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Building A Shopping Mall by adindril7: 11:06am On Oct 02, 2016 |
Hey Guys, Im planning to build a shopping center on one acre of land and have no idea of how many shops can be built on it or what the structures would be, im pretty open to any ideas. I was referred to a building contractor by a friend.. He gave me these pictures and he said he could be able to build this for 120Million naira ( First two pictures) [img][/img][img][/img] During the course of our discussion, he also said he could be able to build 9 shops and 1 eatry on the site for 36 Million Naira. He now sent me the plans of what he's proposing. I also contacted another reputable construction company, they said they could be able to build 10 - 13 shops on the same land for between 65M - 85M, they've already done some projects for me which im impressed with. Now im confused, i would be saving a huge amount of money if the building contractor handles it because what he's proposing is way lesser than the big construction company, but im a little bit concerned if he's only trying to scam me as i've never dealt with him before. I dont know how to attach photos to this site, but the first and second pictures are what he said he could build for 100 Million naira.. The Third and fourth pictures are what he said he can build for 36 Million naira, please who do you think i should trust with this project. Im a Nigerian in abroad, i need to make a decision this week or next. 2 Likes
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Re: Building A Shopping Mall by arthurshelly: 11:57am On Oct 02, 2016 |
What is the size of each shop?why building eatery?did you want to set up eatry here or lease it out?which state you have the land?how open the area this land is? |
Re: Building A Shopping Mall by adindril7: 2:39pm On Oct 02, 2016 |
I dont have any idea of the shop size, i want to build an eatery so as to draw attention to the shopping centre.. i intend to lease all the shops and the eatery out. The sole intention of the project is to make profits, from the investment. The land is in shimawa behind redemption camp, i bought it from a reputable property company. There would also be other shops around, the whole area is still being developed. Im open to any ideas, suggestions.. 1 Like |
Re: Building A Shopping Mall by arthurshelly: 5:08pm On Oct 02, 2016 |
You need to have the idea of the shop size.if the shop is stardard it will determine the amount for the rent...did you think building shopping complex in the area now will give you good return yearly?how much did you think you will make from,the shopping complex in 10yrs now, compare to when you build house for rent in that area?why asking this question is because of bad experimce a friend had with building a shopping complex in area where rented appartment will double more.in my own view you cant build up to 45shop on your land with more space for car park and other basic stuff....i will I advice you to make it a story building.the ground floor is for shop while the first floor is for offices to lease out since upstairs shop don't move here in Nigeria.if its rented apartment you care to build on the land you can build up to 2bedrom 16flat or 6 duplex with more space up to two and half plot..or you invest more on landed property.its pay more that complex and rented apartment here in Nigeria...Goodluck bro 2 Likes 1 Share |
Re: Building A Shopping Mall by olumide4christ: 7:23pm On Oct 02, 2016 |
adindril7: Sir, as a Quantity Surveyor with many years of experience in numerous projects & with my knowledge of current market prices, I seriously doubt that your building contractor will complete the shopping mall or 9 No. Shops with eatery for N100 million or N36 million respectively. When you add the cost of external works (paving stones, water treatment plant, septic tank & soakaway pit, fencing, drainage, water tank gantry, etc) without which the shopping mall/eatery will not be functional, such figures listed above are unrealistic! 3 Likes |
Re: Building A Shopping Mall by adindril7: 8:49pm On Oct 02, 2016 |
Thank you very much @olumide4christ. I really appreciate your feedback, this proves to me beyond reasonable doubt that this engineer guy wants to scam me, i also thought these offers are too good to be true, you just confirmed my suspicions. I would rather go with the reputable construction company that had handled many other projects for me before. I still would love to continue with this commercial project even if it wouldn't fetch quick money. I would be glad if i could get more ideas on what to include in this project to make it more lucrative... Do you guys think i shouldn't include eatery in the building project? what about building offices? How many shops, could be built on one acre of land with parking lot? |
Re: Building A Shopping Mall by olumide4christ: 12:39am On Oct 03, 2016 |
adindril7: [b]Who says the commercial project wouldn't fetch you quick money In fact, it is easier to make money from commercial projects than residential projects, unlike what someone said above. Commercial tenants pay rent faster and easier than one-man residential tenants. Shopping malls are opening up everywhere in Lagos here, I don't know where your site is located. Offices are still a hot cake here in Lagos WHEREAS there is currently a glut of residential houses that are vacant simply because they are overpriced and/or the purchasing power of individuals has been reduced due to the economic downturn in the country. What about eateries ---- many fast food retail chains are opening up outlets in different locations to keep abreast with the competition. What about event centers ---- you could also consider including that depending on the size of your land and location. I did a kind of feasibility