Cape Town Commercial Consultants

Prices of plots from R 1,070,000 to R 1,580,000 and 1114 to 1488 m2. Contact Francois +27 7 22 111 209

1. Feasibility – Economic • Size of property returning the best ROI • Size of houses returning the best ROI • Mix of different units returning the best ROI • Planning which units to build first returning the best ROI 2. Feasibility – Financial (Accuracy -10% to +20%) • Scenario planning • Cashflow forecast on scenario planning • Phased development Cashflow forecast • Using a Main Contractor vs. Commercial Management i. Saving – Contractor’s profit ii. Saving – On Materials iii. Saving – On preliminary & general iv. Saving – On foundations v. Saving – On Attendance on N/S Sub-Contractors vi. Saving – On Profit on N/S Sub-Contractors – Negotiable vii. Saving – On settlement discount viii. Saving – Time – Fast track construction ix. Value for Money - Optimization on Finishes 3. Feasibility – Bill of Estimates (Accuracy -5% to +10%) 4. Feasibility – Bill of Quantity (Accuracy -5% to +5%) 5. Civil’s Optimization • Cut to fill – Optimization • House Pads - Optimization...

I had a discussion with Marius Theron from Remey Properties regarding what is important to their business: 1. It is important that the QS understand the specific project so that he might minimize the risk accordingly. 2. Timing is always very important, you need to take the market condition into account. 3. Use the current demand as the benchmank, you then add your niche project that creates that extra demand. 4. Nedbank according to him has seasoned property professionals that help them as developers minimize their risk. 5. To keep your finger on the pulse of your cumulative cashflow of your projects is very important. 6. You make money with buying the property, not selling the development. Eg. McDonalds is in the property business not flipping burgers. 7. A proper feasability of all finishes need to be done to maximize profit. It is the small devils that ruins the vineyard. 8. Trust your gut feeling, sometimes the project that looks too good to be true is to good to be true in the en...