Project proposal For B+G+16

Mixed Used Mall

Owner
S K A A TRADING PLC
June 2025
ADDISS ABABA
ETHIOPIA

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Table of Contents
Executive Summary ..................................................................................................................... iv
1. Introduction ........................................................................................................................ 1
1.1. General Background ................................................................................................................ 2
1.1.1 Profile of the Promoter ......................................................................................................... 3
1.1.2 Purpose of the document ....................................................................................................... 3
1.2. Objective of the project ............................................................................................................ 4
1.2.1. General Objective ................................................................................................................. 4
1.2.2. Specifics Objective ............................................................................................................... 4
1.4 Project Description ................................................................................................................... 5
1.5 Project Rationale ....................................................................................................................... 7
2. Site Location............................................................................................................................... 8
2.1 Climate ..................................................................................................................................... 9
3. THE MARKET STUDY .................................................................................................. 12
3.1 Market Analysis ...................................................................................................................... 12
3.2 The Demand-Supply Gap ........................................................................................................ 14
3.5 Marketing promotion and strategy........................................................................................... 16
3.6 Competition ............................................................................................................................ 16
4. Technical Study ...................................................................................................................... 17
4.1. Description of the project Service and Product mix ................................................................ 17
4.2.2.One -Bedroom Apartment ................................................................................................... 23
4.3. Meeting Hall and Restaurant design ...................................................................................... 24
4.3.1. Meeting Hall ...................................................................................................................... 24
4.3.2. Restaurant .......................................................................................................................... 25
4.4. Architectural View of the Building ....................................................................................... 27
4.5. land Use Plan ......................................................................................................................... 31

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4.5.1. Existing site plan ................................................................................................................ 31
4.5.2. Proposed site plan for Green area development................................................................... 32
5. Project implementation ........................................................................................................ 34
5.1. Construction work and Technology........................................................................................ 34
5.2. Architectural Design & Layout .............................................................................................. 34
5.3. Structural design ................................................................................................................... 40
5.4. Reinforced concrete ............................................................................................................... 41
5.5. Foundation Design ................................................................................................................. 41
5.6. Construction Plan and Process ............................................................................................... 41
5.7. Utilities .................................................................................................................................. 42
6. Organizational Structure ..................................................................................................... 43
6.1. Organization and management ............................................................................................... 43
6.2. Manpower.............................................................................................................................. 43
6.3. Organizational Structure ........................................................................................................ 43
7. financial Requirement and Analysis .................................................................................... 46
B. Building & Construction................................................................................................. 59
7.2. Operating Expense ................................................................................................................. 61
7.4. Pre-service Expenses ............................................................................................................. 63
7.5. Underlying Assumption ......................................................................................................... 63
7.6. sources of Fund ...................................................................................................................... 64
7.7. Total Revenue ........................................................................................................................ 64
7.8. Discounted Payback Period .................................................................................................... 65
7.9. Cash flow .............................................................................................................................. 65
7.10. Benefit cost ratio .................................................................................................................. 65
7.11. Internal Rate of Return ......................................................................................................... 66
8. Conclusion and Recommendation......................................................................................... 67
8.1. Conclusion............................................................................................................................. 67
8.2. Recommendations.................................................................................................................. 68

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List of Figures
Figure 1. Site Location ....................................................................................................... 9
Figure 2. Three-Bedroom design ..................................................................................... 15
Figur 3. Two-Bedroom design type A ………………………………………………….16
Figure 4. Two-Bedroom design type B ………………………………………………... 17
Figure 5. Meeting Hall design .......................................................................................... 18
Figure 6. Restaurant design............................................................................................... 19
Figure 7. Front three-dimensional view of the Building................................................... 20
Figure 8. Ground floor of the building features a spacious entry and lobby ................... 20
Figure 9. Pleasant View of Back side of the Building .................................................... 21
Figure 10. Prepared Site Plan........................................................................................... 22
Figure 11. Proposed Site Plan .......................................................................................... 23
Figure 12. Proposed Green area development plan ......................................................... 25
Figure 13. Possible Organization Structure ..................................................................... 30

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 Executive Summary

Project Name B+G+16 Mixed use and Apartment Mall Building

Project Promoter
S K A A TRADING PLC
Promoters Address Addis Ababa City
Nationality Ethiopian

Project location Addis Ababa City Gulele sub city Woreda 04

The underground floor designed for Car Raking services

and Warehouses, Ground Floor up to 20 th Floor designed
Residential Houses and Related Facilities.
Project Composition

Premises Required 1004 M2

The total initial investment cost for implementing this project is

354,060,000 ETB is required from this amount 70% or
Planned Initial
Investment Capital 247,842,000 ETB from shareholders ,equity and the rest 30% from
bank loan which is 106,218,000 ETB.
Initial Capital : 69,744,000.00 ETB birr prepared by the Owners.
The total work force requirement of the project will be
estimated at about 150 employees. From total workers
Employment
Permanent workers are 75 (Skilled 40, & Unskilled 35).
Opportunity
Casual workers 75 (skilled 50 and unskilled 25 )

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 1. Introduction
The project envisage project proposal is planned to invest on Modern Business Center and Residential
Mall Building in Addis Ababa City Administration . Shopping malls today are increasing in dimension
with more goods and variety of wares due to improved living standards resulting to pursuit of high
quality consumer goods, which in turn reveals the demand for efficient shop-ping processes.
Ethiopia is now well-known as among the five fastest growing economies of the world. According to IMF,
the average growth of the economy is about 10.7% for the last 11 consecutive years, up to 2013/14. The
development is broad-based and in paradigm transformation. This fruits of success is attributed to the
contributions of the Ethiopians, both residing inside the country and the Diasporas’, within the
development policy and strategy environment of the Government. Besides the country is determined to
sustain the on-going growth and transformation of the economy as explained by the Growth and
Transformation Five Year Plan II i.e. for 2015/16 – 2019/20.
Ethiopia’s economic growth brought a wide range of social and economic developments, which includes,
among others, the increased expansion of business and investment. In such development environment
Addis Ababa, the capital city of the fast growing nation, Ethiopia, has its own very favorable specific
features related to business and investment in Mall. In addition to the presence of many embassies, Addis
Ababa is the seat of African Union (AU), UN-Economic Commission for Africa (ECA), many UN and
multilateral organizations, international NGOs and different national aid agencies that have thousands
of expatriates and foreigners which makes Addis Ababa the resident of many diplomatic missions next
to New York and Brussels. These developments therefore, among many other investment opportunities,
demand inclusive shopping’s of best goods and services (e.g. restaurants, cinemas, garden) within a short
time in a specific suitable area and Addis Ababa lacks such modern Mall that fits to its current
development needs and beyond.

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 Shopping malls have multifaceted contributions for the socio-economic development of a nation. It is
also expressed, in addition to the inclusive provision of best goods and quality services, in terms of job
creation, revenue generation for the government, expansion and facilitation of business and investment,
tourist attraction, etc. Moreover, shopping centers have become an integral part of the economic and
social fabric of their communities
1.1. General Background
We are delighted to introduce our proposal for a mixed-use building located on a 1004m2 site area in
the bustling city of Addis Ababa, Ethiopia.. a leading construction company with a proven track record
of delivering high-quality buildings that meet the needs of the local community. The proposed building
will be a state-of-the-art structure that will feature a combination of commercial and residential spaces,
catering to the diverse needs of the city's residents and businesses. With a total floor area of 10,116m2
and functional room areas of 8710 m2, this building will be a significant addition to the city's skyline,
providing a unique blend of modern architecture and sustainable design.

Location is key, and our proposed building will be strategically located near kechene in the side of
Addis Ababa. This prime location offers easy access to public transportation, amenities, and other
essential services, making it an ideal choice for businesses and residents who want to be in the midst of
the action.

Our building's design is inspired by the city's rich cultural heritage and its modern-day vitality. The
sleek and contemporary architecture will not only provide a visually stunning landmark but also create
a functional and efficient space that meets the needs of its occupants. The building's façade will be
designed to maximize natural light and ventilation, reducing the need for artificial lighting and
minimizing energy consumption.

Inside, the building will feature a range of commercial and residential spaces that cater to different needs
and budgets. The commercial spaces will be designed to accommodate a variety of businesses, from
small start-ups to large corporations, and will feature modern amenities such as high-speed internet,
video conferencing capabilities, and secure parking. The residential spaces will be designed with
comfort and convenience in mind, offering spacious living areas, modern kitchens, and luxurious
bathrooms.

