Land Acquisition Cost 579,549,000 PHP: Cost Per SQ.M

CHAPTER VII
Funding and Manner of Financing
7.1 SOURCE OF FUNDING
This project will be funded by the Ayala Land Investments, and other private investors
and developers will also be necessary to maximize the capacity of the project to
implement all the design objectives.
7.2 PROBABLE PROJECT COST
7.2.1 LAND ACQUISITION COST
Land Acquisition Cost = Lot Area (sq. m) x Assessed Value per Square Meter
Lot Area (SQ.M) 193,183

Market Value (Php) 3,000.00
LAND ACQUISITION COST 579,549,000 PHP
7.3 COMMERCIAL COMPLEX
COMMERCIAL COMPLEX
AREA/SPACES FLOOR SPACE CONSTRUCTION SUB-TOTAL
AREA (sq. FACTOR COST PER
m.) SQUARE METER
Stall 17.28 1.5 10,000.00 259,200.00
Rentable Retail
Unit 54.00 1.5 12,000.00 972,000.00
Common Spaces 2,729.87 0.40 15,000.00 16,379,220.00
Coffee Shop 214.80 1.5 12,000.00 3,866,400.00
Bank 157.92 1.5 12,000.00 2,842,560.00
Park 2,929.21 0.30 15,000.00 13,181,445.00
Maintenance Room 7.20 1.5 15,000.00 162,000.00
Garbage Room 7.20 1.5 15,000.00 162,000.00
Power House 240 1.5 10,000.00 3,600,000.00
Public Toilets 46.0 2.0 15,000.00 1,380,000.00
TOTAL= 42,804,825.00
Other Specialized Utilities

Space Area (sq. m) Cost per sq.m Estimated
(Pesos) Building
FUNDING AND MANNER OF FINANCING

185
Construction cost
(Pesos)
Commercial Complex
Water Source and 100.00 30,000.00 3,000,000.00
Treatment Facilities
Mechanical 100.00 30,000.00 3,000,000.00
Facilities
Total Building Cost (Pesos) 9,000,000.00
7.3.1 Site Development Cost
7.3.2 Land Acquisition Cost = Lot Area (sq. m) x Assessed Value per Square Meter
= 64,394.33 x 3,000
Land Acquisition Cost = 193,183,000 PHP
7.3.3 Landscaping Cost = Lot Area/2 – Building Footprint x Landscaping Cost per m2
= 64,394.33 m2/2 – 2,472.62 m2 x 10,000 Php/m2
Landscaping Cost = 297,245,450.00 PHP
7.3.4 Land Development Cost = Land Acquisition Cost + Landscaping Cost
= 193,183,000 + 297,245,450.00
7.3.5 SITE DEVELOPMENT COST = 490,428,450.00 PHP
7.3.6 FIXED EQUIPMENT COST
Equipment Quantity Cost per Unit Total Cost

Pad Mounted 1 185,000.00 185,000.00
Transformer
ACU (split type) 200 25,000.00 5,000,000.00
BIPV and Battery 2750 sq. m 50,000.00 50,000.00
Generator Set 4 400,000.00 1,600,000.00
Battery System 2 275,000.00 550,000.00
Transformer 2 624,000.00 1,248,000.00
Water Filter 1 200,000.00 200,000.00
Sewage Treatment Plant 2 286,550.00 573,100.00
Elevator 10 1,800,000.00 18,000,000.00

186
TOTAL = 27,406,100.00
7.3.7 MOVABLE EQUIPMENT COST
Equipment Quantity Cost per Total Cost

Unit
Conference Table & Chair Set 2 200.00 400.00
Multi-function hall tables and chair set 50 15,000.00 750,000.00
Fire Extinguisher 200 450.00 90,000.00
TOTAL = 840,400.00
7.3.8 PROJECT COST

