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INVESTMENT OPPORTUNITIES IN JORDAN

Building a 4-Storey Residential Building in the


West of Amman
Feasibility Study Version One
Tariq Al-Basha Feasibility Studies Specialist
6/24/2014

The purpose and scope of this feasibility study is to introduce the subject matter and provide a general
idea and information on the said area. All the material included in this document is based on
data/information gathered from various sources and is based on certain assumptions. Although, due
care and diligence has been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ substantially from the
presented information.

Tariq Al-Basha - 00962 7 9767 7418 - tariqalbasha@outlook.com

Contents
Introduction .................................................................................................................................................. 4
Project Description........................................................................................................................................ 4
The Spaces of the Building ............................................................................................................................ 5
Expected Land Area to be Bought................................................................................................................. 5
Construction Cost.......................................................................................................................................... 5
Project Revenues .......................................................................................................................................... 6
Total Selling Prices per Floor ......................................................................................................................... 6
Cash Flow (In & Out) ..................................................................................................................................... 7
Important Notes............................................................................................................................................ 8
About the Author .......................................................................................................................................... 9

Tariq Al-Basha - 00962 7 9767 7418 - tariqalbasha@outlook.com





23

Tariq Al-Basha - 00962 7 9767 7418 - tariqalbasha@outlook.com

Introduction

The residential building will be built on almost a land area of 787.50 m and it will be
divided into 4 floors.

The total cost of the project will be JOD 1,169,925.08 (USD 1,651,388.79).

The expected revenues from selling all the residential apartments will be between JOD
1,520,000.00 to 1,560,000.00 (USD 2,145,378.63 to 2,201,835.96).

The expected net profit before tax will be between JOD 350,074.92 to 390,074.92 (USD
494,107.40 to 550,564.74).

Project Description

The project consists of one residential building that has 8 residential apartments (flats);
spread equally over 4 floors.

The apartments size of the first, second and third floors are 150 m per each apartment
that includes 3 bedrooms, 3 bathrooms, kitchen, living room, guest room, balcony,
laundry room and corridors.

The apartments size of the ground floor is 170 m per each apartment that includes 3
bedrooms, 3 bathrooms, kitchen, living room, guest room, balcony, laundry room,
corridors, garden and car parking.

The facilities provided in the building are:


Car parking that caters 8 cars (96 m);
Guard Room (24 m);
Service Rooms including a room for water tanks, room for boilers, room for diesel
tanks and storage (160 m); and
A 6-person-elevator.

The owners of third floor apartment have the right to buy 20 m of the building roof.

The roof of the building accommodates additional water tanks, solar water heating
system (SWH) and satellites.

Tariq Al-Basha - 00962 7 9767 7418 - tariqalbasha@outlook.com

The Spaces of the Building


Entry

No. of Flats

Total Floor Area (Sqm)

Space for Sale (Sqm)

2.00
2.00
2.00
2.00
8.00

350.00
350.00
350.00
350.00
350.00
1,750.00

280.00
340.00
300.00
300.00
300.00
40.00
1,560.00

Underground Floor
Ground Floor
First Floor
Second Floor
Third Floor
Roof
Total

Expected Land Area to be Bought


Formula: Land Area in Sqm (X) x [The average of the maximum percentage of the building
(42%) from the land area of housing sector (B) and the maximum percentage of the building
(48%) from the land area of housing sector (C)] = Total built-up Area (Sqm)
X x [100 / ((42 + 48) / 2))] = 1,750
X x 100/45 = 1,750
X = 1,750 x 45/100
X = 78,750 /100
X = 787.50 sqm

Construction Cost
Entry

Measurement Unit

No. of Units

The Cost per Unit (JOD)

Total Cost (JOD)

Cost of Purchasing the Land


Designs and plans
Infrastructure Works
Structure Works
Electromechanical Works
Finishing Works
Site Supervision & Management
General & Administrative
Expenses
Licenses, Permits and Others
Reserves
Total

Square Meter
Square Meter
Square Meter
Square Meter
Square Meter
Square Meter
Construction Cost
Construction Cost

787.50
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
498,750.00
498,750.00

742.86
10
60
70
55
100
6.17%
3%

585,000.00
17,500.00
105,000.00
122,500.00
96,250.00
175,000.00
30,772.88
14,962.50

Total Cost
Total Cost

1,146,985.38
1,146,985.38

1%
1%

11,469.85
11,469.85
1,169,925.08

Tariq Al-Basha - 00962 7 9767 7418 - tariqalbasha@outlook.com

Project Revenues
Entry
Underground Floor
Ground Floor
First Floor
Second Floor
Third Floor
Roof
Total

No. of
Flats
2.00
2.00
2.00
2.00
8.00

Space for
Sale (Sqm)
280.00
340.00
300.00
300.00
300.00
40.00

No. of Flats
to buy
8.00
2.00
2.00
2.00
2.00
2.00

Space for Sale


per Flat (Sqm)
35.00
170.00
150.00
150.00
150.00
20.00

Selling Price per


sqm (JOD)
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00

Total Selling Price


per Flat (JOD)
35,000.00
170,000.00
150,000.00
150,000.00
150,000.00
20,000.00

Total Selling
Price (JOD)
280,000.00
340,000.00
300,000.00
300,000.00
300,000.00
40,000.00
1,560,000.00