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Our building will also feature a range of amenities that will enhance the quality of life for its occupants.
These will include a rooftop terrace with stunning views of the city, a modern gym, a swimming pool,
and a children's play area. Additionally, the building will have 24/7 security, ensuring the safety and
well-being of its residents and businesses.

we believe that sustainability is key to the future of our city. That's why our building will be designed
with sustainability in mind, incorporating green technologies and practices that reduce its carbon
footprint and minimize its impact on the environment.

Our proposal for this mixed-use building in Addis Ababa represents a unique opportunity for businesses
and residents to thrive in a modern, sustainable environment. We believe that this project will contribute
to the growth and development of the city and its community, and we look forward to working with
stakeholders to bring it to life.

In the following pages, we will provide a detailed overview of our proposal, including the building's
design, amenities, and sustainability features. We invite you to join us on this journey as we explore the
possibilities of this exciting project.
1.1.1 Profile of the Promoter
The promoter of the project is an Ethiopian business owners which take part in investment in response
of the call made by Ethiopian government to all Ethiopian and Ethiopian born to participate in the
renaissance of their country. The Promoter has accumulated ample experience, diversified-skills in the
area, and adopted working with many people. Thus, these experiences primarily motivated the promoter
to develop the inception of this project idea.
1.1.2 Purpose of the document
The objective of the feasibility study is primarily to facilitate potential entrepreneurships in project
identification for investment. The project feasibility may form the basis of an important investment
decision and in order to serve this objective; the document/study covers various aspects of project
concept development, start-up, production, marketing, , finance and business management. The
document also provides sectoral information, brief on Government policies and international scenario,
which have some bearing on the project itself. This particular feasibility is regarding the development
of mall for commercial purpose.

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 1.2. Objective of the project
1.2.1. General Objective
The major goal of this project will be to provide a high-quality, mixed-use and Apartment building that meets
the needs of businesses and residents in Addis Ababa.
1.2.2. Specifics Objective
Its specific objectives include the following.
 To create a unique and modern architectural design that enhances the city's skyline.
 To provide ample parking space for residents and visitors.
 To offer a range of commercial and residential spaces that cater to different needs and budgets.
 To promote sustainable development and environmentally friendly practices.
1.3. Key Features of the project
The proposed building, located in the heart of Addis Ababa, is designed to provide a unique and modern
living, and working space for residents and businesses. With a built up area o m2, the building will
feature two basements, with a total area of 10,116m2 , for car parking for 60 cars. This will ensure that
residents and visitors have ample parking space, making it a convenient and accessible location.

The ground floor will be dedicated to shops, a bank, and insurance, with an area of 560msq. This will
provide a convenient location for residents to access essential services and amenities, without having to
travel far. The first to 4th floors will be used for shops, with a total area of 2220 msq, offering a range
of retail options for residents and visitors.

The 5th to sixteen floors will feature apartments, with a total floor area of 5970 m2 and functional room
area of 4550.5 m2, consisting of two-bedroom standards. These apartments will be designed to provide
comfortable and spacious living spaces, with modern amenities and finishes. The apartments will also
feature large windows, providing ample natural light and stunning views of the city.
The building's design will also incorporate sustainable features, such as energy-efficient lighting and
appliances, to minimize its impact on the environment. The use of natural materials and green spaces
will also be incorporated into the building's design, to create a peaceful and natural environment for
residents and businesses to enjoy.

The proposed green area nearby, which will be requested further, will provide an additional natural
space for residents and businesses to enjoy. This will create a peaceful and serene environment, in the
heart of the city, and will be a unique feature of the building.

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 In summary, the proposed building will offer a unique and modern living and working space for
residents and businesses, with a range of amenities and features that cater to different needs and budgets.
The building's prime location, sustainable design, and proposed green area will make it a desirable
location for residents and businesses and will contribute to the growth and development of the city.
The proposed building will offer numerous benefits to residents, businesses, and the community, including:
 Prime location, with easy access to public transportation and amenities.
 Modern and spacious commercial and residential spaces.
 Ample parking space for residents and visitors.
 A range of amenities, including a meeting hall and restaurant.
 Opportunities for businesses to grow and thrive.
 Environmentally friendly design and practices.
1.4 Project Description
Shopping is an activity in which a customer browses the available goods or services
presented by one or more retailers with the potential intent to purchase a suitable selection
of them. A typology of shopper types has been developed by scholars which identifies one
group of shoppers as recreational shoppers, that is, those who enjoy shopping and view it
as a leisure activity.
A retailer or a shop is a business that presents a selection of goods and offers to trade or
sell them to customers for money or other goods.
Shoppers' shopping experiences may vary, based on a variety of factors including how the
customer is treated, convenience, the type of goods being purchased, and mood.
According to a 2000 report, in New York State, women purchase 80% of all consumer goods.
A larger commercial zone can be found in many cities, more formally called a central
business district, but more commonly called "downcity" in the United States, or the "high
street" in Britain, and souks in Arabic speaking areas. Shopping hubs, or shopping centers,
are collections of stores; that is a grouping of several businesses in a compact geographic
area. It consists of a collection of retail, entertainment and service stores designed to serve
products and services to the surrounding region.

Traditionally, shopping hubs were called bazaars or marketplaces; an assortment of stalls

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lining streets selling a large variety of goods. The modern shopping centre is now different
from its antecedents, the stores are commonly in individual buildings or compressed into
one large structure (Mall).
Markets have existed since ancient times. Some historians have argued that a type of market
has existed since humans first began to engage in trade. Open air, public markets were
known in ancient Babylonia, Assyria, Phoenecia, Greece, Egypt and on the Arabian
peninsula. However, not all societies developed a system of markets. The Greek historian,
Herodotus noted that markets did not evolve in ancient Persia.
Across the Mediterranean and Aegean, a network of markets emerged from the early Bronze
Age. A vast array of goods was traded including: salt, lapiz-lazuli, dyes, cloth, metals, pots,
ceramics, statues, spears and other implements. Archaeological evidence suggests that
Bronze Age traders segmented trade routes according to geographical circuits. Both
produce and ideas travelled along these trade routes.
The majority of retail markets are operated by the public sector and administered by local
governments. A small number are operated by private groups or individuals. Traders can
be licensed to trade on a single pitch but not at a national level or when trading on private
land. This piecemeal licensing system has contributed to declining public confidence in the
reputation of markets. A voluntary scheme has been set up by The Market People, backed
by the National Association of British Market Authorities (NABMA) to address this problem.
It provides consumers with traceability of traders and goods as well as the ability to rate
and contact the traders. A Market is issued to an operator or trader, once they have provided
proof of identity, insurance and, where required, a hygiene certificate.
A study conducted by the Retail Alliance noted that Britain had 1,124 traditional retail
markets, 605 farmers’ markets, 26 wholesale markets and more than 45,700 retail traders
and that retail markets had an annual turnover of over £3.5 billion while wholesale markets
had turnover of £4.1 billion annually. The data also shows that traditional outdoor street
markets continue to dominate the market space, but are in decline. Markets also have
significant appeal for tourists and visitors.

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Some researchers make a distinction between traditional markets and gentrified markets.
Traditional markets which are primarily held outdoors on specific days, focus on high volume
produce sold with low margins. In the gentrified market, the focus is on specialty produce,
notably organic foods, hyper-local produce, artisanal products, vintage clothing or designer
brands. Whereas traditional markets are in decline, gentrified markets represent a major
growth opportunity.
In places around the world, the term shopping centre is used, especially in Europe, Australia,
and South America. Mall is a term used predominantly in North America. Outside of North
America, "shopping precinct" and "shopping arcade" are also used. In North America, Gulf
countries, and India, the term shopping mall is usually applied to enclosed retail structures
(and is generally abbreviated to simply mall), while shopping centre usually refers to open-
air retail complexes; both types of facilities usually have large parking lots, face major traffic
arterials, and have few pedestrian connections to surrounding neighborhoods.
In the United Kingdom and Ireland, "malls" are commonly referred to as shopping centers.
Mall primarily refers to either a shopping mall – a place where a collection of shops all adjoin
a pedestrian area – or an exclusively pedestrianized street that allows shoppers to walk
without interference from vehicle traffic. In North America, mall is generally used to refer to
a large shopping area usually composed of a single building which contains multiple shops,
usually "anchored" by one or more department stores surrounded by a parking lot, while the
term "arcade" is more often used, especially in the United Kingdom, to refer to a narrow
pedestrian-only street, often covered or between closely spaced buildings.
1.5 Project Rationale
The rapid growth in industrial sector further demands linkages (vertical and like raw materials,
inputs, auxiliary materials, inputs, auxiliary material, technology, market and others that make
them to be efficient and successful in their operation. The establishment of new firms and
expansion of the existing one can have the advantage to provide those facilities.

