LAND FOR SALE IN NAIROBI CBD SOUTH EAST COMMERCIAL PARK, NAIROBI

LAND FOR SALE IN NAIROBI CBD				MARKETING AND SALES
SOUTH EAST COMMERCIAL PARK, NAIROBI.				Marketing of the properties is planned to start even
South East Commercial Park is located within Nairobi				before ground is broken for the start of the
CBD and has over 140 plots available for sale to				construction. This will serve the dual purpose of
developers. These are the only plots for sale available				creating awareness of the availability of quality hotel
in Nairobi CBD so it gives a great opportunity for a				service and to confirm the validity of the market
chance to own land and develop commercial property				intelligence.
in Nairobi CBD.				A4architect will undertake marketing through the
Below is a Feasibility study for a Hotel Development				mass media and especially through the internet using
project showing Return on Investment of				a virtual presentation kit that will include a walk
approximately 1 year.				through movie of the development.
Project: Hotel Development in Kenya,				FEES STRUCTURE
Nairobi-CBD-South East Commercial Park.				Overall fees charged shall be 10% of the final
Client: Mr. J M				contract sum. The fees shall be spread over the
Location: Nairobi CBD South East Commercial Park.				various stages as follows:

MAY 2010
EXECUTIVE SUMMARY
This is a project proposal for the construction of a
middle class Hotel on a parcel of land situated at
Nairobi CBD South East Commercial Park.				Fees Due
The project has been conceived, designed and will be				A
implemented by for Mr. J. M				Inception
				Inception and client brief
The estimated development cost for the project is				Physical survey and information review
KES 355,500,000[USD 4,443,750].				Sketch design and basic project proposal
The project completion period shall take 12 months				5% of fees.
from ground breaking to hand over.				B
				Design and design development
Return on Investment shall be in a period of 1 year.				Final design and presentation with budget estimates
Total gross anticipated income per annum including				Final specifications
food and beverage sales				Engagement of consultants and preparation of
=388,800,000.00[4,860,000.00]				electrical, structural and mechanical servicesdrawings
				Development approvals
				30% of fees.
				C
A4architect is a dynamic property consulting				Pre-tender process
company specializing in providing a one-stop service				Preparation of tender documents for general and
for the management and development of a variety				specialist contractors
of property development projects. It provides its				Identification of suppliers for client supplied items to
clients, who may be property owners, developers or				be fixed by contractors
tenants, with the expertise to guide a project				Short listing of general and specialist contractors
through the complex development process from				10% of fees.
concept through to building completion.				D
Depending on the requirements of their client,				Tender process
A4architect can provide a full or partial consulting				Tendering for general and specialist contractors
service. The company's involvement can vary from				Tender analysis
sourcing suitable sites, arranging local authority				Contract award by client on advice of Project
approvals, managing the professional team or				Manager
providing a complete project management service.				15% of fees.
The principals behind the firm have several years				E
experience in designing and managing to completion				Project Administration
several projects of various natures as part of design				Co-ordination meetings conducted by Project
and implementation teams for leading Project				Manager
Management firms in Kenya as well as the				Close control of work schedule
Government of the Republic of Kenya.				Monitoring of quality of works and ensuring
				compliance with specifications
THE PROJECT				15% of fees.
The project comprises the construction of residential				F
units for at South East Commercial Park, Nairobi on a				Project Accounting
subdivision measuring just about 0.25 acres.				Budget control
The overall theme of the development would be one				Certification of stage/progress payments
of maximizing on the plot use whilst maintaining				10% of fees.
reasonable individual privacy for occupants. The
selection of the type and size of units to be erected				G
as well as their layout has been done with the				Project closeout
foregoing being foremost -A scenario where the				Completion inspection with client
property is developed to target the middle income				Preparation of final account in conjunction with
bracket.				general and specialist contractors
				Preparation of schedule of making good defects
				10% of fees.
PHASED CONSTRUCTION
In order to ease the impact of the overall cost of				H
the development it is proposed to carry out the				Post contract administration
construction in phases to be jointly agreed on with				Final inspection after elapse of defects liability period
the client. The project can be phased in terms of				Confirmation of making good defects after retention
vertical floor levels per floor as agreed with the client.				period is over
In order to enable planning of major infrastructural				5% of fees.
requirements such as water storage and soil water				Total
disposal right from the outset, a master plan of the				100% of fees.
entire development shall be evolved. Thus the				Notes on fees structure
capacity of some of the facilities may initially exceed				1. Negotiations and any other work arising from the
the needs of the accommodation provided, but this				submission of application to the Local Authority or
would be done with the full knowledge that the				the submission of application to the local authority of
development will grow to fully utilize the facilities				the statutory bodies constitutes additional services to
provided.				be charged for on a time basis.
Auxiliary features would include paved driveways and				2. Normalization of contract will be by the signing of
parking, extra water storage and planted landscaped				both copies of a document mutually agreeable to
gardens. The country ambience would further be				both parties.
enhanced by having strategically planted trees which				3. Fee notes which will be issued on completion of
would serve the added role of acting as wind breaks.				stage B, C & D respectively. Fee notes for
				stage (A), & (B) will be based on Project
				Estimates at those stages.
DEVELOPMENT BUDGET				4. The payment from stages E to H will be based on
The development budget is as follows:				the final project costs. These will be paid on a
				pro-rata basis as the project progresses and will be
80 No. self-contained accommodation rooms per floor				submitted immediately following the issue of
for 5 No. Floors=400 No. Accommodation rooms.				certification of contractor stage payments.
Cost of construction per room fully furnished=KES				5. In the event that the client selects a phased
40,000 per square meter.				implementation of the project, fee notes for stages
Area for each unit =16m2.				A, B and C shall be based on the estimated cost for
Total cost of construction for 400units = KES				the entire project while fee notes for subsequent
256,000,000[USD 3,200,000]				phases shall be pro-rated to the value of the phase
Cost of construction for Restaurant, Kitchen, Laundry				being implemented.
and Offices=				6. All fee notes will be processed, authorized and paid
Restaurant-60m2				within ten calendar days of the fee note date.
Kitchen=30m2				7. Reports or opinions requiring formal client approval
Offices-20m2				are to be discussed and approved within five working
Laundry-20m2				days of receipt of the request from the project
Store-30m2				managers by the client.
Total =160m2.				8. Disbursements resulting from the execution of the
Total estimated cost of construction = KES				consultant's duties including reproduction of drawings
355,500,000[USD 4,443,750]				and documents, fax messages, traveling and food
				and accommodation expenses outside Nairobi etc. do
				not form part of this agreement and will be charged
				at cost.

