Base. Scenario and session assumptions update this selected asset only.
Decision Summary
26.8%
HBU option: hospitality · Base
Risk: Moderate · 36/100Confidence: Medium · 76%
Project Definition
- HBU option
- hospitality
- Land area
- 3,895 m²
- Gross floor area (GFA)
- 5,920 m²
- Gross leasable area (GLA)
- 5,138 m²
- Units
- 107
Baseline
Cost Assumptions
- Acquisition / land
- SAR 25,779,000
- Hard construction cost
- SAR 6,993,000
- Soft costs
- SAR 1,259,000
- Financing
- SAR 2,147,000
- Contingency
- SAR 743,000
Total project cost = land + hard cost + soft cost + contingency + financing. Development margin = profit / revenue; return on cost = profit / total project cost.
Revenue Assumptions
- Expected revenue
- SAR 50,404,000
- Sales price
- Baseline
- Occupancy
- 76%
- Exit / terminal value
- SAR 50,404,000
Timeline
- 1AcquisitionSept 2026 – Oct 2026 · 1 monthDelays the entire programme and financing drawdown.
- 2DesignOct 2026 – Feb 2027 · 4 monthsPushes approvals and contractor mobilisation.
- 3ApprovalsDec 2026 – May 2027 · 5 monthsDefers construction start and increases holding cost.
- 4ConstructionMay 2027 – Mar 2029 · 22 monthsRaises financing cost and postpones revenue.
- 5CommercialisationJul 2028 – Jan 2029 · 6 monthsSlows collections and extends payback.
- 6ExitSept 2029 – Oct 2029 · 1 monthDefers terminal proceeds and reduces present value.
Delivery delay: 0 months
Financial Results
- Total project cost
- SAR 36,921,000
- Expected revenue
- SAR 50,404,000
- Gross profit
- SAR 13,483,000
- Net profit
- SAR 13,483,000
- Development margin
- 26.8%
- Internal rate of return (IRR)
- 13.2%
- Net present value (NPV)
- SAR 3,110,000
- ROI
- 36.5%
- Equity requirement
- SAR 17,722,000
- Debt funding
- SAR 19,199,000
- Payback
- 36 months
- Break-even
- SAR 36,921,000