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The government of Ethiopia has developed a conducive investment policy packages and other sect oral
reforms at federal and regional level to attract a huge private investment for the wellbeing of the nation
and its citizens as a whole. Besides, it is also currently implementing the five years growth and
transformation plan that gave a space for industrialization.
The existing promising investment opportunities, the demands of service needs along with relatively
sound investment support made by the government in such kinds of feasible projects compelled the
project promoters to initiate this plant.
Despite the promising business opportunities of the area, the trend on such kinds of investment found to
be minimal and none-existing. Particular to our capital, even though there are a number of malls in the
city, all have limitations in availing combined services for different users like Secured VIP Services, Special
restaurants for vegetarians, traditional restaurants and women only gym & swimming pools . The
mismatch between the demand for supply and supply of such kind of market center is easily observed in
the country. Therefore, the existing shortage or in adequate development of such standard mall, along
with its commercial and administrative access, better location and access, escalating demand
significantly. Thus, it is trend of urbanization and business has given the opportunity for the project to be
reason that this project will identified, proposes and assumed to be more profitable.

2. Site Location
Addis Ababa lies at an elevation of 2,200 meters (7,200 ft) and is a grassland biome, located at 9°1′48″N
38°44′24″E Coordinates: 9°1′48″N 38°44′24″E. The city lies at the foot of Mount Entoto and forms
part of the watershed for the Awash. From its lowest point, at 2,326 meters (7,631 ft) above sea level
in the southern periphery, Addis Ababa rises to over 3,000 metres (9,800 ft) in the Entoto Mountains
to the north.

The proposed building is located in the heart of Addis Ababa, the capital city of Ethiopia, on a 1004
sq.meter site. The site is strategically positioned in a vibrant and dynamic area, surrounded by a variety
of amenities and services. The building is situated near the city's central business district, providing easy
access to major financial institutions, government offices, and other commercial establishments.

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The site is also proximate to various transportation hubs, including bus and taxi stops, making it easily
accessible by public transportation. The nearby Ring Road, which encircles the city, provides quick
connections to other parts of Addis Ababa, further enhancing the building's accessibility.

Figure 1. Site Location

2.1 Climate

Addis Ababa has a subtropical highland climate (KoQ ppen: Cwb). The city has a complex mix of highland
climate zones, with temperature differences of up to 10 °C (18 °F), depending on elevation and prevailing
wind patterns. The high elevation moderates temperatures year-round, and the city's position near the equator
means that temperatures are very constant from month to month. As such the climate would be maritime if
its elevation was not taken into account, as no month is above 22 °C (72 °F) in mean temperatures.
Mid-November to January is a season for occasional rain. The highland climate regions are characterized by
dry winters, and this is the dry season in Addis Ababa. During this season the daily maximum temperatures
are usually not more than 23 °C (73 °F), and the night- time minimum temperatures can drop to freezing.
The short rainy season is from February to May. During this period, the difference between the daytime
maximum temperatures and the night-time minimum temperatures is not as great as during other times of
the year, with minimum temperatures in the range of 10–15 °C (50–59 °F). At this time of the year, the city
experiences warm temperatures and a pleasant rainfall. The long wet season is from June to mid-September;
it is the major winter season of the country. This period coincides with summer, but the temperatures are
much lower than at other times of year because of the frequent rain and hail and the abundance of cloud

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cover and fewer hours of the predominant religion was also Ethiopian Orthodox with 82.0% of the
population, while 12.7% were Muslim, 3.87% Protestant, and 0.78% Catholic
2.2. Purpose and Benefit of the project
The envisaged project deemed to contribute to the economic development of the country in the following
ways:
Source of Employment
One of the problems, that our country facing is unemployment. Therefore, the objectives of our government
are working on tackling the problem of unemployment either through creating self-employment or through
employment in other organizations. Hence, the envisaged manufacturing plant deemed to contribute
somewhat to solve the problem of unemployment. Upon completion, the project assumed to generate
additional employment opportunities for about more than 120 individuals directly on temporary and
permanent basis and more than 80 individuals indirectly.
Source of Government Revenue
To redistribute income, the government collects different forms of taxes from different business
undertakings and individuals as income tax. Among the different forms of taxes, business income tax is
collection from undertaking business activities. Therefore, the project will serve as sources of revenue for
the regional state.
Sources of Social Service
In addition to serving as a source of employment and income for the region, the project is also serves as a
source of mental satisfaction for the different users, and other bundles of services in the area. Furthermore,
it serves as the pilot experience and ground for other investor to enter in to such kinds of mall development.
Build good image of the Country
Designed to provide secured and standardized shopping place, varieties of restaurants, entertainment
options, gym & spa services for VIP families, Diplomats, Tourists and celebrities, so as it builds good image
of the country.

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 Prime location, with easy access to public transportation and amenities:
The building's location in the heart of Addis Ababa makes it an ideal spot for residents and businesses. It is
easily accessible by public transportation, with bus and taxi stops nearby, and is within walking distance to
various amenities such as shopping centers, restaurants, and entertainment venues. This prime location
ensures that residents and visitors have everything they need within reach, making it a convenient and
desirable place to live and work.
 Modern and spacious commercial and residential spaces:
The proposed building will feature modern and spacious commercial and residential spaces that are designed
to meet the needs of its occupants. The building's design incorporates natural light and ventilation, creating
a comfortable and healthy environment for residents and businesses. The spacious rooms and open floor
plans provide flexibility and freedom for residents to customize their living and working spaces according
to their preferences.
 Ample parking space for residents and visitors:
One of the major benefits of the proposed building is the ample parking space it offers. With two basements
and a total area of 4500 msq, the building can accommodate up to 156 cars. This ensures that residents and
visitors have enough parking space, eliminating the need to circle around the block looking for a parking
spot. The parking area is also well-lit and secure, providing peace of mind for residents and visitors alike.
A range of amenities, including a meeting hall and restaurant:
The proposed building will offer a range of amenities that cater to the needs of its residents and businesses.
These include a meeting hall and restaurant, which provide opportunities for socializing, networking, and
hosting events. The building will also feature a rooftop terrace, offering stunning views of the city and a
peaceful escape from the hustle and bustle. Other amenities include a gym, a swimming pool, and a children's
play area, ensuring that there is something for everyone.
▪ Opportunities for businesses to grow and thrive:

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The proposed building will provide opportunities for businesses to grow and thrive. The spacious commercial
spaces are designed to accommodate a range of businesses, from small startups to large corporations. The
building's prime location and modern design make it an attractive option for businesses looking to establish a
strong presence in Addis Ababa. With a range of amenities and services available, businesses can operate
efficiently and effectively, while also providing a comfortable and healthy environment for their employees.
▪ Environmentally friendly design and practices:
The proposed building is designed with sustainability in mind. The building's design incorporates natural light
and ventilation, reducing the need for artificial lighting and mechanical cooling. The building will also feature
energy-efficient appliances and fixtures, reducing energy consumption and minimizing its carbon footprint.
Additionally, the building will incorporate green spaces and a rooftop garden, providing a natural habitat for
local wildlife and helping to purify the air. The building's environmentally friendly design and practices make
it an attractive option for businesses and residents who value sustainability.

