Commercial Development in West Africa – Feedback on Profitability & Financing

Hi BP Community!

I’m developing a commercial building in a country in West Africa, and would love your insights on its profitability and financing approach.

Project Summary:

• - 950 sqm corner plot under a 40-year ground lease
• - G+1 commercial building with 36 shops, a prayer room, and rooftop ad panels
• - Located in the capital's market zone — very high foot traffic
• - Initial investment: the equivalent of $USD 930,000 in local currency which includes the 10 years of prepaid land rent

Revenue & Occupancy:

• - Annual rental revenue (Year 1): the equivalent of $USD145,000 in local currency
• - 7% shop rent increase every 5 years
• - The annual revenue assumes 100% occupancy, which is typically reached within 1–2 years in this area due to high demand and visibility

Operating Expenses:

• - Recurrent yearly expenses total USD$20,000, covering: Security, maintenance, generator upkeep, insurance, taxes, repairs, and contingencies
• - Land rent restarts in Year 11 with a 10% increase every 10 years

Financing Scenarios:

1. - With loan (USD$550,000 at 7%, over 6 years)
      → Break-even in Year 12
2. - All-cash (no loan)
      → Break-even in Year 8

After breakeven, the project produces pure cash flow for 28–32 years.

 Would you consider this a strong long-term hold?
Would you use debt here or go all-equity to speed up returns?

Appreciate any advice, feedback, or red flags I might have missed.

Thanks a lot!