Commercial Building for Sale in Brazil

Brazilian Affordable Housing Project

INVEST IN BRAZILIAN AFFORDABLE HOUSING PROJECT





The Investment Opportunity:

•Invest in 2000 Affordable home Project for Brazilian families
•5 to 7 Year investment plan - 250% min to 350% max total ROI
•Initial Investment returned within 3 years (maximum)
•£2.2m investment is estimated to return £5.5m to £7.7m (plus initial investment returned of £2.2m)
•Investor owns Shareholding in Project SPV
•Project team have first project underway and have exceeded sales forcasts of end units (75% sold Phase 1 Land)
•The Development will be Pre-qualified for 20 to 30 year Mortgages to Brazilian buyers (Government subsidised Interest Rates)
•Total development size approx 750,000 sqm
•No Investor Management required, totally managed and regular reports


IMPORTANT: This opportunity is for 'Sophisticated Investors' Only. We are looking for one investor only. We do have other projects to be launched within 6 months whereby many investors can team together (Ie A Collective Investment Scheme) operated by a Registered IFA. Please advise if you wish to be notified when a 'Collective Investment Scheme' is launched.



Affordable Housing project in Brazil (Ref: PROJECT105)





BRAZILIAN AFFORDABLE HOUSING: This is an ideal opportunity for investors wishing to be involved in an Affordable Housing Project (of approx 2000 homes) in the emerging areas of Northeast Brazil. These houses are being built to meet the massive demand for local Brazilian housing. Accordingly, this development is NOT intended for the overseas property buyer. Only recently (Oct 07) has Brazil started 20 to 30 year Mortgages for Brazilians. This development will also offer 20 to 30 year (government interest rate subsidised) to Brazilian Buyers. There is a current shortage of some 7.9 million (and rising yearly) homes for Brazilian families (420,000 houses in the state of Ceara alone are required.*). The project team have an established model they are replicating in developments across the north east of Brazil. Land sizes range from approximately 500,000m² - 1,000,000m² . The project mangers have aimed the properties predominantly at first time buyers in the low-to-middle price bracket.



This project opportunity enables the investor to move quickly into the local Brazilian market as the team have spent many years designing the process and creating relationships with banks and trusted supply businesses. The investor need not be concerned with issues such as: Creating new processes, establishing trusted contacts or designing company vehicle structures. This is a 'turnkey' opportunity with established Exit Strategies. Initially KPI's and targets can be agreed between The project team and the investor, thereafter regular updates / reports will be sent to the investor (frequency to be agreed) informing the investor of the developments progress. As any investor will effectively an 'arm chair investor' and the business will require little involvement from you, investors will need to satisfy a criteria that they are a 'sophisticated investor' (and will need to signing a declaration). Legislation is such that it is important you are classed as a 'confident Investor'



The Development Team have a project currently underway (see opposite pictures labelled 'PROJECT 1') No further investment is required for this project. The project is well on track and exceeding targets set out by the 'Investment Company'. The 'Project Team' wish to increase the amount of sites currently under construction and maximise the 'window of opportunity' for themselves and investors alike. They have planned for a maximum of 4 to 5 projects to be under construction at any one time. 'PROJECT 1' is now underway and investment has recently been identified for a further two projects.



The initial investment requirement anticipated for this project is approx 2.2m GBP (max of £2.5m depending on final land costs and location) and this is the amount being sought.. The project financial ROI is estimated to be 250% and 350%. (£2.2m GBP is forcasted to return £5.5m to £7.7m over a 5 to 7 year period - initial invest returned on top of this figure). The initial investment of £2.2m will be repaid within 3 years of entering.







Proposed Schedule for this Project

•September 08 - PBI enter into talks with project team
•June 09 - PBI agree to proceed to attract investment
•September 09 - Model forcasts, Exec summaries and offer packaged for investor viewing
•December 09 - Agree with Investor to proceed based on generic model
•January 10 - Present actual land options to Investors
•March 10 - Purchase land after full due-dilligence and area analysis
•Apr 10 - Project standard timeframes / milestones start
If you are interested in this offer or would like to ensure we keep you on a 'hotlist' to send out latest Investment offers, please advise us. We are in talks with many other companies about bring out new and exciting product ranges for 2009 / 2010.







Example / Information 'PROJECT 1' - (Construction and Sales in Progress)



Below is information about the 'PROJECT 1' (which is currently under construction) whereby the new project formula will be similar, but in a different location / state.



The project is now underway and already Phase 1 (end land sales) are 75% sold out (as of April 09). The new project (above) will effectively be a mirror of the below project (except in a different location). Profit forcasts are better for the new projects as restructuring during PROJECT 1' has streamlined costs and increased future expected profits..



•Project costs so far 20m BRL and recently (2009) valued at 60m BRL. (approx 20m GBP). Increase mostly due to: improved development infrastructure, planning and capital appreciation.
•A total deficit of 7.9 million homes is estimated in Brazil.*
•743,556m² development site is secured near a Large City in the Northeast Brazil
•The city lies in the heart of Brazil's salt production area, and its largest landbased petroleum industry.
•2000c homes to be built, 1500c will be affordable houses aimed at the low-to middle price brackets.
•Pre-approved construction finance and conversion into new 20 to 30 year mortgage facility from a leading Brazilian bank.
•Site only 3km from Main City Centre. Close to the University and the second largest shopping mall in the state. A new Carrefour hypermarket is also being built only 1km away from the site.
•The development will be marketed in three major phase releases before 2011. Smaller releases in each phase will be structured to incorporate price increases dependent upon the market at the time.
•Sales will be maximised through brand-focused television marketing and billboard advertising campaigns.
•R$ 7.0 million total investment required and secured
•R$ 200 million 'Gross Development value)' (GDV) resulting in an estimated R$ 55 million net profit.
•Investors own shareholding in Brazilian Joint Investment Company
•Reporting to investors on Project SPE / performance on an agreed basis.
•Project completion is estimated to be within a 5 to 6 year maximum timeframe.
•Projected R.O.I. for investors is 275%. (however, now on target (as of Aug 09) for 350% plus ROI
•Projected return of investment capital within 3 years from the introduction of funds
•Quarterly profit distribution expected within 4 years from the introduction of funds.
Note: Whilst investors initially thought a return of 275% would be expected, the 'Project Team' are on target for 350% plus



Phase 1, consists of:



- 313 plots for the building of luxury houses for the higher middle class price bracket.

- The average plot size will be 420-450m² on which average size house of 2000m².

- Average property price: R$ 400,000.



Phase 2, consists of:



- 1096 affordable houses. The average plot size will be 250m² on which houses will be an average of 85m².

- Average property price: R$ 110,000.



Phase 3, consists of:



- 420 affordable Apartments.

- Average property size 65m² price: R$88,000.





Warning



Investments can go down as well as up. It is recommended you seek independent financial and legal advise to ensure you fully understand your risk and obligation. To invest into this project you will need to sign a 'self declaration' advising you are an 'Sophisticated Investor'