Evergreen Gated Community — Appendices
All three estates achieve break-even at approximately 51–54% of total units, providing a comfortable margin of safety against the 40–50% pre-sales threshold before construction commencement.
Section 17 · Business Plan
Appendices
All three estates achieve break-even at approximately 51–54% of total units, providing a comfortable margin of safety against the 40–50% pre-sales threshold before construction commencement.
Appendix A: Detailed Construction Cost per Unit Type
| Component | Apartment (90m²) | Cluster (140m²) | Freestanding (250m²) | Premium (350m²) |
|---|---|---|---|---|
| Foundation & Substructure | R140,000 | R196,000 | R375,000 | R560,000 |
| Superstructure | R392,000 | R546,000 | R1,000,000 | R1,540,000 |
| Plumbing & Drainage | R108,000 | R154,000 | R300,000 | R455,000 |
| Electrical (incl. solar-ready) | R135,000 | R196,000 | R375,000 | R560,000 |
| Internal Finishes | R252,000 | R350,000 | R625,000 | R980,000 |
| Windows, Doors, Joinery | R108,000 | R154,000 | R300,000 | R455,000 |
| Kitchen & Bathroom | R126,000 | R168,000 | R325,000 | R525,000 |
| External Works & Landscaping | R54,000 | R84,000 | R175,000 | R280,000 |
| Preliminaries & General | R85,000 | R112,000 | R225,000 | R345,000 |
| Total Build Cost | R1,400,000 | R1,960,000 | R3,700,000 | R5,700,000 |
| Cost per m² | R15,556 | R14,000 | R14,800 | R16,286 |
Appendix B: Provincial Estate Market Data
| Province | No. of Estates | Avg Estate Price | % of Provincial Sales | Key Growth Areas |
|---|---|---|---|---|
| Gauteng | ~3,250 (50%) | R2.45M | 16% vol / 28% value | Waterfall, Centurion, Midrand, Fourways |
| Western Cape | ~2,213 | R3.2M | 18% vol / 32% value | Somerset West, Stellenbosch, Paarl, Franschhoek |
| KwaZulu-Natal | ~1,200 | R2.8M | 12% vol / 22% value | Umhlanga, Ballito, Zimbali, Hilton |
| Eastern Cape | ~450 | R1.8M | 8% vol / 14% value | Port Elizabeth, East London |
| Other | ~900 | R1.5M | 5% vol / 10% value | Garden Route, Mpumalanga, Free State |
Appendix C: Monthly Levy Benchmarking
| Estate Type | Monthly Levy Range | What’s Included |
|---|---|---|
| Security Estate (basic) | R1,800–R3,000 | Access control, perimeter security, basic maintenance |
| Lifestyle Estate (mid) | R3,000–R5,000 | Security + clubhouse, pool, gym, landscaping |
| Golf / Eco Estate | R4,500–R7,500 | All above + golf course / nature reserve maintenance |
| Ultra-Premium Estate | R6,000–R12,000+ | Full-service concierge, extensive amenities, private staffing |
| EEH Evergreen (target) | R3,400–R4,800 | Full security, amenities, fibre, solar, HOA management, sinking fund |
Appendix D: Break-Even Analysis
| Parameter | Evergreen Ridge | Evergreen Bay | Evergreen Cove |
|---|---|---|---|
| Total Development Cost | R325M | R310M | R255M |
| Average Selling Price | R3,090,000 | R3,610,000 | R3,250,000 |
| Variable Cost per Unit | R2,100,000 | R2,380,000 | R2,200,000 |
| Contribution Margin | R990,000 | R1,230,000 | R1,050,000 |
| Fixed Overheads | R28M | R26M | R22M |
| Break-Even Units | 113 (51%) | 97 (54%) | 86 (54%) |
| Margin of Safety | 107 units (49%) | 83 units (46%) | 74 units (46%) |
All three estates achieve break-even at approximately 51–54% of total units, providing a comfortable margin of safety against the 40–50% pre-sales threshold before construction commencement.
Appendix E: Key Performance Indicators
| KPI | Target | Frequency | Responsible |
|---|---|---|---|
| Pre-Sales Conversion | >40% before construction start | Monthly | Head of Sales |
| Construction Cost Variance | <5% of budget | Weekly | COO |
| Programme Adherence | <4 weeks variance | Weekly | COO |
| NHBRC Inspection Pass Rate | 100% first-time | Per stage | QA Manager |
| Mortgage Approval Rate | >70% of applications | Monthly | Sales Team |
| Customer Satisfaction (NPS) | >60 | Post-handover | Estate Manager |
| Safety (LTIFR) | <0.5 | Monthly | HSE Manager |
| Cash Burn vs Forecast | Within 10% | Monthly | CFO |
| Debt Service Coverage | >1.8x (from Year 4) | Quarterly | CFO |
| Levy Collection Rate | >97% | Monthly | Estate Manager |
| B-BBEE Level | Level 2 or better | Annual | Company Secretary |
| Energy Self-Sufficiency | >40% from solar (common) | Quarterly | Estate Manager |
Appendix F: Glossary of Terms
| Term | Definition |
|---|---|
| ANPR | Automatic Number Plate Recognition |
| ARC | Association of Residential Communities |
| B-BBEE | Broad-Based Black Economic Empowerment |
| CSOS | Community Schemes Ombud Service |
| DFI | Development Finance Institution |
| DSCR | Debt Service Coverage Ratio |
| EIA | Environmental Impact Assessment |
| GDV | Gross Development Value |
| HOA | Homeowners Association |
| IRR | Internal Rate of Return |
| NHBRC | National Home Builders Registration Council |
| NPV | Net Present Value |
| REIT | Real Estate Investment Trust |
| SARB | South African Reserve Bank |
| SPLUMA | Spatial Planning and Land Use Management Act |
| WACC | Weighted Average Cost of Capital |
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