Gated Community and Resort Tourist Real Estate Project Dominican Republic
Financial Summary
PRESENTED BY:
Masstech Dominicana S.A. Ave. 27 de Febrero #194, Suite 201, Santo Domingo, Dominican Republic Tel: 809-756-7004, Email: masstech@dr.com www.yuma-del-mar.com Updated: Mar 2010
TOURIST REAL ESTATE PROJECT
PHYSICAL & FINANCIAL SUMMARY LAND DEVELOPMENT SUBDIVISION PLAN LAND OWNED BY MASSTECH + OPTIONS REMAINDER OF PARCEL LAND PORTION FOR SALE ( APPROX: 80% OF TERRITORY) LAND FOR GREEN SPACES AND PUBLIC AREAS (GOLF EXCLUDED) LAND PORTION FOR COMMERCIAL DEVELOPMENT: LAND PORTION FOR RESIDENTIAL DEVELOPMENT: LAND PORTION FOR GOLF & GOLF VILLAS:
APROX. RESIDENTIAL LOTS @ AVG. 500 SQ. METERS: APROX VILLAS AND CONDO UNITS x 1.5
SQUARE METERS
ACRES
5,736,854 4,589,483
1418 1134
1,147,371 885,500 1,856,612 700,000
UNITS
Area M2
3,713 5,570
1,856,612
284 219 459 173
ALLOCATION OF TERRITORY IN % OF TOTAL AREA GREEN SPACE/PUBLIC 25.0%
COMMERCIAL 19.3%
GREEN SPACE (GOLF) 15.3%
RESIDENTIAL 40.5%
PROJECT FINANCIAL DIMENSION COMMERCIAL & COMON INFRASTRUCTURE DEVELOPMENT VALUE: RESIDENTIAL DEVELOPMENT VALUE: TOTAL VALUE:
US FUNDS $323,700,000 $1,085,789,800 $1,409,489,800
DEVELOPMENT CONTRIBUTION IN % OF TOTAL VALUE COMMERCIAL 23.0%
PHASE 1 DEVELOPMENT VALUE COMMERCIAL & COMON INFRASTRUCTURE DEVELOPMENT VALUE: RESIDENTIAL DEVELOPMENT VALUE: TOTAL VALUE:
US FUNDS $145,450,000 $249,881,843 $395,331,843
PHASE 1 DEVELOPER PROFIT POTENTIAL FROM SALE OF LAND & INFRASTRUCTURES FOR COMMERCIAL USE FROM SALE OF LAND & INFRASTRUCTURES FOR RESIDENTIAL USE FROM SALE OF RESIDENTIAL UNITS (BUILDER'S PROFIT) TOTAL VALUE:
US FUNDS $30,342,870 $74,393,807 $49,997,351 $154,734,028
RESIDENTIAL 77.0%
PREPARED BY:
MASSTECH DOMINICANA S.A. N.MASSE
PAGE 1
Updated: Mar 2010
RESIDENTIAL COMPONENT - LAND DEVELOPMENT
INCOME & COST PROJECTIONS COSTS / REVENUE SUMMARY
YEAR 1 TOTAL
Phase 1
YEAR 2 TOTAL
completed YEAR 4 TOTAL
YEAR 3 TOTAL
YEAR 5 TOTAL
YEAR 6 TOTAL
YEAR 7 TOTAL
YEAR 8 TOTAL
YEAR 9 TOTAL
YEAR 10 TOTAL
10 YEAR TOTALS
TOTAL REVENUE
$36,500,000 $50,835,156 $67,999,778
$94,546,908
$123,328,038
$156,418,155
$185,956,524
$191,746,049
$178,459,191
$0
$1,085,789,800
CONSTRUCTION & DEVELOPMENT COSTS
$24,349,000 $33,673,813 $44,717,643
$61,654,314
$80,125,825
$101,243,909
$119,833,744
$122,800,162
$113,544,426
$0
$701,942,834
$12,151,000 $17,161,344 $23,282,135
$32,892,595
$43,202,214
$55,174,247
$66,122,780
$68,945,887
$64,914,765
$0
$383,846,966
SURPLUS
REVENUE / COSTS / SURPLUS
10 YEAR PROJECTION
$225,000,000 REVENUE
$200,000,000 $175,000,000
US$ DOLLARS
$150,000,000
COST
Phase 1 Completed
$125,000,000 $100,000,000
SURPLUS $75,000,000 $50,000,000 $25,000,000 $0 1
2
3
4
5
6
7
8
9
10
YEAR REVENUE
COST
SURPLUS PREPARED BY:
MASSTECH DOMINICANA S.A. N.MASSE
PAGE 2
Updated: Mar 2010
