Business Plan: Armenia - Quindío Colombia 2020

BUSINESS PLAN
“HACIENDA SAN IGNACIO PROJECT”
Armenia – Quindío
Colombia 2020
A&C Consulting Groups S.A.S

Av. 19 31 n91 Torre B # 1206 Armenia Quindío, Colombia.
+57.315.221.7093 / +1.832.275.0609
Ruben@acconsultinggroups.com
WWW.ACCONSULTINGGROUPS.COM
HACIENDA SAN IGNACIO PROJECT DATA
1. APPLICANT & PROJECT
Name of Project: HACIENDA SAN IGNACIO
Name of Applicant or Company: A&C CONSULTING GROUPS S.A.S
Industry Sector: GENERAL TRADE
Registered Address: Av. 19 31 n91 Torre B # 1206 Armenia Quindío, Colombia
Tel No.: 57.315.221.7093 Fax No.
Contact Name: Ruben Arango Position C.E.O.
E-Mail: Mobile +57.315.221.7093 /

Ruben@acconsultinggroup +1.832.275.0609
s.com
Project/Property Location Address BUCARAMANGA, SANTANDER COLOMBIA
Project GPS Coordinates: 7° 10´ 13´´ N 73° 8´ 16´´ O
Town/City BUCARAMANGA Country COLOMBIA
2. DESCRIPTION OF PROJECT:
The Project HACIENDA SAN IGNACIO has as its object the construction of 9,000 apartment units, each 58
m2, in 195,000 m2 of urbanized terrain and with public utilities, in 15-storey buildings each with 4 units per
floor. Each unit will own a private parking place and there will be parking for visitors, as well as private
recreation zones, private business zones and private communal areas.
3. SWOT ANALYSIS:
Strengths: Viability
Opportunities: Purchase Offer
Weaknesses: Financing
Threats: Timetable

+57.315.221.7093 / +1.832.275.0609
4. INVESTMENT REQUIRED & SECURITY AVAILABLE
Investment Required (in USD) 241.000.000 USD
Amount of Equity Available & 26.000.000 USD

Contributed including land:
Estimated Amount of Applicants free 2.000.000 USD

cash available:
Estimated Market Value of Applicant’s 50.000.000 USD

free current assets
Applicant Company’s Share Capital 26.000.000 USD
Project Execution / Construction 5 YEARS

Period
List all Permits, Licenses and Partial plan; still to demonstrate financial closure plan for
Government Approvals obtained: adoption by municipal authority.
Any Off-Take Agreements Viable
Total Project Cost $268.000.000 USD
5. COMPANY HISTORY
Is this a Green or Brown Field project?
YES
If Brown Fields, please supply information below.
6. PROJECT SCHEDULE
Anticipated Project Start Date Anticipated Completion

Date
Required funding schedule (amount required each

year)
Start Year 1 Year 2 Year 3 Year 4 Year 5

2020 2021 2022 2023 2024
20.000.000 30.000.000 81.000.000 46.000.000 64.000.000

+57.315.221.7093 / +1.832.275.0609
Project Returns
Start Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
EBIT 0 0 0 39.036.3 35.597.81 48.888.20 36.390.86 38.028.450
DA 43 4 0 1
(Perc Year 9 Year10 Year11 Year 12 Year 13 Year 14 Year 15 Year 16
e 39.739.73 41.528.0 43.396.7 45.349.63 47.390.368 49.522.93 51.751.46 54.080.283
ntag 1 18 79 4 4 7
e)
Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 TOTAL INCOME
64.491.74 67.393.8 70.426.5 73.595.7 44.885.00 26.975.3 1.095.774.784

