PROJECTIONS FOR DEVELOPERS
Projections for 48 unit Casino Green Condo Project planned
at the
Princess Ruby Golf Course 16th Green, Bahamia, Freeport, Bahamas.
The complete Phase 1 (16 unit) bid is from a very reliable
Freeport general contractor,
Marlin Builders (was FreCon). Their "turnkey price" is $
1,097,412.
We also have another bid of $1 million even from John Gallagher at
Albacore Construction.
These are the two most established contractors on GB. The bids are
over 3 years old and should be rebid.
The Bids include:
1. All engineering, architect, Princess building dept and G.B.Port
Auth. approvals.
2. All labor and materials, landscaping, pool, jacuzzi, chikee
shelter, parking, sod,
paving, water & sewer connections, etc. Does NOT include:
Appliances or Furniture.
PROJECTED SALES PRICES AND PROFIT
PHASE ONE - 16 Units
16 units: 8-1br x $99,000 = $792,000 + 8-2br x $129,000 =
$1,032,000
Sales = $1,824,000. Less cost of $1,200,000 = Profit of
$624,000
PHASE TWO - 16 Units
16 units: 8-1br x $119,000 = $952,000 + 8-2br x $149,000 =
$1,192,000
Sales = $2,144,000. Less cost of $1,000,000 = Profit
$1,144,000
PHASE THREE - 16 Units
16 units: 8-1br x $119,000 = $952,000 + 8-2br x $149,000 =
$1,192,000
Sales = $2,144,000. Less cost of $1,000,000 = Profit of
$1,144,000
Projected Sales Price of 48 units = $6,112,000
Projected Gross Profits from 48 units = $2,912,000
Less: Cost of land & legal & dev.costs to date - $450,000
Less: Legal fees to transfer titles at $500/unit - 24,000
Less: Title insurance policies @ $500/unit - 24,000
Less: Sales expenses @ 5% - 306,000
Projected Net Profit = $2,108,000
NOTES:
1) The Caribbean Property List Magazine and Website has
been advertising this project
and has a database with inquiries from aprx 400 potential buyers for
these condos. It is
anticipated that pre-sales will cover the construction costs and that
the project can be built
with a capital investment of aprx $500,000. Return on Investment
could exceed 400%.
2) It is believed that this project could qualify under the "Hotels
Encouragement Act", below.
3) It is anticipated that most buyers will want to place their unit
in the rental program for income.
4. The owner has the master title insurance policy with a US title
company (First American), the Condo
Reservation Agreement Forms, the Purchase Agreement documents to be
given at closing.
The only original approved plan is at the Bahamia Bldg Dept with
Bernie Davis, tel 242-350-7000.
To make any changes a new plan must be drawn and sealed by a Bahamian
architect.
Hotels Encouragement Act
"This incentive provides for duty-free entry of approved
construction materials, furnishings, and fixtures
for hotel development. The Act reduces the demand on cash flow for
hoteliers and encourages regular
property renovations. Recent amendments to the Act have reduced the
number of rooms required for new
hotels to access this incentive to five rooms for hotels in the
Family Islands. This reduction is expected to
stimulate an expansion in small, eco-sensitive hotels and guest
houses. Total new construction and
renovation programmes approved under this Act exceed US$ 1 billion
since January 1999."
Price of the 3 Lots with all
expenses to date: $450,000
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