KANDA REAL ESTATE PROJECT FUNDING/INVESTOR PITCH · 2007-09-17 · PROJECT INFORMATION Project...

KANDA REAL ESTATE PROJECT FUNDING/INVESTOR PITCH

www.peconsultancygh.com

RHEMA PROPERTIES & MERCHANTS LTD (RPML)

THOMAS ANOKYE (CEO) USA Mobile: +214-770-6333

E-Mail: [email protected]

• FUNDING/INVESTMENT REQUIRED - USD27MILLION

• 4 TOWER BLOCKS WITH 200 UNITS AND SOCIAL AMENITIES

mailto:[email protected]

Who are Rhema Properties?


RPML is a real estate development company registered in Ghana

RPML currently have assets of about USD10M in Ghana

RPML have spent over USD2M over the last 3 years to developthe Kanda Condo project thus far

RPML have entered into a contract and recently executed a 50-year “Land Lease” with State Housing Company (SHC) to redevelop2.68 acres of the Kanda triangle owned by the State HousingCompany (SHC). As per KPMG feasibility study the current landvalue is about USD7.5M (2015)

Project Feasibility & Location


Location - The flats are located in Kanda Estates, a prime area, within the Presidential Palace enclave (5 minutes away). The area is zoned primarily for residential use, though it has some commercial uses serving the residents.Accessibility – The Kanda Highway and the Ring Rd central road.It takes about 10 – 15 minutes drive to the Central Business Districtwith hotels and recreation center (i.e. National Theatre, MovenpickHotel, Accra City Hotel, The Octagon, etc.Pricing – As per a KPMG feasibility study done in 2012, theaverage price of properties in this area is $468,000. RPMLestimates to price their 2/3 bedroom properties betweencirca$200,000- $280,000(excluding 4 pent houses of $800,000/unit)

PROJECT INFORMATION


Project contractor

Project Design

Total Project Cost

Project Revenue

Project Funding

Project Unit Cost

Micheletti & Co. Ghana Ltd

A premier design & construction company

with several high-end residential and

commercial completed projects in Ghana,

E.g., Villagio, Trasacco Valley, etc.

Please see www.michelettighana.com for

more information.

RPML have engaged their services for the

design and construction of the Kanda

Condos project. Evidence of this strategic

partnership is a signed MOU( See attached)

Micheletti have indicated that they will

provide off-taker agreements for this project

http://www.michelettighana.com/

PROJECT INFORMATION


Project contractor

Project Design

Total Project Cost

Project Revenue

Project Funding

Project Unit Cost

4 Towers & 200 Units (Option 2)

Phase 1(Tower 1) – 34 (2) bedroom

units(80m2) to be completed for current

residents of State Housing Corporation

Phase 2A (Tower 2,& 3) – Tower 2: 56 (2)

bedroom units (100m2), tower 3: 52 (2)

bedroom units(120m2),

Phase 2B(Tower 4): 54 (3) bedroom

units(140m2) and 4 (4) bedroom

penthouses(363m2)

PROJECT INFORMATION


Project contractor

Project Design

Total Project Cost

Project Revenue

Project Funding

Project Unit Cost

Cost per Units

T1 - 34 (2) bedroom units(80m2) at

$760/m2 i.e. $60,000/unit = $2,067,200

T2- 56 (2) bedroom units(100m2) at

$898/m2 i.e. $89,800/unit = $5,028,800

T3 – 52 (2) bedroom units(120m2) at

$898/m2 i.e. $107,760/unit = $5,603,520

T4 – 54 (3) bedroom units(140m2) at

$898/m2 i.e. $125,720/unit = $6,788,880

T4 penthouses – 4 (4) bedroom

units(363m2) at $980/m2 i.e. $355,740/unit

= $1,422,960

PROJECT INFORMATION


Project contractor

Project Design

Total Project Cost

Project Revenue

Project Funding

Project Unit Cost

Project Cost over 3 years

Cost of 200 units - $20,911,360

Cost of Demolition, communal area, local

facilities and amenities etc - $1,319,050

Other project administrative costs over 3

years i.e. legal fee, finance costs, salaries,

vehicles, travel costs, office rentals, office

equipment, consultancy cost - $4,537,500

Total Cost of Project - $26,767,910

PROJECT INFORMATION


Project contractor

Project Design

Total Project Cost

Project Revenue

Project Funding

Project Unit Cost

Potential Revenue for 166 units (Average)

