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. Alh. Yunusa is contemplating to crect a block of ten shops with two floors of offices above them to ease inadequate business spaces. The

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. Alh. Yunusa is contemplating to crect a block of ten shops with two floors of offices above them to ease inadequate business spaces. The spaces are likely to let at an average annual rent of N4500/m2 and 3500/m2 for shops and offices respectively. The net floor area will be 800m2 for shops and 1200m2 for office. Circulation space is to amount to about 15% of the aggregated tloor area and will remain under the management of the landlord whose annual outgoings is estimated at 25% of income. Alh. Yunusa requires a 20% proceed on development. The site is available at a purchase price of N1,000,000 and site wodes are estimated to cost N170,000. The rate of return in that locality for comparable devdopments is around 8%. The contract pegod is likdy to be 1 year and finance is obtainable at 12%. Rate of interest and professional fec covered 15%. Legal, agency and advertising cost are likely to be about 10% of the total net development value Determine the allowable building cost per square metre of gross floor area and its feasibility . Alh. Yunusa is contemplating to crect a block of ten shops with two floors of offices above them to ease inadequate business spaces. The spaces are likely to let at an average annual rent of N4500/m2 and 3500/m2 for shops and offices respectively. The net floor area will be 800m2 for shops and 1200m2 for office. Circulation space is to amount to about 15% of the aggregated tloor area and will remain under the management of the landlord whose annual outgoings is estimated at 25% of income. Alh. Yunusa requires a 20% proceed on development. The site is available at a purchase price of N1,000,000 and site wodes are estimated to cost N170,000. The rate of return in that locality for comparable devdopments is around 8%. The contract pegod is likdy to be 1 year and finance is obtainable at 12%. Rate of interest and professional fec covered 15%. Legal, agency and advertising cost are likely to be about 10% of the total net development value Determine the allowable building cost per square metre of gross floor area and its feasibility

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