Urban Complex Investment Projects Feasibility Research

Along with the gradual implementation of varied policies and regulations for the real estate market nationwide, the investment in China’s real estate market, including Sichuan, has been becoming depressed since 2010 with commercial private housing sales significantly decreased, building area under construction dropping down, commercial housing price fluctuates at a high level and housing investment speed slowing down. As a result, the real estate investor’s confidence is struck and the pressure of cost recycling has been growing. With the expectation of further falling of housing price, the restructuring of real estate market is unavoidable. Given the actual circumstance, the first choice for real estate developers is to transfer into office and commercial building sectors, so that they can receive stable cash flow and avoid periodical makret fluctuation risk. For this purpose, this essay is to take the project, Chengdu Global Financial Center, invested by the Leading Real Estate Group Co., Ltd. as a case, to analyze relevant theories and practice on urban complex project in such a city, like Chengdu, which is a second-tier city and the centre in Western China, not only providing a decision-making basis for the project, Chengdu Global Financial Center, but also providing a case model for feasibility research on other similar urban complex investment development projects.This essay comprehensively applies theories and methods of multiple disciplines, such as marketing, real estate economics and fiscal management etc., to make a theoretical feasibility research on urban complex project which can satisfy the demand of real estate feasibility research format. The full text is seven chapters as follows:Chapter 1:state background and research purpose & sense of selected topic.Chapter 2:generally introduce real estate development feasibility research and make theoretical preparation for specific analyses of the essay, including fundamental principles, major content, major steps and basis of real estate development feasibility research.Chapter 3:based on the macro-economic environment of state regulating on the real estate industry especially since 2010 and real estate investment and supply & demand theories, in order to provide stable cash flow and avoid periodical fluctuation risk, it is a must-be strategic choice for real estate enterprises to shift their resources into office and business buildings in terms of actual circumstances of enterprise entity, such as financial potential and management level etc., as they are developing private housing, a single product style. As a result of this, the project, Chengdu Global Financial Center, is an urban complex project which is invested by the Leading Real Estate Group Ltd., right at a proper time.Chapter 4:before a formal scheme report of the project is concluded, a series of related analyses, such as urban competitiveness of Chengdu, project competitiveness of the urban complex in question, market research, project positioning and commercial circumstances etc. have been conducted for decision-making of the project.Chapter 5:after the project scheme report is concluded, a variety of surveys are conducted to analyze competitors’projects around, such as floor standard area, floor net height, quantity and speed of elevators, underground parking space, luxury of office building lounge and air conditioner type etc. Based on the above, the concept schematic design of the project is modified to show a differentiated and featued product competitiveness and to give instructions for next-stage construction design.Chapter 6:make an in-depth analysis of investment, development and operation of the project, especially that financing required for the project. In the meantime, it makes an in-depth planning and arrangement of the development cycle and construction progress to keep the project controllable. As per the general schedule, the project in question is to take about 28 months and the total investment is one thousand million RMB or so. Based on estimates and analysis of social economic effects and financial profitability, ROIs of the project are much higher than bank loan interest rate and standard discount rate during the investment and operation period, so the project is financially feasible. There are two major restricting factors for the project:the first is, before the project is ready for sales, how to guarantee all the financial expenditures required for the project, especially construction funds; the second is, after the project is ready for sales, how to handle any cash flow problem casued by uncertainty of office selling. The relevant market research shows that the project in question has strong adaptability to any unit price change and possesses a strong anti-risk capability. All in all, the project is financially and feasible practically.Chapter 7:summarize major conclusions and list problems which may occur during project execution, and corresponding solutions and suggestions.