Debt/Equity Investment Opportunity in 300 Unit Housing Development

Opportunity Snapshot

  • Country: Ghana Ghana
  • Industry: Real Estate
  • Stage: Expansion/Growth
  • Years in operations: 6, Employees: 40
  • Investment size: $5,000,000 / min. $100,000
  • ROI: 23% in 3 years
  • Type of investment: Debt, Equity
Housing Investment Opportunities in Ghana The Project will comprise 300 units of mid income residential houses located in Accra on a 40 acre land. Image courtesy of Dom Dada, 2005, Flickr CC.

Investment Opportunity

The opportunity is to finance an established real estate developer to develop a new 300 unit gated community in Accra. Requirement is for debt financing at 8 -10%.

I. INTRODUCTION: An opportunity exists between a Developer and a landowner to go into a partnership to develop mid income houses, dabbed R & J Homes. The Project will comprise 300 units of mid income residential houses located in Accra on a 40 acre land. The Project is expected to be completed within three (3) years and aims to develop houses targeted at young professionals in Ghana and in the Diaspora.

II. The Developer is a property developer with a team of real estate professionals with a combined work experience of more than 30 years. We has developed an enviable reputation for excellence in property designs, quality and reliability, and impeccable finishing, making it an important player in property development in Ghana.

III. FINANCIALS: The Company requires debt financing of approximately US$5 million over the next 3 years to fund its operations.

IV. The overall construction cost is estimated at US$20million over the next three (3) years, which excludes the land cost of US$4.0 million. Construction cost is expected to be funded mainly by owners equity, customer deposit and debt funding.

V. The Project is expected to be profitable over the investment period, reporting a projected Profit after Tax of US$1.3 million in year 1, US $3.7 million in year 2 and US$4.8 million in year 3. Total profit for the project is estimated at US$10 million.


Rationale for the deal

Real Estate investment opportunities in Ghana increasingly attract the interest of investorsa as the sector enjoys government support and high returns.

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