CASH FLOW SUMMARY FOR PROPOSED HOTEL AT LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA

Initial Site Value 200,000,000.00 (Base)

Project Development Cost 894,743,036.31

Value of Completed Facility 1 1,094,743,036.31 (Ignoring Capital Growth)

Value of Completed Facility 2 2,838,978,505.42 (Capital Growth Taken Into Account)

Annual Interest Rate (Debt) 21.00%

Monthly Interest Rate (Debt) 1.60%

Assumed Av Annual Growth 25.00%

Assumed Av Monthly Growth 1.88%

Financed By
Total Development LTV Ratio - LTV Ratio - Developer's Cash
Months Dates Costs (Draws) Developer Bank Operational Income Payments Loan Balance LTV Ratio - Base Current 1 Current 2 Flow
0 1-Jun-09 4,000,000.00 1,200,000.00 2,800,000.00 - - 2,800,000.00 1.40% 1.37% 1.37% (201,200,000.00)
1 1-Jul-09 18,592,350.00 5,577,705.00 13,014,645.00 - - 15,859,478.23 7.93% 7.12% 7.00% (5,577,705.00)
2 31-Jul-09 14,000,000.00 4,200,000.00 9,800,000.00 - - 25,913,418.10 12.96% 10.95% 10.59% (4,200,000.00)
3 31-Aug-09 14,311,172.84 4,293,351.85 10,017,820.99 - - 36,346,161.31 18.17% 14.49% 13.79% (4,293,351.85)
4 30-Sep-09 4,217,773.65 1,265,332.09 2,952,441.55 - - 39,880,572.79 19.94% 15.63% 14.62% (1,265,332.09)
5 31-Oct-09 55,893,854.54 16,768,156.36 39,125,698.18 - - 79,644,833.43 39.82% 25.61% 23.86% (16,768,156.36)
6 30-Nov-09 3,234,876.56 970,462.97 2,264,413.59 - - 83,184,509.56 41.59% 26.47% 24.23% (970,462.97)
7 31-Dec-09 42,548,548.25 12,764,564.48 29,783,983.78 - - 114,300,432.71 57.15% 32.04% 29.14% (12,764,564.48)
8 30-Jan-10 141,164,217.03 42,349,265.11 98,814,951.92 - - 214,945,548.05 107.47% 43.16% 39.75% (42,349,265.11)
9 1-Mar-10 93,691,899.77 28,107,569.93 65,584,329.84 - - 283,971,557.58 141.99% 48.00% 44.05% (28,107,569.93)
10 1-Apr-10 38,978,218.16 11,693,465.45 27,284,752.71 - - 315,803,225.32 157.90% 50.08% 45.39% (11,693,465.45)
11 1-May-10 111,881,897.78 33,564,569.33 78,317,328.45 - - 399,177,153.25 199.59% 53.76% 48.64% (33,564,569.33)
12 1-Jun-10 13,034,513.54 3,910,354.06 9,124,159.48 - - 414,692,884.53 207.35% 54.89% 48.84% (3,910,354.06)
13 1-Jul-10 33,243,509.69 9,973,052.91 23,270,456.78 - - 444,603,348.94 222.30% 56.37% 49.50% (9,973,052.91)
14 1-Aug-10 58,430,924.78 17,529,277.43 40,901,647.35 - - 492,623,926.32 246.31% 58.15% 50.60% (17,529,277.43)
15 31-Aug-10 28,748,127.16 8,624,438.15 20,123,689.01 - - 520,635,444.51 260.32% 59.44% 51.01% (8,624,438.15)
16 1-Oct-10 80,627,428.98 24,188,228.70 56,439,200.29 - - 585,410,990.69 292.71% 61.20% 52.25% (24,188,228.70)
17 31-Oct-10 79,816,534.55 23,944,960.36 55,871,574.18 - - 650,656,088.25 325.33% 62.78% 53.28% (23,944,960.36)
18 30-Nov-10 28,914,260.81 8,674,278.24 20,239,982.57 - - 681,314,290.07 340.66% 63.95% 53.52% (8,674,278.24)
19 31-Dec-10 3,234,876.56 970,462.97 2,264,413.59 - - 694,487,817.98 347.24% 64.99% 53.42% (970,462.97)
20 30-Jan-11 3,234,876.56 970,462.97 2,264,413.59 (6,151,620.00) (6,151,620.00) 714,023,898.69 357.01% 66.62% 53.78% (970,462.97)
21 2-Mar-11 - - - 10,125,685.00 10,125,685.00 715,331,069.94 357.67% 66.74% 52.88% -
22 1-Apr-11 4,594,746.88 1,378,424.06 3,216,322.82 20,251,370.00 20,251,370.00 709,749,809.26 354.87% 65.94% 51.33% (1,378,424.06)
23 2-May-11 12,549,506.68 3,764,852.00 8,784,654.67 30,377,055.00 30,377,055.00 699,521,829.03 349.76% 64.24% 49.22% (3,764,852.00)
24 1-Jun-11 - - - 50,628,425.00 50,628,425.00 660,094,055.07 330.05% 60.62% 45.59% -
25 1-Jul-11 5,798,921.55 1,739,676.46 4,059,245.08 50,628,425.00 50,628,425.00 624,094,213.88 312.05% 57.01% 42.14% (1,739,676.46)
26 1-Aug-11 - - - 50,628,425.00 50,628,425.00 583,458,702.91 291.73% 53.30% 38.67% -
27 31-Aug-11 - - - 60,754,110.00 60,754,110.00 532,046,856.51 266.02% 48.60% 34.62% -
28 1-Oct-11 - - - 60,754,110.00 60,754,110.00 479,811,810.42 239.91% 43.83% 30.64% -
29 31-Oct-11 - - - 60,754,110.00 60,754,110.00 426,740,383.69 213.37% 38.98% 26.75% -
30 1-Dec-11 - - - 70,879,795.00 70,879,795.00 362,693,499.29 181.35% 33.13% 22.32% -
31 31-Dec-11 - - - 70,879,795.00 70,879,795.00 297,621,104.64 148.81% 27.19% 17.98% -
32 31-Jan-12 - - - 93,156,302.00 93,156,302.00 209,230,272.41 104.62% 19.11% 12.40% -
33 1-Mar-12 - - - 93,156,302.00 93,156,302.00 119,424,137.87 59.71% 10.91% 6.95% -
34 31-Mar-12 - - - 104,800,839.75 104,800,839.75 16,535,501.62 8.27% 1.51% 0.94% -
35 1-May-12 - - - 104,800,839.75 16,800,265.89 - 0.00% 0.00% 0.00% 88,000,573.86
36 31-May-12 - - - 104,800,839.75 - - 0.00% 0.00% 0.00% 104,800,839.75
37 1-Jul-12 - - - 104,800,839.75 - - 0.00% 0.00% 0.00% 104,800,839.75
38 31-Jul-12 - - - 109,226,476.75 - - 0.00% 0.00% 0.00% 109,226,476.75
39 31-Aug-12 - - - 109,226,476.75 - - 0.00% 0.00% 0.00% 109,226,476.75
40 30-Sep-12 - - - 109,226,476.75 - - 0.00% 0.00% 0.00% 109,226,476.75
41 30-Oct-12 - - - 109,226,476.75 - - 0.00% 0.00% 0.00% 109,226,476.75
42 30-Nov-12 - - - 109,226,476.75 - - 0.00% 0.00% 0.00% 109,226,476.75
43 30-Dec-12 - - - 109,226,476.75 - - 0.00% 0.00% 0.00% 109,226,476.75
44 30-Jan-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
45 1-Mar-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
46 1-Apr-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
47 1-May-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
48 1-Jun-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
49 1-Jul-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
50 31-Jul-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
51 31-Aug-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
52 30-Sep-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
53 31-Oct-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
54 30-Nov-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
55 31-Dec-13 - - - 116,349,942.63 - - 0.00% 0.00% 0.00% 116,349,942.63
56 30-Jan-14 - - - 127,035,141.44 - - 0.00% 0.00% 0.00% 127,035,141.44
57 1-Mar-14 - - - 127,035,141.44 - - 0.00% 0.00% 0.00% 127,035,141.44
58 1-Apr-14 - - - 127,035,141.44 - - 0.00% 0.00% 0.00% 127,035,141.44
59 1-May-14 - - - 127,035,141.44 - - 0.00% 0.00% 0.00% 127,035,141.44
60 1-Jun-14 - - - 127,035,141.44 - - 0.00% 0.00% 0.00% 2,824,064,721.59
894,743,036.31 268,422,910.89 626,320,125.42 3,822,759,527.19 838,423,394.64

