You are required to read the following case study and prepare a Project Feasibility Study and Timeline based on the information contained in the case study.
Case Study – Residential Duplex Development Project
You own a real estate development business with cash reserves for funding development projects of $800,000.
Your current business project is to successfully complete, within a nine month timeframe, a small residential development in a regional centre (a place that is not a suburb in a capital city) in the state that you reside in. This will require you to locate:
- A regional centre in your state with a growing population that currently has more than 10,000 residents;
- A block of land for sale that is large enough to construct a duplex (two attached residences) based on the minimum land allotment size prescribed by the local council and that is selling for a price you can afford;
- A builder that will construct a duplex on your chosen block of land for a price you can afford.
Your primary objective is to create as much equity as possible (value of your constructed duplex less all project costs) and as much income as possible (rent collected from tenanted duplex less all holding costs).
Your assessment task is to prepare and submit a Project Feasibility Study and Project Timeline.
Templates for both of these will be made available to you but you are welcome to modify them or use your own templates if you wish.
The expectation is that you will source real statistics and information rather than providing estimates. This can be achieved by conducting internet research of relevant websites and emailing or telephoning relevant people and organisations.
You will also be required to prepare an explanation supported by evidence of where you sourced each item of information in your assessment submission from. How you do this is entirely up to you.
You may prepare a separate report based on each of the headings in the project feasibility study or you may include the information in your project feasibility study and project timeline as an appendix. Your explanation report cannot exceed six pages and it must also include:
Constraints and goals
Macro-environment business drivers (such as economic, competitive, resourcing and demographic factors taken into account when determining feasibility)
Micro-environment business drivers (such as technical /internal expertise, time pressures, and other people-related considerations)
There is no word limit on the feasibility study or the timeline. Academic referencing is not required for this assessment.