Total Selling Prices per Floor


Entry

Notes

Ground Floor
First Floor
Second Floor
Third Floor
Total

No. of
Flats

Space for Sale per


each Flat (Sqm)

Per
Floor

Includes the
underground floor
and/or roof (Best
Case Scenario)

2.00
2.00
2.00
2.00

205.00
185.00
185.00
205.00

Space for Sale per


each Flat (Sqm)
Includes the
Underground Floor
and does not include
the roof (Worst Case
Scenario)
205.00
185.00
185.00
185.00

Selling Price
per sqm
(JOD)

1,000.00
1,000.00
1,000.00
1,000.00

Best Case
Scenario per
each Flat

Worst Case
Scenario per
each Flat

Best Case
Scenario per
each Floor

Worst Case
Scenario per
each Floor

JOD

JOD

JOD

JOD

205,000.00
185,000.00
185,000.00
205,000.00

205,000.00
185,000.00
185,000.00
185,000.00

410,000.00
410,000.00
370,000.00
370,000.00
370,000.00
370,000.00
410,000.00
370,000.00
1,560,000.00 1,520,000.00

Tariq Al-Basha - 00962 7 9767 7418 - tariqalbasha@outlook.com

Cash Flow (In & Out)


Entry

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash In
Capital

1,169,925.08

Total Cash In (Monthly)

1,169,925.08

Total Cash In (Cumulative)

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

1,169,925.08

26,250.00

26,250.00

26,250.00

30,625.00

30,625.00

30,625.00

30,625.00

24,062.50

24,062.50

24,062.50

24,062.50

35,000.00

35,000.00

35,000.00

35,000.00

35,000.00

Cash Out
Cost of Purchasing the Land

585,000.00

Designs and plans

17,500.00

Infrastructure Works

26,250.00

Structure Works
Electromechanical Works
Finishing Works
Site Supervision & Management

2,797.53

2,797.53

2,797.53

2,797.53

2,797.53

2,797.53

2,797.53

2,797.53

2,797.53

2,797.53

2,797.53

1,246.88

1,246.88

1,246.88

1,246.88

1,246.88

1,246.88

1,246.88

1,246.88

1,246.88

1,246.88

1,246.88

955.82

955.82

955.82

955.82

955.82

955.82

955.82

955.82

955.82

955.82

955.82

955.82

Total Cash Out (Monthly)

598,672.55

48,750.23

31,250.23

61,875.23

61,875.23

59,687.73

59,687.73

64,062.73

64,062.73

40,000.23

40,000.23

40,000.23

Total Cash Out (Cumulative)

598,672.55

647,422.78

678,673.01

740,548.24

802,423.47

862,111.20

921,798.93

985,861.66

1,049,924.39

1,089,924.62

1,129,924.85

1,169,925.08

Total Net Cash (Monthly)

571,252.53

(48,750.23)

(31,250.23)

(61,875.23)

(61,875.23)

(59,687.73)

(59,687.73)

(64,062.73)

(64,062.73)

(40,000.23)

(40,000.23)

(40,000.23)

Total Net Cash (Cumulative)

571,252.53

522,502.30

491,252.07

429,376.84

367,501.61

307,813.88

248,126.15

184,063.42

120,000.69

80,000.46

40,000.23

0.00

General & Administrative Expenses

1,246.88

Licenses, Permits and Others

11,469.85

Reserves

Tariq Al-Basha - 00962 7 9767 7418 - tariqalbasha@outlook.com

Important Notes

This study is subject to the Building and Planning Regulations for the city of Amman No.
67, 1979.

The land price includes all the applicable fees, charges and taxes.

The price of designs and plans includes all the possible amendments and changes on
the designs and plans.

The prices of infrastructure, structure, electromechanical and finishing works include


workers salaries and wages and the cost of all the required materials, goods, equipment
and transport to build the building.

By and large, the areas and prices are approximate.

Tariq Al-Basha - 00962 7 9767 7418 - tariqalbasha@outlook.com

About the Author

Awarded First Class Honours in Bachelor of


Arts (Honours) Business Management from
the University of Greenwich UK.

Working as a Project Finance Officer for an


Iraqi-owned Group in which representing the
CEO

and

shareholders'

interest

in

23

companies, subsidiaries and affiliates in Iraq,


Jordan, Lebanon and UAE.

Previous works related to feasibility studies:


1. Feasibility & Financial Studies for Mall
& Hotel in Basra Iraq; the total land
area is 5,810 m and the total built-up
area is 25,988 m.
2. Feasibility & Financial Studies for
Medical Diagnostic Center in Basra
Iraq; the total land area is 7,770 m
and the total built-up area is 18,350
m.
3. Financial

Studies

for

Mixed-use

Development in Basra Iraq; the total land area is 152,367 m and the total builtup area is 77,949 m.
4. Financial Studies for Mixed-use Development in Basra Iraq; the total land area
is 135,000 m and the total built-up area is 90,000 m.
5. Financial Studies for Mall & Hotel in Karbala Iraq; the total land area is 6,511
m and the total built-up area is 21,400 m.
6. Financial Studies for Medical Diagnostic Center in Baghdad Iraq; the total land
area is 2,450 m and the total built-up area is 8,245 m.
7. Financial Studies for Mixed-use Development in Baghdad Iraq; the total land
area is 115,690 m and the total built-up area is 337,665 m.

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