Developer's
NPV 1,373,893,201.92

Developer's IRR 90.57%

 SENSITIVITY ANALYSIS FOR PROPOSED HOTEL AT LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA
Scenarios
KEY VARIABLES Normal 1 2 3 4 5 6 7 8 Cut-off (Zero NPV)

Interest Rates Nominal values 21.00% 25.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 72.87%
% change 0.00% 19.05% 42.86% 90.48% 138.10% 185.71% 233.33% 280.95% 328.57% 247.00%
NPV values 2,016,431,142.81 1,674,153,519.09 1,322,373,040.68 804,527,930.46 454,467,261.79 211,723,298.60 39,753,127.40 (84,287,470.30) (175,108,401.93) -
% change in NPV 0.00% -16.97% -34.42% -60.10% -77.46% -89.50% -98.03% -104.18% -108.68% -100.00%

Capital Growth Nominal values 25.00% 20.00% 10.00% 0.00% -20.00% -40.00% -60.00% -80.00% -99.00% NA
% change 0.00% -20.00% -60.00% -100.00% -180.00% -260.00% -340.00% -420.00% -496.00% NA
NPV values 2,016,431,142.81 1,849,315,972.04 1,578,235,749.15 1,377,845,323.00 1,133,589,901.93 1,024,508,523.77 986,177,420.64 977,624,977.04 977,024,553.23 -
% change in NPV 0.00% -8.29% -21.73% -31.67% -43.78% -49.19% -51.09% -51.52% -51.55% -100.00%

Mean Monthly Wage Nominal values 52,628.47 60,000.00 70,000.00 80,000.00 90,000.00 100,000.00 110,000.00 120,000.00 130,000.00 ∞
% change 0.00% 14.01% 33.01% 52.01% 71.01% 90.01% 109.01% 128.01% 147.01% ∞
NPV values 2,016,431,142.81 2,005,832,961.31 1,991,455,776.79 1,977,078,592.28 1,962,701,407.76 1,948,324,223.25 1,933,947,038.73 1,919,569,854.21 1,905,192,669.70 -
% change in NPV 0.00% -0.53% -1.24% -1.95% -2.66% -3.38% -4.09% -4.80% -5.52% -100.00%

Average Room Rates Nominal values 57,755.56 55,000.00 50,000.00 45,000.00 35,000.00 25,000.00 15,000.00 5,000.00 - NA
% change 0.00% -4.77% -13.43% -22.09% -39.40% -56.71% -74.03% -91.34% -100.00% (∞)
NPV values 2,016,431,142.81 1,944,701,651.37 1,814,547,332.23 1,684,393,013.08 1,424,084,374.79 1,163,775,736.50 903,467,098.21 643,158,459.92 613,963,481.69 -
% change in NPV 0.00% -3.56% -10.01% -16.47% -29.38% -42.29% -55.19% -68.10% -69.55% -100.00%

Power Generation
Costs (Diesel Price) Nominal values 6,000,000.00 9,000,000.00 12,000,000.00 15,000,000.00 18,000,000.00 21,000,000.00 24,000,000.00 27,000,000.00 30,000,000.00 ∞
% change 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% 350.00% 400.00% ∞
NPV values 2,016,431,142.81 1,956,526,207.33 1,896,621,271.84 1,836,716,336.36 1,776,811,400.88 1,716,906,465.39 1,657,001,529.91 1,597,096,594.42 1,537,191,658.94 -
% change in NPV 0.00% -2.97% -5.94% -8.91% -11.88% -14.85% -17.83% -20.80% -23.77% -100.00%

NOTES

From the above (see charts in the appendix), the NPV is most sensitive to interest rate changes (inverse) followed, in descending order, by changes in room rates (direct), capital growth rates (direct), power generation costs (inverse) and
monthly wage rates (inverse).

