Farzana Lalarukh

Associate Professor
Department of Finance
University of Dhaka

Name ID
K. M. Najmus Sakib 16-020
Md. Rased Mosarraf 16-62
Tamanna Tavir Haque 16-088
Md. Kamrul Islam 16-090
Rajib Kumar Deb 16-106
Mahmudur Rahman 16-182
Project Development
EASTERN HOUSING LIMITED

of
Eastern Housing Limited was incorporated in 1964 as a Private
Limited Company under the Companies Act, 1913. In 1993 the
company was registered itself with RJSC & F as a Public Limited
Company which is one of the largest Real Estate Company in the
private sector.
The company raised its capital by way of an overwhelmingly
subscribed IPO of shares and debentures through a prospectus
issued in July 1994 and entered in DSE.
It was formed under the leadership of entrepreneur Mr. Jahurul
Islam to reduce the housing problems of Dhaka city. It started its
work by successfully implementing a project of building 700
houses in Pallabi Thana, Dhaka, and acquiring 910 acres (3.68
km2) of land.
To carry on business of Builders,
Engineers, Architects and
Constructors
To provide lands with buildings,
apartments, houses, flats or
other accommodation
To sell, mortgage, give on lease
land, house sites, and buildings.
Land
acquisition
1)Purchase of undeveloped land
2)Development and material expense
Land acquisition cost
Registration, legal and stamp
cost,
Mutation,
Deed collection and
Brokerage and others expense.
Earth filling and development
work
Social & surrounding
development
Labour expense
Construction
After improvement of the undeveloped lands the companies starts
its construction process for completing its buildings such as
residential and commercial complexes.
The average construction period of the buildings by the Eastern Housing
limited is 3-4 years.
Completion &
occupancy
After the completion of the construction process the company
starts transferring of property to the respective parties or
customers.
Management
From construction to handing over of title to the customers they retain
the management of the land development and project construction
process.
They hold the management of the project up to completion.
Labour expense,
Land rent / khajna,
Material cost,
Electrical materials,
Rod and sheets,
cement
sand,
stone and concrete,
Decoration works,
Sanitary, pipe and hardware
materials,
Quality testing and other works
Sales
Eastern Housing limited sells the developed or undeveloped land
to the customer. Then the customer is required to make a down
payment of 20%-30% to the company.
after the down payment is made, the installment payment starts.
In this stage the company develops the projects and constructs the
improvements if required by the customers.
Incase of failure by customer to pay installment he or she is given
a short notice to pay the accrued interest with limited period.
If the customer takes long time to pay interest then he is charged
with interest generally bank interest rate.

The company finances development activities through these sources of funds:
Companys internal financing,
Issuing securities,
Loan from different sources such as term loans and overdraft and






Advanced from allotment of Land.
Term loans are secured by equitable mortgage of land and will be due for
payment after one year or more from the reporting date.
Shahjalal Bank Ltd, Prime Bank Ltd. and United Commercial Bank Ltd. are
main loan suppliers
Almost 20% down payments are received from customers.
After partial acquisition of the property from Eastern Housing the customer can assign the
title of the property to the third party if he or she fails to pay the monthly installment by
notifying to EHL. Transfer fees are charged. Then new owner will be liable to previous owner
to pay the installment.
Notification of Default and the acceleration clause:
In the event of past due installment payment the company notifies the customers that
the accrued installment should be repaid. The customer is provided a certain period to
make the due payments.
If the customer does unnecessary delay, then the company imposes a certain rate of
interest on the due amounts.
Target Market

The companys target segments are down town which
projects are developed in the low lying areas of Dhaka city
and Savar.
In recent time EHL have developed projects in Gajipur to
provide the people the housing facilities at affordable price.

Marketing and Advertising Strategy
No separate marketing and advertising department in its
business.
Sales department does this strategy through newspaper
advertisement and bill-boards.
Statistics of Eastern Housing limited

v
LAND
DEVELOPMENT

East West Property Development (Pvt.) Ltd. is the
flagship company of Bashundhara Group.
Founded in 1987.
Focused land development.

1. Bashundhara Riverview, Hasnaband, Dhaka
2. Bashundhara Riverview Green Town
3. Bashundhara Green City
4. Bashundhara Baridhara
5. Bashundhara Reverview
6. Bashundhara Riverview Dokhina
7. Bashundhara Uttar Khan
8. Bashundhara Lake View
9. Bashundhara City View
Low lying areas of Dhaka city
Bank of Buriganga
Savar
Gazipur
Uttara

Initial Contact
by Land
Broker
Site inspection
Market study
Cost estimation
Option Period
Feasibility
appraisal and
design strategy
Negotiating
with contractor
Development
Period
Purchase Land
Fill up and level
the field by
sand.
Close land
development
plan
Sales Period
Implement
marketing
program
Sales the plot

East West Developer PVT Limited normally
purchases vast area from different people. So they
need a lot of money. They mainly take long term
loan from:
Pubali Bank.
Mutual Trust Bank.

Inside
country
Dhaka- Cheque, DD, Pay order
Outside Dhaka- DD
Abroad
Bank to bank (Pubali and Mutual Trust Bank)
Money exchange to bank.
Booking Money 25000 - 1,00,000 Taka
Down payment 4,00,000 Taka
Discount Rate Payment
15% For one time payment
12% For 12 months payment
10% For 24 months payment
7% For 36 months payment
No discount For 50 months payment
Buyer
pays
Registration
fee
Gas
connection
fee
Electricity
connection
fee
Water
supply
connection
fee
Real Estate Sector in Bangladesh
Problems in Real Estate in Bangladesh
Planning Problems
Designing Problems
Structural problem
Construction Problems
Real Estate Sector in Bangladesh (Contd)
Recommendations for Real Estate in Bangladesh
appropriate planning and programming for constructing
project
adoption of new construction technologies
with help of professionals should formulate general guidelines
of building designs
specialized standards and code should be made for
construction materials
simple and innovative technologies which can reduce cost and
increase quality
research and innovation for development should be
encouraged


Real Estate Sector in Bangladesh (Contd)
Recommendations for Real Estate in Bangladesh
research outputs should be made available to the public
through institutions and mass media.
local based building materials as well as cheaper
alternative/substitutes should be encouraged.
special financial policies for consultants/contractors financing
should be introduced
adequate legislative support is needed to recognize the
construction sector
special attention would be given to protect the physical
environment
overall management effectiveness is essential for the
construction