Abstract Ayrana Trade & Office Project | ayrana
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Abstract Ayrana Trade & Office Project

Omid Hemmat Eskan
Mass Construction Company

Abstract

Ayrana Trade & Office Project

 

  1. Introduction

 

Omid Hemmat Eskan Construction Cooperative Company was established in 2007. The company has now established itself as a robust entity by relying on its well-experienced engineers and personnel, resorting to every possible capacity in Iran and by using edge of technology to accomplish regular and heavy duty projects. IRANA Business Centre is going to be constructed in an area of 7172 m2.

  1. Project Introduction

Location of the project: Shahid Jozani Blvd., Shohadaye Khalij Fars Square, West Hemmat Expressway.

 

Specifications of the lot: 7172 m2 registered for Commercial and Administrative usage.

 

Background of the lot: The lot, which is currently under excavation, was originally part of a bigger land of 15,000 m2, it has been reduced to the current area of 7172 m2 through a signed contract with city hall and was reformatted as an independent block with public passages intersecting on all four sides with all necessary permissions issued by municipality.

 

Passages: On the north, the 35 meter width Shahid Jozani Ave., on the east, a 12 meter width st. under construction, on the west, a 20 width meter st. under construction, and on the south, the 45 meter width Chahar Bagh st., to the south of which there is fencing and the lake garden.

Price of the land: Considering the 7 to 9 million toman per m2 price range for residential land, the lot should currently well value above 25 million tomans per m2 considering its commercial and administrative usage.

  1. Geographical Unique location:

The project is located on the northern bank of Chitgar Lake, in an exclusive spot that located in 22nd district of Tehran Metropolitan. Considering the unique location of the project near the unique lake in the middle of crowed Tehran, the place is considered as an exclusive tourism area. Due to the fact that the project is adjacent to Hemmat and Hakim Expressways, it is easily accessible from east Tehran as well as downtown and Karaj also Imam Khomeini international Airport.

Moreover, the exceptional and advantageous location of the lot in Chahar Bagh neighborhood near the extension to Hakim Expressway is one of the most outstanding privileges of this project such that inauguration of any of the existing projects (Chitgar Artificial Lake, concentration of numerous trade guilds along Chahar Bagh axis, extension to Hakim Expressway, etc.) can significantly contribute to the success of the project.

  •  Location of the project in the 22nd municipality district of Tehra

    IRANA project is located in the center of the 22nd district of Tehran, laying by Chitgar Artificial Lake in a remarkable spot. On the other hand, location of district 22 of Tehran municipality, with its vast expansion and low population, in addition to its other advantages, has created optimum ecological conditions and has the potential to play a national, ultra-district role as the western center of the city capable of accommodating the excess of Tehran population, handling proper ground transportation, incorporating recreational centers (especially along Chahar Bagh path), all of which almost guarantee the prospect of instant sale of the units built.

    ¨

Among many others, the following factors can significantly make positive impact on the sale and development of IRANA revenue:

The commercial – Administrative path of Ghahar Bagh:

This green belt of 9 kilometers long with 300 to 400 meters width, is intended to attract and organize most trading demands in Tehran as delineated in the District 22 Plan.

 

Chitgar Artificial Lake (Khalij Fars Martyrs):

The project is located to the north of Chitgar project, giving it a unique atmosphere as no other rival project exists at its foot, and the project is easily conspicuous from the lake view.

 

    •  Image of Chitgar Park artificial lake

    Extension of Hakim Expressway and its passage by south of the lake: Extension of this accessibility highway in district 22 of Tehran and its laying by Hemmat highway on the south and to the north of Chitgar Park and Tehran-Karaj freeway, construction of an aquarium and circular platforms in the lake for recreation are among the other ideas which, if materializing, could definitely contribute to the unquestionable worth of the project.

    Chitgar Park: Located on the southern banks of Chitgar Lake with extensive recreational facilities, this park marks another decisive advantage of the geographical positioning of this project.

    Operationalization of Tehran-North Freeway and Azadi Sports Complex (as the existing national plan in district 22). Of other recreational tourist attraction plans on the banks of Chitgar Lake is the establishment of a 3000 hectare recreational facility in the northern part of district 22 as well as a botany garden, technology garden, Kan riverside landscaping, Vardavard riverside landscaping, which are additional potentials of this region currently under research, and if implemented, every single one of them can solely guarantee IRANA project’s revenues.

    Moreover, all these factors and the outlook of district 22 can serve as a future reservoir for Tehran and as a super-urban zone, which could then contribute to considerable increase in the price of commercial, administrative and residential properties in the region- hence optimum prospects for IRANA project.

