A

PRIMER
REAL ESTATE PROJECT FEASIBILITY STUDY
ON
AUTOMATED CAR PARKING SYSTEM
IN CEBU CITY

PROJECT BACKGROUND AND HISTORY

I.
PROJECT BACKGROUND

A. Project Data

A.1. Description
This Project Feasibility Study will mainly focus on real properties with
potentiality and viability for investment wherein the same may be utilized
as car parks (the study) held out for lease, thereby yielding profits out of
the paid rents and at the same time bestowing convenience to the public.
The project data required for this study will mostly come from
researches of the countries like the United States and China who
innovatively engineered the latter-day car park system commonly known
as the Automated Car Parking System (APS).
 The investment and development cost required for the study may not
be accurately approximated due to the cost and time limitation involved,
hence, the necessity to resort to valid and logical assumptions that from
time to time, may be revealed here in this study.

B. Major Project Parameters

The major project parameters that will served as the guiding principles
in the preparation of this study are as follows: (1) Time; (2) Cost; (3)
Quantity and; (4) Quality.

B.1. Time
In the conduct of this study, time element is of the essence.
As earlier relayed, for the investment and development cost required
for the study to be accurately approximated, the herein sole consultant or
even any other consultant or project team for the matter, necessarily
requires time affluence.
However, with the time constraint present, this study will be conducted
at a minimum of two (2) weeks and a maximum of one (1) month without
sacrificing reliability over compliance.
So also, since this study is self-initiated, there are no relationship,
whatsoever about the budget and the deadline because the same is not
conducted for some investor who may very well invest over a particular
period of the year.
Lastly, for the fulfillment of the study, herein consultant had previously
considered considerable numbers of critical time points which are ought to
be met.
B.2. COST
Drawing up the budget for the conduct of this study is not that much
of a concern, rather, herein consultant is of the position that Human Capital,
(i.e., an individual’s knowledge, skills and expertise on the subject matter) is
what is more of a pressing matter.
Here, as there is no budget involved in the conduct of this study, but
only Human Capital, budget overspending therefor is a “non-sequitur”.
However, income as a result of the pursuance of this study ought to
be accounted for accordingly. Anyhow, topics relative to income
requirement, generation and allocation will be more extensively discuss in
the Financial Study.
B.3. QUANTITY
Quantity is one of the important factors to consider for this study
simply because the project aims to cater the public, in general, and private
utility vehicle owners, in particular.
Therefore, herein consultant, likewise finds it compelling to know the
number of the market, specifically the approximate number of private utility
vehicle owners going to and fro the City that would most likely avail of the
said facility.

B.4. QUALITY
Finally, awareness of the quality parameters involved in the project,
too, is a must have factor. Quality factor is further subdivided into four
aspects, as follows:

(1) Inputs- Involves the raw materials for the project;

(2) Outputs- Considers what the project produces;
(3) Outcomes- Considers the results of the project and;
(4) Processes- Determines the means used to achieve the outputs.

Considering these quality factors in the study, there will be quality factor
in the materials that will be used for the automated car parking system
(the input), in the delivery of the basic services of pay parking (the
 process), in the number of clientele availing of the said services (the
output), and in the benefits that the business brought to the public (the
outcomes).

Ideally, the four project parameters must concur with each other,
however, such a demanding requisite will hardly exist. Sometimes, one
parameter need be given more importance than the other. For example, in
this study, quality of the services of the automated car parking system and
number of the target market that will be catered with the said business far
more outweighs the cost and the deadline. Withal, it bears stressing that
herein consultant readily identified what the most important parameters are.

C. POLICIES
Considering existing policies in the conduct of a feasibility study is an
indispensable step to take. Knowing these relevant existing policies prevents
herein consultant’s time, effort and resources in going to waste.
These existing policies is a tool needed to know a study’s limitation and
restrictions. So also, with the limitations and restrictions of the consequent
conduct of the operations.
The policies supposedly to be considered in the conduct of the study are
as follows: (1) Economic Policy; (2) Industrial Policy; (3) Financial Policy; (4)
Social Policy and; (5) Other related policies.
However, the herein consultant being learned in law, the latter deemed it
appropriate to discuss the Legal Policies involve for the propose study, rather
than the herein preceding policies.