3 71 95 92 7 91
PROFIT/LOSS FORECAST FROM START DATE

Start Year 1 - 2020 Year 2 - Year 3 - Year 4 - 2023 Year 5 - 2024
2021 2022
Net Profit / Loss
19.200.000 62.680.000 77.400.000 43.102.000 47.664.200
7. ENCLOSURES
Please supply Full Executive Summary
Please supply full Financial Model
Please provide detailed Business Plan and or Feasibility Study
8. COMMTS
COMMENTS ON SHAREHOLDERS: We are two professionals, each with 50% of the shares of the
company, with 40 and 30 years of experience in business, supported by an excellent group of experts in
the area of construction, willing to place all our determination and move forward with this housing
project.
COMMENTS ON THE PROJECT: It is a very necessary project in this Colombian city; it is important to
know that the city of Bucaramanga is the fifth largest city in Colombia, which has a metropolitan area
with 3 other cities, which has a population of 1,500,000 inhabitants, contributes 30% of GDP; the value
per square meter on the plateau of Bucaramanga is around $ 1,200 USD, which is one of the highest in
Colombia, even higher than the city of Bogota, the capital of Colombia; this project is also required in
any other city in Colombia, where low-income people have not had the opportunity to purchase a
home. Buying your home stabilizes your life project, and we want to provide these people with the
opportunity to acquire housing via the lease system in 240 monthly installments with monthly payments
of 40% of the sum of two minimum monthly salaries.
The Colombian government is targeting full attention to subsidize a million social housing units,
providing a subsidy of 30%, equivalent to $ 4,800USD, the value of housing to every Colombian.

+57.315.221.7093 / +1.832.275.0609
COMPETITIVE ADVANTAGES OF THE PROJECT: In the city of Bucaramanga, land to build social housing
is scarce. HACIENDA SAN IGNACIO project is the only one available whose land costs allow for the
development of this type of housing construction.
COMMENTS ON THE INDUSTRY. The construction industry is very strong in Colombia, the sales system
lease so far is gaining momentum, the state has driven "Mi Casa Ya" (My house now) which is sponsored
by the government and supported by the financial system. The need for housing in Colombia grows by
280,000 new homes each year, the capacity of the construction industry is 140,000 new homes, leaving
an accumulated year shortfall or deficit of 140,000 homes.
In the city of Bucaramanga today there is a deficit of 36,000 units of social housing.
A&C CONSULTING GROUPS S.A.S is a company legally established in Colombia, since

2017, supported and in compliance with the corporate purpose, which advances and
drives with a construction project of 9,000 homes of social interest.
This housing is especially aimed at people with low incomes, called social housing, who
require adequate housing.
Candidates to buy these housing are families of 5- 6 people, who have not had their own
homes, who have always paid rent.
The Colombian government provides a subsidy of $ 4,800 dollars to these buyers, but this
subsidy is delivered to the builder, but the builder cannot make it effective until buyers
receive their apartment and they can inhabit it.
Candidate buyers must complete and manage a home loan at a commercial bank, the
bank must give them credit; if for some reason they do not reach this bank credit, buyers
are not eligible to the government subsidy.
We want to get from you a loan, to build and in turn finance by the leasing system for 20
years for these 9,000 families to acquire housing.
The project to which this funding is addressed is our property and is designed in an area of
440,340 m2, which once urbanized becomes 195,000 m2 to build there 9,000 apartments
of 58 square meters in 160 buildings of 15 floors, we can also count 52,000 m2 to develop
there 38.000 m2 of shopping areas and other areas of 14,000 m2 for productive
development.
In addition, to give solidity to cash flow, we want to develop the productive areas
involving these 9,000 families in the creation of a company producing various export
products, products that provide added value that generate high productivity and quality,
and achieve sustainability in the competitive market to achieve their payment of their
contractual obligation.