study for a silent Nairalander here earlier this year....the income to be obtained from hiring out event centers for just 2 times in a month (to be minimalistic) within 1 year is great and the return on investment is quick, far more than a residential building. In some locations in Lagos, an event center could be hired for btw N300,000 -N800,000 for just a day depending on the seating capacity, car parking space, location, etc. That amount is what you would get from 1 tenant renting a 2-bedroom or 3-bedroom flat in 1 year or even 2 years, depending on the location. Funny enough, with the advent of marquee tents now commonly used for event centers, you would spend less on initial capital expenditure than you would on building a block of flats for residential flats. Advantages of commercial properties over residential properties - 1. Commercial tenants pay rent faster and easier than one-man residential tenants 2. Commercial tenants maintain the property better than residential tenants 3. Commercial properties have higher return on investment and faster payback period than residential properties 4. It is faster to get tenants for commercial properties than residential. The picture attached below is a commercial development beside Grand Square (a popular shopping mall -the building with red roof in the background) on the highbrow Adetokunbo Ademola street in Victoria Island, Lagos in which I was the Quantity Surveyor. The project ended February 2016 and 2-3 months later, the property has been leased by a corporate entity; of course the rental rates in that axis is one of the highest in Lagos, but it was leased very fast despite the harsh economy. Please go ahead with your plan; you are on the right track!!![/b] SHALOM! 8 Likes
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Re: Building A Shopping Mall by bridgesjnr: 6:11am On Oct 03, 2016 |
Let us help you with your interior decor worries for your mall.... contact WallDesignKing, coz we got the best wallpaper, 3D wall panels and 3D Epoxy floors that will make your mall stand out from the pack... check my SIG for mor info... |
Re: Building A Shopping Mall by koxi: 6:11am On Oct 03, 2016 |
OK |
Re: Building A Shopping Mall by Category1: 6:17am On Oct 03, 2016 |
[size=25pt]bro u have money [/size] 7 Likes |
Re: Building A Shopping Mall by okonja(m): 6:21am On Oct 03, 2016 |
God bless the op for wanting to bring home their money there and invest here unlike our politicians packing our money here and dump it there. On a serious note, @adindril7 you might wanna give out your Surveyor work to @Olumide4christ because he didn't just give a tangible advice but shows why you should hire him. Donate your likes to give the job to Olumide4christ 32 Likes 1 Share |
Re: Building A Shopping Mall by hemucology(m): 6:24am On Oct 03, 2016 |
Only Good on P. O. P , Cement works and parafect See my signature for more info.
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Re: Building A Shopping Mall by AreaFada2: 6:29am On Oct 03, 2016 |
Good idea. Kudos. But beware. Country is hard now & money hard to come by. You will see all manners of offers. Some will be questionable. But maybe you should properly look at location. If it is ideal for now or better for the future, like 10 years away. I wonder if a developing area is best for shopping mall, except it is along a major road. After all, it is people who shop. The busier the area, the more rent you can charge. Same with using eatery to attract people. It has to be very visible. Of course land will also cost more in a busy area. Before you spend 65-85m, look at it more carefully. And that amount might increase as prices go up. Once you have already spent 85m and it needs a further 10m to finish properly, you cannot go back. Good luck. 1 Like |
Re: Building A Shopping Mall by InvertedHammer: 6:32am On Oct 03, 2016 |
adindril7:/ I doubt if you have a clear vision/idea of what you are getting into. I can see you abandoning this project halfway. You will need a team of building experts, contractors and subcontractors to pull this off. N100m will not be enough. You will be better off building a strip mall or a shopping plaza. \ |
Re: Building A Shopping Mall by okonja(m): 6:32am On Oct 03, 2016 |
Category1: Africa isn't poor, she's just poorly managed. 5 Likes |
Re: Building A Shopping Mall by 4nobody4every1: 6:34am On Oct 03, 2016 |
Re: Building A Shopping Mall by uzedo1(m): 6:35am On Oct 03, 2016 |
@op, just be very careful because when it comes to money, people can say anything just to convince you to path with your money. And you know, when money goes out to the wrong hands, its hard to come back. Try to involve a Lawyer in your activity, so as to keep track of the happenings and be careful of those omornile in that area. 1 Like |
Re: Building A Shopping Mall by protocol(m): 6:37am On Oct 03, 2016 |
Well i will say ur location is too remote for such venture. Hmm check well b4 u sink ur money in an unproductive venture Wish u gud luck man 2 Likes 1 Share |
Re: Building A Shopping Mall by Pavore9: 6:37am On Oct 03, 2016 |
Picking up ideas. 1 Like |
Re: Building A Shopping Mall by arthurshelly: 6:42am On Oct 03, 2016 |
