|
 |
%18.3 |
|
Leased from one of the locals at
a price of $80,000 per annum. This 337mē property is located at about 800m from the holy
shrine. Capital amounts of $1.2 Million. This figure was determined as follows:
- Construction cost (337mē x 8.5stories x $350/mē)
|
$1,000,000 |
- Commissions to solicitors
|
$80,000 |
- Cost of engineering drawings & follow up with municipality
|
$27,000 |
- Cost of first year rental
|
$80,000 |
- Cost of obtaining three more stories from municipality to
make the total 8.5 stories instead of the original 5.5 stories
|
$67,000 |
Total: |
1,254,000 |
|
| With lease contract extends for 16 years, the capacity of this building
is 700 pilgrimages. This will yield the following return: 700
person x $495 /person = $346,500
IROR = 346,500 - 80,000 (rent) / 1,254,000 = %21.3
Less Dar Alamar commission (%3) = %18.3 per
year
For the next 15 years allowing 1 year for construction.
|
|
