FEASIBILITY STUDY

MIX COMMERCIAL AND

RESIDENTIAL BUILDING
PROPONENTS:
LAIZA MAE JONIEGA
RICO PAYOT
DANIECA FRANZ POLICIOS
ROSHELLE MAE RICO

INTRODUCTION
LIFE AT DOLCE CASA WILL SURELY MAKE YOU FEEL AT HOME AS WHAT OUR
BRAND NAME MEANS SWEET HOME IN ITALIAN. WE OFFER:
FURNISHED ROOM
AIRCON *BED
DINING *TABLE
BATHROOM

SECURITY
2 SECURITY GUARDS (FOR DAY & NIGHT)
24/7 CCTV SURVEILLANCE

MAINTENANCE
2 HOUSEKEEPERS

THE COMMERCIAL ROOMS

MINI MART
RESTAURANT
COFFEE SHOP
PIZZA SHOP
DOUGHNUT STORE
BAKERY SHOP
LAUNDRY SHOP
INTERNET SHOP
BOUTIQUE
PHARMACY

CHAPTER I. BACKGROUND OF THE

STUDY
PROJECT NAME: DOLCE CASA
DEVELOPER: IZA MARIE P. ASOMBRADO
MASTER PLANNER: DANIECA FRANZ POLCIOS
NATURE OF BUSINESS: REAL ESTATE
OUR BUSINESS IS A MIXTURE OF COMMERCIAL AND RESIDENTIAL BUILDING
WITH 4 FLOORS.
TYPE OF BUSINESS: PARTNERSHIP
LAND AREA: 880 SQ. M

LOCATION: RECTO AVENUE, SANTOL STREET

LOCATED AT CORNER RECTO AVENUE, SANTOL
STREET.

AMENITIES:

FLOORS: 4 FLOORS

MINI GARDEN
SOLO ROOMS (SEPARATED GIRLS & BOYS)
COMMERCIAL FLOOR
PARKING LOT

GROUND FLOOR: COMMERCIAL (10 ROOMS)

2ND & 3RD FLOOR: RESIDENTIAL ROOMS (48 ROOMS)
4TH FLOOR: MINI GARDEN AND LAUNDRY AREA

ROOMS:

COST PER ROOM:

RESIDENTIAL ROOMS:
STUDIO TYPE: 48 ROOMS
COMMERCIAL ROOMS:
TYPE A: 4 ROOMS
TYPE B: 6 ROOMS

RESIDENTIAL ROOMS: P 12,500

COMMERCIAL ROOMS TYPE A: P 17,000
COMMERCIAL ROOMS TYPE B: P 15,000

SOURCES OF FUNDS:
WE DECIDED TO GO BANK FINANCING FOR THE 80% OF THE
COST TO PURCHASE THE LAND AND CONSTRUCT THE BUILDING,
PAYABLE FOR 10 YEARS WITH A FIXED INTEREST COST OF 8%
FROM BDO AND THE PARTNERS ALSO INVEST P 3,000,000 EACH.

COST:
BUILDING: P 30, 000, 000.00

LAND: P 2, 640, 000.00

STRUCTURE: RESIDENTIAL ROOM

FACE INSIDE

FACE OUTSIDE

BUILDING
FRONT SIDE

TOP & BACK

VIEW

FLOOR PLAN: 2ND & 3RD

FLOOR PLAN: COMMERCIAL

CHAPTER II: PROJECTED FINANCIAL

STATEMENTS FOR 5 YEARS
DOLCE CASA

STATEMENT OF FINANCIAL POSITION

A S OF DECEMBER 31, 2020, 2021,2022,2023,2024

DOLCE CASA
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020, 2021,2022,2023,2024

DOLCE CASA
STATEMENT OF PARTNERS EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2020, 2021,2022,2023,2024

DOLCE CASA BUILDING

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2020, 20221,2022,2023,2024

CHAPTER III: FINANCIAL STATEMENT

ANALYSIS
RATIOS
ANALYSIS OF LIQUIDITY OR SHORT-TERM
SOLVENCY
CURRENT RATIO: 2.04 TIMES
QUICK RATIO: 1.95 TIMES

ANALYSIS OF ASSET MANAGEMENT EFFICIENCY

FIXED ASSET TURNOVER: 0.24 TIMES
TOTAL ASSET TURNOVER: 0.20 TIMES

ANALYSIS OF LEVERAGE: DEBT FINANCING AND COVERAGE

DEBT RATIO: 62%

EQUITY RATIO: 38%
DEBT TO EQUITY RATIO: 161%
TIMES INTEREST EARNED: 3.01 TIMES

OPERATING EFFICIENCY AND PROFITABILITY

NET PROFIT RATIO: 48%

OPERATING PROFIT MARGIN: 73%
RETURN ON ASSET: 10%
RETURN ON EQUITY: 28%

CONCLUSION:
THEREFORE WE CONCLUDE THAT OUR BUSINESS PROPOSAL IS
FEASIBLE TO HAPPEN. USING THE RATIOS AND ANALYSIS THE
BUSINESS IS PROVEN PROFITABLE AND HAS A LONG-TERM STABILITY
IN THE BUSINESS WORLD. WITH THE USE OF DEBT FINANCING THE
PARTNERS CAN START A REAL ESTATE BUSINESS AND USED DEBT TO
FINANCE THE LARGER COSTS NEEDED, AND EFFICIENTLY USED IT TO
GENERATE INCOME ENOUGH TO PAY THE FIXED INTEREST OF THE
BANK AND STILL HAVE ENOUGH INCOME FOR THEM.