Investment analysis for north west golf resort project

ms TRUONG DAI HOC MO TP HO CHi MINH HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITE LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MBAVB3 NGUYEN VAN PHAP INVESTMENT ANALYSIS For NORTH WEST GOLF RESORT PROJECT TP.HCHL TRUONG DALHOG MỸ MASTER PROJECT MASTER OF BUSINESS ADMINISTRATION (PART - TIME) Advisor: Dr NGUYEN MINH HA - HO CHI MINH CITY 2011 Table of Contents Chapter Title Page Title page Letter of Declaration s49991168896 Acknowlwdgement 'Table of Content — List of table List of Figures and Diagrams " List of Appendix List of Acronyms "91 911996 " Chapter One —— " “ke ««s«««„XỈÍÍ General Introduction 1.The Origin of Golf 1I.Vietnam Golf History IH.Introduction of the Study ng Problem statement iv Chapter Two Project Overview 1.North West Metropolitan Authority Overview — “7 L.Legal basis csssssssssccsssssssssssssssssssssssssssesssssnsuscsssssuecsesssssssecessssstsssssaseneecceees 2.Development purposes of Northwest City Area establishment 3.Main features of North West Metropolitan AuthOrity -c-c-ccccccc TI.Project Overview 1.LOCaÏ Vi€W HH ereerrerrrei 2.Regional View 3.SIf€ ÍaCtOTS Chapter Three HH Heo Investment Analysis of North West Golf Resort I.Market Analysis seeceseeee sescceenes — - — 1.Demographic and Local Economy 2.Market OVerVieW to HH1 2c 1erereeree 14 3.Market Supply kh ad 16 3.1.1 Vietnam Golfand Country Club (VNGCC), Ho Chỉ Minh City.16 3.1.2 Long Thanh Golf Club and Residential Resort, Dong Nai PLOVINCE .csesssssssecsssteesseesesssesesseesense 3.1.3 Song Be Golf Resort, Binh Duong Province 3.1.4 Dong Nai Golf Resort, Dong Nai Province: 3.1.5 Twin Doves Golf Club, Binh Duong Province 3.2 Future Supply forecasting 6.Market supply and demand conclusỉon .s22: xzzz+ezxz 2- 23 7.Market Competitive Analysis 8.Market Competitive ConcÏusion -¿c+svccvvvvveerrrrrreerrrrrrrrcee 31 ILInvestment Scale "¬ 1.Project’s Objectives mẽ 32 2.Investment Scale General Designing Descripfion 2-2 ©vs++vxserxerrxerkeer rerrrke 33 3.1 Basic principles for Planning and Design sec 33 E05) “1 4AAHAHDH.LLHẢ Investment Breakdown 34 - cv t21111221 22111111 11121111 reo 34 4.1 Preliminary Master Plan + 2t©CvzevcCvxeerrrxeerr krerrrreerre - 34 4.2 Suggested Architectural Space Plan s-ceccccszecrceeerre 35 4.3 Project’s Component sescsssssssscssesssecssecesesssecssscesuecssssesecsnecssseenne 36 S.Investment Planning .ceesseesseesseessesesnecessecssecsssessnecsecsssesssecsssessseeseveraeeens 37 5.1 Phase 1* 5.2 Phase 24 1.Water supply source and fre-protection facilities sec csesccscd 40 1.1 Water supply 1.2 Fire fighting and protection system ssisssseesseessseessessssessseessvenseeens 42 2.Electric power supply plan 2.1 Outdoor Power Entrance Services scesssssesssssescsseessessesesssecsssseessaveees! 42 2.2 Power distribution system 3.Electrical system description ssssssssssteesssseessssesssseessssesessseessseeesssveensaeed 43 3.1 Building automation system 3.2 Tele-communication system 44 3.3 Lightning Protection and Grounding System vi 4.Techniques & Working Equipment ccv2cvcccseesrrrrrrrrre 45 4.1 Planning for techniques to be adopted in construction 4.2 Working equipment 5.Environmental Protection 5.1 Plan for water drainage (golf course and living activity wastewater) 48 5.2 Plan for using plant-protection chemicals scsssssesssssescssssseeseeeeees 52 5.3 Plan for pollution prevention and treatment cc.ssssssssssecssssesessessenee 54 IV.Operations & Labor force Plan " s19 nu - SỔ 1.Organizational Overview 1.0 1080048004000848400T0004 040100 sTSTEEEESEEATAE4004Se xi 56 2.Organization Structure cccssssesssesssssessscsssssseesecssssseseessssseecsessneessesessaneeces 57 3.Job Description .csscscssssesssseesssneesssnsecessuecesssscsesvecesssessssseecssueecssnesssuseessaee 58 4.“Traffic flow” in the Golf Course sssssssssssssscsssseessesssssseeessssnseeeesssnsneeeesee 62 5.Human resource pÏanning: +-+etVEE2vvzertrrkvxeerrvrrreceerrril 64 V.Financial Analysis 1.Investment Capital 1.5 Design and survey cost 1.6 Equipment COSt .ssssssscssssscssseccesssscsssseesssvecsssscesssesessnecessnsecesneceesseecd 69 1.7 Furniture equipment 2.Total Investment capital .sesesssssssesseccsssseeesscsssseessssssssveccsesssesecessssneecsesess 71 3.Source of Investment Capital 3.1 Owner Capital 3.2 Loan Capital A.Investment PIAM ccsssseecccssssseescsssseeseesssssuscsessssssecssssssssssesssseececesssseeessenens 72 vii 5.Debt Repayment Plan s-2+2+222 EEExEEEEeEEAeEEEErrrerrkr vrreerrrerree 73 6.Estimated Operation Revenues and Expenses 6.1 Estimated Revenues sscsssssecssssseessseesneecsessneesssessusessecsseessesseessneee 74 6.1.1 Golf course Income 74 6.1.2 Residential Income 6.1.3 Membership sale income 6.2 Estimated expenses 75 6.2.1 Golf course €Xp€TSeS 22 ©2s22zeccveccveecrerrrerr rserrrsee 75 6.2.2 Residential and Administrative expenses . - c 75 6.2.3 Depreciation €OSf -cs-ccsccxtcEvverkxrrrrxrrrrerrrerrrerrrererrcie 75 7.Pro Income Statement c sccssssesssessssessseccssessusesseesseeessesssesessecssessueesnecsseees 77 8.Pro Cash flow projection 9.Financial Ratio and Sensitive AnalySis :sssssssssssssssesseesssecsssesseesseesseense 81 9.1 Net Present Value (NPV) and Internal Rate of Return(IRR) 9.1.1 Net Present Value . s+ss+rxxstvxerresrrserrkeerrerrreerrrcev 81 9.1.2 Internal Rate of Return (TRR) +2 ©+++xecsseccveev 81 9.2 Payback Period c csessssessseesssessesessecessecssecsssesssecssseesecssssensesssesssecsseeess 81 9.3 Conclusion 9.4 Sensitive AnaÏysÏs ket 11v 82 9.4.1 One variable analySiS 5s ctSxecxeckeSrkcreerxersereerrerrvev 82 9.4.1.1 Changing of Sale revenue -+++++ 5+