    1. Construction phase

    As estimated, the project should take 4 years to complete, from 2014 to 2018, and if God willing, it should be operational in the year 2018.

     

    Percentages of distribution of construction expenses over the years are shown in Table 1:

    Construction year

    ۲۰۱۳

    ۲۰۱۴

    ۲۰۱۵

    ۲۰۱۶

    Distribution of investment assets (percentage)

    ۳۰

    ۲۰

    ۲۰

    ۳۰

    1. Project specifications

    The project is extended over a 7172 m2 lot, and as foreseen, will be constructed in one entire piece. A total of 11 parking levels and 11 mixed commercial floors are destined for this project, of which 10 will be operational and 1 reserved for the utility facilities. Construction area on each floor, however, varies. The most important specifications of the project are listed in Table 2:

    Ground Area (m2)

    Gross Area (m2)

    Net Commercial Area

    Net office Area

    Parking Area

    No. of levels

    No. of units

    Area

    (m2)

    No. of levels

    No. of units

    Area

    (m2)

    No. of levels

    No. of units

    Area

    (m2)

    ۷۱۷۲

    ۱۴۹۶۰۲

    ۱۱

    ۱۰۶

    ۲۵۵۳۰

    ۱۰

    ۱۶۰

    ۱۸۱۰۰

    ۱۱

    ۲۲۰۵

    ۷۶۸۳۸

    1. Important stipulations

    The most important constructional and financial

    terms are stipulated in Table 3:

    Table 3: constructional and financial stipulations

    Instant value of the money will be assessed based on the interest rate, which as a criterion, will also be used to bring costs up to date and to compute future revenues.

    1. Conclusion

    Considering the important impact of extraneous variables on the project and lack of the contractor’s (Hemmat Eskan Cooperative) supervision on the same can somehow increase the risk in revenue streaming, which could adversely affect pricing. However, the good prospects of the premises in district 22, the project’s proximity to the lake and Chahar Bagh axis as well as Hemmat and Hakim Expressways are among the promising advantages that can reduce anxieties of revenue streaming.

    ¨. Nevertheless, what needs to be considered in materialization of the revenues is the importance of advertising the advantages of investment in district 22, whereupon introduction of Chahar Bagh to traders and highlighting the position of phase 3 can serve as good advertising leverages. Reaching this objective depends on preparing a robust marketing and advertising program all along the construction phase of the project as today production without regards for the needs of the market and creation of demands is futile. Thus, it is absolutely necessary that a secretary be assigned specifically for the job of advertising and introducing district 22 and Chahar Bagh axis to investors, guilds, which is an important factor in securing revenues, and has to be attended to seriously.

    ¨

    Table 4: Project execution over the five year phase

    Building gross area(m2)

    Cost of construction per sq.m (million Rials)

    Total (billion Rials)

    ۱۴۹۶۰۲

    ۲۰

    ۲۹۹۲۰۴۰

    Table 5: Total revenue resulting from sale of the project units after completion and partitioning.

    The price is a key parameter in analyzing the importance of the project and can be computed irrespective of the revenues or expenses.

    In the present study all pricing and expenditure rates are based on the prices and rates of the year 2012. Needless to say timed completion and implementation of each phase of the project and its operationalization has a significant role in the overall budgeting of the project.

    Type of unit

    Net area

    Price per m2

    Revenue

     

    m2

    At the end of the 5th year

    Billion Rials

    Administrative

    ۱۸۱۰۰

    ۳۱۵

    ۵۷۰۱

    Commercial

    ۲۵۵۳۰

    ۹۱۶

    ۲۳۳۸۵

    Parking

    ۲۲۰۵

    ۳۷۳

    ۸۲۲

    Total

     

     

    ۲۹۹۰۸

    In the above computations, the stipulations in Table 6 are considered:

     

    Table 6: Stipulations

    Type of unit

    Sale price per m2 at 2013

    Annual price rise rate

    Sale price per m2 at 2017

    Commercial

    ۳۰۰

    ۲۵%

    ۹۱۶

    Administrative

    ۱۵۰

    ۱۶%

    ۳۱۵

    Price rises and annual increase rates are based on the current status quo in the region. It is essential to notice that operationalization of other projects nearby such as Chitgar Lake, Chahar Bagh rehabilitation, opening of Tehran-north highway as well as existence of certain guilds in the area can significantly contribute to its rate of business and ultimately to the sale price of the premises. In other words, in computation of the expenses, the usual rate of rise in the prices is considered whereas increases in price due to regional developments are not plugged in.