Capital growth rate % changes below -100% are theoretically not possible (because capital values cannot be negative), hence the lowest % change value of -99% used above
CASH FLOW ANALYSIS FOR PROPOSED HOTEL AT LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA

Initial Site Value 200,000,000.00 (Base)

Project Development Cost 894,743,036.31
Value of Completed Facility 1 1,094,743,036.31 (Ignoring Capital Growth)
Value of Completed Facility 2 2,838,978,505.42 (Capital Growth Taken Into Account)
Annual Interest Rate (Debt) 21.00%
Monthly Interest Rate (Debt) 1.60%
Annual Discount Rate (WACC) 30.00%
Monthly Discount Rate (WACC) 2.21%
Assumed Av Annual Growth 25.00%
Assumed Av Monthly Growth 1.88%

PRE - CONTRACT POST - CONTRACT

Months from today 60 0 1 2 3 4 5 6 7 8 9 10 11 12
End date Start date
Dates 1-Jun-14 1-Jun-09 1-Jul-09 31-Jul-09 31-Aug-09 30-Sep-09 31-Oct-09 30-Nov-09 31-Dec-09 30-Jan-10 1-Mar-10 1-Apr-10 1-May-10 1-Jun-10
Totals Cash-Outflows
Pre-Contract Costs
Architect 15,471,648.76 4,000,000.00 4,000,000.00 4,000,000.00 3,471,648.76
Structural Engr 8,080,227.86 3,000,000.00 3,000,000.00 2,080,227.86
Mech-Elec Engr 10,759,296.22 4,000,000.00 4,000,000.00 2,759,296.22
QS 8,080,227.86 3,000,000.00 3,000,000.00 2,080,227.86
Project Mgr 2,622,818.36 1,500,000.00 1,122,818.36
Cash Flow Analyst 2,014,727.43 1,000,000.00 1,014,727.43
Arch-Planning Approv 8,592,350.00 7,592,350.00 500,000.00 500,000.00

Post-Contract Costs
Architect 10,314,432.51 644,652.03 644,652.03 644,652.03 644,652.03 644,652.03 644,652.03 644,652.03 644,652.03
Structural Engr 5,386,818.57 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16
Mech-Elec Engr 7,172,864.15 448,304.01 448,304.01 448,304.01 448,304.01 448,304.01 448,304.01 448,304.01 448,304.01
QS 5,386,818.57 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16
Project Mgr 3,497,091.14 218,568.20 218,568.20 218,568.20 218,568.20 218,568.20 218,568.20 218,568.20 218,568.20
Substructure
Setting Out
Piling 42,092,533.41 21,046,266.70 18,941,640.03
Pile Caps 7,428,094.13 3,714,047.07 3,342,642.36
Tie Beams 17,029,389.30 8,514,694.65 7,663,225.18
Filling 7,568,617.47 3,784,308.73 3,405,877.86
Raft slab 13,245,080.57 6,622,540.28 5,960,286.25
Frames & Upper floors 147,892,408.80 73,946,204.40 44,367,722.64 22,183,861.32 -
Staircases 9,661,645.51 4,830,822.76 2,898,493.65 1,449,246.83
Walls 45,718,613.83 9,143,722.77 18,287,445.53 9,143,722.77 6,857,792.07 -
Roof frame & Covering 3,955,347.58 - - 2,966,510.69 791,069.52 -
Doors & Ironmongery 19,599,273.97 - - - - 4,899,818.49 - - 9,799,636.99
Windows 25,937,288.35 - - - - 6,484,322.09 - 12,968,644.18
Finishings 65,957,649.29 - - - - - - 32,978,824.65 -
Mech Installations 157,092,428.90 - - - 39,273,107.23 - - 39,273,107.23 -
Elec Installations 42,941,933.31 - - - 10,735,483.33 - - 10,735,483.33 -
Fittings & Fixtures 20,168,401.03 - - - - 5,042,100.26 - 5,042,100.26 -
Painting & Decoration 11,188,096.34
External Works 40,669,643.71
Furniture/ Outfitting 75,308,787.20 - - - - - - - -
Preliminaries 33,908,482.19 8,477,120.55 8,477,120.55
Contingencies 20,000,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00
Total Construc Cost 807,363,714.88 - - - - - 53,408,977.98 1,250,000.00 40,563,671.69 139,179,340.47 91,707,023.21 36,993,341.60 109,897,021.22 11,049,636.99

Overall Total Costs 894,743,036.31 4,000,000.00 18,592,350.00 14,000,000.00 14,311,172.84 4,217,773.65 55,893,854.54 3,234,876.56 42,548,548.25 141,164,217.03 93,691,899.77 38,978,218.16 111,881,897.78 13,034,513.54
Developer 1,200,000.00 5,577,705.00 4,200,000.00 4,293,351.85 1,265,332.09 16,768,156.36 970,462.97 12,764,564.48 42,349,265.11 28,107,569.93 11,693,465.45 33,564,569.33 3,910,354.06
FINANCED BY
Bank 2,800,000.00 13,014,645.00 9,800,000.00 10,017,820.99 2,952,441.55 39,125,698.18 2,264,413.59 29,783,983.78 98,814,951.92 65,584,329.84 27,284,752.71 78,317,328.45 9,124,159.48
Developer's Cumulatv 1,200,000.00 6,777,705.00 10,977,705.00 15,271,056.85 16,536,388.95 33,304,545.31 34,275,008.28 47,039,572.75 89,388,837.86 117,496,407.79 129,189,873.24 162,754,442.57 166,664,796.64
Bank Cumulative 2,800,000.00 15,814,645.00 25,614,645.00 35,632,465.99 38,584,907.54 77,710,605.72 79,975,019.31 109,759,003.09 208,573,955.01 274,158,284.85 301,443,037.56 379,760,366.00 388,884,525.49
Bank Compounded 2,800,000.00 15,859,478.23 25,913,418.10 36,346,161.31 39,880,572.79 79,644,833.43 83,184,509.56 114,300,432.71 214,945,548.05 283,971,557.58 315,803,225.32 399,177,153.25 414,692,884.53
Operational Revenue
Operational Costs
Operational Income - - - - - - - - - - - - -
Cumulative Income - - - - - - - - - - - - -
Payments - - - - - - - - - - - - -
Loan Balance 2,800,000.00 15,859,478.23 25,913,418.10 36,346,161.31 39,880,572.79 79,644,833.43 83,184,509.56 114,300,432.71 214,945,548.05 283,971,557.58 315,803,225.32 399,177,153.25 414,692,884.53
Base value 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00
LTV Ratio-Base 1.40% 7.93% 12.96% 18.17% 19.94% 39.82% 41.59% 57.15% 107.47% 141.99% 157.90% 199.59% 207.35%
Current value 1 204,000,000.00 222,592,350.00 236,592,350.00 250,903,522.84 255,121,296.49 311,015,151.03 314,250,027.59 356,798,575.84 497,962,792.87 591,654,692.64 630,632,910.80 742,514,808.58 755,549,322.12
LTV Ratio-Current1 1.37% 7.12% 10.95% 14.49% 15.63% 25.61% 26.47% 32.04% 43.16% 48.00% 50.08% 53.76% 54.89%
Current value 2 204,000,000.00 226,421,280.08 244,671,041.12 263,574,509.60 272,739,383.10 333,752,355.43 343,251,518.43 392,242,645.44 540,768,968.67 644,610,704.58 695,687,791.96 820,627,238.34 849,064,322.09
LTV Ratio-Current2 1.37% 7.00% 10.59% 13.79% 14.62% 23.86% 24.23% 29.14% 39.75% 44.05% 45.39% 48.64% 48.84%

