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Group 4 Aura Investments
“an investment in knowledge pays the best interest”
-Benjamin Franklin
Aaron Leahy Christian Gibney Fergal Rafter Roger Hayes Jeff Hughes
Stepaside Heights, Enniskerry Road, Kilternan, Dublin 18
Stepaside Heights 20 detached houses,
186 sq.m 4 bedrooms, 3
bathrooms Competitively priced
at €625,000 A3 rated brand new
build
A Realistic Model Of The Strategy Process
Strategic analysis
strategy implementationstrategic choice
Resources and strategic capability
Planning and allocating resources
Organisation structure
Managing strategic change and culture
Environmental analysis
Identify options
Evaluate options
Stakeholder expectations
Selecting a strategy
Risk Analysis
Project Risk Assessment Project Risk Control
Identify risk Measure & control risk
Analyse risk Respond to risk
Classify risk Mitigate residual risk
Prioritise risk Establish contingencies
Residual ValueGross Development ValueIncome (€625,000) x 20 units € 12,500,000Capital Value € 12,500,000
Development CostsBuilding Costs20 (186sq. Mt. x €1398 per sq. mt.) € 5,200,000Site Development € 200,000Professional fees (12%) € 602,640Contingency (5%) € 251,100Stamp Duty on land (1% of 1st million, 2% after) € 40,000Marketing (2%) € 100,500Overheads € 54,000Planning fees (€65 x 20 units) € 1,300Site Investigation € 17,500Sales Cost (1%) € 125,000Acquisition Fees (Legal 2% & Agents 1%) € 75,000Building Certifcates € 16,600Contributions (incl. social housing 20%) € 820,000Interest on Bank loan (6.74%) € 58,742
Total Development Cost € 7,562,382Profit @ 20% € 1,512,476Cost Plus Profit € 9,074,858
Residual Value € 3,425,142
Developers ProfitNet Development Value € 12,500,000Less Purchasers Cost (2.75%) € 343,750
Net Development Value € 12,156,250Development CostLand CostsLand Price € 2,500,000Stamp Duty (1% of 1st million, 2% after) € 40,000Acquisition Fees (Legal 2% & Agent 1%) € 75,000
€ 2,615,000Building Costs20 (186sq. Mt. x €1398) € 5,200,000Site Development € 200,000
€ 5,400,000Other CostsProfessional fees (12%) € 602,640Contingency (5%) € 251,100Overheads € 54,000Site Investigation € 17,500Contributions (incl. Social Housing 20%) € 820,000Planning fees (€65 x 20 units) € 1,300Advertising/Promotion (2%) € 100,500Sales Cost (2.5%) € 125,000Building Certificates € 16,600
€ 1,988,640Funding feesBank Fees € 10,000Interest on Bank Loan (6.74%) €58,742
€ 68,742
Total Development Cost € 10,072,382Developer's Profit € 2,083,868
Sensitivity Analysis
10% PositiveBest Case Scenario
Current Developers Profit
5% Negative15% Negative
Worst Case Scenario
Selling Price +10%
Selling Price -5% Selling Price -15%
Const. Costs -10% Const. Costs +5% Const. Costs +15%
Land Price -10% Land Price +5% Land Price +15%
Interest Rate = 6.74%Bank Interest Rate 9.5% Bank Interest Rate 11%
Net Development Value €13,371,875 €12,156,250 €11,531,250 €10,332,812
Development Cost €9,247,782 € 10,072,382 €10,584,347 €11,346,588
Developers Profit €4,124,093 € 2,083,868 €946,903 -€1,013,776
+98% 100% -55% -149%
Capital Investment €2,000,000 Aura Investments require a loan facility of
€1,700,000 Interest accumulated €58,742 Interest Rate: Annual rate 6.74% =0.56% 12 months
Bank Loan
€ 1,650,000.00 0.56% € 9,240.00 € 1,659,240.00 0.56% € 9,291.74 € 1,668,531.74 0.56% € 9,343.78 € 27,875.52 € 1,727,875.52 0.56% € 9,676.10 € 1,737,551.62 0.56% € 9,730.29 € 1,747,281.91 0.56% € 9,784.78 € 29,191.17
€ 99,191.17 0.56% € 555.47 € 99,746.64 0.56% € 558.58
€ 100,305.22 0.56% € 561.71 € 1,675.76 € 58,742.45
Loan PaybackMonth 0 3 6 9 12 15 18 .