1.00 Building details				Prepared By
1.10 Type of unit :middle class hotel units.				Frank Gichuhi
1.11 Number of floors :5				+254 721 410684
1.12 Number of units in each floor :40				A4architect.
1.13 Gross floor area per Unit m2: 16				INFRASTRUCTURE SYSTEM WITHIN SOUTH
1.14 Building Cost per m2-fully furnished :40,000				EAST COMMERCIAL PARK
1.15 Building cost per unit :KES 640,000 [USD 8,000]				Existing Traffic System

1.16 Overall building cost : KES 260,000,000[USD				Roads
3,250,000]
2.00 Construction cost				The site is served by Landhies road on one side and
2.10 Preliminaries 6,500,000.00 [USD				Railway lane on the other.
81,250] 2.5% of item 1.16				The existing road system and road reserve is not
2.11 Building works KES 260,000,000[USD 3,250,000]				adequate to meet the traffic demand envisioned in
2.12 Infrastructure 39,000,000.00 [USD				the site. The existing traffic system will be replaced
487,500] 15.00% of item 1.16				with a more comprehensive road network.

				Motor Traffic
				The site experiences heavy motor traffic from public
2.13 Subtotal - Construction cost 305,500,000.00 [USD				service vehicles to and from the Muthurwa bus stage
3,818,750]				which increases during rush hours in the mornings and
3.00 Incidental costs				evenings.
3.10 Professional fees 26,000,000.00[USD				Landhies road also has heavy traffic through out the
325,000] 10.00% of item 1.16				day which peaks during early morning and evenings.