SPATIAL RATE PER SPACE AREA COST
ELEMENTS SQUARE METER FACTOR

Parking Area 6,000.00 1.0 15,120. 90,720,000.00
0
Multi-level 6,000.00 1.0 6,960.0 41,760,000.00
Parking
TOTAL = 132,480,000.00
7.3.9 TOTAL BUILDING COST OF COMMERCIAL COMPLEX = 702,959,775.00
PROFESSIONAL RATE TOTAL FEE

8,438,792.50
Group 2 (Over 500M – 1B
= P 23,500,000.00
PLUS 3% of excess of
Architect 500M)
Project Construction Cost:

P 702,959,775.00
3% excess of 500 Million:

P 60,887,932.50
Structural Engineer 5% of Architectural Fee 421,939.63
Sanitary engineer 1.5% of Architectural Fee 126,581.89
Electrical Engineer 3% of Architectural Fee 253,163,78
Acoustic and ECE 5% of Architectural Fee 421,939.63
Mechanical Engineer 1.5% of Architect’s Fee 126,581.89
Project Manager 2% of Total Cons. Cost 14,059,195.5

187
Full-Time Supervisor 1.5% of Total Cons. Cost 10,544,396,63
Construction Manager 1.5% of Total Cons. Cost 10,544,396,63
Site Development 5% of Total Cons. Cost 335,147,988.75
Planner/Landscape
Architect
TOTAL Php 358,743,019.79
7.3.10 Total Project Cost (Pesos) = 1,061,702,795.00
BUILDING CONSTRUCTION COST (BCC) is divided as follows:

Architectural Cost (30%) 210,887,932.50
Utility Cost (30%) 210,887,932.50

Structural Cost (40%) 281,183,910.00
7.3.11 CONSTRUCTION WORK COST – By ratio in building cost
CONSTRUCTION COST
Fixed Equipment Cost 10% of building cost 70,295,977.5
Movable Equipment Cost 5% of the building Cost 35,147,988.75
Administrative Cost 1% of the building cost 7,029,597.75
Contingency Cost 5% of the building cost 35,147,988.75
Total = 147,621,552.75
TOTAL BUDGET REQUIREMENTS

PROJECT COST 1,061,702,795.00
CONSTRUCTION WORKS COST 147,621,552.75
PROFESSIONAL FEE 358,743,019.79
TOTAL = 1,568,067,367.54
7.3.12 STAFFING AND COMPENSATION SALARIES
Salaries listed below were derived from the Salary Data & Career Research
Center (PayScale Philippines). However, minimum wage rate of the city where the
project will be located were also considered.
COMMERCIAL COMPLEX
POSITION QUANTITY MONTHLY SUB-TOTAL
SALARY
Chief Operating Officer 1 63,000.00 63,000.00
Finance Head Officer 1 46,000.00 46,000.00
Treasury Officer 1 20,000.00 20,000.00

188
Accounting Staff 1 20,000.00 20,000.00
Sales and Marketing Manager 1 31,000.00 31,000.00
Marketing Officer 2 18,000.00 36,000.00
Leasing Personnel 2 16,000.00 32,000.00
Sales Officer 2 16,000.00 32,000.00
Human Resource Director 1 28,000.00 28,000.00
Training and Staffing Executive 1 16,000.00 16,000.00
Compensation and 1 16,000.00 16,000.00
Benefits Officer
Building Operation Manager 1 38,000.00 38,000.00
Security and Control Manager 1 54,000.00 54,000.00
Service and 1 28,000.00 28,000.00
Maintenance Engineer
Maintenance Staff 40 10,000.00 400,000.00
Security Officers 20 13,000.00 260,000.00
Supermarket Head Officer 1 31,000.00 31,000.00
Cashiers 15 12,000.00 180,000.00
Regular Employee 50 8,000.00 400,000.00
Department Store Head Officer 1 31,000.00 31,000.00
Cashiers 15 12,000.00 180,000.00
Regular Employee 50 10,000.00 500,000.00
Cinema Head Officer 1 28,000.00 28,000.00
Ticketing Staff 3 12,000.00 36,000.00
Projector Controller 2 16,000.00 32,000.00
Event Manager 1 28,000.00 28,000.00
Event Managing Staff 3 17,000.00 51,000.00
Monthly Salary Expense = 2,617,000.00
Annual Salary Expense= 31,404,000.00
7.3.13 PROJECTED GROSS ANNUAL INCOME OF COMERCIAL COMPLEX

