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Felimar Resort Project (Updated Version), Vietnam

Felimar Resort Project (Updated Version), Vietnam

Project’s name : FELIMAR RESORT
Location : T1,T2,T3, Tan Thang Commune, Ham Tan District, Binh Thuan Province, Vietnam
Area : 3,284,446m2

EXPECTED RETURN ON INVEST MENT
NPV Analysis-100% on the Sale(Loan USD20,000,000 Interest expense 10%)

Net Profit = (1) Cash 138,608,605 + (2) Real Estate Assets 87,000,000
Total investment (Total assets) = (3) Borrowings 20,000,000 + (4) Paid-off Expenses for Project: 7,000,000
225,608,605 / 27,000,000 x 100% = 835 % ( RETURN ON INVESTMENT )
183,228,608 / 27,000,000 x 100% = 678% (NPV RETURNON INVESTMENT )

LOAN PROPOSALS

1. Plan for loan borrowing:
1) Loan amount: min. $20,000,000 / max. $30,000,000
2) Loan Term: 3 years
3) Annual interest:min. 10% / max. 20%

2. Plan for arrangment of the development capital (Development Costs :$ 200,137,801)
1) From the outside investment (Loan): $20,000,000
2) From a part of sale amount of land lots: $39,409,080
3) From a part of sale amount of villa (total sale amount: $279,337,326): $140,728,721

3. Collaterals to be provided for loan security (loan amount: $20,000,000)
1) 100% of project’s share (the estimated value of the project is $20,000,000)
2) Letter of Commitment issued by the local government of Binh Thuan Province (regarding the issuance of Red Book within 120 days upon the loan amount to be invested.
3) The Red Book (or Land Use Right Certificate) with total area of 3,284,446m2 (the estimated value of the Red Book is $80,000,000)
4) The Funding Commitment issued by AGRIBANK, a state-owned-bank of Vietnam. Through this commitment, the Bank can undertake to finance for the project by accepting the project land which has been completed the civil works and infrastructure as collateral.

4. Plan for principal repayment (loan amount: $20,000,000)
1) From the profits of development capital: $138,608,605
2) From the sale amount of functional land lots: the estimated value is $120,000,000
3) From the loan amount borrowed from AGRIBANK, a state-owned-bank of Vietnam. This loan amount is obtained by providing functional land lots and the buildings as collaterals.

5. The payment conditions to the lenders and the brokers who are willing to invest $20,000,000 of the loan amount:
1) To be paid maximum 10% for commission fee (included the processing fee)
2) To be paid maximum 20% for annual interest.
3) To be held maximum 49% of project’s share
4) Have a right of appointing a construction contractor
5) Have a right of appointing a company who will sell the villa and functional land lots.
6) The lending company could appoint a person to supervise the process of construction (Sun Resort Vina Co., Ltd. will pay the salary for this supervisor)

PROJECT’S STRONG POINTS

The project is the first international mixed-use resort project in the nearby region of the
coastalSouthern of Vietnam.
In comparison with the payments for site clearance and compensation, till now the project land value is beyond it a very far distance. The big profits of this can easily be seen, because if we only count for the land purchase, it is clearly that the land value is increased at least 20 times.
Currently in Vietnam, the situation (or condition) for doing business in villas and resorts is still stable. At cities, it is not favorable to do business in apartments; however, it will be completely favorable if we do business in resorts.
The process of paying for site clearance and compensation expenses is done simultaneously with the construction & villa sales installment process, and also simultaneously with the infrastructure construction process for villas.
Because this is the first sales installment, if the business condition is favorable, the huge profits that we can gain from the small investment fund can immediately be seen.
This project is a wide-scaled luxury seaside resort project with the white sandy beach’s spread of 80 m and beach’s length of 3 km.
Particular strong points of our project:

1. There is a 3.5 km beautiful white sandy beach.
2. It is the first resort which has a Powered Hang- glider Practice Field in Viet Nam.
3. It is the first resort which has a Relaxed Hospital in Vietnam.
4. It is the first resort which has Marina facilities in Vietnam.
5. It is the first resort which has Leisure & Entertainment facilities in Vietnam.
6. It is the first resort which has a Workshop and Seminar Center in Vietnam.
7. It is the first resort which has a Vietnamese Traditional Village in Vietnam.
8. It is the first resort which has a Shopping Mall in Vietnam.
9. It has Condominiums and 5-star hotel bordering the beach.
10. Resort land lots can be subdivided to sell for foreign sub-investors individually based on their nationality.
11. It is the first resort in Viet Nam that provides facilities for beach sports such as motorboats, powerboats, windsurfing, jet-skis, etc.
12. We can do business on rowing games on the lake because we have already planned to construct a man-made lake in Silver Town area.
13. It is the first resort which has a Golf Course in Viet Nam.