Project Cost: RM150000
Amount Invested : RM400000
Amount Required : RM150000
Knowledge / Experience Required: strategy; sale & marketing
Proposed Investor’s Role: as consultant
Industry: others (Sports)
Project Stage: early expansion
Galaticos Arena is the first Extreme Sports Center in Ipoh Perak that combines indoor Futsal and Radio Control Circuit in one venue. Visit www.facebook.com/galaticosarena for details. Futsal is the fastest growing indoor sport in the world including Malaysia due to it\’s similarities to football as the worlds most preferred sports. Indoor Futsal can be play all day long regardless of adverse weather condition and appeals to children and adult of all ages and gender. Much appeal to working level citizens or families to have a time to exercise and relax after work daily or weekends.
Why Radio Control circuit?
This hobby is as old as electronics industry. Considered by many as a niche sports with attracts huge interest due to the similarity to actual motorsports. There are 3 most preferred type of circuit – on-road, off-road and drift tracks. Each have its own fans and drivers playing and competing with each other. Annually there are close to 100 races annually throughout Malaysia from small scale races to international races participates by drivers and world champions around the world across all types of cars and tracks.
Market and Opportunity
– Premises located beside trunk road leading to Ipoh Lumut Highway, easily accessible and high visibility with ample parking space
– Up to 24 hrs operation possible
– Having a good customer base whole Ipoh
– Wide exposure to netizens (facebook with 200++ likes)
– Successfully organized 1 Futsal competition of 24 teams with more competition on schedule
– Pro-level type of circuit design with full facilities for racers locally and around the country.
– Seating capacity 60 person with extension to 100 person possible.
– Successfully organized 8 RC competitions including 1 national level with more on schedule.
– Country wide exposure with customer base around the country
– Operates up to 24 hrs with ample lighting for night time races or normal play
Steven Lum – Co Founder and Managing Partner (majority share holder)
CC Lian – (minority share holder)
CW Soong – (Minority share holder)
HK CHua – (Minority share holder)
Reported sales of RM 33000 (Sep-Dec 2011), RM94552 (Jan-Jul 2012).
Total investment totaled at RM400,000 since its inception.
Funding required – RM150,000 for the following purposes
Futsal flooring upgrading
– From Parquet flooring to high grade rubberize flooring that yields better booking rate and value. Estimated sales increase on Futsal booking conservatively at 75% compare to current sales.
– Estimated costs RM100,000 for 3 pitches upgrade
– To ensure roofing leaks being patch up and sustain for minimum 5 years
– Estimated costs RM10,000
– Enhance overall appeal of the premises to attract more permanent customers to utilize the facilities
– Estimated costs RM10,000
Equity allocate to the Investors for the funding amount
Proposed equity at 25% for the total investment amount requested. At the end of 3 years (with option to extension), the exit strategy is to sell the company to a corporations with interest on investing in Futsal and RC circuits. The investment will provide a solid infrastructure for Galaticos Arena to aggressively grow sales. After 3 years, the projected conservative sales of RM 1.2M and profit of RM600,000. The company valuation possible within RM800,000 to RM1 million after 3 years. Rough estimation of ROI based on 25% equity share would be in the range of 1.5 to 3 times should the company acquired at the desired value.
Investment risks and mitigating factors
We are asking that the investor be willing to collect their return of investment only upon the complete sale of the business. Should the sale of the business be delayed or become an impossibility, then a separate arrangement to pay out the investor will be agreed at a later time.
As mentioned, the Exit Strategy is a pay out to the investor upon the completed sale of the business. Should the sale not happen, then the remaining shareholders of the company may make arrangements to buy out the investor at a sum or rate of return that is agreeable by all parties at a later date.
Steven Lum ( email@example.com)
Postal Address : No 1 Jalan Rishah Indah 1 Desa Rishah Indah Ipoh
State : Perak
Post Code : 30100
Country : Malaysia
Telephone : 605-2826070