Lekki Atelier Mid-Term Investment

by adminium

  • 180,000,000

    Funding Goal
  • 0

    Funds Raised
  • 0

    Days to go
  • Target Goal

    Campaign End Method
Raised Percent :
0%
Minimum amount is ₦300000 Maximum amount is ₦
Lekki, Lagos, Nigeria

adminium

3 Campaigns | 0 Loved campaigns

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Campaign Story

PROPERTY DESCRIPTION

Lekki Apart apartments is a 3-storey building strategically located in the very quiet residential part of Lekki phase 1, Lagos. They are spacious two Bedroom duplex apartments, spread out in a two floors. Each apartment comes with a living room with guest toilets, two ensuite bedrroms. The units are designed and finished with entrepreneurs and working class professionals. The occupants can make use of the well-equipped working space on the roof top, giving them more work flexibility. Offering a comfortable Live, work and relax location in the business district of Lekki Phase 1 where everything happens. Each of which means you can bring your work home. Each project suit a plot size of 660m. Total building area of just 200 sq.m. There will be car parking for 28 cars and 32apartments. While 30 apartments would be put for use.

 

 

PROPERTY ANALYSIS

Infrastructure – infrastructure and urban development like roads, drainds, parks, electricity are a;ready available in lekki Phase 1 is impressive, making new projects have increased valuations. Unlike most new developments where property developers have to build social infrastructure from scratch.

Location – The site has proximity to y to Imax Cinema, Fun Turf, The Place, KFC, Domino’s Pizza, commercial banks. There will also be an increase in value due to new developments in surrounding areas like Orange Island, Periwinkle Island, Imperial City around the area. Generally, among the top property locations in Lagos, Lekki Phase distinctively has the highest percentage increase in value.

Property mix – It is a mixed use development which comprises of 12 units 2-bedroom apartments and a 60-person co-working space. Multi-family apartment complexes in prime locations like Lekki with living, working and relaxing spaces are gaining more adoption as they are more affordable to maintain and deliver more experiences.

 

Return on Cost Analysis The primary investment criterion is that the properties purchased must be capable of making returns on sales, short-lets, long leases, rentals and services. Renting Our apartments provide a competitive return on cost due to lower construction costs, high market rent, and low vacancy rate of 3%. There is higher returns on the coworking space on the rooftop, although access to the investment would be limited. Services – Other investments are in services like Electricity, internet infrastructure, which both yield 10% per annum

 

 

PROPERTY FINANCIAL ANALYSIS

Site Acquisition Costs – The market value of the land was determined through comparable land sales in Lekki and from real estate developers. The average price per square meter in the location is 150,000. it is safe to assume that N80 million is the accurate market value of the site.

 

Real Estate Taxes – A uniform tax rate for real property located in Lekki is set by the LIRS and FIRS and costs N1.2million

 

Hard Costs – Site work costs were estimated to be approximately N45,000 per cubic meter for structural site work. Cost of finishes per square meter is 3,000 naira on all surfaces. We are adopting extensive formwork and concrete systems as it is substantially less expensive due to automations and suitability for vertical structures. The building shape adopts more squares as it makes the construction of this building cheaper.

 

Soft Costs – include expenses associated with marketing, legal, engineering, permits and fees, insurance, utility connection fees, taxes, design fees, organizational overhead, closing costs and environmental. A 5% soft cost contingency fee has also been added to cover unforeseen expenses and emergencies and a general contractor fee (development fee) of 4%.

 

Equity terms – The equity requirement was calculated by rolling up the development costs and land joint venture. It will be funded through crowdfunding.

 

Additional Financing – financing for the coworking space is separate from the main building as they are stand alone and optional investments.

 

Market & Vacancy Rate – Based on comparable apartments discussed in the market analysis, the market rates will escalate at a rate of 3% annually. Based on comparable apartments, the vacancy rate of 3% is a feasible assumption that will be used in the financial analysis.

 

 

PROPERTY DEVELOPMENT

Site Plan and Entitlements

The existing site plan has a building area of 400sq.m, and 240sq.m unused. The architectural and structural designs have been completed.

 

Development Plan and Timeline

A timeline with key milestone dates and durations through completion of the project will take a total of 5 months

Architect and Design: Finouse Design Team

Permits and Approvals: Finouse Design Team

Construction: Finouse Design Team

Consultancy: ORCC

Building and Site Design

The Apartment will be designed to emphasize Scandinavian Concrete Architecture that is commonly found in Sweden, Norway. This type of design features wider windows, square and angular forms, minimalist facades and more glass usage. The mixed-use building will feature 4 floors, and a penthouse. This makes a space of 2,000 sq.m 1,500sq.m designated for residential usage, 500sq.m for commercial space, and 500 for recreational.. There are a total of 2 main staircases and 2 exit staircases. All apartments have at least a separate and exit point. The apartments will offer open and spacious floor plans, 3m headrooms, medium finishes including POP details in all rooms, ceramic tile flooring in the kitchen and bathroom, and moderate sized balconies.

 

Parking Requirements

According to the Lagos building code multi-family dwellings, 2 car parking spots per apartment is required. As a result, we appropriated car parking spaces for 24 cars.

 

 

 

PROPERTY ACQUISITION

All apartments would be offered through a mix of outright sales, rentals depending on the subscription terms of the investors.

Investors who select the short term options will have their return on investments from sales of apartment units. It offers a 25% return on investment in 4-6 months

Investors who are looking at more stable and consistent returns for years will have their investments from sales accruing from rentals of the apartment through rentals, short lets, and leases. It offers 18% annual returns

However, the midterm investment is only accessible to re-investors, that is, investors that have already invested in short or long term funds, and have invested above a million naira. It offers a massive 80% yearly return on investments for a term of 5 years only. Totaling a 400% return on investment.

 

  • 28-06-19

    Design Completion

    Architectural and structural designs completed

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