NReport On Layout Development Project at Jigni

Report on Proposed Layout development Project at Jigani
Site Overview
Site is located 2.5 Kms from APC Circle near Jigni. Just 500 meters inside jigniAnekal Road. Jigani is located in Anekal Taluk in South Bangalore and is situated at a distance of 20 km from Bangalore city railway station. Site falls on the south end of Bangalore within 15 Kms from here Tamilnadu Border starts. Site has good connectivity to major places in Bangalore;
Electronic city falls within 13 Kms to the East and to Bannerghatta road is 10 kms to the west. Proposed site for Villas development falls within the jurisdiction of village Panchayat and BMRDA (Bangalore Metropolitan Region Development Authority) it is a cultivable land surrounded by other cultivable lands at 3 sides and one side by 30ft road. Total site for proposed project is 24 Acres having three different owners. Two sites are measuring 10 acres each and third site is 4 acres.
Development at Jigani
Some of the features of the place Jigani are that it has a well established Jigani industrial area and also very near to Electronics City Several such Government initiatives to improve development to this area in Bangalore has led to growth of population in this area starting 2004. There are three main access roads to Jigani from Bangalore. 1. The state highway Bannerghatta road from Bangalore via Bannerghatta via Jigani till Anekal was upgraded in early 2006. 2. As per the BMRDA's Radial Road development plan, the Road from Bommanahalli to Anekal via Jigani has been upgraded as of Dec 2009. 3. from Hosur List of Industries in Jigani Kumar Organic Products Ltd Kirloskar Toyoda Textile Machinery Private Ltd. (KTTM)
Omax Autos Limited
Tata Advanced Materials Ltd.
Otis Elevator Company (India) Ltd.
Delphi Automotive Systems Private Limited HCL Technologies Ltd.
Accelerated Freeze Drying Company Limited Halgona Radiators Pvt, Ltd. Crompton Greaves Limited. American Power Conversion (I) Pvt. Ltd Imperial Constrafin Pvt. Ltd. Cauvery Electrodes (India) Southern Herbals Ltd.
Global Heat Treatment and Services Pvt. Ltd. Engineered Polymers Pvt. Ltd. Southern Rubber Products. Syngene International Ltd, Biocon Park.
Givaudan (India) Ltd. (Flavours & Fragrances production) Deccan Chronicle Holdings Limited Shoba interior division etc
Megamiles Bearing Cups Private Limited (Automotive Products)
Due to presence of many goods and service industries in the area, it became limelight for many IT and non-IT employees. Population in that area is increasing rapidly and as a result of that many Government facilities and other infrastructure development is coming up rapidly.
Similar Projects
With development of the area, many developers have already started many projects in that area including Township development, Layout and villas
development. Study conducted by square foot properties has shown that at least 10 layout development projects within the radius of 5 kms are already begun. (Most of the development includes only layout because of the affordability and comparatively slower population growth in the area). Besides that many developers are giving construction offer to customers. Most of the projects we came across have already 80-90% sold up within 1-2 years from commencement of project and many projects are available for resale.
Pricing and dimensions of Villas

As per our survey, sites are priced at Rs. 700-775 per Sq ft and villas construction is been offered at 1200-1300 per sq ft in that area depending upon the location, size of layout and current status of project. Prices are varying depending upon the overall layout size, for instance sites falling in layout development of more than 50 acres on main road are costing more than Rs. 800 per Sq ft whereas for smaller layouts measuring15-30 acres on main road are costing around Rs. 700 per Sq ft whereas villas construction cost is almost same all the places. Current status of layout development including provision of roads, electricity & water supply, levelling of sites and other infrastructure also impact the pricing of the site. Another factor that comes in pricing is Approval of layout. Sites approved by BMRDA (Bangalore metropolitan Region Development Authority) are costing more than the sites that are approved by village Panchayat only. Although construction can be done on both type of approval. BMRDA approval is
require to get the loan easily for purchase of site; loan for construction will be available even for Panchayat approved sites. Very high demands for the sites measuring 2000 to 3000 Sq ft is observed in the area. Mostly sites are sold in dimensions of 40*50, 60*40 and 30*40; bigger layout has better scope as it will decrease marketing expenses and will be a good opportunity for investment for the customer. Many layouts have been sold out completely but no construction started yet, it shows that many people are looking for investing in land for long term growth.
Requirement for Layout development

