Notice to the Market - Additional Information regarding the Opportunity assessment: Acquisition of AHS' primary equity
September 13, 2019 at 07:07 pm EDT
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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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Disclaimer
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
MRV Engenharia e Participações S.A. is one of the Brazilian leaders of construction of individual houses. The group's activity is organized around 3 areas:
- construction and sale of individual houses: activity ensured for own account or for third parties;
- technical engineering services;
- renting of logistic sites.