Transcript offer of investment participation in “favorit” housing estate building at

OFFER
OF INVESTMENT PARTICIPATION IN “FAVORIT” HOUSING
ESTATE BUILDING AT THE ADDRESS:
4, ARTILLERIYSKAYA STR., ODESSA CITY, UKRAINE.
PROJECT DESCRIPTION. LOCATION
The project provides the building of housing estate, consisting of four 18-storied houses for 448
apartments, built-in integrated office premises, situated in the first floor level, underground
parking for 213 card and detached administration building. Housing estate is situated in Odessa
city on Artilleriyskaya Str., 4.
TECHNICAL AND ENGINEERING
CHARACTERISTICS OF THE ESTATE
Description
Unit
Quantity
Land lot area
Hectare
1,58
Building territory area
m2
9451,27
Total area of apartments
m2
28514,36
Total quantity of apartments, including:
piece
448
1-room
piece
180
2-roomed
piece
180
3-roomed
piece
72
4-roomed
piece
12
5-roomed
piece
4
Total area of office premises
m2
2095,9
Total area of administrative building
m2
494
Total area of parking lots
m2
7565,03
Parking capacity, including:
place
213
- single, with area up to 20 m2
piece
142
- single, with area up 25 m2
piece
17
- double, with area up 40 m2
piece
27
Overland parking
piece
90
CORPORATIVE STRUCTURE AND TITLE
•
The project belongs to the company “ZHILYEPROMSTROY” Limited Liability Company (32696339), which was
established specially for the project realization and has no other business, is free from any other liabilities except
of the ones relating to the present project.
•
The land lot with area of 15289 square meters, situated to the address: 4, Artilleriyskaya Str., Odessa city,
cadastral number 5110137300:51:008:0037, is the property of “ZHILYEPROMSTROY” LLC on the grounds of rent
contract with Odessa city council as of 15.11.2005.
•
There were obtained all required permits and endorsements regarding the estate, entitling its buildings, including:
•
Positive expert’s report of the Ukrainian State investment expertise in respect of building project № 539/06 as of
26.03.2007.
•
Permit for construction work in the Inspection of State Architectural construction control of Odessa city №142/07
as of 2.04.2007.
•
On the grounds of Decision of Odessa city council № 285 as of 29.06.2005 there was concluded building
leasehold agreement, binding “ZHILYEPROMSTROY” LLC to assign 12% of residential space from the total area
of apartments to the City council.
•
For the purpose of mobilization of investment from buyers there were emitted specialized bonds , which clearance
is stipulated by the release terms by apartments, office premises and parking lots. Bonds emitting was registered
in the State commission on securities and stock market on 08.06.2007.
PHOTOS OF EXISTING BUILDING
TOTAL SUM OF REQUIRED CAPITAL INVESTMENT
Expense items
Completion of estate construction
Sum, $
11 283 000
Administrative costs
78 770
Object insurance
32 468
Commissioning costs
51 948
TOTAL
11 446 186
PROJECT INCOME
Description
Unit
Quantity*
Price
Cost
Apartments**
m2
13 275
$1 256
$16 675 000
Offices
m2
2095,9
$1 737
$3 640 210
Administration building
m2
494
$2 200
$1 086 800
- single, with area up to 20 m2
Piece
137
$15 000
$2 055 000
- single, with area up 25 m2
Piece
16
$20 000
$320 000
- double, with area up 40 m2
Piece
26
$25 000
$650 000
Overland parking
Piece
90
$4 417
$397 500
Underground parking lots
TOTAL
$24 824 510
* quantity of areas in the Housing estate, free from liabilities
** in view of 12% of residential premises to be assigned to the City council.
PROJECT PROFIT
Description
Total project income*
Total project expenses
Project profit
Sum, $
$25 434 796
$13 508 810
$11 925 986
* As of today there are concluded agreements for apartment sale in the
estate, where paying out is on phase basis and the total agreement
sum has not been redeemed. The total sum of such payments – $
610 286,with the repayment period till the end of the building.
FINANCING AND COMMERCIAL OFFER
•
This project provides formation of loan capital according to 7,5% yearly rate at the in quantity of
$11 065 000 by tranches over a period of one year. Security will be the incompleted
construction object.
•
Alternative – 50% entry into the share capital. Investment commitments of the Investor imply
fulfillment of construction work financing and commissioning the object, $11 446 186. Subject to
this, return of investments at the rate of $11 446 186 will be in the first place from income of real
estate realization, and afterwards the distribution of project profit will be on 50:50 basis.
Investor’s contributions profitability indices in case of entering into sharing
capital on 50% basis
Discounting interest rate, % per annum
Net present value
Project payback period, months
Internal return of return of project, % in month
Internal return of return of project, % per annum
Profitability index
10,00%
$2 962 195
36
1,88%
25,08%
1,29
Contact details:
ASSET MANAGEMENT COMPANY «ATLANTA»
Toropov Andrew
Tel./Fax: +38 (048) 785-51-50
+38 (067) 59-00-876
E-mail: [email protected]