Presented by Iggy Ignatius President, ShantiNiketan Inc

Transcription

1 Presented by Iggy Ignatius President, ShantiNiketan Inc

2 Why are we here today? Exploring Feasibility of ShantiNiketan In the DC area Iggy Ignatius President, ShantiNiketan Inc Mid County Community Center Silver Springs, MD April 4, 2015

3 ShantiNiketan Charter To bring dignity and peace during our Golden Years that is practical and affordable to most of our first generation immigrants To build and operate a retirement community where a couple could live within one person s social security income To use the profits from this to bring similar lifestyle to those who are no so fortunate as some of us are ShantiNiketan ASHRAM

4 What is ShantiNiketan? There are thousands of Retirement Communities in the US.. BUT No other offers a place with Indian Food, Culture, Activities that Indian retirees are looking for

5 ShantiNiketan in DC A Retirement Community in the DC area that could be an alternative to going to India to live during retirement.. A place that is relatively close to our children and grand children..

6 ShantiNiketan around US

7 History of ShantiNiketan Conceived the project Travelled across the US Market Research Jan 08 - Phase 1 work started Aug 08 - Market crash May 11 - Completed Phase 1 July 11 - FL Phase 2 launched June 15 - FL Phase 2 scheduled for completion Projects around the US being explored March 2015 Signed Land Purchase Contract in Los Angeles

8 ShantiNiketan Phase 2 Bhoomi Puja

9 ShantiNiketan Prayer Room

10 ShantiNiketan Residents celebrating Holi 2015

11 Halloween Party at ShantiNiketan

12 ShantiNiketan Residents on a cruise to Bahamas

13 ShantiNiketan Commercial Kitchen

14 Lunch Time

15 Typical Menu Breakfast: Self serve continental Coffee/Tea 24/7 LUNCH DINNER 2 Vegetables Poori masala Dal/Sambar Salad Yogurt Roti/Rice Pickles Masala Dosa Idly/Vada Dhokla Pau bhaaji/bhel puri etc Lasagna Pizza

16 Monthly Expenses Condo Fees $ 250 Property taxes $ 300 Utilities $ 200 Food (for two persons) $ 500 Total $1,250 per month for TWO persons

17 Typical Condo

18 ShantiNiketan Aangan /Courtyard

19 Main Welcome Center entrance

20 Entrance waterfall

21 ShantiNiketan Phase 2 Taking shape January 2012

22 ShantiNiketan Phase 2 Taking shape January 2013

23 ShantiNiketan Phase 2 Taking shape January 2014

24 ShantiNiketan Phase 2 Taking shape June 2014

25 ShantiNiketan Florida March 2015

26 What we plan do in DC? Build about 100 units (2BR & Den, 2BA, 1 Car VILLAS) Gated Community Clubhouse with room for Prayer room (common for all religions) Kitchen Dining Hall Games/Activity rooms (Bhajans, Music, Cards, Dance, Philosophy, Stock Market, Yoga, Meditation) Offer Indian Vegetarian Food Indian Religious & Cultural activities

27 Market Segments The Pure Retirement Segment Location not a concern Needs a smaller space Peace & Quiet more important The Downsizing Segment Location very Important Needs a larger space

28 Where can we build? To be decided by the group of initial investors Considerations: Affordability acres Water & Sewer availability Entitlements/Approvals for a 55+ community Hospitals Easy access

29 How to do it? Get buyer-investors willing to invest upfront Buy the Land Get Approvals Get additional investors for Site work Complete site work (underground utilities, roads etc) Get additional early buyer-investors for building Build first phase of units & sell to market With revenue build second set of buildings Complete build-out of the project

30 Timing Year Description 1 Get buyer/investors upfront Buy the Land Get Approvals 2 Get additional investors for Site work Complete site work 3 Get additional buyers/investors for building 3 Build first phase of units & sell to market 3 With revenue build second set of buildings 4 Complete build-out of the project

31 Sample Locations and price points Location 1,200 SqFt 1,500 SqFt Laurel, MD $350,000 $400,000 Loudon County, VA $400,000 $450,000 Gainesville, VA $300,000 $340,000 Manassas, VA $300,000 $340,000 You tell us where you want

32 Cost Assumptions Land $ 3 Million Approvals & Site Development $ 3 Million Clubhouse 10,000 $200/SqFt $ 2 Million 100 Condos (1,200 SqFt 2BR,2BA/1Garage) $ 14 Million Engineering, Architect fees, Const Mgmt $ 1 Million Management/Marketing/Sales $ 1 Million TOTAL COST $ 24 Million Average Cost per unit $ 240,000 Base Selling Price $ 300,000

33 Investment Projections Class Investment # Total Period Return PA B $300, $ 3.00 MM % C $300, $ 3.00 MM % D $300, $ 4.50 MM 2 6-8%

34 Investment Timeline Once land is identified and Contract is signed: The Land stage investors will regroup for a meeting where the land details and the project details will be explained. Those who are going ahead with investment will sign an Operating Agreement and give the first installment of the investment Rest of the installments will be given in equal monthly installments over the period before Title has to be closed (after approvals are obtained) Site work investors: Same process Phase 1 building investors: Same process

35 Financial Strategy No Bank Loans will be taken Unsecured loans as needed to tide over cash flow Initial capital raised from early buyer-investors will let us do the project in stages important lessons learnt from past Return on investment will be the period for which money is invested. Earlier the capital is given, higher the return and returns will start from the investment date Regular accounts will be made available to investors

36 Exit Strategy Investors capital/deposit will be locked in for about 4 years If you want to exit in the middle, you can only sell your share to another person and take the money from them (very difficult process) If you do not want the unit at the end, you can sell it to potential buyers once the project is complete there will be ready buyers.

37 Investor Exposure This will be a Form D Corporation. Investors will have no other liability other than their investment as Class B, C, or D shareholders Investors Capital will be held in assets of the company Worst case scenario: If market crashes, the investment is in assets and can be held until the market bounces back. But our niche market is immune to market crashes

38 Next Steps TODAY: Identify investors and buy the land Enter into Contract to buy land Open an office and hire Project manager & staff First move-in in 2 years Project completed in 4 years

39 Our Contact Details: ShantiNiketan Inc 999 David Walker Drive, Tavares, FL ShantiNiketan-US.com Tel: (Minal Patel)

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