Olumude4chist you said it all as a professional Will all know that commercial building get quick return than residecial building . @olu please N please don't compare Adetokubo Ademola to shimawa where the land located,did you believe that there are some area where shopping complex won't pay faster than residecial? @olu did you think chimawa area has develop to invest big shopping complex like this and make ur return fast? A friend of my build a mighty shopping complex in ifo two yrs ago,believed me 90% space in the complex still vacant till date.remember ifo is more populated and open for commercial than chimawa. Yes many fast food are open I Lagos not in ogun state where chimawa is. Someone that own a plot of land in adetokubo Ademola will make 70% more profit in short time than someone that own 5acre in chimawa? @adindrin7 do ur market survey carefully since you are building this to make quick return Good day to you all [b]Who says the commercial project wouldn't fetch you quick money In fact, it is easier to make money from commercial projects than residential projects, unlike what someone said above. Commercial tenants pay rent faster and easier than one-man residential tenants. Shopping malls are opening up everywhere in Lagos here, I don't know where your site is located. Offices are still a hot cake here in Lagos WHEREAS there is currently a glut of residential houses that are vacant simply because they are overpriced and/or the purchasing power of individuals has been reduced due to the economic downturn in the country. What about eateries ---- many fast food retail chains are opening up outlets in different locations to keep abreast with the competition. What about event centers ---- you could also consider including that depending on the size of your land and location. I did a kind of feasibility study for a silent Nairalander here earlier this year....the income to be obtained from hiring out event centers for just 2 times in a month (to be minimalistic) within 1 year is great and the return on investment is quick, far more than a residential building. In some locations in Lagos, an event center could be hired for btw N300,000 -N800,000 for just a day depending on the seating capacity, car parking space, location, etc. That amount is what you would get from 1 tenant renting a 2-bedroom or 3-bedroom flat in 1 year or even 2 years, depending on the location. Funny enough, with the advent of marquee tents now commonly used for event centers, you would spend less on initial capital expenditure than you would on building a block of flats for residential flats. Advantages of commercial properties over residential properties - 1. Commercial tenants pay rent faster and easier than one-man residential tenants 2. Commercial tenants maintain the property better than residential tenants 3. Commercial properties have higher return on investment and faster payback period than residential properties 4. It is faster to get tenants for commercial properties than residential. The picture attached below is a commercial development beside Grand Square (a popular shopping mall -the building with red roof in the background) on the highbrow Adetokunbo Ademola street in Victoria Island, Lagos in which I was the Quantity Surveyor. The project ended February 2016 and 2-3 months later, the property has been leased by a corporate entity; of course the rental rates in that axis is one of the highest in Lagos, but it was leased very fast despite the harsh economy. Please go ahead with your plan; you are on the right track!!![/b] SHALOM! [/quote] 1 Like |
Re: Building A Shopping Mall by PqsMike: 6:45am On Oct 03, 2016 |
adindril7: Well, I'll advise you to have a standard form of contract with a detailed bill of quantity prepared by a qualified quantity surveyor. Then, you can decide tour payment plan... Either on stage payment or by valuing the actual work done on site. You really need to involve a Quantity Surveyor to avoid a failed project. Talk to me, I'm a Quantity Surveyor. Check my Signature! Regards. |
Re: Building A Shopping Mall by arthurshelly: 6:47am On Oct 03, 2016 |
protocol:You are right....from chimawa down to shagama is good for little resident,industrial and farm project in the last 7yrs 1 Like |
Re: Building A Shopping Mall by oscillation55(m): 6:47am On Oct 03, 2016 |
Following, |
Re: Building A Shopping Mall by protocol(m): 6:50am On Oct 03, 2016 |
Ur location is remote. U will end up building this mall for fulani catle men and their catle |
Re: Building A Shopping Mall by ba7man(m): 6:56am On Oct 03, 2016 |
olumide4christ:Thank you for your apt observation. Those figures will not work...... |
Re: Building A Shopping Mall by arthurshelly: 6:59am On Oct 03, 2016 |
protocol:Lol 1 Like |
Re: Building A Shopping Mall by EternalBeing: 7:04am On Oct 03, 2016 |
GOD Bless Nigeria! Someone you know needs this important info. Do you live in Abuja or environs? A Landlord is a Landlord. The fear of expiring house rent would be permanently erased. You'll verify from so many Landlords in the locality before you go ahead and purchase. The following cheap small properties and also other multi-million Naira properties are for sale.
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Re: Building A Shopping Mall by Nobody: 7:05am On Oct 03, 2016 |
Hmm |
Re: Building A Shopping Mall by okeymadu(m): 7:14am On Oct 03, 2016 |
I'm a banker and have appraised and also recommended similar shopping-complex projects for financing to my bank. Can we do offline? I will like to make some suggestions on how you can make it more commercial and increase the ROI. Please contact me if you don't mind. Thanks |
Re: Building A Shopping Mall by sunnp(m): 7:14am On Oct 03, 2016 |
Its good bro and God wil help you, well first get your design from Architect and let Quantity Surveyor work all the bill out for you from there you wil no where you are going that very important,but first look at d location very well and see if the shop and eatery, office shop, mostly event hall is very good and the money is every weekend and you can first do event hall,eatery and later u can build office and shop |
Re: Building A Shopping Mall by justmenoni: 7:16am On Oct 03, 2016 |
Op, why shimawa? Is it because of it been close to the redemption camp? I wouldn't spend such an amount of money on that area for now? Someone was advising you to go ahead, comparing shimawa with VI 1 Like |
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