3. THE MARKET STUDY

3.1 Market Analysis
A number of factors affect the demand of standardized mall. Of these factors, the most important to have
influence is population growth and the level of income. The currently expanding the service and industrial
sector in the city and around has been inviting skilled and unskilled labor forces to the city; in addition, the
number of both government and non-government offices has been increasing. Above all the increase in the
number of population of the city increases for the provision of different services. Nowadays, most of the
private business organizations need their own small-medium offices in order to give their services and
provide their products, and they prefer the place that found in the center of the city.
Though the market demand gap for market mall in the city is not clearly understand there is wider gap for
such demand as many merchants, organizations are flouring to the city every day. From prior business
experiences, the demand of standard mall in the city is very high and hence the demand and the supply gap
is very wide.
Addis Ababa, which is the largest as well as the dominant political, and economic centre of the country, is
home to about 5,000,000 inhabitants (18% of urban residents in the country) in 2016 (CSA, 2013). The city
accounted for 30% of the national GDP; 20% of the country's urban labour force, 68% of the country's urban
jobs in real estate, 40% in information and communication, and 36% in financial services (Egis International

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in association with IAU-IdF&Urba Lyon , 2016). The roles and contributions of the city in the nation
economic growth are expected to grow significantly in the country`s strive for middle-income status.
Therefore, the city ought to allocate and supply adequate serviced land for development objectives (housing
which might be residential or/and non- residential buildings, land for infrastructure development, social
development, investment projects both foreign direct investments and domestic investment).
Addis Ababa is the capital of Ethiopia, which has been one of the world’s fastest-growing economies over
the past decade and has bold plans to become a major regional manufacturing and energy hub. The economy
remains heavily dependent on the agricultural sector, which accounts for 43% of economic output; this
makes the economy particularly vulnerable to adverse weather conditions like the recent droughts, which
have exposed weaknesses such as elevated domestic food prices.
The government is the primary driver of growth with large capital allocations made towards infrastructure
works which have been planned to improve access to basic services, create jobs and reduce poverty. Poverty
is still widespread however, and relief is heavily reliant on donor support.
The Ethiopian economy only started to emerge in 1991 after two decades of socialist rule. Even so, state-
owned enterprises that run the country’s telecommunications, power and banks do not operate effectively
and there has not been enough true commitment by the government to encourage privatization of industries
or a market economy. The overall business environment is mostly closed to foreigners, and any FDI is
restricted to certain sectors such as construction, manufacturing and agriculture.
Construction and development of real estate in Addis Ababa is flourishing on the back of infrastructure
expenditure on road network improvements. High-rise, mixed-use buildings across the city have been
delivered along main arterial routes primarily on small parcels of land usually owned by one individual. All
land is owned by the government with the use of urban land granted via 99, 80 and 70 year leases for
residential and social services, manufacturing and business respectively. Leases or tenancy agreements are
normally signed for the duration of one year with bi-annual rental payments made while parking and the
tenant typically pays service charges annually. Tenancy agreements do not carry rental escalations and are
renewed at the same or a renegotiated rate.

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 3.2 The Demand-Supply Gap

Addis Ababa city is a major business center and commercial route that attracts thousands of business
travelers. These are also the most important groups of potential customers that include both the local and
foreign tourists and the modern business community who choose services that range from economic to high
class standards. These groups would also choose a healthy comfortable climate that combines a more
traditional type with that of modern shops, offices, bedrooms restaurants and cafeterias. Even though when
compared with similar African cities Addis Ababa seems to have no standard mall, the existing supply is far
behind the growing demand for standard mall. Hence, the project will solve the serous demand problem in
the city.
Over the last decade, there has been a significant growth in the number of local and international trades
across the country. This increase is mainly associated with the stimulation of economic activist and partly
due to an increase in the flow of international and local traders in to the city. Since Addis Ababa is an
important commercial center in addition there is a significant increase in business activates and hence
increasing the number of traders to the city. Even though there is a lack of quantitative estimates that depict
the actual demand and also the annual growth rate Hotel facilities and urban commercial facilities are scarce
in the city. So far in the city there is no development of such kind standard mall and it is the first of its kind
in the city and will promote other investors from the city and the surrounding areas. As a result there is a
large gap between the developed and that of the supply for modern market mall accommodation hence this
project would not face any problem of demand scarcity for it business centre and it would provide good
service to customers.

3.3 Current supply of Market Mall

Commercial building/office sector has shown a dynamic change in the past few years. The reason for this
could be rapid economic growth and a supporting public infrastructural development. Other factors relevant
in the specific case of commercial buildings are the large increases in national and international businesses,
particularly firms in the services sector.
The business of multipurpose buildings in Addis Ababa is booming highly due to the recent rapid growth
experienced in Ethiopia. As a result, a good number of local and international organizations are coming in
place. Government offices which used to operate in limited spaces all over the city are also concentrating
14
on leasing new and modern buildings. Increasing numbers of international organization and NGOs which in
the past had typically converted residences into office space are now moving towards renting whole floors
or even multiple floors in modern city-center commercial buildings.
3.4 Future market or Demand of Market Mall
The demand for office space is a derived demand because firms rent space as an input to the production of
services or goods they provide to businesses and households in the local regional or national economy.
Following our survey of office space users in Addis Ababa are mainly firms providing banking, cafeteria
and restaurants, bed room, supermarkets service, computer Center service. The different customers for
commercial buildings also include shops and offices that are currently renting out to provide their goods and
services.
Future demand for office space is actually driven from growth in number of offices in the city which in turn
is influenced by the macro-economic growth in the country. Following the government second five year
growth and transformation plan (GTP), the Ethiopian economy is expected to increase by 11% for base case
scenario and 14% under the optimistic case scenario.
Assuming that demand for mall is directly related to the growth in the economy, the forecast for mall demand
is shown in the following.

Market space demand Market space demand under

Years under base case economic high case economic

Growth Growth

2017/2 9,916,543 11,304,859

018
2081/2 11,007,363 12,057,416
019
20119/ 12,218,173 12,953,878
2020
2021/2 13,562,173 13,963,577
022
2022/2 15,054,011 14,554,534
023
2024/2 16,709,952 14,987,431
025

15
Source: own estimation based on GTP’s forecasted Ethiopian Economic Growth

3.5 Marketing promotion and strategy

In order to penetrate and gain considerable market share, one of the major marketing strategies for the project
is consistently rendering quality service to its tenants. Due emphasis must be placed on improving quality
of service and facilities. The major marketing strategies to promote the project and gain considerable market
share include:

o Advertising through different means focusing on the existing service and facilities

o Promote in association to the key location and nearby business

o Working on sustained promotional work.

o Working on public relations to reach and influence key personas and organization with a capacity of
making decision.

o Keeping the quality of its service/ facilities and consistently improving with changing situations.

o Seasonal discount pricing different others customer centric marketing strategies will be used by the
company.
3.6 Competition
There are different forms of competition that may face the envisaged Mall. These are price and non-price
based competition. Moreover, there are different competitors that will compete with the project either
directly or indirectly. But Mall under discussion has diversified marketing strategies that could enable it
cope up with the different competitors in the market. Moreover it will frequently conduct competitors
research which focuses on, the strength and the weaknesses, the different competitors’ strategies, the
techniques they use in rendering the service, their customer handling methods, and others. Generally the
project has many other projects all over Addis which compete with it.

16
.

4. Technical Study
4.1. Description of the project Service and Product mix
The project includes a basement with parking spaces for 156 cars, and a ground floor with
shops, banking and insurance services, and a green area. The first to second floors have 45
shops with utilities like common bathrooms, garbage chute, and circulation areas. The
fourth to twelfth floors have three-bedroom and two-bedroom apartments, along with
circulation areas, common areas, and a garbage chute. The floor also has circulation areas,
a garbage chute, and a balcony. The total area of the project is 36,928 square meters. To
summarize the following table is provided.
The envisioned mall will provide different rental services to the different customer groups
for different purpose. The building will have basement of -1 to -2, ground and then floors.
The purpose of the building explained as follows;
 the ground floor, designed for different business centers like Supermarkets, Pharmacies,
Banking & Insurance, first floor and second floor different shops Different commercial
shops and other business activities,
 The third floor designed for Different governmental, private, NGO & other offices
services,
 4th floor Sports, game, cinema hall, art galleries and spa zone,
 5he – 16th three modern houses , special Guest houses Besides, the mall will have enough
parking facility under its two floor basement with a capacity of more than 60 cars parking
at a time, a basement floor serving as store for its customers and green area, water pool
and VIP open space parking in its compound.

17
 Measuring Multiplying Total
Floor Description of the rooms
Unit Area factor Area
1 Basements for parking with 60 car parking
Basement m2 703 1 703
slot
Shops, Banking & Insurance and other services
Ground including Green area and open m2 520 1 520
space
Shops total of 45 in number with utilities like
1st to 2nd
common bathrooms, garbage chut, circulation m2 566 2 1132
Floor
areas(lift+corridor+staircase)

4604.8
Total
Total
number Total
Measuring Average Number of of units Area
Floor Description of the Unit Rooms
Unit Area Units floor
in the
building

18
 Two bed rooms( Unit )
01=100m2; Unit
3rd to 16 02=100m2; Unit
m2 566 14 566
th floor 03=100m2; Unit
04=100m2; Unit
Total Area = 400m2)

19
 Circulation areas m2
114 1 6 684
(lift+corridor+staircase+ emergency
out stair case) with Garbage chut
Common Area m2 48 1 6 288

One bed rooms( Unit

A1=72m2; Unit
A2=72m2; Unit
m2 72 2 18 2700
A3=72m2; Unit
A4=72m2; Unit
Total Area = 288m2)
studio bed rooms(Unit )
B1=40m2; Unit
B2=40m2; Unit
m3 40 2 18 1440
B2=40m2; Unit
B=40m2; Unit
Total Area = 160m2)
circulation areas
(lift+corridor+staircase+ emergency m2 112 1 6 672
out stair case) with Garbage chut

Common Area m2 49 1 6 294

Total 5,417

20
4.2. Provided types of Apartment
4.2.1. Two-Bedroom Apartment
The two-bedroom apartment features a total of nine internal functions, including the living and dining area, open
kitchen, traditional kitchen, store, laundry, maid's room, toilet, master bedroom, master bathroom, bedroom 1,
and bathroom. The living and dining area is the largest function, spanning 49 square meters, and is perfect for
relaxing, entertaining, and dining. The open kitchen, measuring 8 square meters, is well-equipped with modern
appliances and ample counter space, allowing for convenient meal preparation. The traditional kitchen, with a
size of 6 square meters, offers an additional cooking space for those who prefer a more traditional cooking
experience.

