The investment creation project of the business centre Krasnodar, Zipovskaya street, 5

BUSINESS-PLAN

THE INVESTMENT CREATION PROJECT OF THE BUSINESS CENTRE

KRASNODAR, ZIPOVSKAYA STREET, 5

Essence of the project: Attraction of investors wishing to take part creation of a business centre of a class And on street Zipovskaya, 5 in a Krasnodar.

Conditions:

Variant 1: Purchasing of shares in the terminated PIF (the purpose: Construction of BUSINESS CENTER of an "A" class), predicted yield - 50 % annual.

Variant 2: Purchasing up to 3/4 parts of the ground area in the property and further the Variant 1, thus, after account with other shareholders, the holder ¾ the ground area becomes the proprietor of 3/4 parts of a structure.

Variant 3: Attraction of means of the investor for designing and constructions for the purpose the further operation (leasing of the areas) concerning: 25 % - to proprietors of the ground area, 75 % - to investors.

Thus, proprietors, besides the ground area and the executed design and organizational works, perform the surveillance of quality and the schedule of construction. There were another variants are also possible.

THE CONTENTS

1. The concept description of a business centre creation

2. Organization plan

3. The marketing plan

4. The investment plan

5. The financial scheme

6. Conclusions

1. The concept description of a business centre creation

Initiators of the project: Babakov Sergey Stanislavovich

Perevarin Andrey Vasilevich

Initiators of the project are proprietors of the ground area the area of 4100 square meters

The property right is registered in the established law order.

The project head: Babakov Sergey Stanislavovich

Idea of the project: the basic concept of a business centre construction at Zipovskaya street, 5 in Krasnodar is creation of a modern multi-storey building for accommodation in it of office premises of an "A" class.

Besides the most rational accommodation on the ground area of a designed building in view of its greatest possible maintenance with storage places of personal and service motor transport is meant. The constructive scheme of a building - a monolithic ferro-concrete skeleton. The given constructive scheme is convenient regarding a present opportunity of kit fluctuation of an office premises on floors depending on investors wishes. The project provides equipment of a building by the central air and air ventilation, system of a water filtration, uniform system of the fireproof and security signal system, wide system of telephones installation on the basis of last achievements of IT-technologies, satellite and fibre-optical systems of communications and information.

According to the agreement (the variant 3) between Babakov S. S., Perevarin A. V. and Open Company "Investor ", function of the customer-builder on designing and construction of object will perform Open Company "Customer" due to means of the investor directly invested according to the schedule in construction by the specified parties above the agreement.

Advantage of the considered investment project is reasonable by following factors:

­ ­The area of construction favourably differs availability of a wide network of the main and minor streets providing object of construction by access roads;

­ The plot of construction is possessed in the neighbourhood with a forest park;

­ In area of prospective construction it is possessed Krasnodar educational-business centre, there were an expocentre places, office buildings of some large commercial and production companies, warehouse, public catering establishments;

­ ­The ground area allocated under designing and constructions is in the property;

­ ­Absence of a serious competitiveness in creation of business centres of an "А" class;

­ Integrated approach of represented services (in structure of the Center accommodation is supposed: restaurants, entertaining, a cinema, underground and elevated parking places).

According to the developed architectural concept construction of 15-storeyed office building (with the underground parking place system on 150 m/places) a total area nearby-square meters is supposed. Settlement (rough) number of Workplaces person.

The basic characteristics of a business centre are reconciled in the scheme.

Parameter	Significance	The area square meters
Total floor space of a business centre	18	19 000 –
Number of elevated floors	15	19 000 –
Number of underground floors	2
Capacity of underground parking place	150 m/places	6 000

Floor = 1 300 square meters;

As of January, 2007 the outline sketch of a business centre is executed and of Krasnodar is coordinated in Management of architecture and town-planning.

On provisional data the projected object has following loadings on engineering maintenance:

­ Electrosupply - nearby 1,7 МВт (including: a power consumption of office equipment and illumination - 400KW; a power consumption of systems of ventilation and air-conditioning - 600KW);

­ A heat supply - about 1 600KW.

The engineering infrastructure of at-sight projected object assumes an opportunity of its connection to external engineering networks.

2. Organization plan

Organizational decisions on realization of the given investment project it is planned to carry out forces the created specialized company,

Service cost of the created company will make the order of 3,5 % from cost of designing and construction of object.

For realization of the considered investment project creation of the holding construction and investment company is supposed. The real prospect as much as possible in that case opens to lower a wasteful part of construction of object. In structure of holding, besides the organization which are carrying out functions of the Customer, introduction of the design organization, and also the organization-general contractor is possible.

