Kathmandu: The construction cost of Kumaripati Square, a major commercial and residential complex being developed by some of Nepal’s biggest business houses, has been reduced following a redesign of the project.
The project is being undertaken through Urban Pentagon Company with an investment initially estimated at Rs 4.56 billion. However, the new plan has brought the cost down to Rs 4.36 billion after changes were made to the residential and commercial apartment model.
Initially, the project was to be built with a total investment of Rs 4.56 billion and a proposed built-up area of 222,322 square feet. With the revised design, the construction area has been trimmed down to 219,580 square feet, thereby reducing the overall expenditure.
Kumaripati Square is being spearheaded by prominent figures in Nepal’s business community, including IME Group Chairman and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Dhakal, IMS Group Chairman and Nepal Chamber of Commerce Senior Vice President Deepak Malhotra, Panchakanya Group Managing Director Pradeep Kumar Shrestha, Omraj Bhandari of Brihat Investments, chartered accountant Narayan Bajaj, and entrepreneur Gyanendra Lal Pradhan.
The ownership structure of the project includes a 35 percent stake by Kumari Holdings Pvt. Ltd., 15 percent by IME Developers, and another 15 percent by Deepak Malhotra.
Remaining stakes are held by other individual investors. Initially, the company was registered under Urban Pentagon Pvt. Ltd. with an investment commitment of Rs 1.71 billion.
Under the new plan, the company aims to complete the project by 2028. It has secured both long-term and short-term loan ratings amounting to Rs 1.55 billion to finance the construction of residential and commercial apartments. These units are expected to be sold once completed.
At first, the plan was to build a 97,695-square-foot commercial complex with 120 retail shops. This was later revised to a larger mixed-use model covering 222,322 square feet, combining both residential and commercial units.
In the latest revision, the company has slightly reduced the built-up area while maintaining its mixed-use nature.
Of the total space, 48 percent will be allocated for lease/rental use while 52 percent will be sold as residential apartments.
Land acquisition for the project has already been completed, and the company has confirmed that the project will now proceed under a newly revised model.
The investment structure has been distributed in a ratio of 67:30:3, reflecting the capital and loan distribution strategy.
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