Business Plan Sky City

8/3/2019 Business Plan Sky City

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PARADISE SKYCITY


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Executive summary


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The Company

Paradise Builders is a Cochin-based pioneer Architectural

and Engineering builders and Consultant who succeeded in

revolutionizing the field of construction in Kerala. Realestate business services are among the fastest growing and

healthiest areas of the economy, and Paradise builders

intends to capitalize on the opportunities in that area.

Paradise does everything from landscaping to designing tobuilding to interior decoration and that too for all types of

structures like Apartments, Shopping Complexes, Hospitals,

Educational Institutions and Places of Worship.


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Mission

Our mission is to ensure the greatest

good to the greatest number of people

through all activities that it undertakesin all possible ways.


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Management

Miss Reshma M Nath(Managing Director)

Miss Nandini Nandakumar (Director)Mr Anish Vijay(Director)

Miss Maithreyi M.S. (Director-Finance)


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Increasing urban population, increasing vehicular traffic and increasing

pressure on urban road infrastructure have been problems faced by

metropolises all over the world, especially in the developing countries.

The problem is further compounded by the unavailability of adequate

space for horizontal expansion. Vertical expansion is the only solutionfor creating more residential and commercial space in cities like Kochi

that are flanked by the ocean on one side and hills on the other.

We, Paradise Builders, has come out with a novel solution to Kochis

infrastructure problem. The 30 ft high SkyCity flyover as it is called

is designed to consume very little urban space while still solving thetraffic problem to a large extent. Besides, all vehicles will be allowed

toll free passage through the Sky Citys road. The construction cost,

financing cost, maintenance costs and returns to the investor will come

from the sale of commercial space that will be developed above the

flyover.


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PARADISE SKYCITY


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PARADISE SKYCITY

Paradise Skycity is a Flyover, designed with the prime

intention of reducing traffic in Kochi City and for boosting

tourism and economic activity of the region.

The Skycity will extend from Kundannoor near NH 47

Byepass in the south to Sahodaran Ayyappan Road in the

north, passing above the Chilavannoor Bund Road and the

Backwaters.

Another stretch of the Skycity will extend from theSahodaran Ayyappan Road to the Subhash Chandrabose

Road.


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Features

Flyover bridge that runs 30 ft above land and backwaters.

3 storied shopping complexes.

residential apartments and commercial hubs

Supermarkets, community halls,

entertainment multiplexes, restaurants, hotels,

garment and jewellery showrooms,

two and three wheeler automobile showrooms etc.Corporate offices, business centres, IT/ITES and BPO

operations,

Banking and financial institutions etc.

Amusement centres, health centres,


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water sports facility and oceanarium, theme park,

12 m wide 4 lane expressway,

5 m wide car parking on both sides of the road andadditional car parking on the building top facility

can accomodate 7,500 cars in all,

2 m wide footpaths on both sides,

6.6 m wide building on base floor and 8.6 m widebuilding on the first and second floors on both sides,

Cable car at an 80 ft height offering panoramic view

of Kochi city.


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Industry Analysis and Trends

Currently there is very high demand for real estate space, both

of the residential and commercial type.

The yield on the commercial space is much higher than that of

residential real estate.

The overall confidence level created in the city has started

continuous stream of incoming MNCs.

Uncertainties in the Middle East following the war in Iraq and a

rejuvenated environment created by the dynamic changes in theIndian Banking industry have also added to the push in the

demand for real estate.


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The BPO sector is also likely to add to the demand for office

space, with the bandwidth connectivity luring business

enterprises to look at Kochi as a potential investment

destination. Besides local developers, some developers from Bangalore and

Nagpur are also investing in Kochi.

The Sahara group has finalized the land in which it plans to

develop a township. Emaar, a Dubai based developer is scoutingfor large areas in the city. A Saudi Arabian delegation has also

shortlisted Kochi as one of the cities for huge realty

development.


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Analysts have estimated that unlike the unprecedented boom

that gripped the market a decade ago, the growth trend in the

property sector will hold out this time because there are more

real buyers this time. Waterfronts are the most-sought-after real estate zones,

because the charm of living in a flat overlooking one of the

city's watery expanses is special. Views that will remain

unhindered and the steady breeze that blows through theseflats are attractive features.

And builders have found that waterfront properties sell well

and command premium prices.


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With increasing demand coupled with unavailability of

space, Kochi is now expanding towards the east to

Kakkanad, a hilly village that fast becoming a new city

hub.

Now, with new projects such as the Smart City (a project of

Dubai International Holdings) in the offing, the eastern

suburbs of Ernakulam, including Kakkanad, are

experiencing unprecedented spurt in land purchase and

construction.

Another major project, the Vallarpadom Container terminal

project has also caused an increase in demand for realestate space.


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TARGET MARKET

The size of Indias retail sector stands at about Rs. 900,000 crores. Within

this, the organized retail sector forms a small part at Rs. 33,000 crores. It is

now expected to grow at the rate of 25 20% per year.

