Land Investment Project
We are offering an opportunity to participate in a project involving the acquisition and subsequent subdivision of a 4-hectare land plot.
The land will be acquired at $30 per m², bringing the total land acquisition investment to $1,200,000.
After acquisition, the land will be subdivided into individual plots ranging from 500 to 700 m². Approximately 20% of the total area will be allocated for internal roads and common-use areas.
As a result, approximately 32,000 m² of sellable land will remain, representing approximately 45–64 individual land plots, depending on the final plot sizes. The targeted retail selling price is $60 per m².
Project Financials:
• Land Acquisition Investment: $1,200,000
• Potential Revenue: $1,920,000
• Gross Profit: $720,000
• Potential ROI: 60%
The core strategy of the project is to create additional value without construction. Value is generated by acquiring a large land parcel at a wholesale price, creating internal access roads, completing cadastral subdivision, and subsequently selling smaller, highly liquid individual plots at retail prices.
Note that the $720,000 represents gross profit, as additional costs still need to be deducted, including cadastral subdivision, road planning and development, utilities if required, legal expenses, marketing, sales commissions, and taxes.
For a professional investment presentation, it is recommended to show the gross margin separately and provide a conservative scenario that includes a reserve for all additional project expenses.
The Economics per Sellable Square Meter:
After allocating 20% of the total land area to roads and common areas, the effective acquisition cost of each sellable square meter increases from $30 to $37.50 per m² ($1,200,000 ÷ 32,000 m²). At a targeted selling price of $60 per m², this creates a gross margin of $22.50 per sellable m², or approximately 37.5% gross margin on revenue.