COMMERCIAL COMPLEX
AREA/SPACES NET RENT INCOME ANNUAL
LEASABLE PER PER MONTH LEASING INCOME
AREA SQUARE (with 95%
METER occupancy rate)
Stall
3,455.00 750 2,591,250.00 31,095,000.00
Rentable Retail
Unit 9,450.00 1000 9,450,000.00 113,400,000.00
Multi-Purpose
Event Center 2,450.00 500 1,225,000.00 14,700,000.00
ANNUAL INCOME OF COMMERCIAL COMPLEX = 159,195,000.00
7.3.14 TOTAL ANNUAL EXPENSES

189
Annual salary expense 358,743,019.79
Maintenance (5% of Total Annual Income) 7,959,750.00
Promotion Cost (10% of Total Annual Income) 15,919,500.00
Waste Management Cost (1% of Total Annual 1,591,950.00
Income)
Taxes (12% of Total Annual income) 19,103,400.00
TOTAL ANNUAL EXPENSE = 403,317,619.79
7.3.15 RETURN OF INVESTMENT
7.3.16 Gross Annual Income
Gross Annual Income = Annual Income – Annual Expenses
Gross Annual Income = 159,195,000.00 - 403,317,619.79
Gross Annual Income = 118,877,380.20 PHP
7.3.17 Return of Investment
Return of Investment = Total project Cost

Gross Annual Income
Return of Investment = 1,061,702,795.00

118,877,380.20
Return of Investment of Commercial Complex = 8.931 OR 9 YEARS777.4
7.4 OFFICE BUILDING
OFFICE BUILDING
AREA FACTOR COST PER
(sq. m.) SQUARE METER
Public Circulation
Lobby 187.83 1.00 20,000.00 3,756,600.00
Elevators 153 1.00 20,000.00 3,060,000.00
Total 340.83 6,816,600.00
Administration Area
Building 1.25 20,000.00
21.09 527,250.00
Manager Office
Leasing 1.25 20,000.00
28.43 710,750.00
Department
Accounting 1.25 20,000.00
41.24 1,031,000.00
Department
Treasury 1.25 20,000.00
29.93 748,250.00
Department
Operation 27.17 1.25 20,000.00 679,250.00

190
Department
Common Toilet 8.68 1.25 20,000.00 217,000.00
Total 224.12 5,603,000.00
Office Unit
Waiting Area 9.00 1.0 7,000.000 63,000.00
Offices 20.65 1.0 12,000.00 247,800.00
Work Area 234.45 1.0 25,000.00 5,861,250.00
Common toilet 11.45 1.0 7,000.00 80,150.00
Total 276.64 6,263,100.00
Building Management
Engineering 29.25 0.80 10,000.00 234,000.0
Office
Security 10.4 0.80 10,000.00 83,200.00
Lounge/
CCTV Area
Main Electrical 23.4 0.80 10,000.00 187,200.00
Room
Mechanical 41.6 0.80 10,000.00 332,800.00
Room
AHU and 41.6 0.80 10,000.00 332,800.00
Control Room
BMS Room 19.89 0.80 10,000.00 159,120.00
Staff Lounge 4.23 0.80 10,000.00 33,840.00
Maintenance 1.69 0.80 10,000.00 13,520.00
Crew Lounge
Total 172.06 10,000.00 1,376,480.00
TOTAL PROJECT COST 20,059,180.00

(Pesos) Building
Construction cost
(Pesos)
Office Building
Water Source and 482.00 30,000.00 14,460,000.00
Mechanical 350.00 30,000.00 10,500,000.00
Facilities
Total Building Cost (Pesos) 24,960,000.00
= 64,394.33 x 3,000
7.4.2 Land Acquisition Cost = 193,183,000 PHP
Landscaping Cost = Lot Area/2 – Building Footprint x Landscaping Cost per m2