+57.315.221.7093 / +1.832.275.0609
For this production project we have allocated a plot of 14,000 m2, on three floors, so we
get 40,000 m2 in built-up areas, available to develop low-impact industry, equipped with
electrical road infrastructure and utilities.
LOCATION
The project HACIENDA SAN IGNACIO is located in the north of the City of Bucaramanga in
Santander department, the Republic of COLOMBIA; in GPS 10' 13'' N - 7th 73 ° 8' 16''
coordinates O
PROPOSAL
We would like to express our interest in participating in the benefits offered by your
programs of Investment and/or Funding in the fields of housing and infrastructure. At the
same time, we would like to let you know that, with your support, we will execute a
construction project of 9,000 apartments, each 58 m2 in a gross building area of 440.340
m2. Project called HACIENDA SAN IGNACIO.
We will get income of 1.095 million dollars over 20 years to finance the buyers to occupy
9,000 homes and 52,000 m2 commercial and production areas under the lease system.
NAME OF THE PROJECT:
The Project is named “HACIENDA SAN IGNACIO”, and is located in the city of
Bucaramanga, Department of Santander, in Colombia.
It is a private project, started and owned by A&C CONSULTING GROUPS S.A.S, legally-
constituted company by notarized deed and registered in the Chamber of Commerce since
2017.
OBJECT:
The Project HACIENDA SAN IGNACIO has as its object the construction of 9,000 apartment
units, each 58 m2, in 195,000 m2 of urbanized terrain and with public utilities, in 15-storey
buildings each with 4 units per floor. Each unit will own a private parking place and there
will be parking for visitors, as well as private recreation zones, private business zones and
private communal areas.
The Project will also build business zones in 38,000 m2 for commerce, and 14,000 m2 for
productive zones. In this way, Project HACIENDA SAN IGNACIO will have all required areas
for self-sufficiency.
The Project will be executed in a gross area of 440.340 m2 that needs to be urbanized and
furnished with public utilities that will be managed by a private-run public utility company,
all in the interest of efficiency and quality for its subscribers.
Once the terrain has been urbanized, we will have 195,000 m2 for housing, 38,000 m2 for
business, and 14,000 m2 for productive zones of low and medium impact.
Among the works of urbanization are the building of roads and the building of the

+57.315.221.7093 / +1.832.275.0609
following areas:
 Recreational: Equipment that include sports centers and sports zones

 Educational: kindergarten, elementary and high school
 Health: A First-level hospital
 Communal: Social hall for the celebration of activities of the people in the area
 Institutional: Areas for the Police station and Justice Center.
APPLICATION AND INVESTMENT OR CREDIT

The application of credit to finance the construction of 100 % of the project is
$241.000.000 US.
DISBURSEMENTS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

$ 20.000.000 $30.000.000 $81.000.000 $46.000.000 $64.000.000
CONTRIBUTIONS
The contributions of our company to generate the development of this project are valued
at 26,000,000 dollars.
1- LAND 440.340 mts2 19.000.000 dóllars.

2- 350.000.000 metres3 of Stone materials 5.000.000 dóllars.
3- DESIGNS 2.000.000 dóllars
TOTAL CONTRIBUTIONS 26.000.000 US
URBANIZATION
During Phase 1, year 2020: Pre-Urbanization
 Land movement and demarcation of the terrain to identify the terrains to be

used for roads, housing, business, and service areas
 Opening of ways to identify road zones, sidewalks, bridge
 Opening of available areas for the construction of housing and business zones
 Building of the waste-water collector, installation of pipes for public utilities:
water, electricity, gas, phone and internet

+57.315.221.7093 / +1.832.275.0609
During Phase 2, year 2021: Final Urbanization
In this phase we will complement pre-urbanization works, but will also start the
construction of equipment areas such as the kindergarten, schools, hospital, sports
centers, the social hall, the Police Station and the other institutional zones, the adaptation
of the riparian buffer zone, the planting of about 100,000 trees in the buffer zones, the
building of insulation zones and roads.
URBANIZED AREAS RESULTING TO BUILD
For construction areas 9.000 apartments 195.000 meters2
For commercial areas 37.000 meters2
For productive 14.000 meters2
During Phase 3, year 2022:
Construction of 4,500 apartment units
Construction of 10,000 m2 of commerce areas and 2,250 apartment units
Construction of 16,000 m2 of commerce areas, 2,250 apartment units and 14,000 m2 of