RESIDENTIAL COMPONENT - LAND DEVELOPMENT
REVENUES YEAR 1 TOTAL
YEAR 2 TOTAL
YEAR3 TOTAL
LOT SALES $7,500,000 $10,835,156 $15,027,278 RESIDENTIAL UNIT SALES $27,000,000 $37,125,000 $49,005,000 INFRASTRUCTURE-RESIDENTIAL UNITS $2,000,000 $2,875,000 $3,967,500
TOTALS $36,500,000 $50,835,156 $67,999,778
CONSTRUCTION AND DEVELOPMENT COSTS YEAR 1 TOTAL RESIDENTIAL UNITS CONSTRUCTION INFRASTRUCTURE CONSTRUCTION
YEAR 2 TOTAL
YEAR3 TOTAL
$16,200,000 $22,275,000 $29,403,000 $1,500,000 $2,156,250 $2,975,625
Phase 1 completed YEAR 4 TOTAL $21,709,721 $67,381,875 $5,455,313
YEAR 5 TOTAL
YEAR 6 TOTAL
YEAR 7 TOTAL
YEAR 8 TOTAL
YEAR 9 TOTAL
YEAR 10 TOTAL
10 YEAR TOTALS
$28,800,116 $37,144,949 $44,974,574 $47,557,679 $45,405,694 $87,326,910 $110,031,907 $130,152,027 $133,207,770 $123,096,089 $7,201,013 $9,241,299 $10,829,923 $10,980,600 $9,957,408
$0 $0 $0
$258,955,168 $764,326,577 $62,508,055
$94,546,908 $123,328,038 $156,418,155 $185,956,524 $191,746,049 $178,459,191
$0
$1,085,789,800
Phase 1 completed YEAR 4 TOTAL
YEAR 5 TOTAL
YEAR 6 TOTAL
YEAR 7 TOTAL
YEAR 8 TOTAL
YEAR 9 TOTAL
YEAR 10 TOTAL
10 YEAR TOTALS
$40,429,125 $4,091,484
$52,396,146 $5,400,759
$66,019,144 $6,930,975
$78,091,216 $8,122,442
$79,924,662 $8,235,450
$73,857,654 $7,468,056
$0 $0
$458,595,946 $46,881,041
LOT SALES COMMISSIONS $750,000 RESIDENTIAL UNIT SALES COMMISSIONS$2,700,000 MARKETING & SALES PROMOTION $1,095,000
$1,083,516 $3,712,500 $1,525,055
$1,502,728 $4,900,500 $2,039,993
$2,170,972 $6,738,188 $2,836,407
$2,880,012 $8,732,691 $3,699,841
$3,714,495 $11,003,191 $4,692,545
$4,497,457 $13,015,203 $5,578,696
$4,755,768 $13,320,777 $5,752,381
$4,540,569 $12,309,609 $5,353,776
$0 $0 $0
$25,895,517 $76,432,658 $32,573,694
INFRASTRUCTURE ENGINEERING SUBDIVISION COSTS ARCHITECTURE & ENGINEERING GENERAL ADMINISTRATION
$237,188 $108,352 $1,559,250 $1,016,703
$327,319 $150,273 $2,058,210 $1,359,996
$450,063 $217,097 $2,830,039 $1,890,938
$594,084 $288,001 $3,667,730 $2,466,561
$762,407 $371,449 $4,621,340 $3,128,363
$893,469 $449,746 $5,466,385 $3,719,130
$905,899 $475,577 $5,594,726 $3,834,921
$821,486 $454,057 $5,170,036 $3,569,184
$0 $0 $0 $0
$5,156,915 $2,589,552 $32,101,716 $21,715,796
TOTALS $24,349,000 $33,673,813 $44,717,643
$61,654,314
$80,125,825 $101,243,909 $119,833,744 $122,800,162 $113,544,426
$0
$701,942,834
$165,000 $75,000 $1,134,000 $730,000
COST PERCENTAGES USED ABOVE: SUBDIVISION COSTS INFRASTRUCTURE ENGINEERING ARCHITECTURE & ENGINEERING GENERAL ADMINISTRATION MARKETING & SALES PROMOTION LOT & HOME SALES COMMISSIONS
1.0% 11.0% 7.0% 2.0% 3.0% 10.0%
OF LOT SALES OF INFRASTRUCTURE CONSTRUCTION COST OF HOME CONSTRUCTION COST OF ALL SALES OF ALL SALES OF SELL PRICE PREPARED BY:
MASSTECH DOMINICANA S.A. N.MASSE
PAGE 3
Updated
Mar 2010
RESIDENTIAL COMPONENT - LAND DEVELOPMENT