(A) Total €3,613,065.75 €104,292.44 €1,578,316.04 €1,005,817.99 €374,895.74 €1,652,958.14 €402,043.59
(B) Opening Balance €0.00 €3,613,065.75 €3,689,482.67 €2,081,975.46 €1,074,481.71 €699,585.97 €953,372.17
(C) Total (a+b) €3,613,065.75 €3,717,358.19 -€2,111,166.63 €1,076,157.47 €699,585.97 €953,372.17 €1,355,415.76
(D) Interest €0.00 €27,875.52 €29,191.17 €1,675.76 €0.00 €0.00 €0.00
Closing Balance (c+d) €3,613,065.75 €3,689,482.67 €2,081,975.46 €1,074,481.71 €699,585.97 €953,372.17 €1,355,415.76
Closing Balance - Cap. Investment €1,613,065.75 €1,689,482.67 €81,975.46
Total
Borrowings Required €1,650,000.00 €1,700,000.00 €70,000.00
Drawdown €1,650,000.00 €50,000.00 €1,700,000.00
Repayment to Bank €1,630,000.00 €70,000.00
Capital Investment €935,817.99 €374,895.74 €689,286.27 €2,000,000.00
Program of Works 20 houses will take 24 months to complete. The project is divided into 9 sections. Sections 1 & 2 will consist of 3 houses in
each section, the remaining 7 sections will have 2 house each.
It is planned that the houses will close in the month that they are complete.
Works DescriptionDuration
WK Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 12
NR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 46
Site Development
SUBSTRUCTURES
Excavate Top Soil
Excavate Foundations
Foundations Poured
Blockwork
Floor Slab
HOUSE SUPERSTRUCTURE
Blockwork
Joisting
Roof Finishes
Windows
Plaster Works External
Additional External Finishes
Carpentry 1st Fix
M & E First Fix
Plastering Works Internal
Carpentry Works 2nd Fix
M & E 2nd Fix
Fixtures & Fittings
Kitchens
Tiling
Painting
Solar Panels
Final Clean
EXTERNAL WORKS
Pavings
Landscaping
Column1 Month 0 Month 3 Month 6 Month 9 Month 12 Month 15 Month 18 Month 21 Month 24 Month 27 Total
Cash Flow Statement Aura
Income
Sales €0.00 €0.00 €1,875,000.00 €1,875,000.00 €1,250,000.00 €2,500,000.00 €1,250,000.00 €1,250,000.00 €2,500,000.00 €0.00 €12,500,000.00
Total Income €0.00 €0.00 €1,875,000.00 €1,875,000.00 €1,250,000.00 €2,500,000.00 €1,250,000.00 €1,250,000.00 €2,500,000.00 €0.00 €12,500,000.00
Costs €
Site Cost -€2,590,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€2,590,000.00
Site Development -€28,571.44 -€42,857.16 -€7,142.86 -€7,142.86 -€7,142.86 -€78,571.46 -€7,142.86 -€14,285.72 -€7,142.86 -€200,000.08
Building Costs -€19,149.00 -€96,289.80 -€786,653.40 -€800,329.40 -€759,257.00 -€701,079.20 -€612,012.00 -€743,059.00 -€682,171.20 -€5,200,000.00
Professional Fees -€180,792.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€602,640.00
Other Fees -€18,800.00 -€2,490.00 -€2,490.00 -€1,660.00 -€3,320.00 -€1,660.00 -€1,660.00 -€3,320.00 -€35,400.00
Contributions -€420,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€420,000.00
Overheads -€2,000.00 -€4,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€54,000.00
Social Housing -€400,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€400,000.00
Marketing -€1,473.75 -€5,700.00 -€83,425.00 -€1,273.75 -€600.00 -€5,700.00 -€1,273.75 -€500.00 -€500.00 €0.00 -€100,446.25
Sales Fees €0.00 €0.00 -€18,750.00 -€18,750.00 -€12,500.00 -€18,750.00 -€12,500.00 -€18,750.00 -€12,500.00 -€12,500.00 -€125,000.00
Total Costs -€3,613,065.75 -€104,292.44 -€296,683.96 -€869,182.01 -€875,104.26 -€847,041.86 -€847,956.41 -€692,936.86 -€826,536.72 -€754,686.06 -€9,727,486.33
(A) Total -€3,613,065.75 -€104,292.44 €1,578,316.04 €1,005,817.99 €374,895.74 €1,652,958.14 €402,043.59 €557,063.14 €1,673,463.28 -€754,686.06 €2,772,513.67
(B) Opening Balance €0.00 -€3,613,065.75 -€3,689,482.67 -€2,081,975.46 -€1,074,481.71 -€699,585.97 €953,372.17 €1,355,415.76 €1,912,478.90 €3,585,942.18 €0.00