DCF Analysis
CASH FLOW ANALYSIS FOR PROPOSED HOTEL AT PLOT 6, BLOCK 5 LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA - CONTD.

POST - HANDING OVER OPERATIONS

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

1-Jul-10 1-Aug-10 31-Aug-10 1-Oct-10 31-Oct-10 30-Nov-10 31-Dec-10 30-Jan-11 2-Mar-11 1-Apr-11 2-May-11 1-Jun-11 1-Jul-11 1-Aug-11 31-Aug-11 1-Oct-11

644,652.03 644,652.03 644,652.03 644,652.03 644,652.03 644,652.03 644,652.03 644,652.03

336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16
448,304.01 448,304.01 448,304.01 448,304.01 448,304.01 448,304.01 448,304.01 448,304.01
336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16 336,676.16
218,568.20 218,568.20 218,568.20 218,568.20 218,568.20 218,568.20 218,568.20 218,568.20

- - - - - - - - - - -
- 2,104,626.67
- 371,404.71
- 851,469.46
- 378,430.87
- 662,254.03
- - - - 7,394,620.44 - - - - - - -
- 483,082.28
- - - - - 2,285,930.69 - - - - - -
- - - - - 197,767.38 - - - - - -
- - 3,919,854.79 - - - - - 979,963.70
- 5,187,457.67 - - - - - - 1,296,864.42 - -
16,489,412.32 - 13,191,529.86 - - - - - - 3,297,882.46 - -
- 39,273,107.23 - 31,418,485.78 - - - - - - 7,854,621.45 -
- 10,735,483.33 - 8,588,386.66 - - - - - - 2,147,096.67 -
5,042,100.26 - 4,033,680.21 - - - - - - - 1,008,420.05 -
8,391,072.26 2,237,619.27 559,404.82
10,167,410.93 20,334,821.86 8,133,928.74 2,033,482.19
- - - 18,827,196.80 37,654,393.60 15,061,757.44 - - - - - - 3,765,439.36
8,477,120.55 8,477,120.55 - - - - - - -
1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 - - - -
31,258,633.13 56,446,048.22 26,763,250.60 78,642,552.42 77,831,657.99 26,929,384.25 1,250,000.00 1,250,000.00 - 4,594,746.88 12,549,506.68 - 5,798,921.55 - - -

33,243,509.69 58,430,924.78 28,748,127.16 80,627,428.98 79,816,534.55 28,914,260.81 3,234,876.56 3,234,876.56 - 4,594,746.88 12,549,506.68 - 5,798,921.55 - - -
9,973,052.91 17,529,277.43 8,624,438.15 24,188,228.70 23,944,960.36 8,674,278.24 970,462.97 970,462.97 - 1,378,424.06 3,764,852.00 - 1,739,676.46 - - -
23,270,456.78 40,901,647.35 20,123,689.01 56,439,200.29 55,871,574.18 20,239,982.57 2,264,413.59 2,264,413.59 - 3,216,322.82 8,784,654.67 - 4,059,245.08 - - -
176,637,849.54 194,167,126.98 202,791,565.13 226,979,793.82 250,924,754.18 259,599,032.43 260,569,495.40 261,539,958.36 261,539,958.36 262,918,382.43 266,683,234.43 266,683,234.43 268,422,910.89 268,422,910.89 268,422,910.89 268,422,910.89
412,154,982.27 453,056,629.61 473,180,318.63 529,619,518.91 585,491,093.10 605,731,075.66 607,995,489.26 610,259,902.85 610,259,902.85 613,476,225.66 622,260,880.34 622,260,880.34 626,320,125.42 626,320,125.42 626,320,125.42 626,320,125.42
444,603,348.94 492,623,926.32 520,635,444.51 585,410,990.69 650,656,088.25 681,314,290.07 694,487,817.98 707,872,278.69 725,456,754.94 730,001,179.26 729,898,884.03 710,722,480.07 674,722,638.88 634,087,127.91 592,800,966.51 540,565,920.42
6,277,305.00 12,554,610.00 25,109,220.00 37,663,830.00 62,773,050.00 62,773,050.00 62,773,050.00 75,327,660.00 75,327,660.00
12,428,925.00 2,428,925.00 4,857,850.00 7,286,775.00 12,144,625.00 12,144,625.00 12,144,625.00 14,573,550.00 14,573,550.00
- - - - - - - (6,151,620.00) 10,125,685.00 20,251,370.00 30,377,055.00 50,628,425.00 50,628,425.00 50,628,425.00 60,754,110.00 60,754,110.00
- - - - - - - (6,151,620.00) 3,974,065.00 24,225,435.00 54,602,490.00 105,230,915.00 155,859,340.00 206,487,765.00 267,241,875.00 327,995,985.00
- - - - - - - (6,151,620.00) 10,125,685.00 20,251,370.00 30,377,055.00 50,628,425.00 50,628,425.00 50,628,425.00 60,754,110.00 60,754,110.00
444,603,348.94 492,623,926.32 520,635,444.51 585,410,990.69 650,656,088.25 681,314,290.07 694,487,817.98 714,023,898.69 715,331,069.94 709,749,809.26 699,521,829.03 660,094,055.07 624,094,213.88 583,458,702.91 532,046,856.51 479,811,810.42
200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00
222.30% 246.31% 260.32% 292.71% 325.33% 340.66% 347.24% 357.01% 357.67% 354.87% 349.76% 330.05% 312.05% 291.73% 266.02% 239.91%
788,792,831.81 847,223,756.59 875,971,883.75 956,599,312.73 1,036,415,847.28 1,065,330,108.09 1,068,564,984.65 1,071,799,861.21 1,071,799,861.21 1,076,394,608.09 1,088,944,114.77 1,088,944,114.77 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31
56.37% 58.15% 59.44% 61.20% 62.78% 63.95% 64.99% 66.62% 66.74% 65.94% 64.24% 60.62% 57.01% 53.30% 48.60% 43.83%
898,244,145.14 973,534,452.43 1,020,555,105.83 1,120,337,604.17 1,221,182,052.23 1,273,017,002.74 1,300,145,472.93 1,327,783,124.57 1,352,704,638.06 1,382,688,656.92 1,421,190,213.58 1,447,864,909.49 1,480,839,191.38 1,508,633,454.77 1,536,949,396.05 1,565,796,806.74
49.50% 50.60% 51.01% 52.25% 53.28% 53.52% 53.42% 53.78% 52.88% 51.33% 49.22% 45.59% 42.14% 38.67% 34.62% 30.64%
CASH FLOW ANALYSIS FOR PROPOSED HOTEL AT PLOT 6, BLOCK 5 LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA - CONTD.