The store, measuring 4 square meters, provides a convenient space for storing household items, groceries, and
other essentials. The laundry, with a size of 5 square meters, is equipped with a washing machine and dryer,
making it easy to keep your clothes clean and fresh.
The maid's room, measuring 4 square meters, is perfect for a live-in maid or nanny, and is located near the laundry
and store for easy access. The toilet, with a size of 4 square meters, is a modern and clean facility that offers a
comfortable and convenient space for personal hygiene.

The master bedroom, spanning 18 square meters, features a comfortable king-sized bed, ample storage space,
and an en-suite bathroom. The master bathroom, measuring 5 square meters, is a luxurious space that offers a
modern bathtub, sink, and toilet. Bedroom 1 and bedroom 2, each measuring 12 square meters, offer comfortable
queen-sized beds, ample storage space, and an en-suite bathroom. The bathroom, with a size of 5 square meters,
is a modern and clean facility that provides a comfortable and convenient space for personal hygiene. The
corridor, spanning 16 square meters, provides easy access to all the rooms in the apartment, and the three
balconies, measuring 14 square meters in total, offer a convenient space for relaxing and enjoying the fresh air
and view of the surrounding area.
 The number of house in two bed room are 20 house in two building .

21
Figure 2. Two-Bedroom design

22
4.2.2.One -Bedroom Apartment
This one -bedroom apartment is a comfortable and convenient living space that features a total of eight internal
functions, including the living and dining area, open kitchen, traditional kitchen, store/maid's room, laundry,
master bedroom, master bathroom, and bedroom 1. The apartment's internal functions are spread across a total
area of 115 square meters, providing ample space for daily living and entertaining.
The one-bedroom apartment features a total of eight internal functions, including the living and dining area, open
kitchen, traditional kitchen, store/maid's room, laundry, master bedroom, master bathroom, bedroom 1, and
bathroom. The living and dining area is the largest function, spanning 43 square meters, and is perfect for
relaxing, entertaining, and dining. The open kitchen, measuring 10 square meters, is well-equipped with modern
appliances and ample counter space, allowing for convenient meal preparation. The traditional kitchen, with a
size of 6 square meters, offers an additional cooking space for those who prefer a more traditional cooking
experience.

The store/maid's room, measuring 4 square meters, provides a convenient space for storing household items,
groceries, and other essentials. The laundry, with a size of 2 square meters, is equipped with a washing machine
and dryer, making it easy to keep your clothes clean and fresh. The master bedroom, spanning 16 square meters,
features a comfortable kingsized bed, ample storage space, and an en-suite bathroom. The master bathroom,
measuring 5 square meters, is a luxurious space that offers a modern bathtub, sink, and toilet.

Bedroom 1, measuring 12 square meters, offers a comfortable queen-sized bed, ample storage space, and an en-
suite bathroom. The bathroom, with a size of 5 square meters, is a modern and clean facility that provides a
comfortable and convenient space for personal hygiene. The corridor, spanning 7 square meters, provides easy
access to all the rooms in the apartment. Overall, the two-bedroom apartment offers a comfortable and convenient
living space, perfect for a small family or a couple.
 The total one bed room house is 20 house in two buildings .

23
 Figure 3. One-Bedroom design type A Figure 4. One-Bedroom design type B

4.3. Meeting Hall and Restaurant design

4.3.1. Meeting Hall
The meeting hall's spacious 927 square meters of floor space provides ample room for a variety of setups and
configurations to accommodate different types of events. With 1258 seats, including stage areas, the hall can
comfortably accommodate large crowds, making it an ideal venue for conferences, concerts, theatrical
performances, and other events that require a significant amount of space.

The stage areas, which measure 125 square meters, are designed to accommodate a range of performers, speakers,
and presenters. Whether it's a keynote speaker, a musical performance, or a theatrical production, the stage areas
provide ample space for artists to showcase their talents. The stages are also equipped with state-of-the-art sound
and lighting systems, ensuring that performances are of the highest quality.
In addition the meeting hall also features ladies and men's changing rooms, which measure 49 square meters.
These facilities provide a convenient and private space for performers and speakers to prepare for their
24
appearances. The changing rooms are well equipped with amenities such as mirrors, lighting, and seating, making
them a comfortable and functional space for artists to get ready. The store, which measures 36 square meters,
offers a secure and convenient space for storing equipment, props, and other supplies. The store is located near
the main hall, making it easy for staff to access and retrieve items as needed. This ensures that events run
smoothly and efficiently, without any delays or disruptions.

The open lobby waiting area, spanning 264 square meters, provides a comfortable and inviting space for attendees
to gather and socialize before and after events. The lobby is designed with a modern and sleek aesthetic, creating
a welcoming atmosphere for guests. The ample seating and well-appointed amenities, such as Wi-Fi and charging
stations, make the lobby an ideal space for attendees to relax and network. Overall, the well-organized layout of
the meeting hall ensures that events run smoothly and efficiently, making it an ideal venue for a wide range of
functions. The hall's spaciousness, state-of the-art sound and lighting systems, and convenient amenities make it
a top choice for event planners and attendees alike.

Figure 5. Meeting Hall design

4.3.2. Restaurant
The restaurant area is spacious, with a total seating capacity of 150 seats across 212square meters. The master
open kitchen, measuring 43 square meters, is well-equipped with modern appliances and ample counter space,

25
 allowing chefs to prepare delicious meals for guests. The cold storeroom, with a size of 12square meters, provides
a convenient space for storing food and beverages. The janitorial area, measuring 4 square meters, is located near
the kitchen and provides a dedicated space for cleaning and maintenance supplies.
The men's and women's toilets, each measuring 12 square meters, offer a comfortable and clean facility for
guests. The utility room, spanning 14 square meters, houses essential equipment such as electrical panels and
plumbing systems, ensuring the smooth operation of the restaurant. The well-organized layout of the restaurant
ensures that guests have a pleasant dining experience, while the kitchen and support areas are designed to
maximize efficiency and productivity.
 The total bed room is in the three building are 60 house , 25 shops are also exist three meeting hall and restaurant

Figure 6. Restaurant design

26
 4.4. Architectural View of the Building

Although functional spaces for the project were laid out in significant detail, the rest of the building had
designated spaces but not set layouts. It was at the discretion of the project promoter to devise typical layouts for
the non-detailed commercial and office spaces. To make sure that the building’s layouts were practical, the
project owner researched typical architectural layouts for laboratory and executive office spaces.
The walls and partitions throughout the floor were congruent with the structural frame and column locations.The
B+G+17 Mixed Use and Apartment building is a modern and sleek structure that boasts of a unique blend of
residential and commercial spaces. The external façade of the building is designed to be visually appealing, with
large windows and glass panels that provide ample natural light and stunning views of the surrounding area. The
building's exterior is clad in a combination of materials such as glass, steel, and concrete, which not only adds to
its aesthetic appeal but also provides durability and sustainability.

27
 Figure 7. Front three-dimensional view of the Building

The ground floor of the building features a spacious lobby area with a high ceiling, which leads to the shops,
banking and insurance services, and green area. The lobby is designed to be inviting and comfortable, with plush
seating and elegant finishes. The green area outside the lobby provides a peaceful oasis in the heart of the city,
where residents and visitors can relax and unwind.
The first to floors of second the building are dedicated to 45 shops, each with its own unique character and charm.
The shops are designed to have large display windows that showcase the latest products and services, and the
common bathrooms, garbage chute, and circulation areas are strategically located to provide convenience and
ease of access to the shops.
The 6th to sixteen one floors of the building feature three-bedroom and two-bedroom apartments, each with
its own private balcony and stunning views of the city. The apartments are designed to be spacious and
comfortable, with modern amenities such as air conditioning, high-speed internet, and state-of-the-art kitchen
28
appliances. The circulation areas, common areas, and garbage chute are designed to provide convenience and
ease of living for the residents.

