Real Estate Assessment by Global Nomad

BUSINESS MODEL & REAL ESTATE ASSESSMENT

Implementing a Chinese-Peruvian Gourmet Startup in Santiago-Chile .org

Consulting Proposal

Santiago, August 2014

Mr Adolfo Cadiz Vargas Mawinka-China 2299 Yan An (W) Rd Room 11B55 ShanghaiMart Building Shanghai, PRC

Dear Adolfo, Thank you for the opoortunity to meet with us two weeks ago. We appreciate your time and valuable insights about this important opportunity to help enhance your client’s future endeavor in Chile with our professional insider’s perspective. Based on our conversation, we look forward to realizing this opportunity with you as part of the team. There are many challenges in the realization of this idea. We have therefore assembled the very best team players to collaborate with you to ensure a timely, seamless and cost effective delivery of this assessment. Our team brings national and international experience in real estate development and design-build projects. We believe that assisting your client in the thoughtful scoping, analysis, synthesis and integration of all the variables required to successfully implement a Chinese-Peruvian Gourmet Startup in Santiago-Chile will help provide the tools to achieve a smooth take-off regarding his business, in tune with the cultural aspects of our country. Successful endeavors are shaped by strong ideas, dynamic clients and sensitivity to place. I know I speak for the team when I say we are thrilled that a completely unique culinary experience is about to arrive to our capital, and are committed to collaborating with you and your client to realize this vision. Thank you for your consideration. Sincerely,

Cristián Pérez Navarro, Associate AIA Architect Executive Director, Global Nomad SpA 01

1. Proposal Narrative la tercera

Throughout the past decade, Vitacura District has been concentrating high-end restaurants on Nueva Costanera Street, currently offering roughly fifteen options with a variety of cuisisne types, at the highest price-range in Santiago.

BUSINESS MODEL & REAL ESTATE ASSESSMENT

Proposal Narrative Gourmet Scene Eating out is an activity performed by thousands of Chileans every day, either in the shape of a basic Executive menu, a local fast food meal or a five-fork table. However, over the past decade, the country has experienced a rise of an international cuisine, offering an increased variety and improved quality for the local foodie, especially in Santiago. According to a (2014) census including 95% of restaurants in Santiago, Providencia District offers the greatest variety of options, with 43 different types of food available. The average price of a menu for two in Santiago stands at $20 dollars, while the most expensive offer is located in Vitacura, at nearly $215 dollars. Regarding the “Executive Menu” (salad, main course, dessert and beverage), the average price is $3.5 dollars per person. Santiago offers a wide variety of ethnic food alternatives—nearly 20 different types—where the leading cuisine is Japanese food (Sushi) with 663 restaurants available, followed by Chinese food, with 647 locations. Chilean food shows a high representation in Santiago with 673 restaurants available. In general, the portfolio of ethnic restaurants available in Santiago is vast and rapidly growing, and reflects the high gastronomic value available in the Capital. The following document is an attempt to present a proposal toward conducting a gourmet landscape assessment to inform a business model & real estate evaluation in Chile’s Capital city.

1. Proposal Narrative

Scope of Work On July 22nd 2014, we had the pleasure of briefly meeting with Mr Adolfo Cádiz and part of his legal team (ECMG Abogados) in Santiago, Chile. During our meeting, Mr Cadiz explained the need for a business model and real estate assessment to deliver context-specific information toward validating a value proposition regarding a gourmet start-up business and establishing real estate variables that ensure a successful turn-key implementation and launch of commercial operations in Chile’s Capital city. Upon Mr Cádiz’s request, this proposal considers the following constraints:

01 Target : ABC1, C2 (upper-middle class) 02 Location : Up-scale Santiago-Chile 03 Cuisine : Chinese-Peruvian (Chifa) 04 Rating : 4-3 Forks (first-second class, in the scale 5 to 1) 05 Space : 500m2 / 5,400 GSF (45-60 seats) 06 Standard : Mid-range to high-end 07 Budget : USD 300,000 / USD 400,000 Consultancy Approach Our consulting team brings decades of collective experience in real estate and start-up scale business development in Chile, with previous background in Europe, North America and Asia. Our core team is made up of two Chilean individuals with international deep experience in business, retail, real estate evaluation and development, high-performance building and interior design. Our landscape assessment will include the public, and private sectors with respect to the gourmet business and real estate development in Santiago, Chile. We will execute the landscape assessment in four phases. Phase I will consist of a thorough regulatory review and preliminary time allocation requirements. Phase II will consist of a business case analysis regarding specific competitive landscape and players. We will then conduct an initial data analysis and synthesis. Phase III will consist of a real estate scoping campaign and data analysis. We will then build three possible business model and location scenarios. Finally, Phase IV will consist of preparing and delivering design standards & fees, construction preliminary cost, timeframe for such business-model scenarios (established in Phase III).