LOTS, INFRASTRUCTURES AND RESIDENTIAL UNIT SALES PROJECTIONS
YUMA DEL MAR SALES, 10 YEARS REVENUE
YUMA DEL MAR SALES, 10 YEARS QUANTITY $140,000,000
1000 RESIDENTIAL UNITS
900
$120,000,000 RESIDENTIAL UNITS
800 Phase 1 Completed
700
$100,000,000
Phase 1 Completed
LOTS $US DOLLARS
QUANTITY
600 500 400 300
$80,000,000
$60,000,000 LOTS $40,000,000
200 $20,000,000
INFRASTRUCTURES
100 $0
0 1
2
3
4
5
6
7
8
9
10
1
2
3
NOTES:
RESIDENTIAL UNITS
5
6
7
8
9
10
YEAR
YEAR
LOTS
4
LOTS
RESIDENTIAL UNITS
INFRASTRUCTURES
Certain areas will be subdivided for multi-family units in 2 or 3 floor buildings The final quantity of residential units will be higher than THE number of lots There is a lag in Homesvs lot salesin normal marketing schemes, however the objective is to sell complete residencies at one time (lot, infrastructures, home) PREPARED BY:
MASSTECH DOMINICANA S.A. N.MASSE
PAGE 4
Updated Mar 2010
RESIDENTIAL COMPONENT - LAND DEVELOPMENT
RESIDENTIAL COMPONENT DEVELOPMENT COST BREAKDOWN
RESIDENTIAL COMPONENT DEVELOPMENT COST BREAKDOWN IN % 10 YEAR PROJECTION
RESIDENTIAL UNITS 65.3%
INFRASTRUCTURE ENGINEERING 0.7%
ADMINISTRATION 3.1% MARKETING 4.6% ARCHITECTURE & ENGINEERING 4.6% INFRASTRUCTURES 6.7%
COMMISSIONS 14.6%
SURVEYING & LEGAL 0.4%
PREPARED BY:
MASSTECH DOMINICANA S.A. N.MASSE
PAGE 5
Updated: Mar 2010
RESIDENTIAL COMPONENT - LAND DEVELOPMENT
LOT SALES
Phase 1 completed SALES REVENUE + LEGAL & SURVEYING 100.5% PROJ. CUMUL. PROJ. UNIT CUMUL. INCR. QTY TOTAL INCR. PRICE TOTAL TOTAL
SALES VOLUME
YEAR 1 2 3 4 5 6 7 8 9 10 TOTALS
N/A 1.25 1.20 1.25 1.20 1.17 1.10 0.96 0.86
200 250 300 375 450 525 575 550 475
200 450 750 1125 1575 2100 2675 3225 3700
Calc 3700 Set 3,713
N/A 1.15 1.15 1.15 1.10 1.10 1.10 1.10 1.10
AVG
$37,500 $43,341 $50,091 $57,893 $64,000 $70,752 $78,217 $86,469 $95,591
$7,500,000 $10,835,156 $15,027,278 $21,709,721 $28,800,116 $37,144,949 $44,974,574 $47,557,679 $45,405,694
$7,500,000 $18,335,156 $33,362,434 $55,072,155 $83,872,271 $121,017,221 $165,991,795 $213,549,474 $258,955,168
COST COMMISSION % $ 10 10 10 10 10 10 10 10 10
$750,000 $1,083,516 $1,502,728 $2,170,972 $2,880,012 $3,714,495 $4,497,457 $4,755,768 $4,540,569
58385.28 $258,955,168
Initial lot prices at: 75 per sq. meter Lot prices at 10 years: 183.83 per sq. meter
GROSS INCOME SURVEYING/SUBDIVIDING % 1 1 1 1 1 1 1 1 1
$25,895,517
%
$75,000 $108,352 $150,273 $217,097 $288,001 $371,449 $449,746 $475,577 $454,057
89 89 89 89 89 89 89 89 89
$2,589,552
Avg lot size: 500 Sq.M
$ $6,675,000 $9,643,289 $13,374,278 $19,321,652 $25,632,103 $33,059,005 $40,027,371 $42,326,334 $40,411,068
89 $230,470,099
SALES COSTS GROSS INCOME
-
258955167.84 28485068.46 $230,470,099
RESIDENTIAL UNIT SALES (Mix, Villas, Condos, Apts) SALES VOLUME
YEAR 1 2 3 4 5 6 7 8 9 10 TOTALS
SALES REVENUE
