|Funding Required||RM2,000,001 to RM3,000,000|
|Description||In light of the shortage of affordable homes in Pahang, the State has allocated land to meet the demands of the public. We are dedicated to provide affordable homes under the PR1MA Housing Scheme.|
|Business Opportunity||Pahang has received a lot of economic attention due to the New Deep Water Terminal and the ECRL. This will create a much needed stimulus for the Pahang State that will trickle down to the general public, therein lies the opportunity. With greater spending power, huge room for development and growth, the property market across Pahang will see a boom in the years moving forward.|
|Revenue / Business Model||We expect to generate cash flow within 6 months. We have registered 150 qualified and interested buyers for our homes; Priced at RM 150,000, amounting to RM 22,500,000. A no-brainer investment for a cookie cutter project.|
|Management Team||We have over 50 years of combined experience in the property development industry, both public and private housing.|
|Company Background||We have already obtained planning permission from Majlis Lipis, awaiting building plan submission and AP/DL before we see cashflow.|
|Funding Milestone||Total capital expenditure is RM 3,000,000 upfront.|
To be paid to consultant:
RM 500,000 upon JV agreement with Pahang State
RM 250,000 upon approval of building plan
RM 500,000 upon approval of Developer’s License
RM 500,000 upon approval of amended layout
RM 500,000 upon 20% sales of properties
RM 500,000 upon 40% sales of properties
|% Equity Allocation||15|
|Risks and Mitigation||Risk 1: Failure to obtain the necessary approvals required to proceed with project|
Mitigation: Guarantee by Consultant stated in agreement, in case where projects fails to move forward, any and all investments made will be compensated.
Risk 2: Sales numbers
Mitigation: Support of local koperasi to finance the 10% deposit required for down payment. This will increase the attractiveness of our project as there will be 0 down payment required.
Risk 3: Cash flow to return investors
Mitigation: Use of bridging loan to cover our cash flow.
|Exit Strategies||Buyback of shares, capital fully returned by end of June 2019.|
Monthly payment of interest starting July 2019, up till project completion, total 50% over 18 months or less.
|Company Name||Provops Sdn Bhd|
|Business Address||22 Jalan Dagang 12, Taman Dagang Jaya, 68000 Ampang, Selangor|
|Contact Person||Edward Tee|