Current Projects
Current Land Development and Joint Venture Projects include the purchase and sale as well as development of residential lots near the Edmonton Airport in Alberta in addition to commercial/industrial lots near Calgary, Alberta.
Business Plan for Ansar Industrial Park
LOCATION:
Industrial Land Approximately 185 Acres with Approved Area Structure Plan on
Trans-Canada Highway in Strathmore, approximately 20 KM east of Calgary, Alberta
THE PROJECT DETAILS: This land has been
designated by the County for future Industrial/Commercial use. The development
company hired a planner and an engineer who worked hard and got the Area
Structure Plan (ASP) approved by the County. Various consultants were also
hired to conduct some tests and submit their reports relating to Environment,
Traffic and Water Management etc. This land can be developed in 3-4 phases and
is expected to have a number of 2 to 5 acre industrial lots suitable for
various size companies/businesses uses.
The land is now ready for development and
subdivided into lots. For marketing purposes we have three options:
- Sell the entire project as approved plan;
- Sell the land for each phase separately
without developing it; or
- Develop first phase and sell individual 2-5
acre lots.
First two options do not require much
additional investment as it is already provided for and the land is fully paid.
However, if we develop one phase, our main cost will be paving all access
roads, have shallow (hydro, telephone and cable) services and storm water
management pond. These costs may be anywhere between $2.5 and $3 Million.
1. IF DEVELOPED JUST FIRST PHASE
Phase 1 Expected Sales Revenue:
Phase 1 is expected to generate 14
industrial lots of various sizes totaling approximately 40 acres. Current
market rate for such lots in the area is between $200,000 and $250,000 per
acre. Thus total expected sales revenue at an average $225,000 per acre price
is $9 Million.
Phase 1 Expected Total Cost:
Raw Land price @75,000 per acre $4,500,000
(Approximately 60 acre raw land will be
required to yield 40 acre buildable lots after allowing for roads, storm water
management facilities and municipal reserves etc.)
Development Cost referred above a maximum $3,000,000
_________
TOTAL
EXPECTED COST $7,500,000
TOTAL
EXPECTED SALES REVENUE $9,000,000
__________
TOTAL
EXPECTED PHASE 1 PROFIT $1,500,000
(on $3 Million
additional investment)
2. IF DEVELOPED ALL IN ONE PHASE
Raw
Land Price @70,000 per acre $13,000,000
(185
acre X $70,000)
Development
Approximate Cost $10,000,000
__________
TOTAL EXPECTED COST $23,000,000
TOTAL
EXPECTED SALES REVENUE $27,000,000
(Lots on 120 acre X $225,000 acre)
TOTAL EXPECTED PROFIT $4,000,000
(on $9 Million additional investment)
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