productive zones
The appraised value of the contributions from the Project owner is USD 26,000 million.
Total investment to cover costs: USD $241.000.000
LENGTH OF FINANCING: 11 YEARS
The time set for the development of the Project HACIENDA SAN IGNACIO is 5 years, and
the length of financing is 11 years from the initial outlay.
GRACE PERIOD: 4 YEARS
The sums will begin to be repaid at the end of the fourth year, year 2023.
CASH FLOW
At the end of three years, in the third phase, having completed the first 4,500 apartments
begins delivery of these 4,500 apartments to their buyers, who have previously been
selected and assigned the lease to pay equal monthly installments of 40% the sum of two
monthly legal minimum salaries, the minimum wage in 2015 was $ 644,350, for 2016 it is

+57.315.221.7093 / +1.832.275.0609
$ 689,455 and it is estimated by statistical projection that salary in Colombia increases by
4.5 %, so for the year 2019 the minimum wage will be about $ 768,399 .
YEAR YEAR 7 YEAR 8 YEAR 9 YEAR 10

YEAR
6 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
39.036.343
39.739.731 35.597.814
41.528.018 48.888.2 36.390.8
43.396.779 45.369.6 38.028.450
47.390.368
00 62
34 14
YEAR 11 YEAR YEAR YEAR YEAR 15
12 13
49.522.93 51.751.467 54.080.2 56.513.89 59.057.0
4 83 5 21
YEAR 16YEAR YEAR YEARYEAR TOTAL INCOME

YEAR YEAR 20
21 17 22 18 19
44.885.007
61.714.58 64.491.7 26.975.39
67.393. 1.095.774.784
70.426. 73.595.7
6 43 1 871 595 92
The projected income is detailed as follows:
YEAR 4
At the end of year 3, the first 4,500 apartments are delivered to generate the next move in
the cash flow.
1- by leasing agreement.
The monthly income is 245.887 dollars x 12 months x 4.500 Homes =13.277.941 dollars
2- For state subsidy of Colombia, every citizen is entitled to receive a grant in the amount
of 5.724 dollars x 4.500 Homes= 25.758.402 dollars.
TOTAL INCOME: 39.036.343 dollars
YEAR 5
At the end of year 4, 2.250 apartments are delivered as well as the 10,000 m2 of shopping
areas.
At this stage there are 4 types of income of 35,597,814 dollars reflected in year 5
1- For rental or leasing of apartments

The monthly income is $ 256.952 x 12 months x 2,250 Homes = 6.937.724 dollars

+57.315.221.7093 / +1.832.275.0609
2- Income from state subsidies.
5,982 x 2,250 apartments = 13.458.765 dollars
3- Revenues from leases or lease of 10.000 m2.
m2 value 11,0489 x 12 months x 10.000 m2 = 1.325.876 dollars
4- Second lease payments or lease of the 4.500 apartments

Revenues are $ 256.952 dollars x 12 months x 4.500 Homes= 13.875.448 dollars
TOTAL INCOME 35.597.814 dollars

YEAR 6
At the end of year 5, begins the delivery of 2,250 apartments and delivery of 18.000 m2 of
shopping areas, in addition to the 14,000 square meters of production areas.
At this stage there are 6 types of income that are reflected in year 6
1- The first installment of rental or leasing of 2.250 apartments= 7.249.922 dollars
2- Income from state subsidies 6.251 x 2.250 = 14.064.409 dollars
3- The second installment of rental or leasing of 2.250 apartments = 7.249.922 dollars
4- The third lease payments or leasing of 4.500 apartments= 14.494.843 dollars
5- The first installment of 32,000 m2 of commercial and productive areas = 4.438.563 dollars
6- The second installments of 10,000 m2 of commercial areas = 1.385.541 dollars
TOTAL INCOME = 48.888.200 dollars
YEAR 7
For Year 7 and following years to complete 20 years of lease fees.
The income will be as follows, increasing by 4.5% each year
1- Leasing of 9.000 apartments
2- Leasing of 42.000 Mts2
TOTAL GROSS =………………………………………………………………………………1.095.754.874 dollars
WARRANTY AND SAFETY SERIOUSLY
We have chosen to give and show seriousness and security to the financer, the creation of
AUTONOMOUS EQUITY in Colombia with the trust company ACCION FIDUCIARIA SA to
move there our project assets under administration-increased investment and
surveillance of the trustee to ensure full implementation of the proposal made.