PROJ. CUMUL. PROJ. INCR. QTY TOTAL INCR. N/A 1.25 1.20 1.25 1.20 1.17 1.10 0.96 0.86
300 375 450 563 675 788 863 825 713
Calc 5550 Set 5,570
300 675 1125 1688 2363 3150 4013 4838 5550
N/A 1.10 1.10 1.10 1.08 1.08 1.08 1.07 1.07
AVG
UNIT PRICE $90,000 $99,000 $108,900 $119,790 $129,373 $139,723 $150,901 $161,464 $172,766
COST
TOTAL $27,000,000 $37,125,000 $49,005,000 $67,381,875 $87,326,910 $110,031,907 $130,152,027 $133,207,770 $123,096,089
117191.76 $764,326,577
Villa prices do not include lot & SALES infrastructures COSTS GROSS INCOME
764326577.35 $567,130,320 197196256.96
CUMUL. TOTAL $27,000,000 $64,125,000 $113,130,000 $180,511,875 $267,838,785 $377,870,692 $508,022,718 $641,230,488 $764,326,577
GROSS INCOME
COMMISSION % $
CONST.(MAT/LAB) % OF SELLING $ % $
ENGINEERING % OF CONST COST % $
10 10 10 10 10 10 10 10 10 10
$2,700,000 $3,712,500 $4,900,500 $6,738,188 $8,732,691 $11,003,191 $13,015,203 $13,320,777 $12,309,609
60 60 60 60 60 60 60 60 60
$16,200,000 $22,275,000 $29,403,000 $40,429,125 $52,396,146 $66,019,144 $78,091,216 $79,924,662 $73,857,654
7 7 7 7 7 7 7 7 7
10
$76,432,658
60
$458,595,946
7
$1,134,000 $1,559,250 $2,058,210 $2,830,039 $3,667,730 $4,621,340 $5,466,385 $5,594,726 $5,170,036
%
$
25.8 25.8 25.8 25.8 25.8 25.8 25.8 25.8 25.8
$6,966,000 $9,578,250 $12,643,290 $17,384,524 $22,530,343 $28,388,232 $33,579,223 $34,367,605 $31,758,791
$32,101,716 25.8
$197,196,257
Note on engineering: 1/3 homes nonstandard @ 11% engineering 2/3 homes "PREFAB" @ 5% engineering PREPARED BY:
MASSTECH DOMINICANA S.A. N.MASSE
PAGE 6
Updated:
Mar 2010
RESIDENTIAL COMPONENT - LAND DEVELOPMENT
INFRASTRUCTURES-RESIDENTIAL UNITS SALES VOLUME
SALES REVENUE
PROJ. CUMUL. YEAR INCR. QTY TOTAL 1 2 3 4 5 6 7 8 9 10 TOTALS
N/A 1.25 1.20 1.25 1.20 1.17 1.10 0.96 0.86
200 250 300 375 450 525 575 550 475
200 450 750 1125 1575 2100 2675 3225 3700
PROJ. INCR. N/A 1.15 1.15 1.1 1.1 1.1 1.07 1.06 1.05
3700
(AVG SIZE 500 SQ. M x $20 SQ. METER INITIAL) UNIT CUMUL. PRICE TOTAL TOTAL
$10,000 $2,000,000 $2,000,000 $11,500 $2,875,000 $4,875,000 $13,225 $3,967,500 $8,842,500 $14,548 $5,455,313 $14,297,813 $16,002 $7,201,013 $21,498,825 $17,602 $9,241,299 $30,740,124 $18,835 $10,829,923 $41,570,047 $19,965 $10,980,600 $52,550,647 $20,963 $9,957,408 $62,508,055
$62,508,055
COST
SURPLUS
COMMISSION % $
CONST.(MAT/LAB) % OF SELLING $ % $
ENGINEERING % OF CONST COST % $
0 0 0 0 0 0 0 0 0
$0 $0 $0 $0 $0 $0 $0 $0 $0
75 75 75 75 75 75 75 75 75
$1,500,000 $2,156,250 $2,975,625 $4,091,484 $5,400,759 $6,930,975 $8,122,442 $8,235,450 $7,468,056
11 11 11 11 11 11 11 11 11
$165,000 $237,188 $327,319 $450,063 $594,084 $762,407 $893,469 $905,899 $821,486
0
$0
75 $46,881,041
11
$5,156,915
% 17 17 17 17 17 17 17 17 17
$ $335,000 $481,563 $664,556 $913,765 $1,206,170 $1,547,918 $1,814,012 $1,839,250 $1,667,866
17 $10,470,099
