenue Revenue
350,000 2,333,3
7,000,000.00 50 ,000.00 33.33
-
189,050 1,260,3
Cost of Sales ,000.00 33.33
-
160,950,00 1,073,000.
Net Income 0.00 00
£
Converted to
£ at
Kshs150 per 1,073,000.
1£ 00
We intend to recruit at least two Architects and a quantity surveyor to do feasibility studies and come
up with proposed drawing for the housing unit and identify the exact location for the project to take
place. We thereafter hire a construction firm to undertake the construction of the housing units. We
intend to hold monthly meetings to assess the progression of the entire project. We estimate that the
The vision of the Housing Real Estate will be to achieve the highest possible standards of the real
estate industry while establishing our agency as the preferred real estate company within our
market area and also in ten years’ time to expand to the neighboring countries
The Real Estate will provide high-quality comfortable saleablel units in Nairobi County. The apartments
units should offer state-of-the-art living conditions reflective of the rapid advancements in technology
and a growing need for quality housing.
The organization will be dedicated to a hassle free living environment in which tenants can enjoy all of
the benefits of safe, attractive and inviting units. The houses to be constructed ideally should have an
edge over their competitors in that they should have broad or Wi-fi Internet connections, a water
borehole, installed stand by solar panels, a good sewage system and other amenities should be with
easy reach such shopping malls, gyms and restaurants.
Whilst maximizing profits will be our ultimate goal, our other primary objectives will also be to maintain
the highest level of customer satisfaction that is achievable. Tenant safety, happiness and comfort will
be our main goals. We will maintain competitive market prices, while working towards expanding the
number of units built and owned over the years thus increasing total profits earned.
We believe that employee satisfaction will make the company a success and will be key to our longevity.
The proposed housing units will target the professionals, expatriates and the working class group either
for sale or rentals.
The company will also foster the ideals of the importance of house buyers and tenants needs alongside
with healthy environment, understanding relationships and a professional commitment to satisfaction.
The Organization will be an enterprise that is involved in numerous aspect of the housing industry.
Primary experience and expertise will be in the development of high-quality, lower cost living for the
working class, expatriates and professionals seeking the most up-to-date technologically advanced living
environment. This project will be relevant in Kenya as we try and meet our Vision 2030 target of
achieving a middle income level status and it will realize the standards of living.
The first 50 completed housing units will be easily sold out to the target market within a period of 12
months and occupied continuously thereafter. Our big dream will be that in five to ten years will be well
established and owning numerous estates across the East Africa region including Uganda, Rwanda,
Burundi and South Sudan.
Strength
Weakness
Opportunity
Threat
The total start-up expenses will include legal, stationery, architect, brochures, consultants, insurance,
rates, land, construction costs, land, stamp duty and legal fees, machinery and equipment.
Initial cash will be needed to handle the architect and contractor fees prior to opening, additional cash
will be needed to pay for government regulations.
We will finance growth mainly through cash flow. We recognize that this means we will have to grow
more slowly than we might like.
A team of working people will be required we will need at least two qualified architects to draw up the
proposed housing unit, a construction company to hire for period of construction, a quantity surveyor
and an accountant to estimate the entire cost and time anticipated to complete the project. We will
need a secretary and a few messengers to send around. This team will eventually take over the running
of the business.
We will aggressively pursue opportunities for stories in newspapers and magazines. Media
coverage is very important for new housing units. We will send regular news releases to
national, radio and television stations.
TV and radio appearances describing the uniqueness of your business can be extremely
effective. We will also consider contracting with a freelance writer to develop articles.
To objectively evaluate our property and its architecture, imagine that you are a tenant/house
buyer, looking for a nice place to live or a decent house to buy.
About your business for submission to regional newspapers. Some newspapers have a weekly
calendar and tourism section that lists the area’s new accommodations.
We will occasionally use the selling and letting agency to market and collect revenues on our
behalf and pay them standard commission percentage charges.
Develop a website advertising all our products and services also use face-book and twitter
accounts to get new potential clients.
Advertising in the yellow pages magazines and other real estate magazines.
Cost of Land
3,500,000.00
Professional Costs
9,000,000.00
1,500,000.00
Construction Costs
7,000,000.00 50 350,000,000.00
Converted to £ at Kshs150
per 1£ 1,073,000.00
We assume that the economy will continue growing at about 10% per annum for the next five
years
We assume that the taxation system will remain largely the same.
We assume that the level of political stability will continue in the foreseeable future.
The Inflation rate will not exceed 14% for the next five years
Given the current demographic trends, Kenya will be a predominantly urban country by 2030. The
country must, therefore, plan for high quality urban livelihoods for most of her people by that date. The
2030 vision for housing and urbanization is “an adequately and decently-housed nation in a sustainable
environment.”
Perhaps the best summary of Kenya’s prospects is that they are as bright as Kenya chooses to make
them. While this could apply elsewhere, it is particularly apt for Kenya, given the country’s enormous
advantages. Kenya has a strategic location, a port and a coastline, a broad manufacturing base, the best
business infrastructure in the region, an able and enterprising workforce, and excellent resources for
agriculture and tourism – the list is not endless, but it is long. The challenges to be met are
serious but hardly insuperable. An investor with an interest in any of the major opportunity areas
mentioned above would be most unwise to ignore the potential of a country that is working hard to