TABLE OF CONTENT

1) Executive Summary
2) Introduction
3) The Project
4) Conclusion
5) Annexes
1) Executive Summary

The Suryadaya Multipurpose Company Pvt.Ltd is proposing a new affordable housing

development at Panchkhal, ward no. 06 Kavrepalanchowk.

Our ambition is to develop housing that makes residents proud and adds to the beauty
of the community. We aim for quality architecture and compact homes that are
designed for flexibility. Our projects integrate nicely in the surroundings and have
good connections with Kavres amenities and natural qualities. Our projects are
typically small and scalable, and offer a range of sizes, types and locations across
Panchkhal valley. Where appropriate, we mix market with non-market housing.

The intent is to develop the site in two phases. These phases may take place
consecutively or concurrently dependent on available resources and demand.
Suryadaya Multipurpose Company has identified an immediate and strong demand for
affordable ownership housing and a moderate demand for affordable rental housing.
Our targeted housing development is reconstructing the town effected after the
destructive earthquake of 2015.

Phase I is the focus of this project business plan. In this phase, 32 units will be
constructed in four sections. Each section consists 8 buildings. The property would be
owned by Suryadaya Multipurpose Company and all units managed as part of its
ownership housing program. There would be a mix of spacious one-, and two -
floored units, with 4 to 6 rooms. All units are to be self-contained with private laundry,
storage, decks, entry, and dedicated parking spots.

The site can accommodate 40 to 50 additional units in a second phase. There is the
option to extend and adapt the first phase concept. Alternatively, an ownership project
with a different unit mix and building structure could be developed to meet the more
moderate demand for affordable ownership housing. Suryadaya Multipurpose
Company will lead each stage of development, engaging an Owners Representative
to provide comprehensive services in the organization, coordination, management and
administration required for all aspects of the development of the project. The delivery
method will be a conventional Design- Bid - Build, with an Architect and engineering
sub-consultants retained by the Suryadaya Multipurpose Company. The construction
work will be publicly tendered with the successful contractor working directly for
Suryadaya Multipurpose Company.

The preliminary schedule anticipates construction beginning in September 2017 with

substantial completion in August 2018. Total construction costs are estimated to be
about NRs. 5828.98 lacs. Preliminary financial modeling estimates annual cash flow
from sale before financing costs for the first five years to be approximately NRs.
5478.31 lacs. Suryadaya Multipurpose Company will determine the amount of debt
finance that can be accessed based on the projects cash flow and seek grant funding
and no-interest loans for the balance from Banks and Financial Organizations and
Suryadaya Multipurpose Company reserve funds and any other sources as
appropriate.

Development of this site and this project is realistic and feasible. Suryadaya
Multipurpose Company owns the site, it is zoned and has been communicated as a site
for affordable housing, and there are no known development constraints. There is an
immediate and strong demand for affordable ownership housing that the market is not
able to meet. In addition, timing is good with development moving forward. We
recognize that not all of our ambitions can be realized due to limited site size and
location, but see it as a good opportunity for the addition of quality affordable housing
before the end of 2019.

2) Introduction

a) Our Objective

The Suryadaya Multipurpose Company Pvt.Ltd is proposing a new affordable housing

development at Panchkhal, growing city of Kavrepalanchowk. The project is intended
to meet the housing demand of moderate income residents in need of affordable and
appropriate housing options. Our objective is to bridge the affordability gap and
create housing options to enable people to stay and develop their professional and
social lives in our community.

b) The context
Housing Market Realities in Nepalese City

Panchkhal being a nearest city to the China, and major dry port city in the
country, being fasted growing urban area, however, has the one of the unevenly
managed housing. Due to the centralization of facilities and opportunities population
has hugely fled to this valley from every part of the district and neighboring districts.
People are facing problem finding the appropriate housing and are looking for right
and affordable housing according to their choice.
 We, today, after the settlement of political instabilities, are hoping for the
economic growth and positive increment in construction activities. A downside to this
growth is that for many residents and workers, Panchkhal has become unaffordable
with limited housing choice. We have some of the highest shelter and living costs in
Nepal and new residential construction is primarily targeted to the second-home and
higher priced housing markets. There is a housing affordability gap for low and
moderate income households. Housing prices are expected to grow at a similar or
greater rate than real incomes, meaning that the gap will not lessen without
intervention.
The Suryadaya Multipurpose Company was established in 2006 as a
multipurpose company to provide a range of housing options that are appropriate and
affordable for the communitys needs. Although the community has multiple housing
needs, not all fall within our mandate. The Suryadaya Multipurpose Company
primarily serves the needs of moderate income workers and residents. Social and
low-income housing is not part of this mandate. Our projects and programs contribute
to the municipal vision of a resilient and vibrant community and a viable home for a
diverse population. The Suryadaya Multipurpose Company holds land for future
development and has plans to add to the affordable housing inventory.