Phase 1 completed
SALES COSTS SURPLUS
62508054.71 - $52,037,956 10470099.16
PREPARED BY:
MASSTECH DOMINICANA S.A. N.MASSE
PAGE 7
Updated:
Mar 2010
COMMERCIAL COMPONENT - COMMON INFRASTRUCTURES - LAND DEVELOPMENT
SUB-PROJECT DESCRIPTIONS, VALUES AND DEVELOPER'S PARTICIPATION PARTICIPATION IN PROJECT VALUE DEVELOPER REVENUES
SUB-PROJECTS DESCRIPTIONS HOTELS: a HOTEL CASA DEL MAR a YUMA HOTEL a HOTEL DE LA ROSA HOTEL PONCE DE LEON HOTEL DE LA MARINA HOTEL REYES AVERAGE COST PER ROOM
Year ROOMS
SPA 5 Star 5 Star 4 Star Luxury 4 Star
2 3 4 5 6 7
a a b b b b b
GOLF, CLUBHOUSE & MISC FACILITIES STADIUMCLUB ENTERTAINMENT CENTER MARINA COMMERCIAL CENTERS MEDICAL CLINICS (3) RESTAURANTS SPORTS CENTERS
b b b b b b b
INFRASTRUCTURES (WATER-SEWER) LANDSCAPING-PARKS-GREEN AREAS ROADS & BRIDGE UTILITIES, ELECTRIC POWER & DIST TELEPHONE SYSTEM CABLE TRANSPORTATION
PHASE 1 INVESTMENTS % VALUE
LAND SALE $ PER SQ. M. SQ. M. REVENUE
$7,200,000 100% $16,000,000 100% $16,000,000 100% $18,000,000 $24,000,000 $16,000,000
$7,200,000 $16,000,000 $16,000,000
30,000 40,000 40,000 50,000 50,000 40,000
50 50 40 50 75 50
$1,500,000 $2,000,000 $1,600,000 $2,500,000 $3,750,000 $2,000,000
3 3 5 9 9 9 5
$20,000,000 100% $24,000,000 100% $50,000,000 10% $10,000,000 30% $2,500,000 30% $3,000,000 40% $2,000,000 40%
$20,000,000 $24,000,000 $5,000,000 $3,000,000 $750,000 $1,200,000 $800,000
700,000 400,000 50,000 50,000 4,500 10,000 50,000
20 15 50 40 50 60 40
$14,000,000 $6,000,000 $2,500,000 $2,000,000
9 9 9 9 9 9 9
$20,000,000 10000000 $30,000,000 $30,000,000 $15,000,000 $5,000,000 $5,000,000
$8,000,000 $4,000,000 $12,000,000 $15,000,000 $7,500,000 $2,500,000 $2,500,000
50,000
40
10,000 1,000 2,000 8,000
30 40 40 40
$145,450,000
1,585,500
TOTALS
60 200 200 300 300 200 $77,143
PROJECT VALUE
40% 40% 40% 50% 50% 50% 50%
1260 $323,700,000
$600,000 $2,000,000
$300,000 $40,000 $80,000 $320,000
$41,190,000
NOTES: a Investments made during phase 1 and completed 100% b Investments made during phase 1 under varied stage of completion, as noted c Total phase 1 commercial land and infrastructure sale income potential
INFRASTRUCTURES $20.00 89% REVENUE COST
$600,000 $800,000 $800,000 $1,000,000 $1,000,000 $800,000
Phase 1 Income Potential
$534,000 $712,000 $712,000 $890,000 $890,000 $712,000
$1,566,000 $2,088,000 $1,688,000 $0 $0 $0
$14,000,000 $12,460,000 $8,000,000 $7,120,000 $1,000,000 $890,000 $1,000,000 $890,000 $90,000 $80,100 $200,000 $178,000 $1,000,000 $890,000
$15,540,000 $6,880,000 $261,000 $633,000 $2,970 $248,800 $844,000
$1,000,000
$890,000
$44,000
$3,000,000 $20,000 $40,000 $160,000
$2,670,000 $17,800 $35,600 $142,400
$315,000 $21,100 $42,200 $168,800
$34,510,000 $30,713,900
c $30,342,870
MINIMUM :
$44,986,100
PREPARED BY:
MASSTECH DOMINICANA S.A. N.MASSE
PAGE 8
Updated: Mar 2010