Additional Information regarding the Opportunity assessment: Acquisition of AHS' primary equity

Operation Inputs

Operation inputs

Vacancy

4%

* Considering the total number of apartments

Average Rent (US$)

1.482

Land Cost (% of the property value) (a)

9%

Construction Cost (% of the property value) (a)

67%

Permit Period (Months)

18

Construction Period (Months)

14

Lease-Up Period (Months)

8

Operation to Sale (Months)

4

Net other income (Property management)

1,5%

* Percentage of the operating income

OPEX

39,6%

* Percentage of the operating income

Construction Loan Inputs

Interest rate (Annual)

4,50%

Bank Fees

0,50%

* Over the principal (Paid once at each new loan)

LTC

73%

* Principal / Total cost (Land + Construction)

Permanent Loan Inputs

Interest rate (Annual)

3,80%

Bank Fees

0,65%

* Over the principal (Paid once at each new loan)

Loan Term (Months)

360

LTV

70%

* Limited by 70% of the property value

Amortization period (Months)

120

Valuation

Cap Rate

5,25%

(a) Property Value = NOI/Cap Rate

Cash Flow: Property Sale Model

Quarterly Cumulative Cash Flow

% Property Value

1

6

7

2

4

  • 5

Quarter

  • Q1 to Q5: Period between land acquisition and construction start
    2 Q5 to Q8: Construction expenditure financed with equity
    3 Q8 to Q12: Construction expenditure financed with debt
    4 Q12: Operation start
    5 Q15: Operational Stability Achieved
  • Q16: Operational Stability Achieved and property sale Income
  • Q16 Onward: 0,033% of the property value (property managment).

Cash Flow: Permanent Loan Model

Quarterly Cumulative Cash Flow

Sale Value

7

%

1

2

6

4

  • 5

Quarter

  • Q1 to Q5: Period between land acquisition and construction start
    2 Q5 to Q8: Construction expenditure financed with equity
    3 Q8 to Q12: Construction expenditure financed with debt
    4 Q12: Operation start
    5 Q15: Operational Stability Achieved
    6 Q16: Permanent Loan Refinance
    7 Q51: First debt rollover
    8 Q95: Second debt rollover
  • Q135: Third debt rollover

9

8

Units Ramp up

Operation, administration (k units)

Capital Infusion (U$M)

Construction (K units/year)

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MRV Engenharia e Participações SA published this content on 13 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 September 2019 23:06:05 UTC