2016/11/04 all information herein is deemed accurate ... › wzukusers › user-20292360 ›...

2016/11/04All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

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Development of Student Accommodation: Vaal University of Technology, Bedworth Park

Investor Packwww.mabindu.com

151 Katherine Street

Sandton

011 384 2931

2016/11/04 2Forecast, data and illustrations, estimates contained in this

document are not guaranteed and are providedfor illustrative purposes only

Company profile

Project teamInvestment Consultant: Mpho Khorombi

Mpho is a qualified engineering professional with a Masters in Management of Finance and Investmentspecialising in real estate investments. He also is well-equipped with essential business skills gained frombeing on the MBA exchange programme in Canada. He is responsible for sourcing and structuring realestate 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 newbuilding techniques, materials development strategies and design philosophies. As a result the buildingprojects 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 accessto various derivative trading and hedging instruments. The wide range of products on offer includesgeared derivatives (like CFDs and Single Stock Futures) to money market accounts. In addition, it has arange of absolute, balanced and directional funds. It's also active in both the local and internationalsphere with a range of offshore trading and investment products.

Mabindu is a real estate advisory firm thatallows the public to invest directly intoincome generating property. We specialize inresidential and retail real estate acquisitionand or re-development through ourcrowdfunding platform.

We take an entrepreneurial view in ourendeavours at the same time manage theinherent market uncertainty. We focus onrisk management to ensure anticipatedresults are achieve through our stringentunderwriting and due diligence processes.The team and our associates have deeperinsight on real estate market in South Africa

2016/11/04 3All information herein is deemed accurate. Independent verification of facts is the investor’s sole responsibility.

In the media

Development tackles lack of student accommodation”

http://www.fin24.com/Companies/Property/development-tackles-lack-of-student-accommodation-20160216

“Accommodation crisis also burdens students”

http://www.fin24.com/Companies/Property/Accommodation-crisis-also-burdens-students-20151022


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http://www.fin24.com/Companies/Property/development-tackles-lack-of-student-accommodation-20160216

http://www.fin24.com/Companies/Property/Accommodation-crisis-also-burdens-students-20151022

2016/11/04

Area locality

5All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

Key Statistics

750000

800000

850000

900000

950000

1000000

2009 2010 2011 2012 2013

Stu

den

ts

Year

Total National Enrolments

2016/11/04dept. of high education and emfuleni local municipality report

2013-20146

Student Accommodation Status at VUT

2016/11/04

15000 17000 19000 21000

Total no. of studentsregistered in 2013

Projected no. of studentsregistered by 2017

Registration figuresAccommodation arrangement figures

Approximate no. of students using university residence

Independently sourced accommodation

7dept. of high education and emfuleni local municipality report

2013-2014

Property Description

Property address

• Ganymed Street

Township

• Bedworth Park, Vereeniging

Land size

• 2000 sqm

Supported zoning

• Residential 2, Medium density

• Buildable area• 640 sqm

• Single bed apartments• 8 units

• 80 sqm/units

• 4 bedrooms/unit

• Open floor lounge and kitchen/unit

2016/11/04 8www.mabindu.com

Project Cost

Total project cost

•R6 056 902.80

• R 600 000.00Land cost

• R 3 776 000.00

Building cost @ R5900/square

metre

• R 415 360.00Professional

costs

• Preliminaries, external works, contingency, escalations and general cost R 1 265 543.00

Other costs

2016/11/04 9All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

Income Model and Yield

2016/11/04

Base rent

• R 2 600,00 for single bedroom indexed to Cpi

Number of bedrooms

• Number of single bed - 32

Gross annual income

• R832 000,00

• Operation expense factor 25%

Net annual operating income

• R 624 000,00

1st year yield

10.30%


Income Forecast

• Investment analysis

• Based on 5 year holding term

• Sale price

• R 8 179 367.10

• Internal rate of return (unleveraged)

14.3%

2016/11/04 11All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

R-

R200 000,00

R400 000,00

R600 000,00

R800 000,00

R1 000 000,00

R1 200 000,00

1 2 3 4 5

Year

Income Forecast

Revenue p.a Operating cost Operating income

Key Investment Features

R 500 000

already committed

Minimum investment is

R 50 000.00

Great way to earn passive income

Targeted tenants Vaal University of Technology

Bursary and scholarship students

Individual students


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Investment and Exit Strategy

Build and lease out the property

Build and sell sectional tittle

units


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Exit Strategy-Sell units off plan

