PROPERTY MANAGEMENT IDEOLOGY ( source of vision and mission)

Hotels are a major special property investment group. The most important factor
affecting the value of a hotel is its profit-earning capacity derived from the
accommodation, catering, and the facilities for the bar business. These components may
be greatly influenced by the age, design, planning, and convenience of the hotel in
question. Location and parking facilities are of utmost importance.
Petrol stations are special properties where the retailing or selling of petrol is carried
out. In addition, many other services exist like car repair, car washing, shops, stores and
restaurants to serve customers. The business is normally owned by large companies such
as Agip, Shell, or Kobil but run on their behalf by a retailer on a tied tenancy.
Factors considered in giving value to such a petrol station are mainly the design in terms
of accessibility, volume of traffic along the station's frontage, speed of the traffic; size of
the total station especially the forecourt.
Other minor considerations are given to the roofing of the station for protection against
sun, heat and rain, visibility of the station from a distance and management in terms of
the efficiency of the car filling, windscreen cleaning and tyre inflating.

PROJECT BRIEF.
1) Project Title:
Proposed construction of a medium size service station.

2) Project Name:
Proposed RobiOil Service Station.

3) Location:
The project is located at Kehancha town in Migori County. Along Migori-Ntimaru Road
No. D201. The actual location is at the town centre approximately 500metres from
Kehancha Bus Park, 200metres from Kehancha Post Office on the left as one drives to
Ntimaru from Kehancha town, along the main Kehancha-Ntimaru Road no. D201. The
site is on a fairly flat stable, hard ground.

4) Sector:
The Petroleum Service Sector.

5) State of Preparation:
This development will be funded by the owners savings in addition to that working
capital and capital investment will be borrowed from financial institutions.

6) Project Background:
Kehancha Town has 3 (three) petrol stations. Two are very small with 2 (two) Dispensing
Pumps located infront of commercial shops. one which is located right opposite the
National Cereals and Produce Board (NCPB) and next to KCB Kehancha branch, is a
fairly built petrol station with four dispensing pumps. It is the biggest currently. Demand
for a modern Service Station that offers a complete range of services is very high
because none of the existing stations offer this services other than selling kerosene, petrol
and diesel.
Robi Oil Service Station therefore seeks to fill this gap by offering a complete range of
services from Greasing, Air, Car wash, Diagnostic clinic, Wheel alignment, Wheel
balancing, Restaurant facilities, Bar, Chemist, Cyber caf, Automatic Teller
Machine (ATM) and Executive accommodation of 10 self contained rooms complete
with a common lounge, offices and conference facilities.
This concept is the trend in major cities in the world and as we move to the counties, it is
obviously the way to go. The concept is to bring the city into the county towns.

7) Project Justification:
A feasibility study done on the project viability shows that there is a big demand for the
product and that it will change the way business is done within the petroleum sector in
Migori County.
 The project is located at the C.B.D of Kehancha town, next to the modern Kehancha bus
park. The modern Kehancha Market is 500metres away with a road connecting to the
main road right opposite this site.
The project is also located at the junction of the new road to Kegonga which is a District
Headquarters of Kuria East District. The project will also offer wholesale products which
will feed the smaller petrol stations located in the interior of Kuria East and Kuria West
and along the Kenya/Tanzania border.

8) Economic Justification:
The project when complete, will offer employment to atleast 10 (ten) people, and offer
technical training as well as learning opportunities in the petroleum sector.
The turnover is projected to be 10 million shillings per month; this is because the
proposed tanks have a capacity of 20000litres for diesel, 20000litres for super petrol, and
20000litres for regular petrol and 10000litres for kerosene. Assuming that the tanks are
full, then total is 70000litres of fuel at a cost of Kshs. 110 per litre which works out to
Kshs. 7,700,000.00. Assuming that there will be a standby fuel supply of a similar
amount (Kshs. 7,700,000.00), then total working capital in fuel alone will be Kshs.
15,400,00.00. Add other petrol products like oils and grease of say Kshs. 600,000.00,
then the total working capital expected will be Kshs. 16,000,000.00 (sixteen million
only).
Assuming sales per month to be 70% therefore Kshs. 11,200,000.00 average per month.
Projected monthly turn over is therefore between 10million and 12million in sales.
Taking advantage of economies of scale, this project is economically viable.

9) Project Objective:
To improve the level of services offered in the petroleum industry in Migori
County to match those offered in major cities of Kenya and internationally as
shown in the photos attached.
To link Kenya and Tanzania in Petrol Service Station services especially bearing
in mind that this is a tourist corridor with tourists connecting by road between
Serengeti National Park in Tanzania and Masai Mara National Park in Kenya.

10) Project Merits:

Tourist stopover.
On many occasions tourists get stranded for lack of accommodation when rivers
swell and roads become impassible. Other travelers also find it difficult to find
accommodation when their vehicles breakdown or generally when they need to
break on their long safaris.
 When complete, the project will offer state of the art service which will reduce
the congestion and delays currently experienced with the local petrol stations.
This will help reduce vehicle operating costs.
It will reduce fuel prices and other services as a result of new competition.
There will be reduced cost of repairs since the long distances to the nearest
greasing garage is Migori town 32km away.

11) Project Description:

The works shall be executed over an area of 1350m2 and shall comprise:
Earthworks
Drainage works
Builders works
Civil Engineering works
Concrete interlocking paving blocks
Fuel tanks installations
Fuel dispensing pumps installation
Plumbing works
Electrical works
Concrete structure construction
Construction of steel structure canopy
Erection of elevated water storage tanks
Construction of underground water storage tank.

12) Cost Estimate:

The project is estimated to cost Kshs. 35million in construction cost and Kshs. 15million
in working capital making a total of Kshs. 50million.
The investment capital and initial working capital out lay is therefore estimated to be
Kshs. 50million.
Its value is projected to grow at an average rate of 12%p.a. Worked out as follows:
i. Cost of construction Kshs. 28000000.00
ii. Cost of steel structure canopy Kshs. 1000000.00
iii. Cost of fuel tanks Kshs. 1600000.00
iv. Cost of dispensing fuel pumps Kshs. 2400000.00
v. Cost of plumbing works Kshs. 500000.00
vi. Cost of greasing pumps, compressors Kshs. 250000.00
vii. Cost of standby generator Kshs. 500000.00
viii. Cost of drainage works Kshs. 250000.00
ix. Contingency Kshs. 500000.00
x. Working capital in Fuel and Grease Kshs. 15000000.00
Kshs. 50,000000.00