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We pay an interest of 5% with a 48-month grace period. Furthermore we deliver 30% of
the rights of autonomous assets, which will guarantee payment, and will be under the
name of the financer, till the end of the loan
MARKETING ACTIVITIES
It exists in Colombia and especially in the city of Bucaramanga a sufficiently large market
that allows demand to exceed supply of our apartments.
Every year in Colombia we require 280,000 new homes, but the construction industry
contributes only with 50% of the need, leaving 50% accumulated year by year
The area to build the HACIENDA SAN IGNACIO project is a somewhat depressed sector in
urban structure, public services. Our urban contribution will potentially develop the
sector, bridging all the accumulated shortcomings, making this sector a central area,
linking and articulating the northern region, placing it on top of competitiveness in north
Bucaramanga.
Our market is aimed at the depressed society of Bucaramanga and Colombia, low-income
families with income of 2 minimum monthly wages, which does not allow you to buy a
higher-value home; demand for social interest housing in Bucaramanga is 36,000 homes .
A potential buyer does not require initial capital for the purchase, the state subsidizes
these USD $ 4,800; handing the initial capital over to the builder at the delivery of housing
to the buyer; the buyer only needs to have an income of 2 minimum wages, who, by the
leasing system, will pay 40% of the sum of these two minimum salaries, in 240
installments in 20 years.
BUSINESS STRATEGIES
The resources requested at no time are above the resources provided by the project
owner; at the end of each stage or phase, the project revenues increase the guarantees of
the investor, therefore the more resources entering the project, the greater your backups.
Being specialized social-housing project, and because we are developing it in an area that
has no urban and utility infrastructure, besides being the only available land for this
project, we can say that we have no competition and we are free.
The investment to be made in urban, road and utility infrastructure renders us without
competitor; we have no risks, the mitigation lies in ensuring that investment resources are
available and funding phase by phase to finish the task projected.

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CONSTRUCTION EXPERIENCE
Our company has invited architect EDWARD SOTO AVILA as director of Project HACIENDA
SAN IGNACIO, who has demonstrable experience as designer and builder in various
buildings in our city.
This team led by architect EDWARD SOTO AVILA gives our company technical safety and
competence in the feasibility of the project.
FINANCIAL ACCOUNTANT AREA
CONTRIBUTIONS
The structure or composition of capital within the autonomous equity shall consist of the
contributions by the project owner and promoter with $ 26,000,000 dollars, which are
represented in the land field in which the project will be developed, which has been
appraised at USD 19 million. Besides, the owner will contribute with 375,000 m3 of quarry
or stone materials with which mixtures are made for the concrete to be used to build the
structures of each building and each apartment; this material is valued at $ 5 million
dollars.
Another contribution from the Project developer are the designs of the Project, valued at
$ 2 million dollars.
TOTAL CONTRIBUTIONS: To start accounts, the owner A&C CONSULTING GROUPS S.A.S
provides 26 million
STARTING
PHASE 1 YEAR 1 with a loan of 20 million, are obtained: $ 58.200.000 in assets.