29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

31-Oct-11 1-Dec-11 31-Dec-11 31-Jan-12 1-Mar-12 31-Mar-12 1-May-12 31-May-12 1-Jul-12 31-Jul-12 31-Aug-12 30-Sep-12 30-Oct-12 30-Nov-12 30-Dec-12

- - - - - - - -

- - - - - - - -
- - - - - - - -
- - - - - - - -
268,422,910.89 268,422,910.89 268,422,910.89 268,422,910.89 268,422,910.89 268,422,910.89 268,422,910.89 268,422,910.89
626,320,125.42 626,320,125.42 626,320,125.42 626,320,125.42 626,320,125.42 626,320,125.42 626,320,125.42 626,320,125.42
487,494,493.69 433,573,294.29 368,500,899.64 302,386,574.41 212,580,439.87 121,336,341.37 16,800,265.89 - - - - - - - -
75,327,660.00 87,882,270.00 87,882,270.00 115,502,412.00 115,502,412.00 129,940,213.50 129,940,213.50 129,940,213.50 129,940,213.50 137,159,114.25 137,159,114.25 137,159,114.25 137,159,114.25 137,159,114.25 137,159,114.25
14,573,550.00 17,002,475.00 17,002,475.00 22,346,110.00 22,346,110.00 25,139,373.75 25,139,373.75 25,139,373.75 25,139,373.75 27,932,637.50 27,932,637.50 27,932,637.50 27,932,637.50 27,932,637.50 27,932,637.50
60,754,110.00 70,879,795.00 70,879,795.00 93,156,302.00 93,156,302.00 104,800,839.75 104,800,839.75 104,800,839.75 104,800,839.75 109,226,476.75 109,226,476.75 109,226,476.75 109,226,476.75 109,226,476.75 109,226,476.75
388,750,095.00 459,629,890.00 530,509,685.00 623,665,987.00 716,822,289.00 821,623,128.75 926,423,968.50 1,031,224,808.25 1,136,025,648.00 1,245,252,124.75 1,354,478,601.50 1,463,705,078.25 1,572,931,555.00 1,682,158,031.75 1,791,384,508.50
60,754,110.00 70,879,795.00 70,879,795.00 93,156,302.00 93,156,302.00 104,800,839.75 16,800,265.89 - - - - - - - -
426,740,383.69 362,693,499.29 297,621,104.64 209,230,272.41 119,424,137.87 16,535,501.62 - - - - - - - - -
200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00
213.37% 181.35% 148.81% 104.62% 59.71% 8.27% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31
38.98% 33.13% 27.19% 19.11% 10.91% 1.51% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1,595,185,662.13 1,625,126,124.74 1,655,628,547.84 1,686,703,478.99 1,718,361,663.77 1,750,614,049.41 1,783,471,788.63 1,816,946,243.47 1,851,048,989.23 1,885,791,818.46 1,921,186,745.06 1,957,246,008.43 1,993,982,077.67 2,031,407,655.93 2,069,535,684.79
26.75% 22.32% 17.98% 12.40% 6.95% 0.94% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
CASH FLOW ANALYSIS FOR PROPOSED HOTEL AT PLOT 6, BLOCK 5 LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA - CONTD.

44 45 46 47 48 49 50 51 52 53 54 55 56 57 58

30-Jan-13 1-Mar-13 1-Apr-13 1-May-13 1-Jun-13 1-Jul-13 31-Jul-13 31-Aug-13 30-Sep-13 31-Oct-13 30-Nov-13 31-Dec-13 30-Jan-14 1-Mar-14 1-Apr-14

- - - - - - - - - - - - - - -
146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 159,522,013.31 159,522,013.31 159,522,013.31
29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 32,486,871.88 32,486,871.88 32,486,871.88
116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 127,035,141.44 127,035,141.44 127,035,141.44
1,907,734,451.13 2,024,084,393.75 2,140,434,336.38 2,256,784,279.00 2,373,134,221.63 2,489,484,164.25 2,605,834,106.88 2,722,184,049.50 2,838,533,992.13 2,954,883,934.75 3,071,233,877.38 3,187,583,820.00 3,314,618,961.44 3,441,654,102.88 3,568,689,244.31
- - - - - - - - - - - - - - -
- - - - - - - - - - - - - - -
200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31 1,094,743,036.31
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2,108,379,348.74 2,147,952,079.71 2,188,267,561.77 2,229,339,735.79 2,271,182,804.34 2,313,811,236.53 2,357,239,773.07 2,401,483,431.33 2,446,557,510.53 2,492,477,597.08 2,539,259,569.91 2,586,919,605.99 2,635,474,185.93 2,684,940,099.64 2,735,334,452.21
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
CASH FLOW ANALYSIS - CONCLUDED

59 60

1-May-14 1-Jun-14 TOTALS CHECK

15,471,648.76 -
8,080,227.86 -
10,759,296.22 -
8,080,227.86 -
2,622,818.36 -
2,014,727.43 -
8,592,350.00 -
- -
- -
10,314,432.51 -
5,386,818.57 -
7,172,864.15 -
5,386,818.57 -
3,497,091.14 -
- -
- -
42,092,533.41 -
7,428,094.13 -
17,029,389.30 -
7,568,617.47 -
13,245,080.57 -
147,892,408.80 -
9,661,645.51 -
45,718,613.83 -
3,955,347.58 -
19,599,273.97 -
25,937,288.35 -
65,957,649.29 -
157,092,428.90 -
42,941,933.31 -
20,168,401.03 -
11,188,096.34 -
40,669,643.71 -
75,308,787.20 -
33,908,482.19 -
20,000,000.00 -
807,363,714.88 -

