Invest In A Student Accommodation Development Own a share of prime real estate development 2016/08/30 1

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Myles McCormick
5 years ago
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1 Invest In A Student Accommodation Development Own a share of prime real estate development 1

Development of Student Accommodation: Vaal University of Technology, Bedworth Park Investor Pack www.mabindu.

2 Development of Student Accommodation: Vaal University of Technology, Bedworth Park Investor Pack Katherine Street Sandton Forecast, data and illustrations, estimates contained in this document are not guaranteed and are provided 2 for illustrative purposes only

3 Company profile Mabindu is a real estate advisory firm that allows the public to invest directly into income generating property. We specialize in residential and retail real estate acquisition and or re-development through our crowdfunding platform. We take an entrepreneurial view in our endeavours at the same time manage the inherent market uncertainty. We focus on risk management to ensure anticipated results are achieve through our stringent underwriting and due diligence processes. The team and our associates have deeper insight on real estate market in South Africa Project team Investment Consultant: Mpho Khorombi Mpho is a qualified engineering professional with a Masters in Management of Finance and Investment specialising in real estate investments. He also is well-equipped with essential business skills gained from being on the MBA exchange programme in Canada. He is responsible for sourcing and structuring real estate deals Concept Design and Architect Service: Nzuza Architects The practice has been growing steadily, with projects ranging in scale from research work, private houses, office blocks, to commercial residential properties. The firm strives to go the extra mile to explore new building techniques, materials development strategies and design philosophies. As a result the building projects differ in form and style, yet are unified by their clean and simple design aesthetics and principles. Fund Manager: Vunani Private Clients Vunani Private Clients offers high net-worth clients stockbroking and fund management as well as access to various derivative trading and hedging instruments. The wide range of products on offer includes geared derivatives (like CFDs and Single Stock Futures) to money market accounts. In addition, it has a range of absolute, balanced and directional funds. It's also active in both the local and international sphere with a range of offshore trading and investment products. 3 All information herein is deemed accurate. Independent

In the media Development tackles lack of student accommodation http://www.fin24.

4 In the media Development tackles lack of student accommodation ment-tackles-lack-of-student-accommodation Accommodation crisis also burdens students modation-crisis-also-burdens-students All information herein is deemed accurate.independent 4

5 Area locality All information herein is deemed accurate.independent 5

6 Students Key Statistics Total National Enrolments VUT Enrolments Year Year dept. of high education and emfuleni local municipality report

7 Student Accommodation Status at VUT Registration figures Accommodation arrangement figures Projected no. of students registered by 2017 Total no. of students registered in Approximate no. of students using university residence Independently sourced accommodation dept. of high education and emfuleni local municipality report

8 Property Description Property address Ganymede Street Township Bedworth Park, Vereeniging Land size 2000 sqm Supported zoning Buildable area 640 sqm Single bed apartments 8 units 80 sqm/units 4 bedrooms/unit Open floor lounge and kitchen/unit Residential 2, Medium density 8

9 Project Cost Land cost R Total project cost R Building R5900/square metre Professional costs R R Other costs Preliminaries, external works, contingency, escalations and general cost R All information herein is deemed accurate.independent

10 Income Model and Yield Base rent R 2 600,00 for single bedroom indexed to Cpi Number of bedrooms Number of single bed - 32 Gross annual income R ,00 Operation expense factor 25% Net annual operating income R ,00 1 st year yield 10.30% All information herein is deemed accurate.independent 10

11 Income Forecast R ,00 R ,00 R ,00 R ,00 R ,00 R ,00 Income Forecast Investment analysis Based on 5 year holding term Sale price R Internal rate of return (unleveraged) 14.3% R Year Revenue p.a Operating cost Operating income All information herein is deemed accurate.independent 11

12 Key Investment Features R already committed Minimum investment is R Great way to earn passive income Targeted tenants Vaal University of Technology Bursary and scholarship students Individual students All information herein is deemed accurate.independent 12

13 Deal Schedule September 2016-Capital raising opens May 2017 Construction- Start January 2018 Leasing April 2017-Capital raising close December 2017 Construction-End All information herein is deemed accurate.independent 13

14 Risk Statement and Disclosure The performance of the fund is linked to the performance of the underlying property asset which is and can be influenced by the factors below. Business risk Existing property owners might lower their rents to attract tenants. Demand for tenants may not grow as expected because of over supply of rental space Liquidity risk In an event where the property or shares has to be sold, it might take longer to sell. Property usually takes between 6-12 months to sell. Inflation risk Unexpected inflation can reduce an investor s rate of return if the income from the investment does not increase sufficiently to offset the impact of inflation, thereby reducing the real value of the investment Real estate has historically done well during periods on significant inflation hikes Management risk Income producing properties requires management to keep the space leased and maintained to preserve the value of the investment. Management competency is vital for acceptable rate of return to investors Legislative risk Real estate is subject to numerous regulations such as tax laws, rent control and other restrictions imposed by government. Legislative risk results from the fact that changes in regulations can adversely affect the profitability of the investment Environmental risk The value of real estate is often affected by changes in its environment or sudden awareness that the existing environment is possibly hazardous. For example, while it used to be common to use asbestos to insulate buildings, asbestos in buildings is now perceived as a potential health hazard Forecast returns are based on current economic assumption and no guarantees can be provided Past performances and historic data are not necessarily indicative of future performances or trend. Performance of the fund is directly linked to the underlying asset. Mabindu Crowdfund Mortgages is a registered juristic representative of Unum Capital (formerly Vunani Private Clients) is an Authorised Financial Services Provider (FSP 564) 14

15 Your cordially invited to attend one of our Investor Roadshow. 10,17,24 September 2016 Address: 151 Katherine Street, Sandton, Vunani Office Park Time: 11am RSVP: tell: Mabindu Crowdfunded Mortgages is a registered juristic representative of Vunani Private Clients an Authorised Financial Service Provider (FSP 564) 15

July 2011 Review Lander Schematic. Design. Presentation. Pre-design / Design / Construction

July 2011 Review Lander Schematic. Design. Presentation. Pre-design / Design / Construction F 6 Phase, Reduce Project Budget and Reduce Debt Funding Regents Action and Information Timeline November 2009 HFS Master Plan Phase II & III Update Mercer Site 30W Project Concept March 2011 Mercer Presentation