191
= 64,394.33 m2/2 – 5,526.72 m2 x 10,000 Php/m2
7.4.3 Landscaping Cost = 266,704,450.00 PHP
Land Development Cost = Land Acquisition Cost + Landscaping Cost
= 193,183,000 + 266,704,450.00
7.4.4 SITE DEVELOPMENT COST = 459,887,450.00 PHP

Pad Mounted 1 185,000.00 185,000.00
Transformer
ACU (split type) 200 25,000.00 5,000,000.00
Generator Set 2 400,000.00 800,000.00
Battery System 2 275,000.00 550,000.00
Transformer 2 624,000.00 1,248,000.00
Water Pump 5 200,000.00 1,400,000.00
Water Filter 1 200,000.00 200,000.00
Elevator 10 1,800,000.00 18,000,000.00
TOTAL =27,606,100.00

Unit
Office Equipment Set (computer set, 92 25,000.00 2,300,000.00
table, chair etc.)
Reception lounge Set 5 25000 125,000.00

192
Dining Set 172 16500 2,838,000.00
TOTAL = 6,963,400.00
7.4.7 TOTAL BUILDING COST OF OFFICE BUILDING = 539,476,130 .00

35,342,839.00
Group 2 (Over 500M – 1B
= P 23,500,000.00
PLUS 3% of excess of
Architect 500M)

P 539,476,130 .00
3% excess of 500 Million:

P 1,184,289.00
Structural Engineer 5% of Architectural Fee 1,767,141.95
Electrical Engineer 3% of Architectural Fee 1,060,285.17
Acoustic and ECE 5% of Architectural Fee 1,767,141.95
Full-Time Supervisor 1.5% of Total Cons. Cost 8,092,141.95
Construction Manager 1.5% of Total Cons. Cost 8,092,141.95
Planner/Landscape
Architect
TOTAL Php 94,945,306.23
7.4.8 Total Project Cost (Pesos) = 634,421,436.20

Utility Cost (30%) 161,842,839.00

Structural Cost (40%) 215,790,452.00
CONSTRUCTION COST
Total = 113,289,987.30

193
PROJECT COST 634,421,436.20
TOTAL = 842,656,729.73
OFFICE BUILDING
SALARY
Finance Head Officer 1 46,000.00 46,000.00
Accounting Staff 1 20,000.00 20,000.00
Sales and Marketing Manager 2 31,000.00 62,000.00
Leasing Personnel 2 21,000.00 42,000.00
Sales Officer 1 16,000.00 16,000.00
Training and Staffing 1 16,000.00 16,000.00
Executive
Compensation and Benefits 1 16,000.00 16,000.00
Officer
Building Operation Manager 1 38,000.00 38,000.00
Security and Control Manager 1 54,000.00 54,000.00
Service and Maintenance 1 28,000.00 28,000.00
Engineer
Monitoring Staff 2 28,000.00 56,000.00
Security Officer 10 13,000.00 130,000.00
Information Technology Head 1 44,000.00 44,000.00
Information Technology Staff 3 12,000.00 36,000.00
Lobby Receptionist 2 10,000.00 20,000.00
Lobby Doorman 3 10,000.00 30,000.00
Monthly Salary Expense = 847,000.00
Annual Salary Expense ₱ 10,164,000.00

194
7.4.11 PROJECTED GROSS ANNUAL INCOME OF OFFICE BUILDING
OFFICE BUILDING
AREA/SPACES NET RENT INCOME ANNUAL
LEASABLE PER PER MONTH LEASING
AREA SQUARE INCOME
METER
Rentable Office Spaces
20300 750.00 15,225,000.00 182,700,000.00
Cafeteria
675 200.00 135,000.00 1,620,000.00
Parking Space
296 slot 50.00 444,000.00 5,328,000.00
AREA/SPACES Min. event Rent per INCOME PER ANNUAL

per month Event MONTH LEASING
INCOME
Multi-Function Hall
8 25,000.00 200,000.00 2,400,000.00
ANNUAL INCOME OF OFFICE = 192,048,000.00
7.4.12 TOTAL ANNUAL EXPENSES
Annual salary expense 10,164,000.00