894,743,036.31 -

Cumulative Total
894,743,036.31
(Check)
- -
159,522,013.31 159,522,013.31
32,486,871.88 32,486,871.88
127,035,141.44 127,035,141.44
3,695,724,385.75 3,822,759,527.19
- -
- -
200,000,000.00 200,000,000.00
0.00% 0.00%
1,094,743,036.31 1,094,743,036.31
0.00% 0.00%
2,786,674,669.74 2,838,978,505.42
0.00% 0.00%
Developer's Cflow (DCF) (201,200,000.00) (5,577,705.00) (4,200,000.00) (4,293,351.85) (1,265,332.09) (16,768,156.36) (970,462.97) (12,764,564.48) (42,349,265.11) (28,107,569.93) (11,693,465.45) (33,564,569.33) (3,910,354.06)
Developer's NPV 1,373,893,201.92
Developer's IRR 90.57%
(9,973,052.91) (17,529,277.43) (8,624,438.15) (24,188,228.70) (23,944,960.36) (8,674,278.24) (970,462.97) (970,462.97) - (1,378,424.06) (3,764,852.00) - (1,739,676.46) - - -
- - - - - - 88,000,573.86 104,800,839.75 104,800,839.75 109,226,476.75 109,226,476.75 109,226,476.75 109,226,476.75 109,226,476.75 109,226,476.75
116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 116,349,942.63 127,035,141.44 127,035,141.44 127,035,141.44
127,035,141.44 2,824,064,721.59
CONSTRUCTION COST SUMMARY FOR PROPOSED HOTEL AT LEKKI SCHEME 1 CENTRAL BUSINESS
DISTRICT, LAGOS, NIGERIA

1 Substructure N
Setting Out
Piling 42,092,533.41
Pile Caps 7,428,094.13
Tie Beams 17,029,389.30
Filling 7,568,617.47
Raft slab 13,245,080.57
2 Frames & Upper floors 147,892,408.80
3 Staircases 9,661,645.51
4 Walls 45,718,613.83
5 Roof frame & Covering 3,955,347.58
6 Doors & Ironmongery 19,599,273.97
7 Windows 25,937,288.35
8 Finishings 65,957,649.29
9 Mech Installations 157,092,428.90
10 Elec Installations 42,941,933.31
11 Fittings & Fixtures 20,168,401.03
12 Painting & Decoration 11,188,096.34
13 External Works 40,669,643.71
14 Furniture/ Outfitting 75,308,787.20
15 Preliminaries 33,908,482.19
16 Contingencies 20,000,000.00

Total Construction Cost 807,363,714.88

 OPERATIONAL REVENUE ANALYSIS FOR PROPOSED HOTEL AT LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA

DAILY RATES

Accommodation Schedule Function rooms and Banquet hall

Rate (N) No. Total (N) Rate (N)/M2 Area (M2) Total (N)
Standard room 46,000.00 26 1,196,000.00 Function room 1 2,300.00 108.2 248,860.00
Single room suite 69,000.00 15 1,035,000.00 Function room 2 2,300.00 70.8 162,840.00
2 bedroom suite 92,000.00 4 368,000.00 Function room 3 2,300.00 74.4 171,120.00
Average room rate 57,755.56 2,599,000.00 Banquet hall 2,300.00 253.5 583,050.00
1,165,870.00

Bar and Restaurant Laundry

Allow for bar 100,000.00 Allow for laundry (included in room package) -
Allow for restaurant 300,000.00
400,000.00

Swimming pool and Gym Business Centre

Total daily (N)
Allow for swimming pool and Gym (Included in room package) - Allow for business centre 20,000.00 4,184,870.00

Details transferred to cash flow

Dates* 30-Jan-11 2-Mar-11 1-Apr-11 2-May-11 1-Jun-11 1-Jul-11 1-Aug-11 31-Aug-11 1-Oct-11 31-Oct-11 1-Dec-11 31-Dec-11
% occupancy 5% 10% 20% 30% 50% 50% 50% 60% 60% 60% 70% 70%
% Rev growth* 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Monthly Rev. 6,277,305.00 12,554,610.00 25,109,220.00 37,663,830.00 62,773,050.00 62,773,050.00 62,773,050.00 75,327,660.00 75,327,660.00 75,327,660.00 87,882,270.00 87,882,270.00
Dates 31-Jan-12 1-Mar-12 31-Mar-12 1-May-12 31-May-12 1-Jul-12 31-Jul-12 31-Aug-12 30-Sep-12 30-Oct-12 30-Nov-12 30-Dec-12
% occupancy 80% 80% 90% 90% 90% 90% 95% 95% 95% 95% 95% 95%
% Rev growth 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
Monthly Rev. 115,502,412.00 115,502,412.00 129,940,213.50 129,940,213.50 129,940,213.50 129,940,213.50 137,159,114.25 137,159,114.25 137,159,114.25 137,159,114.25 137,159,114.25 137,159,114.25
Dates 30-Jan-13 1-Mar-13 1-Apr-13 1-May-13 1-Jun-13 1-Jul-13 31-Jul-13 31-Aug-13 30-Sep-13 31-Oct-13 30-Nov-13 31-Dec-13
% occupancy 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95%
% Rev growth 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5%
Monthly Rev. 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88 146,104,273.88
Dates 30-Jan-14 1-Mar-14 1-Apr-14 1-May-14 1-Jun-14
% occupancy 95.00% 95.00% 95.00% 95.00% 95.00% 1. 30 day months
Assumptions
% Rev growth 33.75% 33.75% 33.75% 33.75% 33.75% 2. Annual unit revenue rate growth rate of 15%
Monthly Rev. 159,522,013.31 159,522,013.31 159,522,013.31 159,522,013.31 159,522,013.31
 OPERATIONAL COST ANALYSIS FOR PROPOSED HOTEL AT LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA

MONTHLY RATES

Salaries Schedule

Rooms Maintenance Front Office/ Security Kitchen (F & B)