+57.315.221.7093 / +1.832.275.0609
PROJECT EVALUATION
TOTAL LOAN REQUIRED $ 241.000.000 dollars
TOTAL RESULTING ASSETS AFTER 5 YEARS $ 456.245.442
INTEREST AT 5% IN 12 YEARS $ 66.880.000
ASSETS $ 456.245.442 dollars
LIABILITIES $ 307.880.000
REVENUE $ 148.365.442
IRR: Internal Rate of Return 61 %
If you have any questions, or wish to get more information about the possible of a join
venture with our group, feel free to contact us to the email or number provided below.
Looking forward to hearing from you soon.
Cordially
Rubén Arango
C.E.O

+57.315.221.7093 / +1.832.275.0609

Business Plan: Armenia - Quindío Colombia 2020

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BUSINESS PLAN

“HACIENDA SAN IGNACIO PROJECT”

A&C Consulting Groups S.A.S

1. APPLICANT & PROJECT

Name of Project: HACIENDA SAN IGNACIO

Name of Applicant or Company: A&C CONSULTING GROUPS S.A.S

Industry Sector: GENERAL TRADE

Registered Address: Av. 19 31 n91 Torre B # 1206 Armenia Quindío, Colombia

Tel No.: 57.315.221.7093 Fax No.

Contact Name: Ruben Arango Position C.E.O.

E-Mail: Mobile +57.315.221.7093 /

Project GPS Coordinates: 7° 10´ 13´´ N 73° 8´ 16´´ O

Town/City BUCARAMANGA Country COLOMBIA

A&C Consulting Groups S.A.S

Investment Required (in USD) 241.000.000 USD

Amount of Equity Available & 26.000.000 USD

Estimated Amount of Applicants free 2.000.000 USD

Estimated Market Value of Applicant’s 50.000.000 USD

Applicant Company’s Share Capital 26.000.000 USD

Project Execution / Construction 5 YEARS

Total Project Cost $268.000.000 USD

Anticipated Project Start Date Anticipated Completion

Required funding schedule (amount required each

Start Year 1 Year 2 Year 3 Year 4 Year 5

A&C Consulting Groups S.A.S

64.491.74 67.393.8 70.426.5 73.595.7 44.885.00 26.975.3 1.095.774.784

PROFIT/LOSS FORECAST FROM START DATE

A&C Consulting Groups S.A.S

A&C CONSULTING GROUPS S.A.S is a company legally established in Colombia, since

A&C Consulting Groups S.A.S

A&C Consulting Groups S.A.S

 Recreational: Equipment that include sports centers and sports zones

APPLICATION AND INVESTMENT OR CREDIT

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1- LAND 440.340 mts2 19.000.000 dóllars.

During Phase 1, year 2020: Pre-Urbanization

 Land movement and demarcation of the terrain to identify the terrains to be

A&C Consulting Groups S.A.S

During Phase 3, year 2022:

Construction of 4,500 apartment units

During Phase 4, year 2023:

Construction of 10,000 m2 of commerce areas and 2,250 apartment units

During Phase 5, year 2024:

Construction of 16,000 m2 of commerce areas, 2,250 apartment units and 14,000 m2 of

Total investment to cover costs: USD $241.000.000

LENGTH OF FINANCING: 11 YEARS

GRACE PERIOD: 4 YEARS

A&C Consulting Groups S.A.S

YEAR YEAR 7 YEAR 8 YEAR 9 YEAR 10

YEAR 16YEAR YEAR YEARYEAR TOTAL INCOME

The projected income is detailed as follows:

TOTAL INCOME: 39.036.343 dollars

1- For rental or leasing of apartments

A&C Consulting Groups S.A.S

4- Second lease payments or lease of the 4.500 apartments

TOTAL INCOME 35.597.814 dollars

A&C Consulting Groups S.A.S

A&C Consulting Groups S.A.S

FINANCIAL ACCOUNTANT AREA

PHASE 1 YEAR 1 with a loan of 20 million, are obtained: $ 58.200.000 in assets.

PHASE 2 YEAR 2 with a loan of 30 million, are obtained: $ 116.680.000 in assets.

PHASE 3 YEAR 3 with a loan of 81 million, are obtained: $ 280.360.000 in assets.