To increase the saleability of Layout and to make it ready for construction we have to level the site and have to remove all the vegetation. Site is irregular in shape and have many up and down hills therefore after surfacing the land, proper layout planning is require to make most from the land. Other infrastructural works like, 50 ft road at main entrance, 30 ft road inside, Provision of electricity & water supply, Water & Sewerage treatment plants etc are required. Just by commencing the development work, site prices will go up. Once all development works gets finish construction of villas can be started.
Proposed-Agreement Terms
The Project will commence under a joint development agreement between the Land owner and Dreamz Infra. This agreement is the result of mutual understanding between the land owner and the Dreamz Infra. This agreement will remain intact unless the project reaches its closure.
Total land size Advance
24 Acres 1.35 cr
60 lacs at time of agreement; 75 lacs in three equal instalment of 25 lacs each, post dated check will be issue at the time if agreement. Payment Terms From the day of approval of layout payment will be release
in following manner At the end of 4th month At the end of 6th month At the end of 8th month At the end of 10th month At the end of 12th month At the end of 14th month At the end of 16th month At the end of 18th month At the end of 20th month At the end of 22th month At the end of 24th month At the end of 26th month and time of closing of agreement 1,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000 2,00,00,000 3,50,00,000
Project will take 24-30 months to complete Total of 25.85 crores for 24 acres of land in 26 months.
Financial Analysis of Project

Components of Cash inflow and outflow are as following
Cash inflow Particulars 600000 Sft Salable land @ 725/Sft Amount(Rs.) 435000000 Cash outflow Particulars Site Development Advertisement & promotion Administrative Expenses Architectural Consultancy Total 435000000 Total Amount(Rs.) 7,00,00,000 2,00,00,000 2,80,00,000 40,00,000 12,20,00,000
Total Revenue Total Expenses Profit Before Tax (Gross Profit)
43,50,00,000 12,20,00,000 31,30,00,000
Land Owners Share Square Foot Properties Share
25,85,00,000 5,45,00,000
Assumptions i) ii) iii) 30,000 Sft of land per acre is utilized for selling purpose; rest will be used for Road and other amenities development. Average Selling price is taken as Rs. 725 per Sft. All expenses are based on current prices plus additional 10% as a safety precaution to handle any expected cost overrun in future.
Components of Site development Site development includes: i) ii) iii) iv) v) vi) vii) Levelling of site Disposal of waste mud and other waste material (if any) Fencing of site Construction of security Kiosk Development of Road and Walkways Demarcation of individual sites Obtaining permission from electricity and water supply board facility ix) x) xi) xii) Making appropriate arrangement for electricity to individual sites and common area Provision of Sewerage Treatment Plant and Water Treatment Plant Solid Waste Management Gardening works and planting trees at appropriate place
viii) Installation of underground pipeline for providing drinking water
xiii) Development of Parks and other recreational facilities
xiv) Logistics & Transportation xv) Misc
Components of Advertisement & promotion Advertisement & promotion includes: i) ii) iii) iv) Bulk SMS Campaign Advertisement in Newspapers Flyers Boards/Hoardings, etc
Components of Administrative expenses Administrative expenses include: i) ii) Salaries to the employees directly involved in the project Legal services
Conclusion
The proposed project for layout development will be a profitable venture as the area is rapidly developing and have good scope in future.. The following conclusions are made; Attractive project for land owner and Dreamz Infra Very low degree of Associated risk, layouts development is on high demand in that area and no sign of marketing going down BMRDA approval is require it will increase the price of sites and will make the loan approval easy.
We can provide villa construction facility but it is recommended that we should go only with layout at initial stages, later if required villa can be constructed at 1200-1250 per sft.

NReport On Layout Development Project at Jigni

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Report on Proposed Layout development Project at Jigani

Omax Autos Limited

Tata Advanced Materials Ltd.

Otis Elevator Company (India) Ltd.

Delphi Automotive Systems Private Limited HCL Technologies Ltd.

Megamiles Bearing Cups Private Limited (Automotive Products)

Pricing and dimensions of Villas

Requirement for Layout development

Total land size Advance

Financial Analysis of Project

Total Revenue Total Expenses Profit Before Tax (Gross Profit)

43,50,00,000 12,20,00,000 31,30,00,000

Land Owners Share Square Foot Properties Share

viii) Installation of underground pipeline for providing drinking water

xiii) Development of Parks and other recreational facilities

xiv) Logistics & Transportation xv) Misc

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