Demographic Realities:
The valley is highly populated and also is increasing in alarming rate. The
suitable geographical and topographical characteristics of the valley is drawing
more migrants from other neighboring districts. The affordable and managed
housing could be helpful in managing the demographical distribution.

c) Affordable Housing
Our ambition is to develop housing that makes residents proud and adds to the beauty
of the community. We aim for quality architecture and compact homes that are
designed for flexibility. Our projects integrate nicely in the surroundings and have
good connections with Panchkhals amenities and natural qualities. Our projects are
typically scalable, and offer a range of sizes, types and locations across Town. Where
appropriate, we mix market with non-market housing.

d) Implementation Strategy

Implementation Strategies are identified along with an analysis of how they will be
carried out as well as the financial implications.
In addition to the strategies, the Affordable Housing Business Plan sets out a concrete
target: to create 100 affordable homes in the Panchkhal valley by 2017. This target is
not one that the town can meet on its own. This is the bench mark that will guide
and inspire the action of all the Companys partners as we work together to address
housing needs in our community. Finally, the Plan includes an Evaluation and
Communication section, which outlines how progress toward the target will be
monitored and regularly shared with the public.
The ultimate goal of this process is to achieve the vision outlined in the Housing
Charter:
Panchkhal will be a vibrant, inclusive and thriving city with a wide range of
affordable housing options that contribute directly to community health, sustainable
growth and economic security.
Suryadaya Multipurposes Company looks forward to working with our partners to
achieve that vision of affordable housing over the next few years.

e) CONSTRUCTING THE FUTURE: Emerging Characteristics of the

Housing
One experiences the most facilitate home, in a affordable price. Each phases of
development has 3 variants of housing, which is going to be a unique among all
established housing concept. Our affordable housing is very inclusive that a
general housing to VIP villa will be managed in a site. The modern architect and
engineering will make it safest and attractive place to live.
The project will be engaged in well management and concerned in making
facilities available. Apart from this, the major characteristic of Affordable
housing is to provide natural and healthy living.
We develop the affordable housing concept in various cities in near future. A
environment friendly and country suitable housing concept will be a milestone in
nation building
3) The Project

PROJECT PROFILE FOR CONSTRUCTION OF

HOUSING IMPLEMENT
NAME OF CONSTRUCTION AFFORDABLE HOUSE

PRODUCT CODE (F 1 2017) 012

PRODUCTION CAPACITY 100 NOS.

QTY.& VALUE (PA) RS.7525 LACS

MONTH & YEAR OF JUNE 2017

PREPARATION

PREPARAED BY PANCKHAL, VALLEY

Estate, KAVRE
Mob.no.9841191481,

SITE
The site of the affordable housing project is 540 Ana (1.72 hectares) of bare land
located on Panchkhal, next to Araniko Highway, in the lap of pine forest of
Lamidanda. The land is owned by Suryadaya Multipurpose Company and has been
communicated as a site for future affordable housing development. The site
transitions from higher density affordable housing to lower density market housing.
This project supports our long-term strategy to ensure affordable housing in
residential neighborhoods throughout Kavre. Panchkhal is a desirable residential area
poised for significant new development. The site is approximately 45 km from capital
city of Nepal, with access to the housing to residents with private transportation as
well as public transportation. The effects of increased parking and traffic will require
attention. This project, as would other residential and commercial development in the
neighborhood, would benefit from the provision of local transit. Feasible development
of the location is realistic. Suryadaya Multipurpose Company owns the land, it is
zoned and has been communicated as a site for affordable housing, and there are no
known development constraints. The timing is also good as development has started
to move forward in Three Sisters. While not all of our ambitions can be realized due
to limited size and location, the site is appropriate for a mid-range medium to high
density affordable housing development.
AFFORDABLE HOUSING DEMAND
Suryadaya Multipurpose Company builds projects that are small and scalable and
built to meet the affordable housing demand of moderate income Panchkhal workers
and residents. Demand means that our target group has both the need for affordable
housing and the ability and willingness to buy homes. Demand is influenced by
program design and housing inventory, as well as external factors such as availability
of finance and confidence in the housing market. Suryadaya Multipurpose Company
analyzes demographic, income and housing data to assess need. We assess demand by
analyzing our inquiries, applications, rental and resale activity within the context of
the broader housing market and economy.
Our assessment indicates that the greatest and immediate housing need and demand is
for ownership housing for single income families, particularly moderate income
single person and lone parent households and victims of earthquake Nepal 2015.
With respect to affordable ownership housing, we see a moderate need and demand
by single person and couple families without children.
Couple households with children have demonstrated limited demand for our
affordable housing programs despite there being a significant affordability gap with
respect to home ownership. We are cautious, however, to conclude that there is no
demand. We recognize that our existing inventory and program terms and conditions
may need to be adjusted to better align demand and need.

