Keenjhar Lake Resort Project - Sindh Board Of Investment ...

More documents

Recommendations

Info

14.2.3 Development Outlays In respect of the Resort Zone, development outlays for Year 1 are expected to be spent on the infrastructure development and land costs, comprising 35% of the total development costs. Development outlays in the subsequent years of Project development are estimated to be incurred almost equally. Component wise development outlays are presented in the graph below. Development Outlays during the 4 year Development Period 0% 25% 50% 75% 100% Land Cost Infrastructure Resort and Hospitality Golf Course IDC 2011 2012 2013 2014 14.2.4 Project Financing Assumptions The Project is envisaged to be funded through the following forms of financing: ► Funds generated through sale of farmhouses; ► ► ► GoS deferred payment facility in respect of Project land; Commercial debt contribution by the Project lenders; and Equity contributions by the developer. Project Funding Structure (Figures in PKR millions) PP Equity 1,701 26% FH Proceeds 2,849 43% GoS Deferred Payment Facility Comm. 422 Debt 6% 1,701 25% 14.2.4.1 Sale of Farmhouses Farmhouses are the only residential component that would be sold on an upfront basis to raise substantial Project funding during the Project development period. As elicited in the graph above, farmhouses are expected to generate 43% of the Project finance requirements. The sale of farmhouses also includes the sale of 500 golf club memberships during the last 6 months of the Project development at PKR 1.3 million per membership. 64 Keenjhar Lake Resort Project - Project Information Memorandum
Composition Total number of farmhouses is 240, spread over an approximate area of 200 acres. These farmhouses are further bifurcated into the following: ► ► 1/2 Acre: 84 units; and 1 Acre: 156 units. Sales plan From the view point of achieving sales to potentially fund a larger portion of the Project development costs, a robust sales strategy has been developed alongside the Project feasibility of the resort zone to assist the potential developers. The strategy is aimed at achieving sales at prices that are attractive enough for the end consumers as well as enabling the potential developers to market the development components, especially the farmhouses to achieve sales bookings within the Project development phase. Salient features of the sales strategy are: ► ► ► ► ► The primary target consumers for these farmhouses are: „ Corporate clients; and „ High net worth individuals, including investors. Sale of farmhouses to start from the expiry of 9 months from the commencement of development work. Sale of farmhouses is expected to be launched in three phases, aligned with the development works. 10% will be payable upfront, while the remainder to be paid in equal quarterly installments. It is assumed that the farmhouses will be sold out during the construction period in the following manner and at the following prices: Year 1 Acre 1 Acre 1/2 Acre 1/2 Acre Units PKR Price/unit*^ Units PKR Price/unit*^ 2011 20 14,475,000 16 8,970,000 2012 50 16,549,750 43 9,933,663 2013 42 18,817,500 25 11,407,500 2014 44 20,769,432 0 13,689,000 * Prices reflected above includes prices for golf club memberships valued at PKR 1.0m. ^ These exclude farmhouse construction costs to be recovered from the end consumers and applicable marketing commissions payable. 14.2.4.2 GoS deferred payment facility The GoS is offering the Project land on a long term lease for the purposes of this Project under the deferred payment mechanism. The developers are expected to pay 20% of the Quoted Bid Amount (the “QBA”) upfront, while the remainder is on a deferred payment basis. The QBA includes a fixed land price (currently valued at a notional amount of PKR 399 million) plus premium on Project land. The GoS will charge a concessional interest rate of @ 8% per annum on the remaining balance which is required to be paid by the developer in full or in installments, no later than the completion of development works, i.e. 4 years. 65 Keenjhar Lake Resort Project - Project Information Memorandum
Page 1 and 2:
KEENJHAR LAKE RESORT PROJECT Develo
Page 3 and 4:
7.3 Hyderabad District ............
Page 5 and 6:
1 Disclaimer This Information Memor
Page 7 and 8:
2 Abbreviations EOI Expression of I
Page 9 and 10:
4 The Tourism Industry 4.1 Internat
Page 11 and 12:
effect on the economy. Consequently
Page 13 and 14: International tourism receipts are
Page 15 and 16: It is estimated that more than half
Page 17 and 18: 4.3.2 Eco-Tourism Marine Turtles &
Page 19 and 20: 4.5 Eco friendly Tourist Resort in
Page 21 and 22: 5 Pakistan - Profile and Overview 5
Page 23 and 24: 5.1.3 General Macroeconomic Indicat
Page 25 and 26: The informal sector contributed mor
Page 27 and 28: During FY2010 Pakistan’s financia
Page 29 and 30: period of Mohenjo-Daro civilization
Page 31 and 32: 6.3 Demographic and Socio-economic
Page 33 and 34: 7.3 Hyderabad District The Hyderaba
Page 35 and 36: ► ► ► Bird hunting / catching
Page 37 and 38: 8.2 Project Concept Keenjhar Lake,
Page 39 and 40: ► Efficient management of operati
Page 41 and 42: eing planned, including doubling of
Page 43 and 44: 9.3 Visualizations The picture belo
Page 45 and 46: 10.1 Infrastructure Development Inf
Page 47 and 48: Apart from the Resort component, th
Page 49 and 50: 11 Analysis on Commercial Viability
Page 51 and 52: ► ► ► Overseas Local hotels a
Page 53 and 54: Commercial and Private farmhouses p
Page 55 and 56: 12 Development Parameters The devel
Page 57 and 58: Recreation zone The developer has s
Page 59 and 60: For infrequent users and investors,
Page 61 and 62: 14 Financial Analysis This section
Page 63: 14.2.1 Estimated Project Costs - Re
Page 67 and 68: 14.3.1 Revenue Assumptions Except o
Page 69 and 70: ► The table below summarizes the
Page 71 and 72: 15 Project Implementation Framework
show all

Keenjhar Lake Resort Project - Sindh Board Of Investment ...

Create successful ePaper yourself

Delete template?

Save as template?