Feasibility study and investment case for land reclamation for an agriculture company
Situation
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A leading cultivation company is considering changing its business model to ownership versus rental
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Analyzed cost structure from previous land cultivation ventures by the company to develop an understanding of the investment cost elements
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Developed detailed business plan for the Company that forecasts cost structure, revenues, required area to be cultivated and working capital requirements
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Researched pricing and obtained quotations for relevant per feddan investment cost elements e.g. irrigation system, reclamation, buildings, land acquisition, etc
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Proposed a rental structure options including rental value, terms, management fees and expected returns for investors
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Conducted a comparative assessment between the rent versus own model, and identify breakeven point
Contribution
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Feasibility study and proposed structure options