Evaluation and Development Project: Site Analysis in Ella, 6CN019

This project report evaluates a potential property development site in Ella, Sri Lanka. The analysis includes a detailed site background, soil conditions, access, and utility considerations, along with government regulations and safety factors. The core of the project involves three distinct developm...Read More

Evaluation and Development (6CN019)
Group Members
Name Std.No
1. M.I.M.Shameer 1828799
2. F.A.Nafees Ahamed 1732000
3. K.Kirushananth 1900542
4. K.Mohamed Hasfan 1731876
5. M.I.M.Insaf 1828287
6. M.H.M.Fahmy 1828626

Contents
Introduction................................................................................................................................1
Site Background.........................................................................................................................2
Location..................................................................................................................................2
Soil Condition........................................................................................................................3
Access to site..........................................................................................................................3
Utilities...................................................................................................................................3
Government rules and regulations.........................................................................................3
Safety......................................................................................................................................4
Other types of factors that we have to consider.....................................................................4
Proposal 1 - Proposed eleven numbers of cabana and main building........................................4
Outline....................................................................................................................................4
Estimation..............................................................................................................................5
Proposal 2 - Proposed vocational training centre.......................................................................6
Outline....................................................................................................................................6
Estimation..............................................................................................................................7
Proposal 3 - Proposed five-star hotel.........................................................................................8
Outline....................................................................................................................................8
Estimation..............................................................................................................................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................11