Maintenance (5% of Total Annual Income) 9,602,400.00
Promotion Cost (10% of Total Annual Income) 19,204,800.00
Waste Management Cost (1% of Total Annual 1,920,480.00
Income)
Taxes (12% of Total Annual income) 23,045,760.00
TOTAL ANNUAL EXPENSE = 63,937,440.00
7.4.13 RETURN OF INVESTMENT
7.4.14 Gross Annual Income
Gross Annual Income = Annual Income – Annual Expenses
Gross Annual Income = 192,048,000.00- 63,937,440.00
Gross Annual Income = 128,110,560.00 PHP
7.4.15 Return of Investment
Return of Investment = Total project Cost

195
Gross Annual Income
Return of Investment = 842,656,729.73

128,110,560.00
Return of Investment of Office Building = 6.5775 OR 7 YEARS
7.5 RESIDENTIAL CONDOMINIUM
RESIDENTIAL CONDOMINIUM
AREA FACTOR COST PER
(sq. m.) SQUARE METER
Reception Area 130.6 1.5 25,000.00 4,897,500.00
Administration
285.98 1.5 20,000.00
Office 8,579,400.00
Hallways/Corridors 500 1.5 20,000.00 15,000,000.00
Building Service
and Maintenance 1140.98 1.5 20,000.00
Area 34,229,400.00
Adult Pool 400 0.6 25,000.00 6,000,000.00
Kiddie Pool 80 0.6 25,000.00 1,200,000.00
Clinic 370 1.5 25,000.00 13,875,000.00
Children Playground 200 0.3 20,000.00 1,200,000.00
Toilet 650 2 20,000.00 26,000,000.00
Badminton Court 200 0.6 16,000.00 1,920,000.00
Table Tennis Court 200 0.6 16,000.00 1,920,000.00
Jogging Lane 430 0.6 16,000.00 4,128,000.00
Club House 720 1.5 20,000.00 21,600,000.00
Garden 492 0.3 16,000.00 2,361,600.00
Multi-Purpose Room 1154 1.5 25,000.00 43,275,000.00
Sub Total = 186,185,900.00
Condominium Units
AREA/SPACES NO. OF FLOOR SPACE CONSTRUCTI SUB-TOTAL
UNITS AREA FACTO ON COST
(sq. m.) R PER SQUARE
METER
Studio Type 104 17.76 1.50 30,000.00 83,116,800.00
1 Bedroom 133 35.18 1.50 30,000.00
Unit 210,552,300.00
2 Bedroom 63 38.44 1.50 30,000.00
Unit 108,977,400.00
3 Bedroom 56 42.28 1.50 30,000.00
Unit 106,545,600.00
Sub Total = 509,192,100.00

196
(Pesos) Building
Construction cost
(Pesos)
Residential Condominium
Water Source and 500 30,000.00 15,000,000.00
Mechanical 350 30,000.00 10,500,000.00
Facilities
Subtotal = 25,500,000.00
= 64,394.33 x 3,000
7.5.2 Land Acquisition Cost = 193,183,000 PHP
Landscaping Cost = Lot Area/2 – Building Footprint x Landscaping Cost per m2
= 64,394.33 m2/2 – 7, 383,68 m2 x 10,000 Php/m2
7.5.3 Landscaping Cost = 248,133,200 PHP
Land Development Cost = Land Acquisition Cost + Landscaping Cost
= 193,183,000 + 248,133,200
7.5.4 SITE DEVELOPMENT COST = 441,316,200 PHP