THE DEVELOPMENT
The intent is to develop the site in three phases. These phases may take place
consecutively or concurrently, depending on market response and access to finance.
Phasing will reduce risk, enable Suryadaya Multipurpose Company to allocate its
scarce resources to housing that meets the strongest demonstrated need and demand,
while allowing some flexibility to introduce a diverse tenure and product mix. These
benefits offset the potentially higher construction costs associated with phasing.
Phase One:
A total of 30 units will be constructed in four sections. Each section consists 8
buildings in two-level stacked buildings with 4 to 6 rooms.
All units are to be self-contained with private laundry, storage, decks, entry, and
dedicated parking spots.
Common area will be limited to green space and visitor parking.
Unit mix: 16 x 2.5- stacked steel house, 10 x 2- stacked townhouse, and 4 villas |
The unit mix is based on the following demand assumptions: general demand of the
resident with 16 x 2.5-stacked steel house. Advance demand of the 10 x 2- stacked
townhouse. VIP demands with 4 villas. The facilities varies from general, advance
and VIP based units.
The property would be owned and managed by the company and will be sold to the
customer and hand over along with a unit to eligible residents
In accordance with affordable housing policy, rent will be no more than 90% of
market rate for equivalent units. The cost of a unit are expected to range from 70 - 80
lacs.
Phase Two and Three:
The site can accommodate 35 and 35 additional units.
Option to extend Phase One with the same building type under the same tenure.
Alternatively, it could be a separate ownership development with a different product
mix and building structure.

DEVELOPMENT MANAGEMENT
The Suryadaya Multipurpose will lead each phase of development. An Owners
Representative will be engaged to provide comprehensive services in the organization,
coordination, management and administration required for all aspects of the
development of the Project. The Project Committee, as appointed by the Company
Board, will oversee the work of the Owners Representative. The Project Committee
consists of Company Board members, Suryadaya Multipurpose Company and Town
Administration, and other external members as required to ensure the representation
of appropriate expertise. The authority of the Project Committee is delegated by the
Company Board. The Company Board retains final decision making authority on
design, planning and financial matters.

PROJECT DELIVERY
The delivery method for the project is a conventional Design/Bid/Build, with an
Architect and engineering sub-consultants being retained by the Suryadaya
Multipurpose Company. The construction work will be publically tendered with the
successful contractor working directly for the Company.
PROJECT SCHEDULE

The Company anticipates a schedule similar to the following:

RFP issued to selected architectural firms: June 22, 2017.
Closing date for RFPs: July 12, 2017
Town development committee Panchkhal project concept approval: July 20,
2017
Award of architectural contract: July 23, 2017
Completion of contract documents: September 8, 2017
Call for construction tenders: September 17, 2017
Closing date for construction tenders: October 7, 2017
Construction award: November 14, 2017
Construction start: January 2, 2018
Substantial completion: August 31, 2019

FINANCE & FUNDING

Construction costs for the 30 units are estimated to be about 5828.98 lacs in Nepalese
Rupees. Preliminary financial modelling estimates annual cash flow before financing
costs for the first five years to be approximately 5478.31 lacs NRs. To determine the
initial amount of equity to be invested, Suryadaya Multipurpose Company will
determine the amount of debt that can be obtained based on the projects cash flow
and seek grant funding or no-interest loans for the balance.
\
SUMMARY

Development of Phase One of the site and project is realistic and feasible. There is an
immediate and strong demand for affordable housing that the market is not able to
meet. Suryadaya Multipurpose Company owns the site, it is zoned and has been
communicated as a site for affordable housing, and there are no known development
constraints. In addition, timing is good with development moving forward in kavre
district. We recognize that not all of our ambitions can be realized due to limited site
size and location, but see it as a good opportunity for the addition of quality
affordable housing before the end of 2019.
 4) Conclusion

This site allows for the addition of quality affordable housing. Not all of our
ambitions can be realized due to limited site size. The location is among the least
favoured by prospective affordable housing buyers and due to accessibility, but is
appropriate for mid-range affordable housing development. It is zoned and has been
communicated as a site for affordable housing. Feasible development of the location
is realistic and the timing good with development moving forward in Kavre district.