(C) Total (a+b) -€3,613,065.75 -€3,717,358.19 -€2,111,166.63 -€1,076,157.47 -€699,585.97 €953,372.17 €1,355,415.76 €1,912,478.90 €3,585,942.18 €2,831,256.12 €2,772,513.67
(D) Interest €0.00 €27,875.52 €29,191.17 €1,675.76 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €58,742.45
Closing Balance (c+d) -€3,613,065.75 -€3,689,482.67 -€2,081,975.46 -€1,074,481.71 -€699,585.97 €953,372.17 €1,355,415.76 €1,912,478.90 €3,585,942.18 €2,831,256.12 €2,831,256.12
Cash Flow Statement Aura IncomeSalesTotal Income
Costs €Site Cost Site Development Building Costs Professional Fees Other FeesContributions Overheads Social Housing Marketing Sales Fees Total Costs
(A) Total €3,613,065.75 €104,292.44 €1,578,316.04 €1,005,817.99 €374,895.74 €1,652,958.14 €402,043.59 €557,063.14 €1,673,463.28 €754,686.06 €2,772,513.67
(B) Opening Balance €0.00 €3,613,065.75 €3,689,482.67 €2,081,975.46 €1,074,481.71 €699,585.97 €953,372.17 €1,355,415.76 €1,912,478.90 €3,585,942.18 €0.00
(C) Total €3,613,065.75 €3,717,358.19 €2,111,166.63 €1,076,157.47 €699,585.97 €953,372.17 €1,355,415.76 €1,912,478.90 €3,585,942.18 €2,831,256.12 €2,772,513.67
(D) Interest €0.00 €27,875.52 €29,191.17 €1,675.76 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €58,742.45
Closing Balance €3,613,065.75 €3,689,482.67 €2,081,975.46 €1,074,481.71 €699,585.97 €953,372.17 €1,355,415.76 €1,912,478.90 €3,585,942.18 €2,831,256.12 €2,831,256.12
S Curve
0 3 6 9 12 15 18 21 24 27€2,500,000.00
€3,500,000.00
€4,500,000.00
€5,500,000.00
€6,500,000.00
€7,500,000.00
€8,500,000.00
€9,500,000.00
Series1
Time Taken (months)
Constr
ucti
on C
osts
(€)
Banking Financials Loan to Value Ratio = 14:86 (13.6% value of
profits) Interest Cover 64.23 times (64:1) Break-Even Analysis; houses must be sold at
€486,374.32 In order to break-even, 15.56 (16) houses
need to be sold at full asking price, €625,000.
Average price per sq.m = €3,543.38
Our price per sq.m = €3,360.22
5.17% cheaper per sq.m
Current Property Market Prices For Listed Properties In The Surrounding 5km Radius
PROPERTY ADDRESS
NO. OF BEDS
BATHROOMS TYPE SIZE PRICE
PRICE PER SQ.M
11 Sleeping Meadow, Enniskerry Road, Kilternan, Dublin 18 4 5 Detached
337 sq.m €900,000 €2,670.62
25 Moss Cottages Enniskerry Road, Kilternan, Dublin 18 3 1
Semi-Detached 80 sq.m €375,000 €4,687.50
3 Hillfield, Rathmichael, Co. Dublin 5 5 Detached 370 sq.m€1,200,00
0 €3,243.24
4 Wheatfield, Kilternan, Co Dublin 5 4 Detached 284 sq.m €695,000 €2,447.18
5Rathmichael Brook, Ballycorus Road, Rathmichael, Dublin 7 8 Detached 867 sq.m
€1,995,000 €2,301.04
Sold Property Prices In The Surrounding 5km Radius Over The Last 12 MonthsPROPERT
Y ADDRESS DATE SOLDNO. OF BEDS TYPE PRICE
A Kilternan Villa, Ballybetagh RD, Kilternan, Dublin 18 15/10/14 N/A N/A €650,000
B Carrig Dolgen, Barnaslingan Lane, Kilternan, Dublin 18 02/09/14 N/A Detached €1,217,000
C 2 Moss Cottages, Enniskerry Road, Kilternan, Dublin 18 20/08/14 1 Bungalow €285,000
€4,000 for 2 bus routes over 24
months
€15,600 for 8x media screens14 days cycles
€53,500 for two full page colour newspaper spreads
€24,225 for five billboards
€2,321.25 for 3000 Brochures & newsletters
Market Strategy
Strategic Analysis
Environment Analysis Is there a demand in the area Social environment Competitors Industry structure Who’s in the market
Residual Value € 3,410,679 Developers Profit € 2,071,816 Loan to Value Ratio 13.60% We looked at cash flow, construction
program, compounded interest, banking financials, marketing plan, market competition, and strategy plan.
Conclusion