Construction of a housing estate with an aparthotel in Moscow

Having extensive experience in the field of developing business plans and financial models for construction of housing facilities, analysts of Intesco Research Group often deal with business planning in the given direction. An example for such activities is a business plan developed through the initiative of a building company, within a framework of the project on construction of a housing estate in Moscow.

The aim of the project was first-line construction of a multi-purpose housing estate located in Nastavnichesky Pereulok, Tagansky district, Central Administrative Okrug, Moscow, with an aparthotel for RF Presidential Executive Office.

The aim of Intesco Research Group was justifying cost effectiveness of construction of the given estate.

The first-line construction included building an estate equipped with an underground two-level parking lot in the residential area and a three-level car parking lot in the area of the aparthotel. The total area of planned construction was to be 47787.74 m2, including the area of four residential sections (31511.92 m2) and the aparthotel of RF Presidential Executive Office (16272.82 m2).

While working over the business plan, specialists examined a multitude of peculiarities of the planning structure of the estate, its location, infrastructure and other aspects, which could influence construction progress and further sales of residential and non-residential areas by the building company.

Housing estate planning structure

The basis of the estate planning structure was a ribbon development, characteristic for the city centre. The features of the development, in combination with planning of location of technical, transport and residential rooms, provided for taking into account the possibility of creating closed cosy yards and residential areas free from traffic load, with the exception of ensuring transport availability in case of emergency, extraordinary or fire situations. The business plan specified a favourable ecological situation in the housing estate location area.

Project income items

The planned income items were sales of residential, non-residential rooms and parking lots.

By April of 2013 the building company had already assimilated 1.885 billion rules, including 0.546 billion rubles of loan funds, the total sum of which was 1 billion rubles. Continuation and completion of construction works required attracting investment in the volume of 1,446.633 million rubles, including additional credit financing for the sum of 453.318 million rubles.

The project provided for the following project participants:

• customer – RF Presidential Executive Office;
• investor-building company;
• commercial bank – creditor within the framework of additional financing.

Project effectiveness estimates

Calculations of project effectiveness and investment attractiveness conducted by specialists of Intesco Research Group gave the following results:

• net income/net present value – 82.69 million rubles/-508.602 million rubles;
• simple and discounted pay-back periods – n/a;
• profitability index – 0.84 units;
• internal rate of return -2.5%;
• breakeven point – 76.2% or 3 331,986 million rubles.

You can order development of a business plan for your project by calling at +7 (495) 212-91-91 or filling in a request at the website, after which our manager will call you.

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