Real Estate business plan for Kenya

Topics: Strategic management, Management, Costs Pages: 16 (2157 words) Published: November 4, 2013
BUSINESS PLAN

FOR

A HOUSING REAL ESTATE IN KENYA.

1

Table of contents:
1.0 Executive Summary
1.1 Objectives of the Real Estate Project.
1.2 Vision Statement
1.3 Mission Statement
1.4 Target Market
1.5 Swot Analysis
1.6 Start up financial summary notes
1.7 The People Needed
1.8 Sales Strategy
1.9 Profit Margins and Overheads
1.10

Important Assumptions

2.0 Reasons to invest particularly in the Housing Sector in Kenya. 2.1 Kenyan’s General Prospects
2.2 An overview of the Kenya Vision 2030

2

1.0 Executive Summary:
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. Players in the business:

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 groups and professionals of various fields.

3

Profit Margins and Overheads
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 189,050,000 which translates to £1,260,333

Business Plan of 50 housing Units
Sale of the Construction Houses
Lsbf

Details
Sales

7,000,000.00

Totals
No of units

Totals

Kshs.
Total Revenue

£.
Total Revenue

50 350,000,000.00 2,333,333.33
-

Cost of Sales

189,050,000.00 1,260,333.33
-

Net Income

160,950,000.00 1,073,000.00

£

4

Converted to £ at Kshs150
per 1£

1,073,000.00

Development Plan:
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 entire project we be completed within a maximum period of two years.

5

Business Plan of Real Estates

1.1 Objectives of the Real Estate Investments:
The primary objectives of the organization are to:







To build about 50 apartments for sale within a period of two years. Become an established and profitable estate organization that’s able to take up new investment opportunities in Kenya as they become available in the future. Provide decent housing units for sale and rental

To develop a solid, corporate identity in our specified targeted market area. To establish a good working relationship and begin working as a team, promoting communications and suggestions from all participants and stakeholders. To realize a positive return on investment within the first 12 months after completion of the construction of the housing units.

1.2 Vision...
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