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Feasibility Study "Mix Commercial and Residential Building"

The document proposes a mixed commercial and residential building called Dolce Casa with 4 floors. It will have 48 residential rooms on the 2nd and 3rd floors and 10 commercial rooms on the ground floor. The project will be financed through bank loans for 80% of costs and partner investments of P3 million each. Financial projections over 5 years show the business will be profitable and liquid enough to service its debt. Ratios analyzing liquidity, asset management, leverage, and profitability indicate the business proposal is feasible.

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Danieca Franz Policios
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100 views

Feasibility Study "Mix Commercial and Residential Building"

The document proposes a mixed commercial and residential building called Dolce Casa with 4 floors. It will have 48 residential rooms on the 2nd and 3rd floors and 10 commercial rooms on the ground floor. The project will be financed through bank loans for 80% of costs and partner investments of P3 million each. Financial projections over 5 years show the business will be profitable and liquid enough to service its debt. Ratios analyzing liquidity, asset management, leverage, and profitability indicate the business proposal is feasible.

Uploaded by

Danieca Franz Policios
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FEASIBILITY STUDY

MIX COMMERCIAL AND


RESIDENTIAL BUILDING
PROPONENTS:
LAIZA MAE JONIEGA
RICO PAYOT
DANIECA FRANZ POLICIOS
ROSHELLE MAE RICO

INTRODUCTION
LIFE AT DOLCE CASA WILL SURELY MAKE YOU FEEL AT HOME AS WHAT OUR
BRAND NAME MEANS SWEET HOME IN ITALIAN. WE OFFER:
FURNISHED ROOM
AIRCON *BED
DINING *TABLE
BATHROOM

SECURITY
2 SECURITY GUARDS (FOR DAY & NIGHT)
24/7 CCTV SURVEILLANCE

MAINTENANCE
2 HOUSEKEEPERS

THE COMMERCIAL ROOMS


MINI MART
RESTAURANT
COFFEE SHOP
PIZZA SHOP
DOUGHNUT STORE
BAKERY SHOP
LAUNDRY SHOP
INTERNET SHOP
BOUTIQUE
PHARMACY

CHAPTER I. BACKGROUND OF THE


STUDY
PROJECT NAME: DOLCE CASA
DEVELOPER: IZA MARIE P. ASOMBRADO
MASTER PLANNER: DANIECA FRANZ POLCIOS
NATURE OF BUSINESS: REAL ESTATE
OUR BUSINESS IS A MIXTURE OF COMMERCIAL AND RESIDENTIAL BUILDING
WITH 4 FLOORS.
TYPE OF BUSINESS: PARTNERSHIP
LAND AREA: 880 SQ. M

LOCATION: RECTO AVENUE, SANTOL STREET


LOCATED AT CORNER RECTO AVENUE, SANTOL
STREET.

AMENITIES:

FLOORS: 4 FLOORS

MINI GARDEN
SOLO ROOMS (SEPARATED GIRLS & BOYS)
COMMERCIAL FLOOR
PARKING LOT

GROUND FLOOR: COMMERCIAL (10 ROOMS)


2ND & 3RD FLOOR: RESIDENTIAL ROOMS (48 ROOMS)
4TH FLOOR: MINI GARDEN AND LAUNDRY AREA

ROOMS:

COST PER ROOM:

RESIDENTIAL ROOMS:
STUDIO TYPE: 48 ROOMS
COMMERCIAL ROOMS:
TYPE A: 4 ROOMS
TYPE B: 6 ROOMS

RESIDENTIAL ROOMS: P 12,500


COMMERCIAL ROOMS TYPE A: P 17,000
COMMERCIAL ROOMS TYPE B: P 15,000

SOURCES OF FUNDS:
WE DECIDED TO GO BANK FINANCING FOR THE 80% OF THE
COST TO PURCHASE THE LAND AND CONSTRUCT THE BUILDING,
PAYABLE FOR 10 YEARS WITH A FIXED INTEREST COST OF 8%
FROM BDO AND THE PARTNERS ALSO INVEST P 3,000,000 EACH.

COST:
BUILDING: P 30, 000, 000.00

LAND: P 2, 640, 000.00

STRUCTURE: RESIDENTIAL ROOM


FACE INSIDE

FACE OUTSIDE

BUILDING
FRONT SIDE

TOP & BACK


VIEW

FLOOR PLAN: 2ND & 3RD

FLOOR PLAN: COMMERCIAL

CHAPTER II: PROJECTED FINANCIAL


STATEMENTS FOR 5 YEARS
DOLCE CASA

STATEMENT OF FINANCIAL POSITION


A S OF DECEMBER 31, 2020, 2021,2022,2023,2024

DOLCE CASA
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020, 2021,2022,2023,2024

DOLCE CASA
STATEMENT OF PARTNERS EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2020, 2021,2022,2023,2024

DOLCE CASA BUILDING


STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2020, 20221,2022,2023,2024

CHAPTER III: FINANCIAL STATEMENT


ANALYSIS
RATIOS
ANALYSIS OF LIQUIDITY OR SHORT-TERM
SOLVENCY
CURRENT RATIO: 2.04 TIMES
QUICK RATIO: 1.95 TIMES

ANALYSIS OF ASSET MANAGEMENT EFFICIENCY


FIXED ASSET TURNOVER: 0.24 TIMES
TOTAL ASSET TURNOVER: 0.20 TIMES

ANALYSIS OF LEVERAGE: DEBT FINANCING AND COVERAGE

DEBT RATIO: 62%


EQUITY RATIO: 38%
DEBT TO EQUITY RATIO: 161%
TIMES INTEREST EARNED: 3.01 TIMES

OPERATING EFFICIENCY AND PROFITABILITY

NET PROFIT RATIO: 48%


OPERATING PROFIT MARGIN: 73%
RETURN ON ASSET: 10%
RETURN ON EQUITY: 28%

CONCLUSION:
THEREFORE WE CONCLUDE THAT OUR BUSINESS PROPOSAL IS
FEASIBLE TO HAPPEN. USING THE RATIOS AND ANALYSIS THE
BUSINESS IS PROVEN PROFITABLE AND HAS A LONG-TERM STABILITY
IN THE BUSINESS WORLD. WITH THE USE OF DEBT FINANCING THE
PARTNERS CAN START A REAL ESTATE BUSINESS AND USED DEBT TO
FINANCE THE LARGER COSTS NEEDED, AND EFFICIENTLY USED IT TO
GENERATE INCOME ENOUGH TO PAY THE FIXED INTEREST OF THE
BANK AND STILL HAVE ENOUGH INCOME FOR THEM.

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