27 February 2020 
Home  |  Open an Account  |  Contact Us  
Home > PROJECTS
   

Current Projects

Current Land Development and Joint Venture Projects include the purchase and sale as well as development of residential lots near the Edmonton Airport in Alberta in addition to commercial/industrial lots near Calgary, Alberta.

 

 

Business Plan for Ansar Industrial Park

LOCATION: Industrial Land Approximately 185 Acres with Approved Area Structure Plan on Trans-Canada Highway in Strathmore, approximately 20 KM east of Calgary, Alberta

THE PROJECT DETAILS: This land has been designated by the County for future Industrial/Commercial use. The development company hired a planner and an engineer who worked hard and got the Area Structure Plan (ASP) approved by the County. Various consultants were also hired to conduct some tests and submit their reports relating to Environment, Traffic and Water Management etc. This land can be developed in 3-4 phases and is expected to have a number of 2 to 5 acre industrial lots suitable for various size companies/businesses uses.

The land is now ready for development and subdivided into lots. For marketing purposes we have three options:

  1. Sell the entire project as approved plan;
  2. Sell the land for each phase separately without developing it; or
  3. Develop first phase and sell individual 2-5 acre lots.

First two options do not require much additional investment as it is already provided for and the land is fully paid. However, if we develop one phase, our main cost will be paving all access roads, have shallow (hydro, telephone and cable) services and storm water management pond. These costs may be anywhere between $2.5 and $3 Million.

1. IF DEVELOPED JUST FIRST PHASE

Phase 1 Expected Sales Revenue:

Phase 1 is expected to generate 14 industrial lots of various sizes totaling approximately 40 acres. Current market rate for such lots in the area is between $200,000 and $250,000 per acre. Thus total expected sales revenue at an average $225,000 per acre price is $9 Million.

Phase 1 Expected Total Cost:

Raw Land price @75,000 per acre $4,500,000

(Approximately 60 acre raw land will be required to yield 40 acre buildable lots after allowing for roads, storm water management facilities and municipal reserves etc.)

Development Cost referred above a maximum $3,000,000

_________

TOTAL EXPECTED COST $7,500,000

TOTAL EXPECTED SALES REVENUE $9,000,000

__________

TOTAL EXPECTED PHASE 1 PROFIT $1,500,000

(on $3 Million additional investment)

2. IF DEVELOPED ALL IN ONE PHASE

Raw Land Price @70,000 per acre $13,000,000

(185 acre X $70,000)

Development Approximate Cost $10,000,000

__________

TOTAL EXPECTED COST $23,000,000

TOTAL EXPECTED SALES REVENUE $27,000,000

(Lots on 120 acre X $225,000 acre)

TOTAL EXPECTED PROFIT $4,000,000

(on $9 Million additional investment)