R-

R200 000,00

R400 000,00

R600 000,00

R800 000,00

R1 000 000,00

R1 200 000,00

R1 400 000,00

2bed 3bed 4bed 5+bed

Av. Asking Price


14

R-

R100 000,00

R200 000,00

R300 000,00

R400 000,00

R500 000,00

R600 000,00

R700 000,00

R800 000,00

R900 000,00

R1 000 000,00

0

5

10

15

20

25

30

35

40

45

50

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Propety Market

No. of Sales Sale Price

BedworthPark Property Market


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Propotion of the market

Houses Apartments R-

R100 000,00

R200 000,00

R300 000,00

R400 000,00

R500 000,00

R600 000,00

R700 000,00

R800 000,00

R900 000,00

Houses Apartments

Average Estimated Value

Exit Strategy Investment Indicators

• Loan to Value: 80%

• 12% interest

• Equity R1 100 000,00

• Loan R4 400 000,00

• Interest R484 000,00

• Cost of sale R200 000,00

• Total cost R6 184 000,00


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0%

5%

10%

15%

20%

25%

R775 000,00

R780 000,00

R785 000,00

R790 000,00

R795 000,00

R800 000,00

R805 000,00

R810 000,00

R815 000,00

Worst case Case 2 Best case

Ret

urn

on

Eq

uit

y

Pri

ce o

f 1

4 b

edro

om

un

it

Market Condition

Unit Price and Return Analysis

Deal Schedule

2016/11/04

September 2016-Capital raising opens

April 2017-Capital raising close

May 2017 Construction-Start

December 2017Construction-End

January 2018 Leasing


Site Development Plan


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Risk Statement and Disclosure

The performance of the fund is linked to the performance of theunderlying property asset which is and can be influenced by the factorsbelow.

• Business risk• Existing property owners might lower their rents to attract tenants.

• Demand for tenants may not grow as expected because of oversupply 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 ofinflation, thereby reducing the real value of the investment

• Real estate has historically done well during periods on significant inflationhikes

• Management risk• Income producing properties requires management to keep the

space leased and maintained to preserve the value of theinvestment.

• Management competency is vital for acceptable rate of return toinvestors

• Legislative risk• Real estate is subject to numerous regulations such as tax laws, rent

control and other restrictions imposed by government. Legislativerisk results from the fact that changes in regulations can adverselyaffect 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 ispossibly hazardous. For example, while it used to be common touse asbestos to insulate buildings, asbestos in buildings is nowperceived as a potential health hazard

• Social risk

• Forecast returns are based on current economic assumption and noguarantees can be provided

• Past performances and historic data are not necessarily indicative offuture performances or trend.

• Performance of the fund is directly linked to the underlying asset.

• Mabindu Crowdfund Mortgages is a registered juristic representativeof Unum Capital (formerly Vunani Private Clients) is an AuthorisedFinancial Services Provider (FSP 564)

2016/11/04 www.mabindu.com 19

Frequently Asked Questions

What is Mabindu.com and how does it work?

We connect investors with real estate investments

Simplify the process of investing in real estate

Investors become co-owners of the property

How is this different from a Reit (real estate investment trust)?

In a Reit, investors have little to no information on underlying asset.

Our platform offers added transparency and control of the asset

Our platform also gives you the opportunity to decide which property you want to invest in thereby democratizing real estate investment

We are also able to participate in smaller investments

Is Mabindu Secure?

Mabindu operates under the Vunani Private clients licensed by the FSB. Vunani providesregulation and compliance supervisions.

Mabindu.com has contracted a third party fund administrator who takes care of fundaccounting and distributions. They have a qualified charted accountant who ensuresthat the funds are safe and every investor gets their fair share of the distributions

Mabindu.com investments are also audited annually by a third party audit firm toensure no fraudulent or dishonest activities are conducted.

Who can invest?

Anyone can invest, Individuals , companies and partnership

What are the benefits of Mabindu.com

Gives access to investment opportunities that were previously available to a few high net individuals

Are these investments risky?

Yes all investments are risky similar to publicly listed stocks, there is no guarantee ofany returns. The returns of all our investments are dependent on macro and microeconomic forces and can be positively or negatively affected by such dynamics.

How liquid are the investments?

All capital is directly invested in the actual brick and mortar, making the investmenthighly illiquid. There is no secondary market for investors wishing to exit theinvestment. You may be able to sell your share/s if there is a willing buyer.


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FAQ conti….

Who is Vunani private clients?

Vunani Private Clients offer regulatory and compliance supervision to Mabindu as per the Financial Service Board requirements.

How is my investment structured?

Investors become limited partners to the Fund, which partly or wholly owns the underlying asset. This gives protection to the investors in a sense that your loss can only be limited to your initial investment.

How do I make my money back?

You make money whenever the property generates income. You get paid from rental and sale income of the property. Your income is determined by the proportion of your capital in relation the total cost of the property.

How often do I get paid?

Dividends will be distributed twice a year, semi-annual payments to investors


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2016/11/04 all information herein is deemed accurate ... › wzukusers › user-20292360 ›...

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