Pad Mounted 1 185,000.00 185,000.00
Transformer
ACU (split type) 200 25,000.00 5,000,000.00
Swimming Pool Pump 1 20,000.00 20,000.00

and Filter
Generator Set 4 400,000.00 1,600,000.00
Battery System 2 275,000.00 550,000.00

197
Transformer 2 624,000.00 1,248,000.00
Water Pump 7 200,000.00 1,400,000.00
Water Filter 1 200,000.00 200,000.00
Elevator 10 1,800,000.00 18,000,000.00
TOTAL =28,826,100.00

Unit
Office Equipment Set (computer set, 92 25,000.00 2,300,000.00
table, chair etc.)
Reception lounge Set 5 25000 125,000.00
Sala Set 172 25,000.00 4,300,000.00
Bed Set 228 20000 4,560,000.00
Dining Set 172 16500 2,838,000.00
TOTAL = 14,963,400.00
7.5.7 TOTAL BUILDING COST OF CONDOMINIUM = 1,205,983,700 .00

79,696,740.00
Group 2 (Over 1 Billion)
=P38,500,000.00
Plus 2% of excess of 1
Architect Billion

P 1,205,983,700 .00
2% excess of 1 Billion:

198
P41,196,740.00
Structural Engineer 5% of Architectural Fee 3,984,837.00
Electrical Engineer 3% of Architectural Fee 2,390,902.20
Acoustic and ECE 5% of Architectural Fee 3,984,837.00
Full-Time Supervisor 1.5% of Total Cons. Cost 18,089,755.50
Construction Manager 1.5% of Total Cons. Cost 18,089,755.50
Planner/Landscape
Architect
TOTAL Php 213,046,516.40
7.5.8 Total Project Cost (Pesos) = 1,419,030,216.40

Utility Cost (30%) 361,795,110.00

Structural Cost (40%) 482,393,480.00
CONSTRUCTION COST
Total = 253,256,577.00

PROJECT COST 1,419,030,216.40
TOTAL = 1,885,333,309.80
RESIDENTIAL CONDOMINIUM

199
SALARY
Finance Manager 1 46,000.00 46,000.00
Sales and Marketing 1 31,000.00 31,000.00
Manager
Property Operation 1 25,000.00 25,000.00
Manager
Building Operation 1 38,000.00 38,000.00
Manager
Leasing and Asset 1 41,000.00 41,000.00
Manager
Legal Officer 1 46,000.00 46,000.00
Tax and 1 16,000.00 16,000.00
Disbursement
Officer
Accountant 1 20,000.00 20,000.00

Sales Officer 1 16,000.00 16,000.00
Chief Security Officer 1 54,000.00 54,000.00
Central 1 19,000.00 19,000.00
Monitoring
Personnel
Security Officers 10 13,000.00 130,000.00
Services and 1 28,000.00 28,000.00
Maintenance Engineer
Front Desk 1 12,000.00 12,000.00
Information Officer
Leasing Managing Staff 1 21,000.00 21,000.00
Asset Managing Staff 3 21,000.00 63,000.00
Tenant Managing Officer 1 21,000.00 21,000.00
Training and 1 16,000.00 16,000.00
Staffing Executive
Compensation 1 16,000.00 16,000.00
and Benefits
Officer
Monthly Salary Expense = 902,000.00
Annual Salary Expense ₱ 10,824,000.00
7.5.11 Condominium Return of Investment for Best Result
Spaces Area( sq. m) Unit Cost(Pesos) Income/Year

200
(Pesos)
Access:Indoor 240.00 150 5,000.00 9,000,000.00
Gym
Club House 360.00 150 3,000.00 5,400,000.00
Access: 166.80 150 3,000.00 5,400,000.00
Swimming Pool
Mid Zone & High Zone Exemption for payment
Function Hall 390.00 10,000.00 120,000.00
Occasional
Subtotal(Pesos) P30,720,000.00
7.5.12 PROJECTED GROSS ANNUAL INCOME OF RESIDENTIAL CONDOMINIUM
Studio-type Unit (104 units)