C.1. LEGAL POLICIES

Knowing the legal policies involved in the study, will require one to first
consult the fundamental law provisions about land acquisitions.
 During one’s study of the constitutional provisions as regards land
acquisitions, one will readily be informed of the following restrictions:
1. That, only Filipinos may acquire land/s in the Philippines. Except
through inheritance;
2. That, the use of marine wealth is exclusive to Filipinos;
3. That, in co-production, joint venture, or production sharing for the
exploration, development and utilization of natural resources,
foreign equity in a corporation is limited to 40% and;
4. For public utilities, a corporation must be controlled by at least 60%
by Filipinos and 40% by foreigners.
Nonetheless, relating these mentioned fundamental restrictions about
land acquisitions to this investigation will likewise leads us to
conclusion that only items nos. 1 (one) and 4 (four) finds relevant
applications.
Aside from the constitutional restrictions as regards land
acquisition, a statute of a subsequent legislation is also worth to
mention. The Investors Lease Act (R.A. 7652) somehow remedied the
prohibition of foreigners’ land acquisition by allowing them instead to
lease lands for a period of fifty (50) years, renewable for another
twenty-five (25) years.
The purpose of allowing the lease is for the obvious reason of
allowing foreign investors to pursue their business endeavors in the
Philippines conditioned upon the following: (1) Investment must not
be less than Five Million Pesos (PHP5, 000,000.00) and (2) the leased
area must be for long-term lease “as may be reasonably required for
the purpose.”
Having these legal policies in mind, as regards land acquisitions
and restrictions, the consultant, at the outset directly determine
feasibility of the propose study.
 II.
PROJECT PRINCIPAL AND/OR INITIATOR

A. NAME/S AND ADDRESS/ES

As this is a study conducted for purposes of compliance to a school

requirement, the identity of the consultant and the project principal
and/or initiator lies on one and of the same investigator.

PROJECT PRINCIPAL AND/OR INITIATOR

NAME ADDRESS
BELTESHAZZAR L. CABACANG BLASAB, Poog, Toledo City, Cebu,
Philippines 6000

B. FINANCIAL POSSIBILITIES

Once more, this study being self-initiated, solicitation of financial plans

might be of remote possibility. But, herein consultant does not discount the
fact that investor/s in the future might come across this study and may
likewise be interested investing in the latter-day parking system, the
Automated Car Parking System.

Therefore, this study will not be dwelling much of the financial plans
called for.

Nevertheless, one necessary corollary aspect of financial possibility,

aside from financial plan is the financial opportunities. While herein
consultant will not hold forth much of the financial plans, financial
opportunities is but of a quintessential concern.

Hence, herein consultant or any other advisor for the matter, finds it
of a paramount duty to discern the financial opportunities that will be
brought by the study.
 Thus, to comply with the said duty, hereinbelow provided, are some of
the tangible financial opportunities relative to the study, as follows:

1) International companies with indispensable responsiveness in

furnishing technological services will be very much interested
to invest in the business;

2) National and local governments, in its proprietary capacity will

invest in the said specialty for the twin purposes of public
service and proprietary interest.

3) Local Condominium Developers might adopt said parking

system requiring a minimum amount of space, thereby
utilizing the other free spaces for other profit earning
purposes;

4) Car companies too, may soon engaged in the like business

not just to have a complex car parking system, but also to
effectively display the same.

C. ROLE WITHIN THE PROJECT

Herein consultant’s role in the project runs from being an all-

knowing researcher down to being the messenger.

As stated elsewhere, this study is to be submitted as a fulfillment

of one of the requirements for the Degree of Bachelor’s in Science
Major in Real Estate Management.

Consequently, not having someone to rely for the success of this

study, a writer’s communication skills, a financial analyst’s analytical
skills, an engineer’s technical skills, an architects creative and
imaginative skills, an agent’s interpersonal skills, and a lawyer’s skill of
arriving into sound judgment are mandatory skills required for the
accomplishment of this undertaking.
 III.
PROJECT HISTORY

A. HISTORICAL DEVELOPMENT OF THE PROJECT (DATES OF

ESSENTIAL EVENTS IN PROJECT HISTORY)

The subject Real Estate Investment and Consulting, being

offered during the summer results to a narrow opportunity for the
conduct of an exhaustive research or project feasibility study.

Thereupon, the birth of the project was rooted at the very first
day of the summer class and will be culminated amid the said duration.

For this reason, every day of the given time, is historical, if not
essential.

B. STUDIES AND INVESTIGATION ALREADY PERFORMED.

Before embarking in this schoolwork, the complete fundamental

knowledge for the conduct of a feasibility study was previously
premeditated.

Topics which encompasses Project Feasibility Study, Investment

Measurement Tools, Real Estate Market Analysis, Market Driven
Strategy, Highest and Best Use Analysis, Location Analysis, Investment
Analysis for Proposed Projects, among others, are discussed and very
well deliberated.
 REAL ESTATE PROJECT FEASIBILITY STUDY

I.
PROJECT SUMMARY

A. NAME OF THE PROJECT & LOCATION

This project is dubbed “Real Estate Project Feasibility Study on

Automated Car Parking System in Cebu”, it being a study undertaken
as requirement under the course Bachelor of Science in Real Estate
Management at the University of Cebu.