29
 Figure 9. Pleasant View of Back side of the Building
Overall, the B+G+17 Mixed Use and Apartment building is a stunning structure that offers a unique blend of
residential and commercial spaces, along with modern amenities and stunning views of the city. The building's
sleek and modern design makes it a standout in the city's skyline, and its convenient location and luxurious
amenities make it an ideal choice for residents and businesses alike.

30
4.5. land Use Plan
4.5.1. Existing site plan
The total land required for the envisioned project is estimated to be 3800m2 . and the design below shows How
it will look after the project is finished. In this prospect we would also like to state that we propose the acquisition
of the land located near the mixed-use and apartment building, facing the main road, for the purpose of creating
a landscaped courtyard and outdoor green spaces.

Figure 10. Prepared Site Plan

31
4.5.2. Proposed site plan for Green area development
We propose the acquisition of the land located near the mixed-use and apartment building, facing the main road,
for the purpose of creating a landscaped courtyard and outdoor green spaces. This development will not only
enhance the aesthetic appeal of the building but also provide a peaceful and inviting atmosphere for residents,
visitors, and the wider community.
The landscaping and outdoor green spaces will be designed to create a sense of serenity and tranquility, with lush
greenery, ornamental plants, seating areas, walking paths, and native plants and trees. This will not only provide
a haven for residents and visitors but also help to reduce noise pollution and improve air quality. The greenery
will act as a natural sound barrier, absorbing and dissipating the sounds of traffic and other urban noises, while
the plants will help to purify the air by absorbing carbon dioxide and other pollutants.

The outdoor spaces will be designed to be accessible and enjoyable for all, with wheelchair accessible paths and
seating areas. The spaces will also be equipped with outdoor lighting, allowing them to be used in the evenings
and at night, providing a safe and welcoming environment for residents and visitors. The landscaping and outdoor
green spaces will be maintained by a professional team, ensuring that they remain healthy and thriving. The
building's management will also work to ensure that the outdoor spaces are kept clean and safe, providing a
welcoming environment for all.

We believe that the acquisition of this land and the development of the landscaped courtyard and outdoor green
spaces will not only enhance the value of the building but also contribute to the well-being of the community. It
will provide a peaceful and inviting atmosphere, improve air quality, and create a sense of community for
residents and visitors alike. We are confident that this proposal will be mutually beneficial, and we look forward
to working with the city administration to bring this vision to life. The design below demonstrates well what our
proposal looks like

32
Figure 11. Proposed Green area development plan

33
 5. Project implementation

5.1. Construction work and Technology

The construction project is proposed to be started onJune 2025, and is expected to be finished on January 2029
G.C. as seen in the abbreviated construction schedule above, a majority of the schedule’s time is made up of five
major activities; Concrete, building Enclosure, masonry, mechanical & HVAC and Electrical installations.
Concrete activities include processes such as placing foundations and slab on deck. The Buildings Enclosure
Phase includes erecting the scaffolding that will allow for exterior sheathing installation and bricklaying.
Mechanical and Electrical install coincide with each other due to the need for coordination between the two
divisions. There are several periods of construction during the schedule in which there are multiple construction
activities occurring at the same time. The construction site must be organized accordingly as these processes take
place. Like any other construction project, the goal of the schedule was to complete all construction activities
before the required Date of completion.
This date of completion is practical based on the time of year in which the building will be completed. The team
allowed a two-week contingency for any setbacks. Typically, winter construction tends to cause unforeseen
delays that negatively impact a construction project. These conditions can and will almost undoubtedly impact
the project schedule by causing unforeseen delays and project inefficiency.

5.2. Architectural Design & Layout

Functional spaces for the Mixed use and Apartment building construction development will be laid out in
significant detail, the rest of the building had designated spaces and layouts. It was at the preference of the project
owners to fully achieve the standards required for such wonderful project proposal. To make sure that the
building’s layouts were practical, the project oners together with the consultant firm researched typical
architectural layouts for mixed use and apartment building and developed preliminary designs with an
experienced consultant firm in the city named ------------Consulting Engineering plc.

34
35
36
37
38
39
 5.3. Structural design
One of principle deliverables of this project is the structural design of the building. The structural bays will be
coordinated with the layout of the building adjustments according to the architectural design. The frame will be
made up of a grid with repeating standard structural bays. Included in the structural system are bay sizes, shape
and size of structural members, floor compositions, columns, and curtain walls. These elements were established
to resist gravity and lateral loads as appropriate. The walls and partitions throughout the floor were congruent
with the structural frame and column locations.

40
5.4. Reinforced concrete
The project group will prepare Etabs software structural design calculations for a typical bay of a reinforced
concrete frame. In all reinforced concrete bay designs, a superimposed dead load and live load with different
load combinations will be applied. Loads were calculated based on the requirements of the minimum Design
loads for Mixed use and Apartment Buildings according to Ethiopian building code standards.

5.5. Foundation Design

Foundation design takes more into consideration than merely the loading from the columns. While the main part
of the project focused on the structural frame and its alternate designs, a preliminary foundation plan will be
designed based upon maximum load carried from the superstructure through the columns. The foundation design
conducted by the project team consisted of the selection of foundation type, determination of the bearing capacity
and the design for typical interior and exterior spread foundation system.

5.6. Construction Plan and Process

The project team developed a coordinated project schedule and construction plans that would reflect the
expectations for an actual construction project. The project schedule will be developed using the preliminary
designs given to the project team. Additionally, the group considered typical construction activities and durations
taken from similar construction projects as well as realistic constraints on building development in Addis Ababa.
For instance, it is necessary for the structural frame to be completed before concrete can be placed for the slab
on deck. Hand drawn construction plans detailing site entrances and storage areas will be coordinated with the
project schedule to give the reader visualizations of the construction site set up through various periods of the
construction process.

Based on a general program of the project owners the consultant who is going to be hired makes site studies,
develops structural designs, prepares drawings and specifications, determines quantities involved and estimated
the resultants costs. All these activities will be done in the first phase of the project which is the design stage
after the document are produced by the designers that have been received, and the works secured the project is
supposed to enter the tendering stage. At this stage contractors study the project document analyze and
subsequently determine the construction methods, built up their unit rates and submit their bids for the works.
The promoter of this project intends to compare the bids and award the contract for the lowest responsible bidder.
This, is of course, presupposes that the favorable proposal does not exceed the allocated budget. After the award
41
 is made and the contract signed between this project owner and the contractor, the project constructor is expected
to prepare and submits a detailed construction program which includes material schedule, manpower requirement
and cash flow forecast.
After the award is made and the contract signed between this project owner and the contractor, the project
constructor is expected to prepare and submits a detailed construction program which includes material schedule,
manpower requirement and cash flow forecast.
5.7. Utilities
Several utilities will be put in place to ensure smooth functioning of the project. These utilities include:
 Water Supply,
 Supplementary Electricity supply.
 Telephone line Internet Broadband
 Fuel, Oil, and lubricant
 Drainage Facility
The project’s implementation is expected to take 3 to 4 years. The major activities include
Bank loan processing construction of the building, cleaning the area around the building,
Procurement of equipment’s and start rendering services. The time schedule for the above matured major
activities is presented below:

Table: project Implementation schedule

SN Activities Date (G.C) Rough estimation

1 Design approval jun, 2025

2 Bank loan processing June -sep 2025

3 Site Development Dec 2025

4 Building and construction work June 2025- january2029

5 Preparation for service January, 2029

6 Service execution February, 2029

42
 6. Organizational Structure
6.1. Organization and management
The organizational structure should be in a way that the company able to achieve its objectives as well as the
satisfaction of standard requirement. In addition to this, the structure should fit the dynamics of all customers in
the building ranging from small business to large tenants.
6.2. Manpower
The total manpower required for the building will be decided when the project commences, and the manpower
is a skilled with experience.
6.3. Organizational Structure
The organizational structure of the project is designed by including all the necessary personnel under the right
division. At the top of the organizational structure, there will be manager with the responsibility of supervising
the overall activity of the real estate development. Depending up on the nature of the center and the amount of
work to be performs; there exist supplementary units under the general manager. Employees under each unit will
be supervised by the department head that is accountable for the general manager. General manager is appointed
by project owners with a and capacity to run the project.
The organizational structure of the project is designed by including all the necessary personnel under the right
division. At the top of the organizational structure, there will be manager with the responsibility of supervising
the overall activity of the building. Depending up on the nature of the center and the amount of work to be
performs; there exist auxiliary units under the general manager.
Employees under each unit will be supervised by the department head that is accountable for the general manager.
General Manager is appointed by owner.