TOTAL CONTRACT PRICE
1,250,190
RESERVATION FEE
20,000.00
TOTAL
RESERVATION FEE 1,230,190
YEAR DOWNPAYMENT MONTHLY Total
(20%) (24 mos.) AMORTIZATION (10 Compensation
years) with 15%
annual interest
10,251.00 8,201.00
Year 1
123,019.00 127,933,976.00
Year 2
123,019.00 127,933,976.00
Year 3
195,72900 203,355,868
Succeding Years
195,72900 203,355,868
195,72900
1 Bedroom Unit (63 units)

TOTAL CONTRACT PRICE 1,380,000
RESERVATION FEE
20,000.00
TOTAL 1,360,000
RESERVATION FEE

201
years) with 15%
annual interest
11,333.00 9,067.00
Year 1
136,000.00 8,568,000.00
Year 2
136,000.00 8,568,000.00
Year 3
213,067.00 1,342,221.00
Succeding Years
213,067.00 1,342,221.00
213,067.00

RESERVATION FEE
20,000.00
TOTAL 2,036,000
RESERVATION FEE
(20%) (24 mos.) AMORTIZATION Compensation
(10
years) with
15% annual
interest
17,133.00 13,707.00
Year 1
205,600.00 11,513,600.00
Year 2
205,600.00 11,513,600.00
Year 3
322,107.00 18,037,992.00
Succeding Years
322,107.00 18,037,992.00
322,107.00

202
RESERVATION FEE
20,000.00
TOTAL 3,130,000
RESERVATION FEE
years) with 15%
annual interest
25,250.00 21,000.00
Year 1
315,000.00 14,490,000.00
Year 2
315,000.00 14,490,000.00
Year 3
493,500.00 22,701,000.00
Succeding Years
493,500.00 22,701,000.00
493,500.00
Total Annual Sales of Condominium for the First

10 Years
Year 1 162,505,576.00
Year 2 162,505,576.00
Year 3 245,437,081.00
Year 4 245,437,081.00
Year 5 245,437,081.00
Year 6 245,437,081.00
Year 7 245,437,081.00
Year 8 245,437,081.00
Year 9 245,437,081.00
Year 10 245,437,081.00
7.5.13 Condominium Return of Investment
Annual Income - Annual Expense = Net Income
Return of Investment = Budget Required - Net Income (until the year of return)
TOTAL BUDGET REQUIRED: ₱1,885,333,309.80

203
Annum Annual Income Annual Net Income Return of
Expense Investment
Year 1 162,505,576.00 10,824,000.00 151,681,576.00 1,733,651,733.80
Year 2 162,505,576.00 10,824,000.00 151,681,576.00 1,581,970,157.80
Year 3 245,437,081.00 10,824,000.00 234,613,081.00 1,347,357,076.80
Year 4 245,437,081.00 10,824,000.00 234,613,081.00 1,112,743,995.80
Year 5 245,437,081.00 10,824,000.00 234,613,081.00 878,130,914.80
Year 6 245,437,081.00 10,824,000.00 234,613,081.00 643,517,833.80
Year 7 245,437,081.00 10,824,000.00 234,613,081.00 408,904,752.80
Year 8 245,437,081.00 10,824,000.00 234,613,081.00 174,291,671.80
Year 9 245,437,081.00 10,824,000.00 234,613,081.00 +60,321,409.20
(Investment
Returned)
RETURN OF INVESTMENT
Commercial Complex 9 YEARS
Office Building 7 YEARS
Residential Condominium 9 YEARS
7.6 Maintenance and Sustainability
Building construction and operations can have extensive direct and
indirect impacts on the environment, society, and economy. The field of
sustainable design seeks to balance the need of these areas by using an
integrated approach in creating a very satisfying solution.
Energy efficiency over the entire life cycle of a building is the most
important goal to sustain the building. Architects use many different passive and
active techniques to reduce the energy needs of buildings and increase their
ability to capture or generate their own energy. Sustainable construction material
is chosen to keep in mind various characteristics like zero or low toxicity, high
recyclability, zero or low off-gassing of harmful air emissions, durability, reused
and recycled content, and sustainably harvested material.
The sustainability of a building is one of the essential factors to be
considered in the application of this practice. The main objective of sustainable
designs is to reduce or completely avoid depletion critical resources like energy,