So also, brought about by the demand of the mobility of today’ time,

comes also the demand for the maximum use of parking spaces.

B. DESCRIPTIVE DEFINITION OF THE PROJECT

Herein consultant choose the project not only for purposes of earning
profits, but also to contribute to the benefit of the riding public through the
eventual realization and implementation of this disquisition.

Too, aside from this dual intention, herein consultant is also with the
ambition of providing the target market with warm, convenient, and relax
“Automated Car Parking System” experience.

C. PROJECT OBJECTIVE

Given the demand in transportation and mobility, specifically here in Cebu

City, it is the consultant’s aim to savvy whether this feasibility study will be
of much help to the society in providing convenient and easy access parking
methodology.

So, herein consultant supposedly considers various project objectives, but

for the same to be realistic, the latter deems to streamline the project
prospective, to wit:

A. To introduce the Automated Parking System to the

Philippines, specifically in Cebu City and to benefit from it,
both proprietarily and from the convenience, comfort and
welfare it may bring;

B. To make a comparison of the various aspects of the existing

parking system with the Automated Parking System;

C. To determine the economic benefits that it may brought to

the Country, in general and to the City, in particular.

D. FEASIBILITY CRITERIA

The following are the feasibility criteria that the herein consultant
wish to prove during the course of this study, to wit:

(1) That Automated Car Parking System, being a novel commodity

will bring forth investors willing to invest in the Country;

(2) That aside from investors willing to invest in the Country, several
patronizers will most likely avail of the services with warm,
convenient and relax “Automated Car Parking System”
experience;

(3) That because of several patronizers availing of the said services,

demands exists to support companies entering in these
industries and;

(4) That because of several companies entering in these industries,

revenue projections will likewise be accomplished.
 E. LIMITING CONDITIONS

The study sampled only a limited number of vehicle owners, a potential

investor and few officers in public sector. This is because, herein
consultant is faced with time constraints that he must intelligently
allocate.

Correspondingly, the generalization of the result cannot easily be

justified.

II.
MARKET STUDY

A. PROJECT DESCRIPTION (DEVELOPMENT THEME)

Our country, being a developing country, has inevitably developed

overtime. Also, given the present government’s “build, build, build”
program, many major infrastructures, including contacted roads had been
built, which in turn lead to the increasing number of automobiles.

Consequently, this daily increase of number of automobiles likewise

command an increase in the number of parking spaces demands.

Presently, it is of public knowledge that the Philippines still adopts the

manual procedure of parking. This kind of parking sometimes exhibits one’s
lack of discipline. Here, a driver would usually just park anywhere, in a place
that convicts him. As such, a huge traffic situation usually occurs in that
station.

Besides, car dents are obtained from parking and retrieval due to lack
of sufficient parking space and interval.

These circumstances lead to arguments which brings forth chaos,

waste of time caused by traffic jam, economical loss consequent of repairs
and loss of probable profits from other affairs.
 (Disclaimer: The Photos in this study and any samples are provided as guide only. Herein consultant does not claim
ownership over the same which may already be subjected to copyright.

Portrait 1. Existing Car Parking

Aside from economic loss due to an individual, the same economic loss
will likewise be suffered by the business sector, in principle. This economic
laggard is due to the fact that business centers, at present, usually have
parking hazards.

Taking all these matters into account, herein consultant finds it

necessary to find a solution that can overcome these problems that
surmount. The “Automated Car Parking System” is the key that herein
consultants presents as the solution to these problems.

Over and again, this system is not only for purposes of profit making,
but also a project which is ground breaking.
 (Disclaimer: The Photos in this study and any samples are provided as guide only. Herein consultant does not claim
ownership over the same which may already be subjected to copyright.)

Portrait 1.1: Proposed Automated Car Parking System

B. FACTORS AFFECTING THE MARKET

Factors affecting the market varies, primarily from internal factors to

external factors. It is known that only the internal factors can be actively
and directly controlled through marketing management. Nevertheless,
there are some external factors that can be overcome by discerning
marketing and advertising.

B.1. ECONOMIC FACTOR

The Automated Car Parking System will surely deliver economic

benefits which are unparalleled and without skepticism.
 B.1.1. Maximum Land Use

An apparent physical characteristic of APS is the use of less area

and volume of realty spaces than the other car parking places.

Said physical characteristics therefore results to Maximum Land

Use where tenants or developers considers various options such as:
the minimization of the land exploitation for the maximization of car
parking stations.

B.1.2 Potential Profitability

Automated Car Parking System brings potential profitability even

to lands in distressed and of futility.

The design of the system, being flexible, it converts existing land

use profitable because APS can be installed inside, under or between
irregular structures unnoticeable.