The extension of concessional import duty scheme for organized retailers

with a minimum area of 1000 sq. meters and the implementation of VATwill also significantly help retailing.

Clothing and textiles account for 36% of the organized retail market

followed by watches and jewelry (17%) and then food and grocery (14%).

Kochi, one of Keralas major retail hubs will gain significantly from the

retail boom.

The Indian hospitality industry has also felt the impetus of economic

liberalization. Currently occupancy levels stand at 60%, 5% higher than that

of last year. In Kochi, the occupancy level stood well above the average at

69%. There was also a significant increase in the revenue per availableroom.


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The Indian Entertainment industry, is growing at a CAGR of

about 18% and is expected to increase from the current Rs.

20,000 crores to Rs. 45,000 crores by the year 2009. With the

film industry trend moving towards digital films, the end of

piracy is near and hence added growth potential. In spite of the significant growth in the number of educational

institutions, there is always an insatiated demand for more and

more graduate as well as post graduate educational institutions.

With more than 4 million employees, the Indian healthcare

industry is one of the largest service sectors in the Indianeconomy. It is expected to grow to the size of Rs. 270,000

crores by the year 2012.

The coming of several large multi and super speciality hospitals

has indicated that Kochi is a good location for setting up top

end health care facilities.

A study conducted by ICICI Property Services has identified

Kochi as the No. 1 location for locating ITES / BPO operations

in the country. This industry is also a large-scale consumer of

real estate space.


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All these industries contribute to real estate space requirement in

Kochi, where the demand is already high due to its burgeoning middle

class with a high purchasing power:

Super market and hyper market chains

Garment and Jewellery shops

Restaurants and Hotels

Two and Three wheeler dealers

Entertainment Multiplexes

Educational Institutions and hospitals

Community halls and Convention centers

IT /TES and BPO operations

High profile real estate investors in Kerala and also in other parts

of India (secondary real estate market


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COMPETITION

Clearly, the sky rocketing prices of urban commercial real

estate all over the world indicate a huge mismatch between

demand and supply.

We do not perceive too much competition from existingreal estate space as the way Sky City is positioned clearly

differentiates it from existing real estate space either in

Kerala or for that matter, India.

However, considering the fact that we are targetinginternational commercial real estate shoppers, competition

may come from high quality commercial space offered by

South East Asian and Middle East countries.


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Marketing Plan

Place : Kochi, Kakkanad

Price: lease and rent

Promotion : advertisements, publicity

activities, print ads, hoardings.


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Web Plan

Creating an official website

through social networking sites

Advertising in other prominent websites as

well.


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PROJECT SCHEDULE

The acquisition of land and buildings will be completed in

the first three months by govt. of kerala.

Piling of will start in Q-2 of the first year. 75% of the

piling will be completed by the end of the 1st year and theremaining 25% in Q-1 of year 2.

Construction of utilities (electric and water works) and the

amusement park will start in Q-1 of the first year along

with piling and will continue till Q-2 of the third year. Construction of the flyover will start in Q-2 of year 2 and

will be completed in Q-1 of year 3 and that of the buildings

from Q-2 of year 3 till Q-1 of year 4.

C t ti f th h li d ill b d i th thi d


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Construction of the helipad will be done in the third

year, covering all the four quarters.

An Oceanarium, also planned to be part of the project

will be started in Q-1 of the second year and will be

commissioned by the end of the 4th year.

Painting and finishing work will be completed in the

4th year.

Project design, management, execution and co-

ordination would be undertaken by Paradise Builders.

After the detailed project plan is made, the various

project components would be sub contracted to various

contractors or to a consortium.

The finalization of the contracts would be through a

system of international bids.

The bids would only be for work execution and all

purchases and inventory control would be handled

directly by Paradise Builders.


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Opportunities

Problems and opportunities

State consumer problems, and define the

nature of product/service opportunitiesthat are created by those problems.


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Goals & Objectives

Five-year goals

Providing job opportunities for 10 lakh

people.

Make Paradise builders one among the

trusted global builders.

Make Kochi into the most preferabletourist and industrial destination by

2021.


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Financial Plan

A high-level financial plan that defines the

financial model and the pricing assumptions

and that reviews yearly expected sales andprofits for the next three years.


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Sources required

Total capital :=3000 crores

Bonds -2000 crores 1000@8%

Bank loan -1000 crores


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Cost required during phases

Intial phase -10 crores

Second phase -750 crores

Third phase 800 crores

Forth phase 1200 crores

Fifth phase 240 crores


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Cost pattern

Net profit expected =450 crores

Total project cost =1800 crores

Tax = 450 crores

Interest rates= 300 crores

Break even period 6.6 years.


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Total sqfeet : 75348 sqfeet

Total cost involved 3000 crores

Return = 7000 crores


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THANK YOU

Business Plan Sky City

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