5) Annexes
Section I
PROPOSED ANNUAL PRODUCTION CAPACITY

S.NO Name of item Qty.Nos Avg Amount

Rate (Rs in lacs)
(Rs in
Lacs)
1 House - - -
1st phase 30 70 2100
2nd phase 35 75 2625
3rd phase 35 80 2800
Total
7525

Section II
LAND BUILDING & PROPOSED SECTION
*Land
Plot of 540 Ana (in construction site at its prevailing average price ) of
Rs 5.50 Lacs per Ana = 2970 Lacs
*Building
Plot area to be covered for Office construction =800 sq. ft.
Building to be constructed with following section:
Design & development and Quality control Section
Marketing & Purchase Section
Office block, Account & Administrative Section
Parking Area and open space
Security-guard room

The estimated amount involved for construction of the site as per above
plan is as below:
S.NO Work involved Area Rate per Amount
(Sq.ft) Sq. ft (in (Rs. In
Rs ) Lacs)
1 RCC construction 800 Sq.ft 4500
with Elect 36.00
/Water/Sanitary
fittings

2 Boundary Wall, Gates - -

&lighting 2.00
Total
38.00
Grand total = Rs 2970 lacs+ Rs. 38 lacs = 3008 lacs

Section III
MACHINERY EQUIPMENT & INFRASTRUCTURES

S.NO Name of Machine Qty. Cost (Rs.in

(In Nos.) Lacs)inclusive of
taxes,
transportation,
electrical motors
& accessories
etc.
1 Mixture Machine 1
2.10
2 Water Motor 2
0.50
3 Pipe Cutter 2
0.16
4 Truck 1
35.00
5 Back Hoe Loader 1
41.00
6 Other construction Equipment -
15.00
Total
93.76

Other infrastructures
Pre-Operating Expenses
S.NO Name of particular Qty.(in Nos.) Cost (Rs.in
lacs)
1 Manpower/Professionals -
10.00
2 Conveyance & -
Communication Expenses 2.00
3 Miscellaneous Expenses -
1.00
Total
13.00

Installation & Electrification Expenses

S.NO Qty. (in Cost(Rs.in
Activity Nos.) Lacs)
1 Installation & -
Electrification Expenses 10.70
for Machine & Equipment

Office Equipment etc.

S.NO Qty.(in Cost(Rs.in
Equipment Nos) Lacs)
1 Office Equipment, -
 gadgets ,computers& 5.00
furniture etc.
Grand Total- R.s 122.46

Section IV
HUMAN RESOURCE REQUIRMENT
7.0 Staff & Personnel per Month
S.NO Annual/Salary
Designation Nos. Per Month
1 Manager 1 0.22
2 Marketing/sales Executive 2 0.36
3 Supervisor 2 0.36
4 Skilled Worker 10 1.50
5 Semi- Skilled Worker /Helper 10 1.50
& Peon etc.
Total 3.94

Section V
OTHER RECURRING EXPENSES & WORKING CAPITAL
Raw Materials Requirement per 100 units
With Labor, Transportation & Tax
S.NO Amount (Rs.in
Item Lacs)
1 Cement (600 pack per 1
unit100=60,000pack) 420.00
2 Sand (15 tipper per1 unit 100=1500
tipper) 330.00
3 Concrete(6 tipper per 1 unit 100=600
tipper) 168.00
4 Rad, metal wire (6.5 tons per 1 unit
100=650 tons) 520.00
5 Brick (27000 pcs per unit
100=2700000 pcs) 432.00
6 Wood Item (150 cubic. ft per unit
100=15000 cubic. ft) 1200.00
7 Metal item (1.2 ton per unit 100=120
ton) 96.00
8 Electronic, water, sanitary, bath
fittings etc. (11.00 lacs per 1 unit100) 1100.00
9 Color (1.70 lacs per unit 100)
 170.00
10 Other Ordinary(10 Lacs Per Unit100)
1000.00
11 Electricity Pole (15 Pcs) 1.50
12 Gravel (50 tipper) 9.00
13 Black (1200 Pcs) 1.68
14 Stone (10 Tipper) 2.20
15 Road Pitch (1500Sq.Mtr) 9.00
16 Electronic Wire (2000 Mtr.) 9.00
Total
5468.38