3.12 Land Cost- [0.25 acres] KES 50,000,000.00 [
USD 625,000]				Pedestrian Traffic
OVERALL PROJECT COST 305,500,000.00 +				The site experiences heavy pedestrian traffic along
50,000,000= KES 355,500,000[USD 4,443,750]				Landhies road. Pedestrian walkways along Landhies
INCOME PROJECTIONS				road will be enhanced. A service lane along Landhies
1.10 Accomodation Units				road will be incorporated to as to serve the plots
1.11 Projected price/unit per day KES 2,500 [USD				along the busy road..
31.25]				The proposed developments will result to heavy
Occupancy rate-90%				pedestrian traffic within the site.
1.12 Overall room sales revenue per month=KES				Proposed Traffic System
27,000,000[USD 337,500]				Motor Traffic
1.13 Gross anticipated income per annum[room sales]
=KES 324,000,000[USD 4,050,000]				The envisioned developments will result in an increase
TOTAL GROSS ANTICIPATED INCOME PER ANNUM				in motor traffic. An elaborate road network within
INCLUDING FOOD AND BEVERAGE SALES				the site has been laid out. All developments will front
=388,800,000.00[4,860,000.00]				a wide road and have a service lane at the back that
1.14 Return on Investment/Repayment period=				is 6m wide.
Approx. 1 year.				The main entrance to the site along Landhies road is
				served by a 25m wide road that connects Landhies
				road to Railway Lane. This road provides the
				necessary carriageway to serve the envisioned
LOCATION				increase in traffic and also provide adequate
South East Commercial Park is a new extension of				off-street parking and road reserve for future
Nairobi CBD and is situated within Nairobi's Central				expansion. Approximately 190 car parks can be
Business District along LANDHIES Road. The South				accommodated along this road.
East commercial park is served by an all weather
road with the site of the proposed construction being				Another 25m wide road has been proposed between
found 15 kilometers from the Jomo Kenyatta				the main entrance road and the KPLC plot-to serve
International Airport.				the 2nd row of developments from Landhies road.
South East Commercial Park is connected to the				This can accommodate approximately 320 roadside
mains water supply from the Nairobi City Council and				car park spaces.
also has easily connected electricity supply.
The immediate locality consists of subdivisions each				A 30m wide road along railway lane is proposed
measuring an eighth an acre. Developments in this				within the site. This can accommodate approximately
area are commercial in nature. The majority of the				550 cars on road-side parking.
buildings here are well constructed and maintained.
				18m wide roads can accommodate approximately
				500 cars in roadside angle parking.
				15m wide roads can accommodate an average of
MARKET DESCRIPTION				350cars in road-side parking.
Given the proximity of the site to Nairobi's CBD as				12m wide roads can accommodate 360 cars in
well as the good communication available, the site				roadside parking.
would realize good returns on a hotel development.				6m wide roads have been proposed to act as
The site is located 15 km from an International				service lanes at the back of each plot. These can
airport and is opposite the largest bus park in East				accommodate 126 cars in road-side flush parking.
Africa.				All these roads will provide an estimated 2400
The planned development intends to maximize this				road-side car park spaces.
potential by creating accommodation that is spacious				A 0.2 Ha. Plot along Railway lane near the Jogoo
whilst at the same time making optimum use of the				road roundabout has been designated for
space available.				development into a parking silo.
Currently, most Hotels in Nairobi CBD experience a				Another 0.2 Ha. plot along Landhies road near the
near 100% occupancy rate on a daily basis. The				KPLC plot has also been ear-marked for development
planned development would thus meet an existing				into a parking silo.
need.				A combination of off-street parkings and the two
				parking silos will adequately cater for the increased
				vehicular traffic within the site.

