LAS CUMBRES De Santa Catarina Pinula
Las Cumbres De Santa Catarina is located in Zone 15 of Santa Catarina Pinula, an area with immediate access to Guatemala City and the urban center of Santa Catalina Pinula, an unusual location: access to urban life with a completely natural environment. An area to get away from the hustle and bustle of urbanity in the comfort of a home. Las Cumbres is a mixed-use project, in which the client is offered residences with gardens, apartments and a small shopping center, which satisfies the need of the residents of a place to make purchases of convenience. The project will allocate around 18,000 m ² for residences, each with a land of 450 m ² and a construction area of 300 m ². Each residence will have the following environments distributed harmonically in three different levels: Parking for three cars, service room with bathroom; entrance hall, guest bathroom, kitchen with cellar, laundry and service patio, dining room and main room overlooking a garden; family room, two secondary rooms with closet and separate bathroom and a master bedroom with walk-in closet and bathroom. These residences will have different amenities: gym, natural park with trails, sports courts, swimming pool and bike lane. Similarly, the project will allocate 18,000 square meters for apartments, which will be distributed in 10 different towers around the residential complex. There will be three different apartment options: The apartment type A, with 2 bedrooms, 2.5 bathrooms, garden, 2 parking, service bedroom, laundry, kitchen, dining room and living room, with a total of 187.65 mts²: The apartment type B, with 3 bedrooms, family room, 2.5 bathrooms, a balcony, 2 parking spaces, service bedroom, laundry, kitchen, dining room and living room, with a total of 202.07 m ²; and the apartment type C, with 3 bedrooms, family room, 2.5 bathrooms, a balcony, 2 parking, service bedroom, laundry, kitchen, dining room and living room, with a total of 192.37 square meters. Each of the towers will have access to a private natural park, as well as access to the residential amenities.
The Shopping Center Area will have 7 commercial premises, carefully leased, so that the residents of the complex, as well as the residents of the surrounding developments, can choose to make convenience purchases in the vicinity of their home. Each of these commercial premises will have 300 square meters, which can be roofed or with the option of being outdoors (as terraces), which will allow you to enjoy the views of the city. It will also have ample parking. Our client is positioned in the Socioeconomic Sector A / B: People with access to capital, demanding and looking for a unique space to live and share with their family. Thanks to the accessibility of the project and its natural concept, it is expected that the absorption rate will be sufficiently low to make this project profitable in a short time. We, Desarrollos PROYECTA, being a company with more than 20 years in the market and more than 20 projects developed with the highest quality, we project the total satisfaction of our clients for this project. PROYECTA responds to the growing need for investment in the real estate market of successful projects for both investors and the end user. Our vision is to establish a new standard of world-class real estate projects in Guatemala. We seek to be recognized as the creators of exceptional real estate projects. Our business model allows us to offer unique skills that translate into superior value analysis, execution, promotion and engineering.
SITE DATA AND ANALYSIS
ÁREA DEL PREDIO SEGÚN PARCELAMIENTO PROPIO
92,119.93 m² 131,805.20 v²
UBICACIÓN
0 CALLE 22-00 ZONA 15 CONURBACIÓN ST. CATALINA PINULA / GUATEMALA
SANTA CATARINA PINULA CALIDAD ASENTAMIENTO URBANO
103,288 habitantes / CIUDAD DE GUATEMALA CALIDAD CENTRO URBANO
3,489,142 habitantes
TEMPORADA DE LLUVIA
8.1 meses 1 de abril - 3 de diciembre
TEMPORADA SIN LLUVIA
3.9 meses 3 de diciembre - 1 abril
TIPO DE SUELO
MORAN
CLIMA
BOSQUE HÚMEDO MONTANO TEMPERATURA PROMEDIO
13°C-26°C
14 de abril (día más caluroso) - 15 de enero (día más frío)
PRECIPITACIÓN
13 mm
la lluvia dura aproximadamente 8.1 meses
SUNS DIRECTION
WIND DIRECTION
SUNLIGHT AND WIND
RIVER
WATER DIRECTION
HIDROLOGY
TOPOGRAPHY
Y (sección A-A’)
60% o > 31-59% 0-30%
MARKET COMPARABLES