General Plumber/ Cleaners/ Front desk Security Total
Personnel House keeper Supervisor Laundry Porters Security Chefs Kitchen Porters
Technician Carpentar Gardeners Officer Supervisor
No. 5 1 2 2 2 10 3 3 6 1 3 2 40
Wage rate 34,500.00 46,000.00 34,500.00 51,750.00 46,000.00 34,500.00 63,250.00 46,000.00 46,000.00 57,500.00 74,750.00 34,500.00
Total wage 172,500.00 46,000.00 69,000.00 103,500.00 92,000.00 345,000.00 189,750.00 138,000.00 276,000.00 57,500.00 224,250.00 69,000.00 1,782,500.00

Bar/ Restaurant (F & B) Gym/ S Pool Admin, Accounts, Banquet and Marketing
Life guard/ Pool Total
Personnel Waiters Barmen F & B Supervisor Drivers Business centre Admin/ Marketing Accounts Night Auditor IT Manager Hotel Manager Secretary
attendant/ Gym
No. 4 2 1 3 10 2 4 2 1 1 1 1 32
Wage rate 46,000.00 46,000.00 80,500.00 57,500.00 57,500.00 40,250.00 86,250.00 69,000.00 57,500.00 92,000.00 138,000.00 51,750.00
Total wage 184,000.00 92,000.00 80,500.00 172,500.00 575,000.00 80,500.00 345,000.00 138,000.00 57,500.00 92,000.00 138,000.00 51,750.00 2,006,750.00

Overall Total Monthly Wage 3,789,250.00

Overall Total Staff Strength 72
Average Monthly Wage 52,628.47

Consumables - Food, drinks, stationery, laundry & body care consumables, etc Maintenance of facility - replacement of bulbs, locks, fittings, fixtures, cleaning, etc

Allow for consumables 5,000,000.00 Allow for maintenance 1,500,000.00

Power - Cost of running and maintaining standby generators Communication - Phone bills, satellite TV, broadband internet access, etc

Allow for power 6,000,000.00 Allow for communication 3,000,000.00

Vehicles/ Equip - Maintenance and monthly amortization in lieu of purchase Marketing - Adverts, brochures, etc

Allow for 6 saloon cars, 4 buses, 25 computers, printers, projectors, etc 1,000,000.00 Allow for adverts 1,000,000.00

Statutory - Including payments to Local Govt, Power authorities, etc Contingencies

Allow for statutory 2,000,000.00 Allow for contingencies 1,000,000.00

Overall Total Monthly Cost Estimate 24,289,250.00

Details transferred to cash flow
Dates 30-Jan-11 2-Mar-11 1-Apr-11 2-May-11 1-Jun-11 1-Jul-11 1-Aug-11 31-Aug-11 1-Oct-11 31-Oct-11 1-Dec-11 31-Dec-11
% utilisation 10.00% 10.00% 20.00% 30.00% 50.00% 50.00% 50.00% 60.00% 60.00% 60.00% 70.00% 70.00%
% cost growth* 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Monthly Cost* 12,428,925.00 2,428,925.00 4,857,850.00 7,286,775.00 12,144,625.00 12,144,625.00 12,144,625.00 14,573,550.00 14,573,550.00 14,573,550.00 17,002,475.00 17,002,475.00
Dates 31-Jan-12 1-Mar-12 31-Mar-12 1-May-12 31-May-12 1-Jul-12 31-Jul-12 31-Aug-12 30-Sep-12 30-Oct-12 30-Nov-12 30-Dec-12
% utilisation 80.00% 80.00% 90.00% 90.00% 90.00% 90.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
% cost growth 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
Monthly Cost 22,346,110.00 22,346,110.00 25,139,373.75 25,139,373.75 25,139,373.75 25,139,373.75 27,932,637.50 27,932,637.50 27,932,637.50 27,932,637.50 27,932,637.50 27,932,637.50
Dates 30-Jan-13 1-Mar-13 1-Apr-13 1-May-13 1-Jun-13 1-Jul-13 31-Jul-13 31-Aug-13 30-Sep-13 31-Oct-13 30-Nov-13 31-Dec-13
% utilisation 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
% cost growth 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5%
Monthly Cost 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25 29,754,331.25
Dates 30-Jan-14 1-Mar-14 1-Apr-14 1-May-14 1-Jun-14
% utilisation 100.00% 100.00% 100.00% 100.00% 100.00% 1. Annual unit cost inflation rate 15.00%
*Assumptions
% cost growth 33.75% 33.75% 33.75% 33.75% 33.75% 2. Allow initial lumpsum provision for cutlery, linen, etc 10,000,000.00
Monthly Cost 32,486,871.88 32,486,871.88 32,486,871.88 32,486,871.88 32,486,871.88
 PROFESSIONAL FEES SCHEDULE FOR PROPOSED HOTEL AT LEKKI SCHEME 1 CENTRAL BUSINESS DISTRICT, LAGOS, NIGERIA

Estimated Total Construction Cost (ETC) = 807,363,714.88 Estimated Total Construction Cost (ETC) = 807,363,714.88

