Final slideshow presentation (1)

23
Group 4 Aura Investments “an investment in knowledge pays the best interest” -Benjamin Franklin Aaron Leahy Christian Gibney Fergal Rafter Roger Hayes Jeff Hughes

Transcript of Final slideshow presentation (1)

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

Evaluate OptionsIs the option suitableIs the option feasible – enough moneyWill it be acceptable

House Design

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.

Stepaside Heights

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

Thank you all for your attention, we welcome any question you may have.

Group 4 Aura Investments