B.1.3 Minimal Maintaining Cost

Unlike in conventional car parks, Automated Car Parking System

which is usually located indoors, requires no or minimal staff and
security, clean up, monitoring, fire suppression, lighting and
ventilation.

B.1.4. Lower Occurrence of Insurable Risks

Insurance Companies usually assumes risk on the probability of

accidents or occurring events. The happening of the insurable risks
such as theft, property damage, injury or death will less likely become
brisk.

B.1.5. Tax Deductions

The investors or property developers may avail of tax deduction

from one’s total gross income for depreciation costs, thereby lessening
 one’s total tax liability compared to investors or property developer of
traditional car park system.

III.
TECHNICAL STUDY

A. PROPOSED IDEAL PROJECT AND CONSTRUCTION SCHEDULE

Calendar for 2018

May Jun Jul Aug
 Determining the objective of the Project
 Conduct researches related to the Project
 Collecting ideas for physical structure and technical designs
by technical team

Calendar for 2018

Sep Oct Nov Dec
 Budget panning and outlining
 Gathering of materials
 Completion physical structure and technical designs prepared
by technical team

Calendar for 2019

Jan Feb Mar Apr
 Actual works on physical structure and technical designs by a
technical team

Calendar for 2019

May Jun Jul Aug
 Presentation
 B. SAMPLE CONSTRUCTION COSTS

Construction / Development Costs Conventional Garage vs Robotic

Parking Systems1

Construction / Conventional Garage Robotic Parking System

Development Cost

Land (or attributed cost of $10 Million $10 Million

area)

Construction Costs Turnkey 400 spaces at $20,000 = 850 spaces at $25,000 =

$8 Million $21.25 Million

Soft Costs $1 Million $1 Million

Development Costs $19 Million/400 = $32.25 Million/850 =

(Land + Construction Costs $47,500/space $37,940/space
+ Soft Costs / # Cars) 125% = $47,500 / space 100% = $38,000 / space

Lowers Development Costs2

Overall development costs for a Robotic Parking System can be

significantly lower than for a conventional garage. Since there are no people
or running cars inside the garage, there are lower lighting and ventilation
requirements. Lower insurance costs, lower personnel expenses and smaller
land area required and more – all add up to increased savings.

Underground applications are particularly well suited to the Robotic

Parking System Because only half the space is needed for the same

1
“Robotic Parking System”. 1994-2018. Retrieved from
https://www.roboticparking.com/robotic_parking_increase_revenue.htm
2
Ibid
 amount of parking as conventional garages, developers can save as
much as 50% on the excavation alone.

Operating and Capital Costs Conventional Garage vs Automated

Parking Garage3

Conventional Robotic Parking

Parking System
Capacity/ Labor Assumptions

Capacity 892 892

Hours of Operation 24 / 7 24 / 7

Expenses

Payroll & Benefits $850,000 (1) $145,000

Insurance Expenses $95,000 $50,000

Utilities Expenses $165,000 $200,000

Repairs & Maintenance $145,000 $50,000

Bank Fee Expense $100,000 $100,000

Marketing Expense $20,000 $20,000

3
Ibid
 Support Services Expense $75,000 (2) $35,000

Other Operating Expenses $150,000 (3) $75,000

Subtotal Operating Expenses $1,600,000 $675,000

Real Estate Taxes Expense $150,000 $150,000

Subtotal Non-Operating Expenses $150,000 $150,000

Total Expenses $1,750,000 $825,000

Capital Costs

Security Camera / DVR System $30,000 $30,000

Capital Account $240,000 (4) $60,000

Total Capital Costs $270,000 $90,000

Grand Total $2,020,000 $915,000

It's easy to see when you look at all the factors that a Robotic Parking System creates space
for design and development and can help you increase revenues on your project.

(1) Labor Schedule

(2) Includes security, legal fees and audit fees
(3) Includes license/permit fees, uniforms, office supplies, claims, etc.
(4) Conventional Garage: 30% of garage repaired after 10 years at $50/sf
Conclusion4

It's easy to see when you look at all the factors that a Robotic Parking System creates space
for design and development and can help you increase revenues on your project5.

III.
SOCIO-ECONOMIC STUDY

References:

1. Clegg S. (2017, April 19) The Four Project Parameters, Time, Cost,
Quantity and Quality.

2. Mubashirin M. and Mahmud S. Automated Car Parking System. (A

Thesis Submitted in Partial Fulfillment of the Requirement for the
Degree of Bachelor of Science in Electrical and Electronic Engineering).
Retrieved from
http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/8412/11121
061%2C10121040_EEE.pdf?sequence=1&isAllowed=y

3. “Robotic Parking System”. 1994-2018. Retrieved from

https://www.roboticparking.com/robotic_parking_increase_revenue.h
tm

4
Ibid