Nepal Food Corporation (NFC) published a notice on 2064/4/16 in the Gorkhapatra daily to lease out land located at Thapathali, Kathmandu municipality, Ward no. 11. Of the total land, where currently a paddy warehouse is situated, 11-06-3-1 Ropani is allocated for 30 years lease with purpose to construct an office/commercial complex and its administration by private companies. This notice was republished on 2064/05/30, due to insufficient number of tenders. Kanachanjangha Housing (P.) Ltd., as per the requirements of NFC, sent its competitive bid and was successfully able to get the tender.

On 2065/08/06, an agreement was signed between Kanchanjangha Housing (P.) Ltd and NFC for using the land to construct an eight storey international standard commercial building and its rent management for a total of 30 years. Design of the building, cost estimation, inspection and construction supervision is assigned to Cage Consult (P.) Ltd.  On completion of a feasibility study regarding its environmental impact and getting drawing approval from Kathmandu metropolitan city, thereafter, the construction of the building will start from 2065/12/01.

Developer:
Kanchanjangha Housing (P.) Ltd.
Kathmandu Metropolitan, Ward No. 34, New Baneshwor
Phone no:- 4115759, Fax:- 4115821
Email: kanchanjungahousing@gmail.com

Features of the Proposed Complex
>  The complex is connected via eight meter wide road from Thapathali-Maitighar.
>  The entrance to the complex is always on the left hand side no matter how the entry is made. Either side, Maithghar or Thapathali, the entry will be always on the left hand side. This will definitely lessen the traffic congestion.
>  The total build-up area is 171,685 square feet. The first six storeys will have 27,402 square feet each. To the left-hand side of the main entrance, 18 modern shops will be established.
>  Ample of space inside the basement and outside the building for parking.
> Good facility for common secretariat office.
>  Health club, restaurants, seminar and meetings halls with complete facilities.
>  Round the clock security system, 24 hours backup electricity, constant water supply, postal services, fire detection & fire fighting, lift escalator and emergency evacuation will be incorporated.
>  The land is located at the centre of Kathmandu. To have a desire to work in this prime location is not uncommon. Likewise, considering underground parking, there will be separate paths for the entrance and the exit.

Possible users of the Building
> One of its floors is dedicated to establish Heavenly Food Court of Nepal and Giant Grocery Store where Nepali and foreigners can purchase complete grocery items. Restaurants with local and international flavours will be operated.  This floor is for any individuals and families who really want to have a nice day out.
>  Some of its premises are allocated for Banks, Insurance Companies, Financial Institutions and Co-operatives.
>  Likewise, Corporate Office for Industrialist and Businessman will be available for rent.
>  Highly modern offices for foreign companies and agencies will be available for rent.
>  Apart from this, some of its area are allocated for Book Store, Computer Appliances, Automobile, Airlines and  Travel
AgenciesÂ
> The basement and the area outside the building will be used for pay parking.
>  Since, Nepal Rastra Bank is also located at Thapathali; this building will be developed as a financial hub of the country.

Conditions of lease
The lease period is 30 years. Within the first 2 years, construction of the building will be completed. For the remaining 28 years, the company will manage occupants and collect rent. However, on completion of 30 years, Kanchanjangha Housing (P.) Ltd. will get the first priority to renew the contract under new terms and conditions of the Corporation.

Buying a spacious land in a prime location is beyond everybody's reach. Thus, the strategy is to utilize a highly valued prospective land under lease for commercial purposes. This concept has turned out to be fruitful in Nepalese context. World Trade Centre can be taken as an instance which was constructed on a land owned by Tribhuwan University under lease.

From third year, Kanchanjangha Housing (P.) Ltd. is liable to pay 6.653 million NRs as an annual rent to the corporation. The annual rent will increase by 5% in every five years i.e. the annual rents will be NRs 6.983 million and NRs 7.702 million in 10th and 20th year respectively.

Investment
> After the approval of drawing from Kathmandu Municipality, first two years shall be the construction period.
>  It is estimated that a total of NRs 400 million will be incurred in construction.
>  Of the total investment, NRs 150 million will be raised from equity and NRs.250 million shall be financed through debt.
>  A portions of its total investment will be collected by advance booking
>  Hence, any interested Nepali individuals, Companies and Corporations are invited for an excellent investment opportunity. Investors are requested to contact at its office to get an application format in order to apply.

Invitation for Investment
>  This invitation for investment is for any Nepali investors who has interest in the project and has a strong desire to take advantage of an excellent opportunity.
>  The minimum investment amount is NRs 1,00,000, The investment amount will be payable in four equal installments.
>  Investors will have the first priority right for rental space. They can establish their own offices in the newly constructed complex. We expect shareholders to help management in finding occupants.
>  In addition, investors can earn extra income by taking the responsibility of finding tenants like Bishal Bazar is currently doing.
>  After the construction is completed, the forecasted rate of return is 15 percent per annum.
>  The company will issue bonus shares and increase the return over the period.
>  Once the bank loan is repaid, the return will be even higher as investors are entitled to claim all the profit after deducting administration expenses.
>  This company will be later converted into public limited and its shares will be traded in Nepal Stock Exchange.
> At the end of lease period, the initial investment amount will be refunded to the investors.

Financial Management
More information regarding the project and the company undertaking it can be obtained through its office during working hours. Since, financial management of this project is currently done by Peoples Investment Company Limited, investors are requested to contact at its office for more information and submission of application.

For more information, please visit www.peoplesinvestment.com.np. Any constructive ideas are appreciated and can be suggested through this company.

What is Lease?
Buying a spacious land in a prime location has become almost impossible. The alternative solution for high priced land in a prime location is undoubtedly lease, where lease can use land for a certain period by paying rent to the lesser.

Thapathali is centrally located. This crucial location attracts businessmen, industrialist, banks and financial institutions to establish their corporate offices. It will be an example of a trading hub in the country.

In the present context where foreign and multinational companies are maneuvering their operations in developing nations, our location, structure, layouts and standards will indubitably match their needs.

Provided a fair amount of return to the investors from the very beginning, this project aims at building an  aspiring relationship between each parties and working towards a massive success in the long run

Bank details
Kanchanjangha Housing (P.) Ltd.
Laxmi Bank Limited, Hattisar Branch
00051040009304

Capital Structure
The capital structure of the company has 30%equity and 70% debt financing, it means the 30% of capital shall be collected from the investors and 70 % shall be financed by Laxmi Bank Limited. The total investment for the project shall be NRs 50 crores.

There shall be 7 promoters of the Housing Company and 51-55% of the equity capital shall be financed by the promoter shareholders. The 45-49% of the equity capital shall be organized from the individual investors.

Contact
Mr.Satish Neupane
Kanchanjangha Housing (P.) Ltd.
Kathmandu Metropolitan, Ward No. 34, New Baneshwor
Phone no:- 4115759, Fax:- 4115821
Email: kanchanjungahousing@gmail.com