Just had a conversation the other day with a business friend, a bank executive regarding her query of the possibility of investing in a memorial park in the capital of island province. There are no more inventories, and the land she presented to be a possible site 3 years ago at P400/00 sm is now a city
cemetery.
What are the things that favor such a project:
1. The only memorial park in the city is sold out.
2. The selling price is P115k/plot - but there are no inventories
3. The population of city is 307 k.
4. The city is first class with annual revenue of P3.8 billion
Memorial opportunities:
1. Death rate at 0.5% = 15,000 (we can sell in one year)
2. Household 300,000/5 = 60,000
3. Class A and B buyers = 10% = 30,000.
We can have buyers in excess of inventories. We can cover by having say 20,000 columbarium
Possible sites:
1. 5.2 hectare going up north at P1,200/sm (about 60m cash)
2. JV with religious for a columbarium
For the 5.2 hectare, the yield would be about 12,500 plots that can be sold for P80k per plot or 1B
What to do:
1. Talk to the religious for combi project of MP and columbarium/crematorium
2. Agree to P1,200 stagger payment, secure pre sales commitment to pay the balance.
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