43
 Owner

Manager

Figure 13. Possible Organization Structure

As clearly shown in the organizational structure, the center organization has one general manager and three main
sections. Under the general manager there are the, marketing Department, maintenance and building
administration department. Under building admin dept there exist two sections i.e., HRM & finance and general
service. Further sub sections are also organized under technical and maintenance manager. The following section
deals with the duties and responsibilities of each department.

44
A. The General Manager’s Duties and Responsibilities
 He/she will plan, organize, direct, and control the overall activities of the Mixed use and Apartment building
works.
 He/she will devise policies and strategies that will enable the center to be profitable and run with the allocated
project budget.
 He/she will incorporate modern technological innovation that will facilitate the
service delivery of the buildings to increase project owner’s satisfaction.
 He/she will plan, organize, direct, and control the human and non-human resources of the building to achieve the
short and long run objectives of the project.
B. Building Administration Department
The building Administration Department of the project has two main sections (HRM and Finance and General
Service section). It has responsible for undertaking the following activities.
 Manage the human resources and control employee’s activity
 Run nonhuman resources of the project, which include effective handling of the different resources of the
building, and devise strategies of controlling against fraud and damage.
 Will provide the right material or inventory to the center with right price at the right time.
 Will plan, organize direct and control the financial transaction of the buildings by using all the necessary
documents.
 Accountant and casher that will collect money and report auditing.
 Will develop sound financial control system by developing modern financial control systems.
 Will prepare the annual financial statements and prepare condensed reports for both the General manager and
other concerned government body.
 Follow the overall status of the business and provide maintenance and repair services.
C. The marketing Department
 Will handle the overall marketing activities of the organization which include planning, organizing, directing,
and controlling.
 Will develop effective customer handling within the project.
  Execute the promotion methods.
D. Technical and maintenance manager
 Will handle the overall physical maintenance and related issues  Will make sure electricity and back up is
organized.
45
 Follow up security issues and inform general manger.
 Works in collaboration with general service to make sure the construction site is well organized.

7. Financial Requirement and Analysis

The Financial analysis include insight to the total capital outlay required for the project which would consist of
total fixed investment cost, and pre- production costs; the source of finance for the total planned initial investment
cost requirement and other parameter of feasibility analysis including projection of profit/loss statement, cash
flow statement and payback analysis. Hence, the total initial investment cost for implementing this project is
ETB. 354,060,000 Out of the total budget of the project 70% or 247,842,000 ETB from owners’ equity and the
rest 30% or 106,218,000. ETB from bank loan at the prevailing interest rate.

Therefore, the said amount of finance is needed for undertaking the following.

46
47
48
A. Machinery equipments
SN Description Measur Qty Unit Price Total Price in Br
ement in Br

1 Hotel Service Machineries equipment

1.1 Laundry Machine with all accessories No 5 200,000.00 1,00,000.00

1.2 Bar table No 10 5,000.00 50,000.00

1.3 Bar chare No 40 2,500.00 1,00,000.00

1.4 Dining Tables No 70 4,400.00 3,080,000.00

1.5 Dining Chairs No 250 2,230.00 5,75,000.00

1.6 Coffee Tables with chairs Set 80 6,500.00 520,000.00

1.7 Chairs with tables for bed Rooms No 330 3,500.00 1,155,000.00

1.8 Bed with all accessories for Family No 30 30,000.00 900,000.00

Room

1.9 Bed with all accessories for Double No 50 25,000.00 1,250,000.00

Room

1.10 Bed with all accessories for Suit Room No 60 17,500.00 1,050,000.00

1.11 Beds with all accessories for Single No 80 15,000.00 1,200,000.00

room

1.12 Comfort Chair(sofa) for reception No 15 10,000.00 150,000.00

1.13 Sofa Fixture for family room Set 30 25,000.00 750,000.00

1.14 LCD 32” TV for Bed room Unit 220 17,200.00 3,784,00.00

1.15 LCD 60” TV for Restaurant c a f eX and Unit 25 50,000.00 1,250,00.00

Bar

1.16 Kitchen Equipments LS 2,100,00.00

1.17 Coffee machine Set 6 50,000.00 300,00.00

1.18 Water tanker Set 5 35,00.00 175,000.00

1.19 Refrigerator No 20 20,500.00 410,000.00

1.20 Balcony & alcohol display Set 12 75,000.00 900,000.00

49
1.21 Satellite Dish No 2 10,000.00 20,000.00

1.22 Satellite Receiver Equipment No 240 2,500.00 600,000.00

/Decoder

1.23 Phone set No 250 2,000.00 500,000.00

1.24 Receptionist table with chairs Set 2 40,000.00 80,000.00

1.25 Other bed room facilities LS 1,00,000.00

1.26 Decoration (painting, Carpet and LS 1,20,000.00

curtain)

1.27 Other miscellaneous Equipments LS 700,000.00

Total 0

2 Assembly Hall machinery & 0

Equipment

2..1 Multimedia projector machine & its Set 6 200,500.00 1,200,000.00

accessories

2.2 Adjustable hall screen Pecs 6 76,300.00 457,8,000.00

2.3 Decorative and stage lgh system Lot 6 168,000.00 1,008,000.00

2.4 Public addressing system of auditoria Unit 6 155,000.00 930,000.00

type

2.5 Chair with adjustable backrest and seat Unit 4000 2,000.00 8,000,000.00
(for three hall)

2.6 Laminated conference table LS 10 20,500.00 205,000.00

2.7 Carpet & curtain Pecs - 750,000.00

2.8 CD player LS 6 5,000.00 30,000.00

Total 0

3 Green and gardening area machineries 375,000.00

& equipment

50
4 Children play ground equipments LS 850,000.00

5 Children Game center machinery & LS 1,80,000.00

Equipments

6 Spa, Massage, Beauty Salon & Sauna LS 2,520,000.00

machinery & Equipments

7 Wedding Shade equipments LS 450,000.00

8 Gymnasium and fitness Center Ls 1,250,000.00

machineries Equipment

9 Swimming Pool Equipments LS 275,000.00

10 Guard Equipments LS 50,000.00

11 Store Equipments Ls 150,000.00

12 Generator 500 KVA 600,000.00

13 Other Miscellaneous Equipments & 500,000.00

machineries

Grand Total 5,549,800

51
2.2 Adjustable hall screen Pecs 6 76,300.00 457,8,000.00

2.3 Decorative and stage lgh system Lot 6 168,000.00 1,008,000.00

2.4 Public addressing system of auditoria Unit 6 155,000.00 930,000.00

type

2.5 Chair with adjustable backrest and Unit 4000 2,000.00 8,000,000.00
seat (for three hall)

2.6 Laminated conference table LS 10 20,500.00 205,000.00

2.7 Carpet & curtain Pecs - 750,000.00

2.8 CD player LS 6 5,000.00 30,000.00

Total 0

3 Green and gardening area machineries 375,000.00

& equipment

4 Children play ground equipments LS 850,000.00

5 Children Game center machinery & LS 1,80,000.00

Equipments

6 Spa, Massage, Beauty Salon & Sauna LS 2,520,000.00

machinery & Equipments

7 Wedding Shade equipments LS 450,000.00

8 Gymnasium and fitness Center Ls 1,250,000.00

machineries Equipment

9 Swimming Pool Equipments LS 275,000.00

10 Guard Equipments LS 50,000.00

11 Store Equipments Ls 150,000.00

12 Generator 500 KVA 600,000.00

13 Other Miscellaneous Equipments & 500,000.00

machineries

Grand Total 5,549,800

58
 B. Building & Construction

SN DESCRIPTION Total Cost in Br

1 Mall Building 14,163,411.00
2 Swimming pool 6,760,000.00
3 Tennis & basket Court 3,000,000.00
4 Wedding Shade & Gardening 4,000,000.00
5 Generator House 60,500.00
6 Parking & green area 2,220,000.00
7 Internal Road & Spacing 1,200,000.00
8 Open recreation area 1,760,500.00
9 Children Play Ground 2,346,000.00
10 Guard house 120,000.00
11 Fences 1,200,000.00
12 Site Development 2,675,000.00
13 Design and Supervision 500,000.00
14 Land lease Initial Fee 1,823,437.50
Total 50,828,849

