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

Composition
Total number of farmhouses is 240, spread over an approximate area of 200 acres. These farmhouses
are further bifurcated into the following:
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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:
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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.
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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.
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Keenjhar Lake Resort Project - Project Information Memorandum