DEVELOPMENT TRENDS ON GUATEAMALA Design based on sustainability Use of technology: smart homes Projects connected with nature Great design, exterior and interior Great amenities: Gym, bussines and leisure Mix use projects: Comercial and residential Pedestrian friendly: jogging and walking Pet friendly. WHAT IS THE CURRENT MARKET FOR THIS TYPE? Professionals in managerial positions Medium families (1-4 children), income above US$.6.5K per month Newly weds Empty nesters Franchises (LeCafé, McCafé, Meykos, LaTorre Express) WHAT ARE THE MARKET’S PERCEIVED VALUES? Exclusivity, currently there are high quality projects in the area. Location of the project, very close to the CBD of Guatemala City. Security and privacy. Connected with nature, since Guatemala has a very pleasant climate. Great views of Guatemala City and all the Asunción Valley. WHAT OPPORTUNITIES AND CHALLENGES DOES THE CURRENT MARKET PROFILE PRESENT? Opportunities There is no a mix use project in the area that includes: apartments, houses and retail Unique lifestyle vive There is no a sustainable project in the area Location Challenges Heavy traffic in peak hours Differentiation from residential projects in the area HOW DO YOU DETERMINE AND GAIN AN UNDERSTANDING OF YOUR TARGET MARKET? Field work Secret shoper Comparable projects Facebook statistics Surveys Appraisal information Market Studies
Competitive Projects
ANTARIA BUENA VISTA
Location: Santa Catarina Pinula, Guatemala 34 Houses 500 m2. built-up area Amenities: Club House, green areas. Price: $925.00 x m2 Socioeconomic profile A/B
Competitive Projects
LAS LUCES
Location: Road to El Salvador, Guatemala 180 Houses 500 m2. built-up area Amenities: Club House Price: $1,700.00 x m2 Socioeconomic profile A/B
Competitive Projects
APICE
Location: Vista Hermosa II, Zone 15 5 types of apartments from 171 m2 to 240 m2 Amenities: Deck, CafĂŠ, Gym, Kids Zone, Green Areas Price: $1,250.00 x m2 Socioeconomic profile A/B
Comparable Projects
KALPATARU RESERVE
Location: India 40 Villas 480 m2. built-up area 30 Villas 250 m2. built-up area Amenities:Swimming pool, jogging track, Spa, tennis, kids area, club house Price: $950.00 x m2 Socioeconomic profile A/B
Comparable Projects
WOODLANDS HOUSING
Location: Mumbai, India 25 Villas 550 m2. built-up area 20 Villas 370 m2. built-up area Amenities: 2 restaurants, Spa, pool, tennis, virtual golf, kids area Price: $1,200.00 x m2 Socioeconomic profile A/B
Comparable Projects
TROPICAL HILLSIDE
Location: Malasia 29 Villas 550 m2. built-up area Amenities:Swimming pool,/550 club house
COMPETITIVE ADVANTAGES
COMPARABLE ADVANTAGES WHAT ARE THE OPPORTUNITIES AND CHALLENGES PRESENTED BY THE COMPETITIVE AND COMPARABLE PROJECTS? Oportunities Opportunity to differentiate from the competitors by designing the project based on sustainability, currently none of the competitors is doing that. Having commercial use in the project, since only one competitor is doing that. Challenges Increase the offer of amenities. Comparable projects offered great diversity of amenities
NERBY USES
SOCIOECONOMIC TARGET
LAND APPRAISAL
MARKET CONCLUSIONS
SITE CHARACTERISTICS Country: Guatemala County: Santa Catarina Pinula Land: 1,500,000 square feet. Population: 17,550 inhabitants, without considering Guatemala’s city population that is approximatedly 3 million. Description of the surroundings: Mostly residential area, main socioeconomic target A/B, you can find in “El Pueblito” convenience stores, food markets, fast food restaurants like Pollo Pinulito; there is also socioeconomic target of C+ C. Housing type surroundings: 450 m2 land – 300 m2 of construction – sales price = US$.925.00 per square meter. Land cost: The land cost in the surrounding it’s between US$.90.00 and US$.150.00 v2. Socioeconomic profile of the inhabitant in the sector: People that live in the surroundings belong to a socioeconomic segment A/B. The further you get from the project, to the north you start finding inhabitants that belong to a socioeconomic profil of C+ y C. In projects located towards Guatemala City you can find a socioeconomic profile A/B. Project valuation of the surrounding projects can go from $800 to $925 per mt². Pros of the project: Located in a residential area, that is already oriented to a socioeconomic profil A/B, only 2 km away from the City. Cons of the project: In rush hours you can take about 1.5 hours to get to the city.
