The project includes land acquisition and construction of 100 low cost houses for sale. The investor can come in as an equity partner or just a capital provider.
The demand for housing in Zambia is very high due to the lack of organized housing programs leading to major housing shortage mostly in the low cost sector. The houses will be of low cost nature but will create a good living environment.The majority of the houses will be sold out to the public and part of them (up to 30%) will be rented out.
The target market is the low earning working class in both formal and informal business. Zambia is sitting on a 2 million housing shortage.
The revenue will be generated by the sale and lease of the houses.
The market for housing is very big. The governments have failed to come up with any genuine housing programs.
The project will take 18 months. With funding in place, the implementing stage would start in two months and will be completed in the first quarter of 2014.
The funds are required for land acquisition, design, consultant fees, providing services to the stands, township establishment.
The payback period shall be two years after completion of the project.
The competition does not exist because the government has failed to come up with a comprehensive housing program. This has left a vacuum in the low cost housing.
Our advantage is that we have a very well experienced team that has been internationally involved in the constructions and modeling of low cost housing.
If well-funded we believe that we shall remain a sustainable business.
Other competitors will come in without a doubt; however we will have already established ourselves in the market such that it will not be easy to new comers to challenge us.
The shortfall in the housing market will remain an issue for the next ten to twenty years unless a radical vigorous plan is put in place.
Our business plan is structured such that we will generate profits via the sale and rental of the units.
The profit margins in this industry are very high, in some cases as much as 100%. This is due to the lack of housing.
We have over 15 years of experience in this industry building such projects in the sub-continent.
The funding shall be used for land acquisition, township development, design of units, consultation fees etc.
The shortage of housing creates a very viable business opportunity which the project responds to, offering very high returns.
We believe that the financing shall have to be in three stages, namely: Township establishment, Design and Construction.
The overall loan shall be $5000000 to be paid back over three years at an agreed interest rate with the investor.
The investor shall be welcomed on board and their contributions will be welcomed.
The desired installment schedule shall be as follows:
• $1000000 in the first six months,
• $1000000 in the second six months,
• $3000000 in the last position of the project.