Go over this for comments/revision/editing
Objectives:
1. To increase inventories at HGOMP which is now at 2,000 only more or less
2. To generate more sales: say P1 B;
3. To provide more jobs and employment
4. To offer low cost plots to our customers
THESE ARE ALL IN OUR MISSION STATEMENTS AND PRINCIPLES
Background:
We all say that businesses must prepare for the future since it is the future that becomes the present. Present becomes the past. Focus on the has been means that it is too late if we completely liquidate the business
1. As early as 3 months ago, our JV partner and us are talking about our current inventories which should last us for the next 5 years without a campaign, and two years max with a campaign
2. The former mayor, our JV partner mentioned the following alternatives:
a. to the left of the MP, 10,008. Used to be P500.00 before but sold to somebody in USA and now want wants P1,000 per sm. Not profitable for us anymore.\
b. Property of Gina Cuenca - 1.225 hectare but not adjacent ot us. There is another property pa.
c. Property of the Dominican sisters with total area of nearly 9 hectares. But the good fmr mayor thinks they are not selling
I happened to discuss mention this to Ms. Sonia Madrigal who is from Iloilo and she said she knows the Dominican sister. She said she will see the sisters on September 7, 2017. She arrived last week and mentioned the name of the Sister General:
Sister Nemia Dumac
Mother General
Dominican Sister of Holy Rosary
Holy Rosary Convent
Avancena St, Molo
Iloilo City
to whom we shall send a written offer. The good mayor wanted to buy but Ms. Sonia said why not a JV so that they can sustain their advocacies. Mayor Totec that they had a big property in Botong on JV and became Immaculate Concepcion subdivision
Their 8.7833 hectare property is planted to rice and the current net earnings per every harvest is (only once a year is P20,000/hectare of P180,000 only) Thus an offer which will give the sister sustained income for the next 10 to 20 years would be most welcome
3. We tried surveying other towns:
Miaggao - the first to be shown by Mr. Crisologo and Peds 17 years ago. 50 km away, with existing Memorial Park but seems to be languishing
Guimba - the hometown of Congressman Richard and Jeanette Garin. They have a memorial park. We used to have an offer from Mr. Orendain, a relative of Engr. Madrigal. Potential not OK. Low population. About 30 km from Iloilo
Tigbauan - many of buyers are from Tigbauan. but our prospective site there are not available for sale or near subdivsions
Janiuay. - there is a memorial park for sale with 3,000 inventories. Asking price is P200 million. Way above the clouds; we would rather buy the memorial park in Silang Cavite or our own La Union with 5,000 plots only for P72 m
4. Computations
a. Properties:
Total Area:
Dabuco - 27,833
Del Rosario 30,000
Hufada Yvette 30,000
Total Area 87,833
Of correct sizes and exempt
The 8.7 property is in sitio Baras, and there is a road carved out from the property which abuts another Rada St.
b. Salable area:
--
87,883 x 70% = 61,483/2.5 = 24,593 plots
Estimated sales and sharing: (Our average selling price now is P45,000)
Ms. Aprilyn estimates she and the other sellers can sell this at P35,000 fast
P35,000 per plot P40,000 per plot
x 24,593 plots
Gross Revenues 875,000,0000 1,000,000,0000
Less ME, Ins,
CF 29% 253,750,000 290,000,000
Net SP 71% 621,300,000 710,000,000
VAT 12% 74,556,000 85,200,000
PC 20% 124,260,000 142,000,000
Total PC VAT 198,816,000 227,200,000
Net Sales 422,484,000 482,800,000
Less Dev Cost 90,000,000 90,000,000
ROW 3% 12,674,000 14,484,000
Total Deduction 102,674,000 104,674,000
Net for Sharing 319,820.000 378,126,000
35% 111,397,000 132,344.100
65% 207,883,000 245,781,800
c. Deal/benefits for the Dominican Sisters
The sisters get say P11,000,000 yearly at 35,000 selling price or P900,000 monthly or 13,000,000 per annum or P1,033,333 per month for the next ten years
The deal for the Sr. would be P9,000,000 up front to be amortized recouped for the next 2 years. P4,500,000 coming from FF, and the others from us.
d. Deal/benefits for FF and family:
1. He invests P4.5 million
2. He takes care of the approvals:
SB, HLURB
3. His sharing should be P4.5m plus approval say P5,000,000 = P9,500,000
a. Total expenses:
Front end for Srs. P9,000,000
Dev Cost 90,000,000
b. His percentage:
9,500,000/99,000,000 = 9.5 = 10,000,000
d. Deal benefits for FF:
at 35,000 40,000 per plot
10% of our share: - 20,783,000 24,578,000
3% ROW fee 12,674,000 14,484,000
TOTAL FOR FF 33,457,000 39,062,000
Letter of Intent to Dominican Sisters for the Holy Rosary
Sister Nemia Dumac
Mother General
Dominican Sister of Holy Rosary
Holy Rosary Convent
Avancena St, Molo
Iloilo City
Dear Mother General
A pleasant day greetings to you.
May the Peace of the Lord and his Blessings be upon you today
We are the business partner of Engr and Ms. Roger Madrigal in Calapan and the Joint Venture partner of Florvel Realty in Oton Iloilo for a memorial park project known as Holy Gardens Oton Memorial Park
We recently learned that the 87,833 sm property in Sitio Burol Barangay Trapiche Oton are adjacent to the memorial park and currently being used for rice plantation (single cropping only)
We would like to propose to you a business arrangement that would enable your religious order earn more than the estimated P200,000 a year on the rice crop for the said property and earn substantial amount (say 4 to 5x that amount MONTHLY for the next 10 years or so to help finance the cost and expenses of running the congregation. Your religious order would certainly add more prestige and attraction to the memorial park
Should you find this proposal attractive, , allow us at your convenient time to explain, show you how this can be made possible by entering into a joint business relationship
Our telephone #
Our email address
Our office address
Sincerely yours<
I
PAGSASANAY SA TAGUMPAY (Training for Success)
SETTING THE STANDARDS IN INTERMENT SERVICE
Innovation creates more wealth and more customers
Jorge U. Saguinsin
Be a BIDDA now
RRURAC (Read, Reflect, Understand, Realize Act, Check)
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Another big project that we should be grateful. We will work together to plan a better future for the company.
ReplyDeleteMarjorie B. Miranda