CONCLUSIONS The project it’s determined by the following aspects: The area it’s mostly oriented to a high end projects. Socioeconomic profile A/B. Currently there is no supply of vertical housing (apartment buildings) in the surroundings. There is no supply of retail stores that meets the demand of the socioeconomic profile of the inhabitants of the sector. Therefore our project is defined as follows: “A mixed use project, residential and commercial. The residential area will be housing and apartament buildings and the commercial area will have convenience stores for a high end market. The sales price per square meter will be from a range of $925 to $1200.”
PLANS & DESIGN
TYPE I (3 U) 36 aptos
APARTMENTS
HOUSES
RETAIL UNITS
80
60
7
HOUSES 60 casas
RETAIL 7 un
TYPE II (2 U) 20 aptos
TYPE III (2 U) 10 aptos
TYPE (4U) 14 aptos
SCHEMATIC DISTRIBUTION
OBJECTIVE VIEW: (REFERENCE PROJECT)
HOUSE UNIQUE TYPE
Construction area: 300 mts² Construction plot : 450 mts² Price: $1,200.00 x m2 Socioeconomic profile A/B
APARTMENT TYPE A
The apartment type A, with 2 bedrooms, 2.5 bathrooms, garden, 2 parking, service bedroom, laundry, kitchen, dining room and living room, with a total of 187.65 mts²
APARTMENT TYPE B
The apartment type B, with 3 bedrooms, family room, 2.5 bathrooms, a balcony, 2 parking spaces, service bedroom, laundry, kitchen, dining room and living room, with a total of 202.07 m²
APARTMENT TYPE C
the apartment type C, with 3 bedrooms, family room, 2.5 bathrooms, a balcony, 2 parking, service bedroom, laundry, kitchen, dining room and living room, with a total of 192.37 square meters
RETAIL AREA
FINANCIAL ANALYSIS & CONCLUSIONS
This project is a For-Sale one. It is not an Income Property. Quoting the book: Professional Real Estate Development ULI, in chapter 3 states that: “For-sale projects are typically financed by a combination of equity and a development loan, though multiple loan types may be employed. As lots (product) are sold to home builders, subdevelopers, or end users, the land developer’s profit is the difference between revenues from land sales and the cost of purchasing the raw land, planning the project, acquiring approvals, installing infrastructure, and marketing the land to end users, including the carrying cost of all of these expenditures. In contrasts, financial feasibility of income-producing properties focuses on computing the value of the completed fully leased property using a before-tax and after-tax analysis that includes permanent financing and, typically, a seven or ten year holding period. The development profit is the difference between the value of the completed property and the “all-in” cost of developing it.” From the Pro Forma: The potential revenue it’s $13,676,150.00, approximately 19.05% of the Potential Revenue. This would definitely be a Go project based on the Pro Forma. We would recommend for the project to be further analyzed for a more exact result. Sales Plan: The sales plan was estimated to be completed by year 3 (best case scenario). According to the Market Analysis the price/unit would be the same as stated in the Pro Forma. Sensitivity Analysis: The sensitivity analysis was made in three scenarios. The best case, normal case and worst case, the difference is that the sales would be of the total of product available 100%, 98% and 95% respectively. The results of the sensitivity and sales analysis:
The ULI book provides a “rule of thumb” table in chapter 4, where it states what the measures of return for good projects typically are.
According to the previous table we can determine that the IRR for the project in each of three scenarios would be in the range of what the bank and future investors expect. Go or no Go: We would strongly recommend to develop this project; the returns are within the parameters of what’s expected (IRR and ROI). The project is worth the risk, time and effort. The market analysis provided with sufficient information and states that the absorption rate, selling prices, amenities and design its what is expected of a real estate development project in the area.
RESUME SHEET
RESUME SHEET
PRO FORMA
COSTS ESTIMATES
SALES PLAN