Development pitch
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Transcript of Development pitch
![Page 1: Development pitch](https://reader035.fdocuments.net/reader035/viewer/2022070319/55853012d8b42a9b388b4d09/html5/thumbnails/1.jpg)
CORPORATE PROPOSAL
EPIC DEVELOPMENTCommitted to designing, developing and building commercial properties with a focus on social and environmental longevity.
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60,000 Sq.ft. LEEDs Gold Certification$11.5 million
PRODUCT
FARMER
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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PRODUCT
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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PRODUCT
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
LEEDS GOLDRATING
60,000 Sq.ft. LEEDs Gold Certification$11.5 million
Green Benefits
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PRODUCT
• Green Benefits• Reduce impact on the environment
• Competitive Advantage
• Enhance occupant comfort
• Increase productivity
• Improve the bottom line
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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PRODUCTAverage Cost Premium for Green Buildings
4% Premium = $401 467 equating to $3.50 per square foot in cost savings via energy, water, and waste efficiencies.
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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PRODUCTPremium Cost Break Even
sept. '07 march '08 march '09 march '10 march '11 march '12 march '13
-$500,000
-$400,000
-$300,000
-$200,000
-$100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
Pay Back Period=1.9 years based on $210 000 cost savings with 96% occupancy
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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PRODUCT
EPIC Development Rent Structure for Green Buildings
Revenue Source Revenue Amount /sq.ft.
Leasing Space $23.66
Operational Costs $4.35
Utility Cost $0.50
Total $28.51
Average Industry Rent Structure of Conventional Buildings
Revenue Source Revenue Amount /sq.ft.
Leasing Space $20.16
Operational Costs $7.85
Utility Cost $0.50
Total $28.51
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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Lease Price and RevenueRevenue Source Revenue Amount /sq.ft.
Leasing Space $23.66
Operational Costs $ 4.35
Utility Cost $0.50
Total $28.51
Based on 96% occupancy
Year After Tax Income
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
FINANCIALS
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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Break-Even
• BE cash flow early 2010• Yearly occupancy of 30% is needed to cover
expenses and financial obligations
2008 2009 2010 2011 2012
100%
96%
90%
Ending Cash Balances
FINANCIALS
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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Our Tenants need to:• Assist in building a community centre• Match our ‘green’ values• Satisfy the needs of Westhill residents
MARKET
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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MARKET
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
Target Market• Sustainability Innovators• Anchor Tenant: Niche Grocer
Market Size• Canadian Green Business Industry Size - $15 billion• Development will be competing based on a
differentiation strategy
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• Global Trend• Massive public pressure = creation of “green”
development industry
• Industry Trend • Commercial development industry – 9% growth• “Green” commercial development industry - 34%
growth
INDUSTRY
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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• Top 3 reasons green development are gaining in popularity
1. Rising Energy Costs2. Superior Building Performance3. Customer Demand
INDUSTRY
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2002 2003 2004 2005 2006
Growth in LEED Membership
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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Alignment of Values
Available Sq.ft.
Commercial lease space currently
available
Population Density
Westhills Yes 60,000 0-5% 5950 residencies
Dockside Green Yes 7,000 0-5% 920 residencies
Goldstream Meadows No 100,000 0-5% 420 residencies
Bear Mountain No 2,000 0-5% 2,200 residencies
Olympic View N/A N/A 0-5% 917 residencies
INDUSTRY
Greater Victoria Area = Average 0.5% vacancy rate in neighbourhood shopping centres
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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DocksideGreen
Goldstream Meadows
Olympic View
BearMountainAlignment of
Values
Population Density of Development HighLow
High
INDUSTRY
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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SUCCESS FACTORS
Critical Success Factors:
• Anchor tenant acquisition
• LEED Certification
• Like-minded tenants
• Tenant retention
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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TIMELINE
Build Partnerships and Relationships
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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CHALLENGES
Challenges Solutions• Ensure all employees are
trained and are on board
• Not getting certified by LEED
• Securing Anchor Tenant Proactive Marketing and mutually beneficial lease
• Following Construction Timeline
Work closely and communicate with project manager and suppliers
Continuously re-evaluate progress
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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PROPOSED OFFER
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
• $4.2 million investment
• Funding uses
• Lakeside provided as collateral
• Percentage of available ownership
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CONCLUSION
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
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EPIC DEVELOPMENT
THANK YOU