Introduction
The role of property developers is to build up the properties and afterwards sell or rent/lease
them. They need to do marketing of properties and be a part in selling or lease the properties.
(Industry, 2011) Now we have selected a site at ‘Ella’ and we came up with three suitable
proposal for this site. As a property developer we may explain every circumstance about this
site which helps us to understand about our proposal.
We need to find a site for our capital improvements in order to assess the potential sites.
(Services, 2008) Here we consider about tourism in Sri Lanka. That is the main reason to
select the site in ‘Ella’. Tourism is a most profitable sector in Sri Lanka and education is most
important and most needed thing in Sri Lanka. So that we have mainly focused on tourism
and education sector in the three proposals.
After selection of the site, valuation is a very important factor to be considered in property
development. Valuation of property that is viewed as appropriate for improvement, or
redevelopment, might be required for some reasons. These may remember guidance for credit
security, obtaining, deal, valuation of choices, capital expenses, arranging purposes and
examinations. (RICS, 2018) So when we have done valuation we can go for the Bank for
seeking financial loans in development project. Banks are giving major support in financial
part for our property developments.
If consider on valuation we select residual method of valuation.
Equation for Residual method of valuation is
D = A – (B+C)
A – Sale price of complete development
B – Cost of development
C – Profit
D – Residue for purchasing land
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Site Background
Location
A proper site choice is one of the most significant strides before starting construction works.
The property developer or contractor should consider key elements influencing while
choosing a site. (Construction tuts,2017) So our site was situated in Ella. One of the famous
place in Sri Lanka. Black colour arrow showing the location of site. It was located in one and
a half km away from the main road.
Figure 1: Location of the purchased site
Main reason to purchase this land is location which was located in hills station. At the edge of
the land there is a beautiful scenic nature view. These types of views reduce stress of people.
As well as climate of this location is very cool throughout the year. We can say that ‘’Ella’’
as one of the main tourism destinations in Sri Lanka.
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Soil Condition
Foundation and soil types go inseparably as the sort of soil you experience on your plot will
illuminate the best foundation system for you to use for your project. Before you get things
started, you'll have to research about the sorts of soil that might be found on your site. This
can include either checking with your local authority or building inspector, or undertaking a
soil test survey. (Home building renovating, 2020)
From that survey we found that firm clay over soft clay up to 2 metres and further with hard
gravel. Most of the land area is not at flat shape. It has a slope.
Access to site
Accessibility is good. But cost for transportation is little bit higher than the normal area
because of more fuel consumption for hill area transportation.
Utilities
There are no any kinds of services. Normally utility services will be provided after the
building constructed. But we can obtain temporary water and electricity connection to do the
construction works. We can get permanent connections after finishing the construction work.
Apart from this sewerage and drainage systems can be arranged as per the government rules
and regulations.
Government rules and regulations
Before starting the project we must get approval for design from the municipal council. Also,
we need approval from the National building research organization regarding that project is
not affecting for the any kind of landslides. Also, we need to get approval from Central
Environmental authority regarding other type of environmental bio diversity issues.
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Safety
Safety is another main factor affecting. This is hill station project, so we have to more
consider about the safety than the other types of projects. If we proceed as per the health and
safety plan then we all can overcome this task successfully.
Other types of factors that we have to consider
 Availability of skilled labour
 Availability of cheap labour
 Availability of local or natural materials to reduce construction and
transportation costs
 Rate of population growth and urbanization in that area
 Town planning and environmental condition
 Cost and timeframe
Proposal 1 - Proposed eleven numbers of cabana and main building
Outline
In this plot of land there’s a very good scenic view of surrounding mountain ranges,
waterfalls and much more tourist attractions. By considering the scenic view we have come
up with this project which can generate more profit and contribute more for tourism sector.
The key component of this project is the eleven units of cabanas planned in different existing
ground levels with slightly modified landscapes to spend the holidays with the ultimate
scenic view of nature. One cabana consists of one bed room, dining area, bathroom and a
veranda. It was very crucial to design and position because we did not want to disturb the
existing habitats of birds and also, we wanted to protect the valuable extinct trees existing in
this land.
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The main building will accommodate a lobby, bathroom/toilets, restaurant and administrative
facilities. Parking facilities for 20 cars has been designed with security huts.
Floor area of main building = A (2000ft²)
Floor area of cabanas = B(420ft²), C(420ft²), D(420ft²), E(420ft²), (420ft²), G(420ft²),
H(420ft²), I(420ft²), (420ft²), K(420ft²), L(420ft²).
Figure 1: Sketch plan layout of proposed eleven numbers of cabana and main building
Estimation
Land value – Rs. 40 million (0.5 acres)
Construction cost
Cabana cost per sq/ft = Rs. 7000 – 8000
Cabana area = 420 sq/ft
Total cost = 3 million – 3.5 million
Main building cost per sq/ft = Rs. 5000 – 5200
M. Building area = 2000 sq/ft
Total cost = 10 million – 10.5 million
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Total Estimation
Building cost + Profit & O/H (25%)
(45 million – 50 million) + (25%)
Total value = Land cost + Building cost
= 100 million (Approximately)
Proposal 2 - Proposed vocational training centre
Outline
It has been observed that there is a considerably vast population in Ella and surrounding
villages, although there are few small educational institutes, there’s no accredited vocational
training centre for the vast population residing in Ella and surrounding villages. So, we have
come up with this vocational training centre project where it will be very profitable and also
will contribute more for the education sector and students to develop their vocational skills.
This is a two storied building of 11000ft² where two hundred and forty students can be
accommodated.
Ground floor consists of a lobby, workshop, cafeteria, store room, three class rooms and two
toilets (Male/Female). First floor consists of a lobby, library, workshop, store room, three
class rooms, two toilets (Male/Female) and a veranda.
Figure 2: Sketch plan layout of proposed vocational training centre
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Estimation
Land value – Rs. 40 million (0.5 acres)
Construction cost
1st storey cost per sq/ft = Rs. 4000 – 4500
Area = 5500 sq/ft
Total cost = 22 million – 24.75 million
2nd storey cost per sq/ft = Rs. 4000 – 4500
Area = 5500 sq/ft
Total cost = 22 million – 24.75 million
Total Estimation
Building cost + Profit & O/H (25%)
(44 million – 49.5 million) + (25%)
Total value = Land cost + Building cost
= 98.44 million (Approximately)
Proposal 3 - Proposed five-star hotel
Outline
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It has been observed that there’s a huge increment in number of local and foreign visitors day
by day in Ella. Hence, it’s increasing the demand of hotels, there’s a shortage of quality five-
star hotels in this particular area. By considering the orientation of the land with very good
scenic view of surrounding mountain ranges, waterfalls and much more tourist attractions we
have come up with this five-star hotel project which can generate more profit and contribute
more for tourism sector.
As this is a five-star hotel the main element to consider are location, design, stories, classes
(economy, VIP, VVIP) and standard spacing.
This 15000ft² hotel comprises three stories, including all modern facilities and securities with
parking facilities for 60 cars.
Ground floor consists of a lobby, indoor swimming pool, cafeteria, bar, laundry area,
common bathroom/toilets (Male/Female) and administrative facilities.
First floor consists of a lobby, deluxe single rooms with attached bathroom and private
balcony, deluxe double rooms with attached bathroom and private balcony, terrace, common
bathroom/toilets (Male/Female) and administrative facilities.
Second floor consists of a lobby, deluxe single rooms with attached bathroom and private
balcony, deluxe double rooms with attached bathroom and private balcony, terrace, common
bathroom/toilets (Male/Female) and administrative facilities.
Figure 2: Sketch plan layout of proposed five-star hotel
Estimation
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Land value – 40 million (0.5 acres)
Construction cost
1st storey cost per sq/ft = Rs. 6000 – 6500
Area = 5000 sq/ft
Total cost = 30 million – 32.5 million
2nd storey cost per sq/ft = Rs. 6000 – 6500
Area = 5000 sq/ft
Total cost = 30 million – 32.5 million
3rd storey cost per sq/ft = Rs. 6000 – 6500
Area = 5000 sq/ft
Total cost = 30 million – 32.5 million
Total Estimation
Building cost + Profit & O/H (25%)
(90 million - 97.5 million) + (25%)
Total value = Land cost + Building cost
= 157.19 million (Approximately)
Conclusion
As a property developer it is all our responsibility to get the maximum profit from invested
capital and protect the nature as well. So, as a developer we must arrange the acquisition of
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land and deal with crafted by modellers, development organizations and property supervisors.
They apply to territories to rezone land, perform sway investigations and get building
development licenses. They additionally may perform, or demand that the territory performs,
natural and wellbeing surveys.
All together finally we have selected a suitable project by considering about these main
factors and get the maximum profit for the company.
Reference
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 Editorial team construction tuts (2017) Factors Affecting Selection of Site – Building
Construction Site Selection, Available at: https://www.constructiontuts.com/factors-
affecting-selection-of-site/ (Accessed: 14th January 2020).
 Home building renovating (2020) Foundation Systems and Soil Types, Available at:
https://www.homebuilding.co.uk/foundation-systems-and-soil-types/ (Accessed: 10th
January 2020).
 Industry, Real Estate & Construction. (2011). The Role of Real Estate Developers in
Developing The Property. Available: https://www.openpr.com/news/182581/the-role-
of-real-estate-developers-in-developing-the-property.html. Last accessed 14th Jan
2020.
 The University Office for Capital Programs and Real Estate Services. (2018). site
selection process. Available:
http://www-prod.uocpres.uillinois.edu/UserFiles/Servers/Server_7758/file/UI/
manual/SiteSP.pdf. Last accessed 14th Jan 2020.
 RICS. (2018). Valuation of development land. Valuation Information Paper. 12 (12),
1.
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