Architectural Service (Architect as Prime Consultant) Project Management Service

Initial 5,000,000.00 @ 4.75% 237,500.00 Initial 5,000,000.00 @ 1.00% 50,000.00
Next 10,000,000.00 @ 4.50% 450,000.00
Next 15,000,000.00 @ 4.25% 637,500.00 Next 10,000,000.00 @ 0.90% 90,000.00
Next 45,000,000.00 @ 4.00% 1,800,000.00
Next 75,000,000.00 @ 3.50% 2,625,000.00 Next 15,000,000.00 @ 0.80% 120,000.00
Next 150,000,000.00 @ 3.00% 4,500,000.00
Next 200,000,000.00 @ 2.50% 5,000,000.00 Next 45,000,000.00 @ 0.70% 315,000.00
Next 307,363,714.88 @ 1.75% 5,378,865.01
Total 807,363,714.88 @ 2.56% 20,628,865.01 Next 75,000,000.00 @ 0.60% 450,000.00
Stage 1 only 5,157,216.25
Stages 1 & 2 15,471,648.76 Stage 2 only 10,314,432.51 Next 150,000,000.00 @ 0.50% 750,000.00
Stage 3 (1 monthly site visit) 5,157,216.25
Structural Engineering Service Next 200,000,000.00 @ 0.40% 800,000.00
Initial 5,000,000.00 @ 3.00% 150,000.00
Next 10,000,000.00 @ 2.50% 250,000.00 Next 307,363,714.88 @ 0.30% 922,091.14
Next 15,000,000.00 @ 2.25% 337,500.00
Next 45,000,000.00 @ 2.00% 900,000.00 Total 807,363,714.88 @ 0.43% 3,497,091.14
Next 75,000,000.00 @ 1.75% 1,312,500.00
Next 150,000,000.00 @ 1.50% 2,250,000.00 Stage 1 only 874,272.79
Next 200,000,000.00 @ 1.25% 2,500,000.00
Next 307,363,714.88 @ 1.00% 3,073,637.15 Stages 1 & 2 2,622,818.36 Stage 2 only 1,748,545.57
Total 807,363,714.88 @ 1.33% 10,773,637.15
Stage 1 only 2,693,409.29 Stage 3 (1 monthly site visit) 874,272.79
Stages 1 & 2 8,080,227.86 Stage 2 only 5,386,818.57
Stage 3 (1 monthly site visit) 2,693,409.29
Quantity Surveying Service Project Title: Proposed Hotel at Plot 6 Block 5 CBD, lekki
Initial 5,000,000.00 @ 3.00% 150,000.00 Estimated Total Construction Cost (ETC) = 1,007,363,714.88
Next 10,000,000.00 @ 2.50% 250,000.00
Next 15,000,000.00 @ 2.25% 337,500.00 Cash Flow/ Feasibility Analysis
Next 45,000,000.00 @ 2.00% 900,000.00
Next 75,000,000.00 @ 1.75% 1,312,500.00 Fees 1,007,363,714.88 @ 0.20% 2,014,727.43
Next 150,000,000.00 @ 1.50% 2,250,000.00
Next 200,000,000.00 @ 1.25% 2,500,000.00
Next 307,363,714.88 @ 1.00% 3,073,637.15 Notes
Total 807,363,714.88 @ 1.33% 10,773,637.15 1. Stages 1 and 2 fees are for pre-contract consultancy work.
Stage 1 only 2,693,409.29 2. Stage 3 fees are for post-contract supervision.
Stages 1 & 2 8,080,227.86 Stage 2 only 5,386,818.57 3. Stage 3 fees are multiplied by two (for two monthly
Stage 3 (1 monthly site visit) 2,693,409.29 site visits) in the cases of the architect, structural engineer, quantity surveyor and mech-
elec engineers. 4. Stage 3 fees for the project manager are
Mechanical Engineering Service
multiplied by four for four monthly site visits.
Initial 5,000,000.00 @ 1.95% 97,500.00
Next 10,000,000.00 @ 1.75% 175,000.00
Next 15,000,000.00 @ 1.55% 232,500.00
Next 45,000,000.00 @ 1.35% 607,500.00
Next 75,000,000.00 @ 1.15% 862,500.00
Next 150,000,000.00 @ 1.00% 1,500,000.00
Next 200,000,000.00 @ 0.85% 1,700,000.00
Next 307,363,714.88 @ 0.65% 1,997,864.15
Total 807,363,714.88 @ 0.89% 7,172,864.15
Stage 1 only 1,793,216.04
Stages 1 & 2 5,379,648.11 Stage 2 only 3,586,432.07
Stage 3 (1 monthly site visit) 1,793,216.04
Electrical Engineering Service
Initial 5,000,000.00 @ 1.95% 97,500.00
Next 10,000,000.00 @ 1.75% 175,000.00
Next 15,000,000.00 @ 1.55% 232,500.00
Next 45,000,000.00 @ 1.35% 607,500.00
Next 75,000,000.00 @ 1.15% 862,500.00
Next 150,000,000.00 @ 1.00% 1,500,000.00
Next 200,000,000.00 @ 0.85% 1,700,000.00
Next 307,363,714.88 @ 0.65% 1,997,864.15
Total 807,363,714.88 @ 0.89% 7,172,864.15
Stage 1 only 1,793,216.04
Stages 1 & 2 5,379,648.11 Stage 2 only 3,586,432.07
Stage 3 (1 monthly site visit) 1,793,216.04
1 & 2 Total 42,391,400.70 Overall Total @ 7% 56,521,867.60
 Proposed Hotel at Lekki CBD, Lagos, Nigeria - Loan-to-Value Ratios
400.00%

350.00%

300.00%
Ratios

250.00%
LTV Ratio-
200.00% Base

150.00%

100.00%

50.00%

0.00%
22-Feb-08 6-Jul-09 18-Nov-10 1-Apr-12 14-Aug-13 27-Dec-14
Dates
 Proposed Hotel at Lekki CBD, Lagos, Nigeria - Cash Flow Profiles
3,350,000,000.00

2,850,000,000.00
Value (N)

2,350,000,000.00

Monthly Draws
1,850,000,000.00 From Developer
From Bank
Operational
1,350,000,000.00 Income
Payments

850,000,000.00

350,000,000.00

(150,000,000.00)
18-Dec-08 2-May-10 14-Sep-11 26-Jan-13 10-Jun-14 23-Oct-15
Dates
 Proposed Hotel at Lekki CBD, Lagos, Nigeria - Sensitivity Analysis - Average
Room Rates vs NPV
0.00%
1 2 3 4 5 6 7 8 9

-20.00%
% change

-40.00%

-60.00%

-80.00%

-100.00%

-120.00%
 Proposed Hotel at Lekki CBD, Lagos, Nigeria - Sensitivity Analysis - Capital
Growth vs NPV
0.00%
1 2 3 4 5 6 7 8 9

-100.00%
% change

-200.00%

-300.00%

-400.00%

-500.00%

-600.00%
 Proposed Hotel at Lekki CBD, Lagos, Nigeria - Sensitivity Analysis - Interest
Rate vs NPV
400.00%

300.00%
% change

200.00%

100.00%

0.00%
1 2 3 4 5 6 7 8 9

-100.00%

-200.00%
 Proposed Hotel at Lekki CBD, Lagos, Nigeria - Sensitivity Analysis - Mean
Monthly Wage vs NPV
160.00%

140.00%
% change

120.00%

100.00%

80.00%

60.00%

40.00%

20.00%

0.00%
1 2 3 4 5 6 7 8 9
-20.00%
 Proposed Hotel at Lekki CBD, Lagos, Nigeria - Sensitivity Analysis - Power
Generation Costs vs NPV
450.00%

400.00%

350.00%
% change

300.00%

250.00%

200.00%

150.00%

100.00%

50.00%

0.00%
1 2 3 4 5 6 7 8 9
-50.00%