Term of realization of considered investment object is defined as follows:

­ ­Predesign studies - 3 months (are executed on 60 %);

­ ­Design works (a stage "Project"), examination of the project, reception of construction permit - 4 months;

­ ­Design works (a stage "the Working documentation") - 5 months (stages "Project" are developed in parallel);

­ ­Civil and erection works (a full complex of works in view of installation of the engineering equipment and painting and decoratingmonths;

­ ­An accomplishment of adjoining territory - 2 months.

Rough date of object delivery operation - IV quarter 2010y.

3. The marketing plan

It is obvious, that the business centre cannot exist without professional marketing policy.

The basic directions of marketing policy.

­Creation and accommodation of promotional materials-information in press;

­Creation and accommodation of promotional materials-information on radio and TV;

­Manufacturing and accommodation of promotional materials-information on external means of advertising;

­Carrying out of direct negotiations with potential tenants, direct post dispatch of promotional materials-information;

­Manufacturing advertising-information polygraphic production;

­Presentation of the project at all stages of its realization.

It is planned to apply the set forth above marketing actions in this or that combination depending on their need and efficiency.

4. The investment plan

Realization of the given investment project demands serious investment outlay.

On tentative estimations the basic amounts of works look as follows:

Excavations -cube meters;

­Concrete works -cube meters;

­Armor works t.

The cost price of construction can be estimated inroubles for each square meter the sold areas of office premises.

Including:

Excavations - 300 roubles for square meter;

­Designs below mark 0.roubles for square meter;

­Designs above mark 0.roubles for square meter;

­The engineering equipment (waterworks, water drains (faecal), heating, ventilation, air-conditioning, communication, the signal systemroubles for square meter;

­Elevator (lift) equipment roubles for square meter;

­Internal and external painting and decorating roubles for each square meter;

­External engineering networks roubles for square meter;

­An accomplishment of adjoining territory roubles for each square meter;

Unforeseen costs roubles for each square meter.

The need for capital investments at realization of the planned project is shown in the following scheme.

* 1 USD = 23,5 Roubles.

The name of parameters	All by the project, USD - (Rouble)*	It is executed at the moment of development business-plan, USD - (Rouble)*	Is a subject to performance, USD - (Rouble)*
Capital Project investments	22 (764	2 870 000	19  (
Project Design costs	000)	57 (1	-
Ground property attitudes costs		100 (2350000)	-
Civil and erection works	19 800 (	-	19 800 000 (465 000 000)
Miscellaneous costs during investment of construction (including the partial account of inflationary tendencies at realization of the project)	1 000 000 (23 500 000)	-	1 000 000 (23 500 000)

* calculation of the prices on 2007y.

3 $ - independent means,$ - involved money resources.

Successful realization of the considered project sees under condition of precise and competent financing of operations according to corresponding the schedule.

The schedule of financing of the investment project quarterly during all process of its realization

№	The name of a stage	Volumes of money resources, (in thousands USD)
2008y.	2009y.	2010y.
I q.	II q.	III q.	IV q.	I q.	II q.	III q.	IV q.	I q.
I	Predesign works, development of the project documentation (a stage “Project”)			300
II	Costs for settlement ground legal relations			2010
III	Design works (a stage “Project”, “the Working documentation”) and Building and installation works (“a zero cycle”)			1500	3000	3000
IV	Building and installation works above the mark 0.000						3000	3200	3000
V	Delivery of object in operation, starting-up and adjustment works							150	200	850

6. Conclusions

The idea of business center creation of an "A" class in a Krasnodar is very attractive. Krasnodar territory dynamically develops the economy. Krasnodar is a powerful business centre in the south of Russia.

The offered investment project is transparent from the point of the owners legal documentation (initiators of the project) the ground area allocated under its realization.

The clearance price of office premises of an "A" class is supposed to establish approximately 3 000 $ for each square meters the useful area. Economic benefit also is achievable and under condition of office transfer premises of the constructed business centre on hire basis.

As of I quarter 2008y. in Krasnodar, cost of ordinary rent office premises reaches$ for 1 (one) square meter the useful area. An example: 600 $ for 1 (one) square meter in year хsquare meters (50%) = 6 х 4 years =$.

Thus, even at tenancy only half of areas, a time of recovery of outlay - 4 years. At the further study of the considered investment project various variants of its joint realization with the Investor for achievement of the greatest possible economic benefit for both parties are possible.

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