BUSINESS MODEL & REAL ESTATE ASSESSMENT

Consultancy Framework This assessment considers four aspects of consultancy:

01 Regulatory process

Reviewing building codes and permits requirements & associated cost, and establishing a process timeframe for this specific task.

02 Business model:

Gathering and reviewing business case scenarios, successful case studies (3), possible competitor players, competitive landscape analysis and delivering business model canvas scenarios.

03 Location

Conducting geointelligence scoping, establishing size, and delivering real estate scenarios (location & financial alternatives).

04 Design/Build

Proposing design standards & fees, construction preliminary cost, and timeframe scenarios.

2. Methodology

At the heart of Las Condesâ&#x20AC;&#x2122; Financial District, guests enjoy the simple while unique experience at Tiramisu Restaurant, day and night. Location, charm, convenience and social-status value are key drivers toward Tiramisuâ&#x20AC;&#x2122;s huge success.

BUSINESS MODEL & REAL ESTATE ASSESSMENT

Methodology Consultancy Term The proposed work will take place over eight weeks, starting in September 2014. Phases I and II will take place in September 2014. Phases III and IV in October 2014. Final report and presentation to the client will take place the first week of November 2014. Phase I

Scoping | 30% lead-time Duration: 2.5 weeks Start: September 1, 2014 | End: September 20, 2014 10% Strategy Meetings & Initial Planning Conference Calls (with client and project manager) 30% Site visits 40% Background Research 20% Data Collection

Phase II

Analysis | 20% lead-time Duration: 1.5 weeks Start: September 20, 2014 | End: September 30, 2014 5% Strategy Meetings & Conference Calls (with client and project manager) 75% Data Analyses & Synthesis 20% Internal Coordination Meetings

Phase III

Synthesis | 13% lead-time Duration: 1.0 week Start: October 1, 2014 | End: October 8, 2014 5% Strategy Meetings & Conference Calls (with client and project manager) 75% Data Integration & Synthesis 20% Internal Coordination Meetings

Phase IV

Integration & Write-up | 37% lead-time Duration: 3.0 weeks Start: October 8, 2014 | End: October 30, 2014 5% Strategy Meetings & Conference Calls (with client and project manager) 20% Overall Synthesis and Integration 50% Report Write-up 25% Internal Report Revisions

Report Delivery: First week of November 2014 07

3. Team & Qualifications

The “Chifa cuisine” was born in Peru with the first Chinese workers arrival, during the second half of the XIXth Century. Madam Tusan, located in Lima’s traditional gastronomic district, offers a modern and sofisticated version the Chifa cuisine.

BUSINESS MODEL & REAL ESTATE ASSESSMENT

Team & Qualifications Experience In order to successfully conduct this assignment we will use the best available practices and seasoned consulting professionals with proved context-specific skills. Our consulting team brings collective experience in turn-key real estate and start-up scale business development in Chile, with previous background in Europe, North America and Asia. Our core team is made up of two Chilean individuals with international deep experience in business, retail, real estate evaluation and development, high-performance building and interior design. Our work in Chile and elsewhere make us particularly qualified for this business model and real estate assessment in Santiago. Broadly, we have over fifteen years of experience working on architectural and urban design projects and real estate development in North, Central and South America, Europe and Asia. This includes work in France, United States, Chile, Abu Dhabi and Italy. Much of our previous work experience will complement this Business Model & Real Estate Assessment or a gourmet startup endeavor in Santiago. We are deeply involved in the local entrepreneurial community, both in the public and private sector, currently offering pro-bono support to local NGO’s as the Chilean Association of Entrepreneurs together with the Ministry of Economy (via CORFO) to evaluate and select the best candidate projects (national and international) to connect them with public grants. We have designed shared commercial workspace for entrepreneurs in Santiago and Montevideo and belong to the national innovation awards expert committee. We have recently designed retail space for the World’s #1 Franchise 500® Company (2014) in Santiago and conversely, we work on the real estate development business designing and building hi-rise housing and dwellings in Santiago. Therefore we understand all stages of the process including the regulatory system, commercial land lease and acquisition value, land-use requirements and opportunities, all toward providing insight and achieving excellence in turn-key design and implementation projects.

3. Team & Qualifications

José Miguel Vásquez Architect MBA, SDA Bocconi School of Management, Milano-Italy Real Estate Development Specialist José Miguel is an Architect and Master in Business Administration from SDA Bocconi, Milano-Italy. He brings 18 years of experience in real estate business, performing a wide range of roles on urban development projects, from architectural designer to real estate development manager, on industrial, hospitality, retail and residential buildings. José Miguel will co-lead this landscape assessment, focusing on the regulatory and market components of the report.

