Poorly selected land site can make a project unprofitable but correctly selected site will considerably increase investor's profit. Since 1998 our company committed investment management in construction projects. Our activity covers Paris and Moscow. In these cities the demand for dwelling and commercial buildings exceeds supply. That fact significantly speeds up a sale process. The average implementation period of such projects is two years: one year for project documentation; another for construction and sale. In this period the most profitable construction projects in these cities are dwelling buildings, hotels (80-150 rooms) restaurants, malls, apartments. In such projects IRR (internal rate of return) for investor is about 20-30%. If investor wants he may not sell a constructed commercial object but manage it and get annual profit about 10%.
The construction procedure is following:
1.) Initial works - first year, 20% of total project cost.
- Selection of a suitable land site for construction;
- Analysis of ground for the possibility of a construction;
- Analysis of possibility to join engineering nets;
- Making a business plan;
- Registration of the legal entity for implementation of the project;
- Purchasing of the land site for construction;
- Performing a sketch design and obtaining permission for the construction;
2.) Construction - second year, 80% of total project cost.
- Making technical requirements for the construction;
- Performing design documentation for the construction;
- Arranging tender procedure for a selection of vendors;
- Purchasing of equipment and materials for the construction;
- Technical control of the construction and engineering works;
- Registration of building documentation;
- Sale of the building or obtaining licenses and management of the building.
Interview with the director of AIM Construction Ltd. about investment into construction projects
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Investment Management Worldwide
AIM Construction Ltd.
Management of Foreign Direct Investments
in Construction Projects
Construction in Paris
In accordance with risk-profit rate, the most attractive projects for investors are constructions in the main cities of Europe. One of the important points is a selection of a land site for construction. Correctly selected site may significantly increase profit and vice versa. In selection of a site there are a lot of parameters are to be taken into account. Those are public transport, auto roads, environment, etc. Also engineering nets and access roads are important. The future building should get enough electric energy, water supply, sewerage water outlet, and all other engineering resourses.
Dwelling buildings next to Paris, France
The quality of ground under constructed building is extremely influence cost of construction works. Problem ground may increase construction cost up to 20%. And future building should comply with a city development plan to obtain permission for the construction.