Utilities per Annum

S.NO Item Amount (Rs.in lacs)
1 Electricity Expenses
1.50
2 Water Expenses etc.
4.20
3 Diesel
4.50
Total
10.20

Other Expenses Per Annum

S.NO Item Amount (Rs. In
lacs)
1 Advertisement & Publicity
2 Repair & Maintenance
3 Selling Expenses
4 Telephone & Communication
5 Stationary & Postage etc.
6 Insurance
7 Pol & Consumables
8 Other misc. Expenses
Total
 5.00

Working Capital Requirement

1 Raw materials in Stock 1 Week
113.92
2 Salaries Utilites & Other 2 Month 11.07
Expenses in Stock
3 Finished Good in Stock Half Week 78.38
4 Working process 1 Week 3.53
5 Market/ Out Standing Debtors 2 Week
313.54
Total
520.44

Section VI
Project Cost & Means of Finance

Total Capitals Investment

S.NO Amount(Rs.in
Item lacs)
1 Land & Building 3008
2 Cost of Machinery Infrastructures 122.46
and Per- operatives
3 Working Capitals Requirement 520.44
Total 3650.90

Means Of Finance

S.NO Amount (Rs.in

Item lacs)
A. Fixed Capital
1 Term Loan On
Land,Building,Machinery,Infrastructures 2347.85
&Pre-Operating @ 75% From Financial
Corporations/ Bank
2 Own Share / Equity @ 25%
782.61
Total
3130.46

B. Working Capital
1 Working Capital Loan in The Shape 390.33
of Working Capital Limit @ 75%
From Bank
2 Working Capital Equity Share 130.11
@25%
Total 520.44

C.Total initial investment

1 Long term Loan 2347.85
2 Short term Loan 390.33
3 Owners Equity 912.72
Total Loan 2738.18

Section VII
Cost of Production & Sales Realization
Cost of Production Per Annum
S,NO Amount (Rs.in
Item Lacs)
1 Cost of Raw Materials
5468.38
2 Other Recurring Expenses i.e Salaries 62.48
Other Expenses and Utilities
3 Interest On Fixed Capital Loan @ 10% 234.79
PA
4 Interest On Working Capital Loan @ 52.05
10% PA
5 Depreciation On Machinery & 9.38
 Equipment @10% PA Averagely
6 Depreciation On Building @ 5% PA 1.90
Total 5828.98

TURNOVER & SALES REALIZATIONS PER ANNUM

S.NO Name of Qty.Nos Avg Amount

item Rate (Rs in
(Rs in lacs)
Lacs)
1 House - - -
1st phase 30 70
2100
2nd phase 35 75
2625
3rd phase 35 80
2800
Total
7525

Section VIII
Profitability Financial Viability Ratio & Analysis
Profitability Per-Annum (Before Tax)
 Amount (Rs.in
Particular Lacs)
Sales Realization 7525
Less: (Cost of Production) 5828.98
Net Profit Per Annum Before Tax Rs. 1696.02

Rate of Return On Total Capital Investment

520.44 100 = 30.69%

1696.02
Rate of Return On Sales Realization
1696.02100 = 22.54%
7525

Break Even Analysis at 100% Capacity Utilization

Particular Amount (Rs.in Lacs)
Fixed Cost Per Annum
Interest
286.84
Depreciations
11.28
Insurance
0.57
40%Salaries Other Expenses &
Utilities Except Insurance 25.00
Total
323.69

Annex IX
Projected Profit & Loss Statement

Operating Year 1-3

Sales revenue 7525
Less: Operating Cost 5828.98
Gross Operating Profit 1696.02
Less: Dep + Amor 36.85
Profit Before Interest 1659.17
Less: Financial Cost 286.84
Profit Before Tax 1372.33
Less: Tax (assumed at 25% ) 343.08
Net Profit 1029.25
Accumulated Profit 1029.25
Operating performances :
Gross profit / Sales 22.53%
PBIT / Sales 18.23%
Net Profit / Sales 13.68%

PREPARED BY:
Bed Raj Bhurtel.
Managing Director.
Suryadaya Multipurpose Company Pvt. Ltd.
Kathmandu, - 05, Kathmandu.

We assure your prosperous living