Project Proposal
1. Executive Summary
This is a project feasibility study for a building comprising of furnished apartments,
showrooms and shops and is to be developed by project promoters Alice Sarafian and
Hrair Varjabedian, on their plot located in Kirkos sub-city, Kebele 10. The project
promoters already own the title deed for 1092m².
The total planned investment cost of this project is estimated at ETB 56,802,200.00 from
which ETB 17,040,660.00 or 30% will be raised by the promoters of this project, while
the remainder, ETB 39,761,540.00 or 70% of total investment cost, will be financed
through a bank loan.
The promoters’ key motivations for envisaging this project are:
To alleviate the shortage of quality accommodation services in the capital city;
To tap into an ever-growing market for accommodation among regular visitors
and expatriate residents of Addis-Ababa;
To utilize good government policies that support the establishment of such
investments.
The study below attempts to assess the viability of the project with reference to market
conditions, financial soundness, social and economic benefits, and to identify any
relevant costs. The findings can be summarized as follows:
Market for quality accommodation is growing in the city and demand is
sustainable;
The project will accord employment opportunity for over 60 nationals and will
generate considerable contribution to the government in the form of tax.
2. Objective of the Project
Addis-Ababa is host to more than 30 international and continental organizations as well
as 105 foreign embassies and consulates. This ensures a steady flow of international
residents who need a decent and convenient place to live during their stay in the country.
This development aims to cater to these diplomats, NGO staff and their families.
Furthermore, the country’s rapidly growing economy is generating increasing interest
from foreign investors who also require accommodation.
The project will not only create permanent employment for staff recruited for the
operation of the building, but will also create temporary employment opportunities for
citizens during the construction phase of the project. Furthermore, employees will have
the opportunity to improve or acquire new skills in the field of furnished apartment
management and maintenance.
The project will also generate additional demand for construction inputs produced
locally, and will also generate foreign currency earnings for the country in addition to tax
receipts for the government.
3. Project Functional Description and Location
The building is located in Addis-Ababa’s Kirkos sub-city, Kebele 10. The total area
required for the proposed building is 1092m². According to the LDP (Local Development
Plan) of the area, the African Union and its environs are emerging as an upscale
commercial and residential district of the city.
The demand for the project’s services are investigated, identified and defined on the basis
of demand determinants.
The market for upscale furnished apartments is not saturated and there is still
considerable demand for more hospitality providers at present. Demand for high quality
accommodation is still strong and currently outstrips available supply in the city. This is a
clear indication that the market is still underdeveloped.
The road between the African Union and the site will slowly be flanked by high-rise
buildings as per the city master plan. It is only appropriate that a luxury furnished
apartment building features in this important part of the city.
4. Target Customers
The identification of target customers is fundamental to marketing management. All
subsequent decisions about project investment depend upon prior identification of target
customers, the following of which are the target customers for this project:
Delegates attending conferences, workshops and meetings held in Addis-
Ababa;
Foreign visitors affiliated with resident organizations and diplomatic
offices;
Investors and businessmen who are attending trade fairs, exhibits or on
investment tours;
Expatriates such as consultants, journalists, etc. who are in the country on
extended stays;
Members of the Ethiopian Diaspora who are visiting their homeland or
looking for potential investment opportunities.
5. Project Breakdown
Basement
Room Name Area in m² No. of Rooms Total Area in m²
Parking / 22 Vehicles 649.5 1 649.5
Ground Floor Plan
Room Name Area in m² No. of Rooms Total Area in m²
Showroom 436 1 436
Reception 72 1 72
Shop 27.5 2 55
Circulation 132 132
TOTAL: 695
First Floor Plan
Room Name Area in m² No. of Rooms Total Area in m²
Office -- 3 437
Toilet 20.1 2 40.2
Shop 49.15 2 98.3
Circulation 170 170
TOTAL: 745.5
Second Floor Plan
Room Name Area in m² No. of Rooms Total Area in m²
Shop -- 2 95.7
Parking / 20 Vehicles 611 1 611
Circulation 150 150
TOTAL: 856.7
Third Floor Plan
Room Name Area in m² No. of Rooms Total Area in m²
Shop -- 2 95.7
Parking / 22 Vehicles 611 1 611
Circulation 150 150
TOTAL: 856.7
Fourth Floor Plan
Apartment Area in m² No. of Rooms Total Area in m²
3-Bedroom Apartment 234 1 234
(Type A)
Studio Apartment 61.7 1 61.7
2-Bedroom Apartment 171 1 171
(Type A)
2-Bedroom Apartment 148.7 1 148.7
(Type B)
Circulation 100 100
TOTAL: 715.4
Fifth – Tenth Floor Plan / Typical Floor Plan
Apartment Area in m² No. of Rooms Total Area in m²
3-Bedroom Apartment 234 6 1,404.00
(Type A)
3-Bedroom Apartment 200 6 1,200.00
(Type B)
2-Bedroom Apartment 146 6 876.00
(Type B)
Circulation 54 324.00
TOTAL: 3,804.00
Eleventh Floor Plan
Room Name Area in m² No. of Rooms Total Area in m²
3-Bedroom Apartment 186 1 186
(Type B)
3-Bedroom Apartment 186 1 186
(Type C)
Circulation 44 44
TOTAL: 416.00
Total Built Area: 738m²
Unit Price per m²: ETB 6,500.00
Estimation of Building Cost: ETB 56,802,200.00
Total Area of Site: 1,092m²
Estimation of Site Work Cost: ETB 1,200,000.00
Total Floor Area: 8,738.80m²