COMPETITION
In the locality of the planned development, there are
no hotels which cater for the middle class. The
closest competition perhaps comes from the low
cost hotels in Gikomba area. These are however not				Pedestrian Traffic
impressive in terms of the room sizes and quality of
service offered.				An increase in pedestrian traffic is envisioned within
				the site.
SALES PROJECTIONS				The proposed roads have a width of adequate space
It is planned to start marketing the development				to cater for concrete pavement pedestrian walk
even as the construction begins.				ways on both sides of the road.
The room sale price for each unit has been set at
KES 2,500[31.25USD]. This is the average charged by				Roads and Access
comparable hotels such as Kahama hotel in Ngara and
Blue Hut hotel along Park road. The price is justified				Currently the site has only one inlet along Landhies
by the upgraded quality of the planned development				road. 6 new access points have been proposed into
in terms of finishes, design, and quality of service.				the site along Landhies road.
EXECUTION OF THE PROJECT
A4architect will in this provide the client with a full				Currently, the only access into the site along Railway
design/build service. This shall include				lane is through Muthurwa Bus park.
				8 new access openings have been proposed.
1. Design and specification
Architectural, structural, mechanical and electrical				These access points will reduce any chances of
drawings shall be prepared and necessary approvals				traffic congestions at the entry and exit points during
sought.				rush hours.
During the various stages of the design, the client				All developments will be serviced by the main road at
shall be kept fully informed and client approval sought				the front and a 6m wide service lane at the rear.
prior to proceeding to the next stage. The				All roads have been proposed to have a 6m wide
engineering design shall be done by registered				minimum carriageway with asphaltic concrete surface
engineers under the guidance of A4architect. Detailed				treatment.
specifications shall be developed with close				Street lights have been proposed to be installed along
consultation with the client.				the roads.

2. Project estimates				SERVICES AND UTILITIES
Subsequent to completion of the design, a firm
estimate shall be done for the project				Water Supply.
				The site has an existing water supply from the
				Nairobi City Council.
				The proposed developments will not be adequately
3. Preparation of tender and contract documents				catered by the existing water supply network.
After final design has been done and client approval				A new water supply network is proposed to run
obtained, tender documents shall be drawn up for				along the access roads and serve each plot.
the general and specialist contractors. The specialist				The water will be supplied by Nairobi City Council.
contract documents shall be prepared with guidance
from the relevant engineers.

4. Tendering				Foul Water Disposal
Selected contractors shall be invited to tender for				Currently the site is connected to the Nairobi City
the various work packages. We shall then analyze				Council sewer system.
the tenders returned and forward our				The proposed developments will not be adequately
recommendation to the client.				covered by the existing sewer system.
				A new sewer system is proposed to run along the
5. Contract documentation				road reserve to serve each plot and connect to the
With the contractors have been selected, we shall				main Nairobi City Council sewer line.
draw up the required contract documents and enter
into contract with the contractors on the client's				Storm Water Drainage
behalf.
				Currently the site is connected to the Nairobi City
				Council storm water drainage system.
				The proposed developments will require a new storm
6. Project management				water drainage system to be installed. This will
Subsequent to the contracts being signed and				connect to the Nairobi City Council storm water
mobilization to the site, we shall provide				drainage system.
superintendence and project management. This will
entail ensuring that the project is brought in on time
and under budget by constant monitoring of
operations on site and remedying any issues that
may prevent timely completion or cause expenditure				Electricity Supply
to exceed the budget.
				There is already an existing Electricity supply system
7. Contract administration				from KPLC.
We shall handle all matters relating to the various				The proposed developments will not be adequately
contracts including but not limited to stage payments,				served by the existing power supply system. A new
performance bonds, extensions of time and				power supply system is proposed to serve each plot.
relationships between the various traded involved in
the project's execution.				Electricity supply is connected to the property and is
				adequate to meet the demand from the proposed
8. Sales and marketing				development.
In conjunction with an estate agency approved by
the client, we shall produce a presentation package				Telephone and Internet Services
to be used in the sales and marketing of the units.
				A fibre-optic underground cable supply network has
PROJECT TIMELINESa) Design to Tender				been proposed to serve the site and will run along
The design to tender process will take a total of 2				the roads on specially constructed ducts to serve
months. This will include commissioning of all				each plot.
engineering design, preparation of bills of quantities
and obtaining of all relevant approvals for the				Solid Waste Disposal
development.b) Construction
Construction of the entire project is estimated to				Solid waste disposal services are proposed to be
take a maximum of 10 months.				provided by the Nairobi City Council and private solid
				waste disposal companies.

				Frank Gichuhi
				Architect.

Manage Your Waste

LAND FOR SALE IN NAIROBI CBD SOUTH EAST COMMERCIAL PARK, NAIROBI