C . vehicles

SN Description UOM Qty Unit Cost in Total cost in

Fr. Birr

1 Mini-Bus Unit 1 1,500,000.00 1,500,000.00

Total 1,500,000.00

59
 D office equipment

SN Description Measurement Qty

Unit cost in
Total cost in Birr
birr

1 Managerial tables Unit 1 15,800.00 15,800.00

2 Managerial chairs Unit 1 28,500.00 28,500.00

3 Office table with chair Unit 7 15,000.00 15,000.00

4 Secretarial table with chairs Unit 1 10,500.00 10,500.00

5 Computer with chairs Unit 1 40,000.00 40,000.00

6 Shelf Unit 5,500.00 5,500.00

7 Filing cabinets Unit 1 3,500.00 3,500.00

8 Guest chairs Unit 1 6500 6500

9 Fax & Telephone machine Unit 1 3,300.00 3,300.00

10 Carpet and Curtain LS 1 45,000.00

Total 114,300.00

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 7.2. Operating Expense

SN List of Items Annual cost in birr Assumptions Used

1 Audit and legal fee 96,000.00 8000 br/per ,month

2 Stationery supplies 36,000.00 3000 br/month

3 Promotional Cost 40,000.00 Lump sum annual cost

4 Property Insurance 168,009.00 2% of the building

A. salary Expense
SN Position No Qualification Monthly salary in Annual
Birr salary in
Birr

1 General manager 1 BA in management 30,000 360,000

2 Building admin 1 BA in Acct/Mgt 25,000 300,000

3 Secretary 1 10+2 in secretariat 8,000 96,000

science

4 HRM Officer 1 10+2 in 8,000 96,000

HRM/Management

5 Technical and 1 Diploma in building 8,000 96,000

maintenance maintenance
manager

6 Finance head 1 BA in Accounting 8,000 96,000

7 IT Technician 1 Diploma in computer 8,000 96,000

science/IT

Benefit (20%) 203,400

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8 Guards/Security 4 Basic 4,500 54,000

9 General 1 Diploma in 8,000 96,000

Service head Management

10 Purchaser 1 Diploma in pu rchasing 8,000 96,000

&Sup
Mgt

11 Electrician 1 10+2 in general 8,000 96,000

electricity

12 Plumber 1 10+2 in general 8,000 96,000

mechanic

13 Casher 1 10+1 in bookkeeping 6,000 72,000

14 Cleaner 5 Unskilled 4,000 48,000

15 Maintenance 1 10+2 in General 6,000 72,000

officer mechanic

16 Driver 1 10 completed 6,000 72,000

17 Marketer 1 Diploma in marketing 8,000 96,000

18 Accountant 1 Diploma in 8,000 96,000

accounting
Total 25 169,500 2,034,000
Grand Total 317,900
4,474.800

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 7.3. Operating Expenses

SN List of Items Annual cost in birr Assumptions Used

1 Audit and legal fee 36,000.00 3000 br/per ,month

2 Stationery supplies 12,000.00 1000 br/month

3 Promotional Cost 40,000.00 Lump sum annual cost

4 Property Insurance 168,019.00 2% of the building

5 Cleaning Supplies 24,000.00 2000 br. Per month

7.4. Pre-service Expenses

SN Description Cost in birr

1 Project proposal 350,000

2 Licensing fee and others

Total 350,000

7.5. Underlying Assumption

The financial analysis of the Mixed use and Apartment building is based on the data
provided in the preceding sections and the following assumptions. A. construction and
finance
construction period 2 to 4 Years
source of finance 70% equity and 30% loan
Bank interest rate 13%
Discount cash flow 10%
Accounts receivable 30 days
Raw material (perishable) 3 days
Raw Material (nonperishable) 30 days

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 Cash in hand 5 days
Accounts payable 30 days
Repair and maintenance 5% of equipment cost
00
B. depreciation
Building 10%
Building machinery and equipment 10%
Office Equipments 10%
7.6. sources of Fund
the source of fund to finance the project is planned to be from two sources. These are
project owner side and bank loan. The loan is expected to be obtained from one of the local
lending institutions. Since the project is expected to take sometimes to repay all its debts,
the bank loan is assumed to obtain on long term credit basis. Taking the financial position
of the shareholders into account, equity contribution and bank loan to finance the total
investment outlays of the project are assumed to be 30% and 70% respectively.
354,060,000.ETB is required from this amount 70% or 247,842,000ETB from owners’ equity and
the rest 30% or 106,218,000
Accordingly, the total financial requirement from the two sources will be.

SN Description Percentage share Amount

Owners Side 70% 247,842,000

Bank Loan 30% 106,218,000

Total 100% 354,060,000

7.7. Total Revenue

Based on the projected profit and loss statement, the project will generate a profit
throughout its operation life. Annual net profit after tax increases from Birr 4,320,123 at
the beginning of the project to Birr 9,675,532 during the last year of operation year.

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 7.8. Discounted Payback Period
The payback period, also called pay–off period is defined as the period required
recovering the original investment outlay through the accumulated net cash flows earned
by the project. Accordingly, based on the projected cash flow it is estimated that the
project’s initial investment will be fully recovered within 4 year.
7.9. Cash flow
The projected cash flow of the envisaged project shows that the project would generate
positive net cash flows throughout the operation years. Cumulative cash flow generated
by the project towards the end of the first operation year will amount to Birr 11,312,654.
At the end of the project life, this amount will rise to Birr 15,536,128. The detail is
presented in Annex.
7.10. Benefit cost ratio
The BCR is defined as the ratio of the sum of the project’s discounted benefits to the sum of
its discounted investment and operating costs.
When BCR > 1, accept the project
When BCR < 1, reject the project When BCR =
1, be indifferent

n Bt

(1+r)t
BCR= t=n0 Ct

t=0 (1+r)t
BCR is 2 and positive this indicates this project would return 2 birrs in benefits for each birr
spent.

65
 7.11. Internal Rate of Return
The internal rate of return (IRR) is an indicator of the efficiency or quality of an investment.
A project is a good investment proposition if its IRR is greater than the rate of return that
could be earned by alternate investments or putting the money in a bank account.
Accordingly, the IRR of the project after tax is computed to be 43.38% per Year indicating the
viability of the project.

66
 8. Conclusion and Recommendation
8.1. Conclusion
The objective of this proposal is primarily to facilitate the entrepreneur with the investment
information and provide an overview about project. The proposed feasibility may form the
basis of an important investment decision and to serve this objective, the document covers
various aspects of Concept Development, Start-up, Production, Marketing, Finance and
Business Management.
The feasibility is based on the information obtained from various agricultural sources as
well as discussions with businessmen. For financial model, since the forecast/projections
relate to the future periods, actual results are likely to differ because of the events and
circumstances that don’t occur frequently as expected.
Whilst due care and attention has been taken in performing the exercise, no liability can be
inferred for any in-accuracy or omissions reported from the results thereof. It is essential
that our report be read in its entirety with financial model to fully comprehend the impact
of key assumptions on the range of values determined.
The project is accessible and has the necessary infrastructure such as road, telephone, water,
and electric power. The proposed project clearly identifies all the necessary equipment,
inputs, management of the company and the required manpower. The highest authority in
the project will be vested in the hand of the owner. He will control the overall activities of
the proposed project. Demand projection divulges that there is high demand for feed
production in the country. Accordingly, the planned project is set to provide quality
products in the area.
The proposed project possesses wide range of economic and social benefits such as
increasing the level of investment, tax revenue and employment creation for both women
and youths. It will have also environmental concerns to protect it by planting trees around
its working area and by utilizing environmentally friendly raw materials. Generally, the
project is technically feasible, financially, and commercially viable as well as socially and
economically acceptable. Hence the project is worth implementing.

67
 8.2. Recommendations
Financial sensitivity analysis shows that the project is highly sensitive to decrease in sales
revenue but relatively less sensitive to increase in raw material and investment costs.
Therefore, it is recommended that the company should give a great attention for the possible
reasons for sales reduction. In this case, different mechanisms should be selected and
implemented to increase sales. In addition to this, the company should decrease its cost that
lowers profitability. The project must utilize modern promotional styles to capture the
planned market share. To do so, it has to design effective strategy to achieve this plan.
Although, due care and diligence has been taken to compile this document, the contained
information may vary due to any change in any of the concerned factors, and the actual
results may differ substantially from the presented information. In this case, any delaying
to implement the project creates some problem on its profitability as there is always change
like change in price of services and goods, cost of raw materials, customers preference and
purchasing power etc.….So, it is recommended that investors should implement the project
as soon as possible before any change occurred.

68