The investment proposal
"Construction and operation of the game center"
As
the basis of the investment offer was the information of executive committee
of Sudaksky city council about released perspective ground area located
in Sudak city center near to quay.
The ground area lies on the height of about 8 meters above sea level
and has the sizes, which are up to 60 õ 15 meters (in the average part).
Total area of the ground area is about 900 sq.m.
The commercial cost of one square meter of this ground area makes 625
hrivnas. The repurchase of the ground area is possible. In this case
the payment for the ground area will make1 % from its cost.
Fig. 1. Location of the land lot
The investment project covers construction and operation of
the game center functioning all-the-year-round.
Objects of construction:
- Hoist lift of 8 meters height,
- A two-storeyed casino building with a bar and a fireplace of 200 sq.m.
total area ,
- One-storeyed slot-machines pavilion of 100 sq.m. total area,
- Covered restaurant for 40 seats with sight of the sea of 90 sq.m.
area,
- Park space on the adjacent territory.
Engineering networks of the complex will be connected to the proper
city communications.
The first stage of the civil work includes: height of slopes reinforcement,
land-reclamation, hoist lift construction, slot-machines pavilion and
restaurant construction. The second stage includes construction of casino
building, land improvement.
Duration of construction and equipping is 16 months.
Fig.2 Land lot view (from the Genoa fortress)
Preliminary Center costs are 5 724000 USD
Calculation of incomes and current expenses of the project are made
in view of 40-percentage average annual functioning of the center, and
75-percentage profit from slot machines and roulettes operation. In
Sudak it's possible that there are 2 % so-called "problem"
players (by analogy with Moscow, and 20 % playing players) that is made
by 560 people. The calculations of incomes consider only 60 people playing
a day, that ten times less than their probable number. Thus probable
number of players having rest and visitors of city is not taken into
account at all.
Calculations include " fair play " principle that is fair
game. For example, according to Russian stan-dards the average percent
of winnings should be not lower than 75 % for the benefit of the player.
At "dishonest" game slot machines are programmed for 20 %
maximum that can negatively affect image of a gambling house and number
of clients.
So, calculating authentically of expected profit in the gambling industry
is not obviously possible, that is caused by probability to win, frequency
of reprogramming of slot machines and other subjective rea-sons. Therefore
calculation of incomes according to the project includes low but objectively
achievable parameters. There is a high probability that capacity and
incomes of the center is higher than planned performance due to attraction
of holidaymakers.
Price policy
The prices for separate kinds of entertainments and services rendered
in the gambling center are planned to be below the prices of competitors
in Simferopol city and other cities of Ukraine.
So, the entrance ticket in casino costs 2 dollars, game on a computer
costs 1 dollar per an hour, one set behind the card table costs 5 dollars.
Lifting and descending in the lift will be 0,2 dollars from the per-son.
Such price will allow avoiding undesirable visitors in the game center.
To increase the probable capacity of the game center in the off-season
period extra work on the or-ganization of the mass advertising company
will be conducted.
Economic efficiency coefficients of the project (6 years of the
project):
- Net profit with the saved up result - 0,4 million USD;
- Internal rate of return (IRR) - 24 % for 9-th year of the project;
- Cost benefit ratio (CBR) - 1,34 (under 10% annual rate of discounting);
- Payback period (PP), discounted - 5,6 years (at the rate of discounting
of 10 % annual);
- Payback period (PP), not discounted- 4,6 years;
- Profitableness index (Pi) - 1,4.
- Depreciated cost of fixed capitals excluding ground and business cost
- $ 0,2 million.
Above-listed factors are counted by a common method with discounting
method application without depreciated cost (liquidation value) of the
project.
As a result of the project on its second year 20 workplaces will be
embed at the second year of the pro-ject. The object resort-tourist
services will be implemented and it should to exert influences on tourist
image of Sudak that provide an additional vacationers at off-season.
Additional funds as taxes and dues in the sum 0,56 million USD for
6 years of the project will be in-volved in to the state budget.
As the basic results of the project:
" Game center construction;
" Expansion of recreational services for citizens and vacationers
of Sudak;
" Maintenance of steady development of the enterprise due to strategy
of the advanced complex game services and orientation to the most solvent
segment of consumers of such services;
" Maintenance of yearly gross revenues of the enterprise in the
sum of 0,4 million USD (since 6-th year of the project), and net profit
0,1 million USD for the same period.
To get the additional information
as regarding the project, please, appeal to economy department of executive
committee of city council in Sudak:
Lenin Street 85-a, Sudak city, Autonomous Republic of Crimea, Ukraine.
Contact phone: 38 06566 2-20-96
Download
the detailed variant