56 (2) bedroom flats @ circa

$200,000/unit - $11,200,000

52 (2) bedroom flats @ circa $240,000/unit

- $12,480,000

54 (3) bedroom flats @ $280,000/unit -

$15,120,000

4 (4) bedroom penthouses @

$800,000/unit - $3,200,000

Total revenue - $42,000,000 (for detailed

info on financials please see spreadsheet)

PROJECT INFORMATION


Project contractor

Project Design

Total Project Cost

Project Revenue

Project Funding

Project Unit Cost

Funding

RPML requires a debt or equity financing

of USD27M for this project (NO UPFRONT

FEE, PLEASE).

RPML is willing to offer equity in the

project for a potential equity partner

Debt financing of circa USD27M is

estimated @ LIBOR + 1-3% interest rate

RPML requires a moratorium of 3 years

depending of financiers conditions.

The funding will be paid back by the sale

of the flats over 7 years. The funding shall

be collaterised by the asset under

construction and the future cash securitized.

OWNERSHIP & MGMT.


• Co – founder and 50% equity shareholder in RPML.

• The current CEO and owner of GWA Innovative Technology Inc., and Joint Ventures, a U.S. ICT company.

• Over 25 years experience in software development, quality assurance, project management in companies like of US Sprint, Texas Instruments, State of Texas Comptroller’s Office and Alliance Data Systems.

• A US citizen of Ghanaian descent and a Graduate of the University of Texas.

Thomas

Anokye

OWNERSHIP & MGMT.


• Co – founder and 50% equity shareholder in RPML

• The current Chairwoman of GWA Innovative Technology Inc., and Joint Ventures, a U.S. ICT company.

• Over 20 years experience in finance & administration and human resource management.

• A US citizen and a Graduate of the DevryInstitute of Technology, Texas

Sue

Anokye

OWNERSHIP & MGMT.


• Director and the Board Secretary of RPML

• Currently a practicing real estate lawyer in Ghana

• Over 25 years private practice in Ghanaian law.

• A Graduate of the University of Ghana and called to the Bar over 20 years ago.

Edward

Anokye

OWNERSHIP & MGMT.


• The Chief Finance Officer of RPML

• Over 25 years experience in financial strategy, management and operations in the public and private sector.

• A graduate of the University of Ghana

Harry Okity

OWNERSHIP & MGMT.


• Project Manager for this project –(Civil/Structural Engineer)

• Over 40 years experience in civil & structural engineering & project management in companies like State Construction Corporation, British Concrete Eng. Ltd, APB Consult Ltd

• A Graduate of the KNUST and the University of Leeds

Fred K

Akwaboah

OWNERSHIP & MGMT.


• Project Cost Accountant for this project and a Sr. Financial Analyst for GWA Innovative Technology Inc. (USA)

• Over 10 years experience in financial analysis, modelling & project management in companies in the public & private sector in Ghana and the US

• A Graduate of the University of Ghana and an MBA graduate from Baylor University, Texas

John

Martinson

NEXT STEPS


After reviewing proposal & Documents

Skype meeting with the financier and

Thomas Anokye in the US to clarify any

issues.

MOU signed to commence negotiations &

due diligence process.

Financier issues an indicative Term Sheet

whilst due diligence on both parties

commence.

Negotiation of financiers’ terms agreed &

completed

Deal signed and project begins.

THANK YOU


Contact:

RPML(Thomas Anokye)

+214-770-6333 (USA)

[email protected]

ANY QUESTIONS?

DOCUMENTS AVAILABLE


• Project Land Sub-Lease and Contract with State

Housing Company (Ghana)

• MOU with Micheletti & Co. (Ghana)

• KPMG feasibility study

• Detailed Business Plan & Off-Taker Agreement

• Project Concept Design

• Audited Financial Reports by Deloitte & Touche

• Auditor’s Letter (Deloitte & Touche – Ghana)

• RPML Project Financial Spreadsheet with

Developer payment schedule.

KANDA REAL ESTATE PROJECT FUNDING/INVESTOR PITCH · 2007-09-17 · PROJECT INFORMATION Project...

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