Currently, José Miguel consults and advises to various companies on fixed asset value increase, project management and real estate development. In 2010 he founded his own real estate development firm Conoma Real Estate, featuring four projects already built in Santiago, with an accrued asset value of $20 million dollars. José Miguel has worked in all phases of business development, design and construction for residential and high-end hospitality projects in Chile, involving hotels, bars, restaurants and gourmet stores, including: • • • • • •

Novotel Vitacura, Santiago (hotel and restaurant) Cafe Restaurant Kohn, Pucón Cigar Bar Macanudo, Santiago El Mundo del Vino, Santiago (fine wine store) Emporio Gourmand, Santiago Expo Gourmand Casa Piedra, Santiago (annual gourmet industry fair)

BUSINESS MODEL & REAL ESTATE ASSESSMENT

Cristián Pérez Navarro, Associate AIA Architect PgC Design Firm Leadership & Management, U. of Washington Architectural Design & Urban Development Specialist

Cristián will co-lead this landscape assessment, focusing on the business model, experience and design/build aspects, and overall integration of the report.

Cristián is an Architect, Urbanist & Entrepreneur with post-graduate studies at the University of Washington, United States. He brings 15 years of architectural design and sustainable urban planning experience in the Americas, Europe and Asia. He has worked in Paris with Renzo Piano (1998 Pritzker Prize laureate) and later became an Associate Partner with ZGF Architects, a leading architectural firm in the United States. He has lead a wide range of design/build projects on retail, commercial, science, healthcare and residential buildings. Cristián has taught at Universidad Finis Terrae’s post-graduate Certificate in Urban Management and Development. He also consults and advises to The Rockefeller Foundation and The David and Lucille Packard Foundation on global urban development affairs. Cristián currently leads Global Nomad SpA, an integrated design practice based in Santiago, focusing on a wide variety of project types and scales, for clients in the private and NGO sector. His commercial clients in Santiago include: • • • •

2014 Entrepreneur’s Franchise 500® number one company, a global leader in labeling and packaging materials and solutions, the third biggest producer in the global panel market, and Latin America’s leading coworking space operator.

Conversely, Cristián is deeply involved in the local innovation and entrepreneurship community, serving as a Judge for the Chilean Association of Entrepreneurs and the Chilean Ministry of Economy (via CORFO) to select the best candidate projects (national and international) to connect them with public grants, and also as an Expert Committee Member for the National Innovation Awards, AVONNI.

4. Project Deliverables

Santiago has a population of roughly six million people. According to a recent study, there is one restaurant per every 825 residents. One quarter of the culinary offer in the Capital corresponds to Chinese food restaurants.

BUSINESS MODEL & REAL ESTATE ASSESSMENT

Project Deliverables Route Map With the development of this assignment requested by Mr Cádiz, we will provide a fundamental tool to help guide and trigger informed business decisions in an orderly and thorough manner, founded in the Chifa experience as a catalyst for a unique culinary offer in Santiago’s thriving market. The main value associated with this assessment is the integration between real estate, design and business standards through a professional insider’s view, at a key moment for the purposes of a successful implementation for this gourmet model in the country’s Capital. The product of this assessment will be a qualitative and quantitative written report (PDF). This document will include all the objectives of the landscape assessment, captures the opportunities and challenges, and offers direct content and actionable recommendations, focused on specific business strategies and concrete goals, including: • business cases/studies, • architectural & operational design standards with photographs & diagrams, based on existing restaurants in Santiago, • real estate analyses with plans & maps, • location parameters, • financial charts & graphs, • implementation strategies, • timeframe & programming charts, • explanatory narrative By the end of the consultancy term, we will provide a 45-minute video-conference presentation of the Business Model & real Estate Assessment main findings and recommendations, at a convenient time for all decision-makers involved.

Consulting Fees Custom value & cost-efficiency The completion of this assignment will offer unique value with respect to enabling the client to anticipate, plan and strategize the future implementation and growth of his gourmet startup. We have prepared a proposal carefully designed to reflect the desired quality standards that the client expects to achieve in his project, according to our preliminary discussions with Mr Adolfo Cádiz in Santiago. However, in order to provide a cost-efficient result, we are open to review and adjust our estimation of the objectives, methodology and project deliverables based on reducing or increasing the complexity and scope of this assessment, to most accurately match the client’s needs and expectations, and the project’s requirements.

Consulting Fees The total estimated fee to conduct this assignment, in a consultancy term of 8 weeks is USD $36,800 (880UF), consisting of USD $34,000 of direct labor fees and USD $2,800 travel expenses cost.

Hourly Billing Rates Senior USD $ 95 (estimated 240 hours) Junior USD $ 35 (estimated 320 hours) 3-day Lima Field Trip Rates Airfare USD $ 500 ( 2 Senior consultants) Per Diem USD $ 300 ( 2 Senior consultants) Payment protocol 40% - 264 UF / USD $ 14,720 - uppon approval of this proposal. 30% - 264 UF / USD $ 11,040 - by the end of week 4 30% - 352 UF / USD $ 11,040 - by the end of week 8

BUSINESS MODEL & REAL ESTATE ASSESSMENT

Professional References

BUSINESS MODEL & REAL ESTATE ASSESSMENT