204
water, and raw materials, to prevent the environmental degradation caused by
facilities and infrastructure throughout their life cycle, and to create a livable and
safe environment.
Dimensional planning and other material efficiency strategies are used to
reduce the construction costs. Construction and demolition material can be
reused and recycled for e.g. inert demolition material can be used as a base
course for landfills. Proper planning for managing materials through
deconstruction, demolition and construction are done. Various proposals have
been made regarding rationalization of the standardization landscape for
sustainable building materials.

205

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CHAPTER VII

Funding and Manner of Financing

7.1 SOURCE OF FUNDING

implement all the design objectives.

7.2 PROBABLE PROJECT COST

7.2.1 LAND ACQUISITION COST

Lot Area (SQ.M) 193,183

7.3 COMMERCIAL COMPLEX

Other Specialized Utilities

FUNDING AND MANNER OF FINANCING

7.3.1 Site Development Cost

Land Acquisition Cost = 193,183,000 PHP

= 64,394.33 m2/2 – 2,472.62 m2 x 10,000 Php/m2

Landscaping Cost = 297,245,450.00 PHP

7.3.4 Land Development Cost = Land Acquisition Cost + Landscaping Cost

7.3.5 SITE DEVELOPMENT COST = 490,428,450.00 PHP

7.3.6 FIXED EQUIPMENT COST

Equipment Quantity Cost per Unit Total Cost

BIPV and Battery 2750 sq. m 50,000.00 50,000.00

Generator Set 4 400,000.00 1,600,000.00

Battery System 2 275,000.00 550,000.00

Transformer 2 624,000.00 1,248,000.00

Water Filter 1 200,000.00 200,000.00

Sewage Treatment Plant 2 286,550.00 573,100.00

Elevator 10 1,800,000.00 18,000,000.00

FUNDING AND MANNER OF FINANCING

7.3.7 MOVABLE EQUIPMENT COST

Equipment Quantity Cost per Total Cost

Multi-function hall tables and chair set 50 15,000.00 750,000.00

Fire Extinguisher 200 450.00 90,000.00

7.3.8 PROJECT COST

ELEMENTS SQUARE METER FACTOR

7.3.9 TOTAL BUILDING COST OF COMMERCIAL COMPLEX = 702,959,775.00

PROFESSIONAL RATE TOTAL FEE

Project Construction Cost:

3% excess of 500 Million:

FUNDING AND MANNER OF FINANCING

7.3.10 Total Project Cost (Pesos) = 1,061,702,795.00

BUILDING CONSTRUCTION COST (BCC) is divided as follows:

Utility Cost (30%) 210,887,932.50

7.3.11 CONSTRUCTION WORK COST – By ratio in building cost

TOTAL BUDGET REQUIREMENTS

7.3.12 STAFFING AND COMPENSATION SALARIES

project will be located were also considered.

FUNDING AND MANNER OF FINANCING

Annual Salary Expense= 31,404,000.00

7.3.13 PROJECTED GROSS ANNUAL INCOME OF COMERCIAL COMPLEX

7.3.14 TOTAL ANNUAL EXPENSES

FUNDING AND MANNER OF FINANCING

7.3.15 RETURN OF INVESTMENT

7.3.16 Gross Annual Income

Gross Annual Income = Annual Income – Annual Expenses

Gross Annual Income = 159,195,000.00 - 403,317,619.79

Gross Annual Income = 118,877,380.20 PHP

7.3.17 Return of Investment

Return of Investment = Total project Cost

Return of Investment = 1,061,702,795.00

Return of Investment of Commercial Complex = 8.931 OR 9 YEARS777.4