Brazilian Affordable Housing Project
£100,000
Ref: PROJECT100
Fund closing soon - max required £500k to close.. Investors buy in at the initial launch price valuation of 20 million BRL (currently 60 Million).
The Investment:
- 5 Year investment plan - 50% min to 75% max ROI per year
- Initial Investment returned within 2 to 3 years (maximum)
- £100k investment is estimated to return £275k to £390k (not including initial investment)
- Investor owns shares in Company that holds land asset
- Purchase value of land 20 Million BRL (now valued at 60m BRL)
- Minimum £100k Investment
- Maximum of £500k Investment required (for this project)
- Land held in Investment Companies name for shareholder / investor protection
- This project is already underway, land purchased, requires final investment to close fund.
Project Summary / Location
- 2513 Brazilian Homes Project (2200 Affordable Homes)
- 20 year Mortgages for Brazilian Buyers
- Total 744,000 sqm development
Investment Overview - Ref: Project100
The deficit of affordable homes in Brazil is currently estimated to be in excess of 7.9 million units. The aim is to purchase land sites ranging in size from approximately 500,000m² - 1,000,000m² in Northeast Brazil aimed at building and supplying the shortage of affordable housing in the domestic market - 420,000 houses in the state of Ceara alone are required.* The project mangers have secured the first site, near the city of Mossoro which will enable them to construct 2513 houses of which 2200 will be affordable homes aimed predominantly at first time buyers in the low-to-middle price bracket.
The project company wish to increase the amount of sites currently under construction and maximise the window of opportunity for themselves and investors alike. They would like to (and currently are) attracting investment into their projects. Each project will be ring fenced and set up in its own Brazilian Corporation (Ltda) and usually requires around £2 to £2.5 million total fund per project investment. Investments are sold in minimum £100k lots and this will buy the investor shares within the company. (This particular project only requires a further £500k maximum as will then be 'fully subscribed').
The fund is for a total 5 year investment term (although the initial investment will be returned to the investor within 2 to 3 years). After the initial investment is returned to the investor, company profits will be distributed to all shareholders by means of dividend payment (every quarter) until the end of the fund. An average profit is expected of 50% min to 75% max ROI over the 5 year period. Any profit payments stated have already had Brazilian Tax deducted, so you will need to make provisions to deduct your own countries tax.
There is a full independent proffessional valuation of the company and land assets available (for this project). The land was purchased for 20 million BRL and the work now completed on the site has valued it at 60 million BRL.
Any investor will effectively be an 'arm chair investors' and the business will require little involvement from them. You will need however to demonstrate your investment knowledge before purchasing so we are clear you understand what this type of investment offers.
More information is available about the project, this offer is limited and as such, we are only sending it to our valued existing clients who are registered with us. Other documents available upon signing an NDA are:
1. Power point presentations of the opportinity
2. PDF Brochures of the Investment Opportunity
3. Examples of the bill boards used to sell the properties
4. Latest valuation of the fund (Independent company valuation)
5. Full 24 page Due Diligence report
We would also suggest that you use the 'downside model' as the worst case senerio. This still returns around 50% per annum ROI.
Returns on Investment
An investment of £100k is expected to return £275k to £390k over a 5 year period (initial invest returned on top of this figure). The initial investment of £100k will be repaid within 2 to 3 years of entering. Then after, dividends / profit shares will be distributed to shareholders / investors every quarter.
Please ask us for a full break down of expected forcasts.
It is also possible for the management team to create other projects to suit the investors requirements. There is a window space of opportunity and the team have all the support and resources to increase production output.
General
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A total deficit of 7.9 million homes is estimated in Brazil.*
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743,556m² development site is secured near the city of Mossoro, in the state of Rio Grande do Norte, Northeast Brazil
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The city lies in the heart of Brazil's salt production area, and its largest landbased petroleum industry.
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2513 homes to be built, 2200 will be affordable houses aimed at the low-tomiddle price brackets.
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Pre-approved construction finance and conversion into new 20 year mortgage facility from a leading Brazilian bank.
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Site only 3km from Mossoro city centre. Close to the University and the second largest shopping mall in the state. A new Carrefour hypermarket is also being built only 1km away from the site.
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The development will be marketed in three major phase releases before 2010. Smaller releases in each phase will be structured to incorporate price increases dependent upon the market at the time.
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Sales will be maximised through Brasilis brand-focused television marketing and billboard advertising campaigns.
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R$ 7.6 million total investment required.
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R$ 228 million GDV resulting in an estimated R$ 70 million net profit.
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Investors purchase shareholding in Brazilian Joint Investment
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Quarterly reporting for investors on xxx and Project SPE.
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Project completion is estimated to be within a 4-6 year maximum timeframe.
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Projected R.O.I. for investors is 275%, equivalent to 69% p.a. over 4 years or 46% p.a. over 6 years.
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Projected return of investment capital within 3 years from the introduction of funds
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Quarterly profit distribution expected within 4 years from the introduction of funds.
Phase 1, consists of:
- 313 plots for the building of luxury houses for the higher middle class price bracket.
- The average plot size will be 420-450m² on which 160m², 200m² and 250m² houses will be built.
- Average property price: R$ 340,000.
Phase 2, consists of:
- 1050 affordable houses. The average plot size will be 250m² on which houses of 62m², 78m² and 102m² will be built.
- Average property price: R$ 86,000.
Phase 3, consists of:
- 1150 affordable town-houses.
- Average property size 70m² price: R$87,000.
Warning
Investments can go down as well as up. It is recommended you seek independent financial and legal advise to ensure you fully understand your risk and obligation.
* All properties are sold in Brazilian Reais (BRL). Currency rates will depend upon your banks conversion rate at the time of transferring the monies. The current conversion rate used on this site is £1 = 3.54R$. To check the latest rate 'spot rate' click here. Prices do not include the usual purchase costs associated with a property purchase ie. Government purchase tax, legal, admin and furniture.