Executive Summary The purpose of this Executive Summary is to raise approximately AUD$877,500 Partner Capital and then $2.13M Funding Debt for the development of a small residential development (9 x 3 bedroom Townhouses) in the booming city of Toowoomba, Queensland Australia. 1.1 Products and Services It is intended to develop nine (9) quality high ranged townhouses in the booming city of Toowoomba, Queensland Australia. Located just over one hour drive from Brisbane, Toowoomba is Australia’s largest inland city. Toowoomba offers affordable housing, a diversified economy and an emerging industrial and commercial precinct supporting the greater Darling Downs region. Strong commitment by the local government to provide significant infrastructure projects is stimulating a much greater demand for residential space, where at the moment demand is already greater than supply. The region is anticipated to be the next hot spot -‐‑ booming and blooming over the next three years as it is well situated to benefit from the emerging resources boom in the nearby Surat Basin. This development has a location oh so close to Woolworths, Aldi, Coles, Kmart and Harvey Norman. A 5 minute walk to Middle Ridge Park and a bus past the front door. Three schools in less than half a kilometer. This is location with a capital ‘L’ and Position with a capital ‘P’! Whilst there is no DA in place current zoning allows for nine x three (3) bedroom units to be developed on this site (with TRC approval – ‘Code Assessable’). Basically flat land with gentle slope allowing storm water to gravity feed to the roadside. Sewerage is on the front boundary, so no re-‐‑ aligning and/or building over issues – this allows for full use of land after
500 for each townhouse Invest in bricks and mortar whilst benefiting from SEQ’s boom: Own your own townhouse at a 19. The existing dwelling (4 Bedroom. Allotment perfectly pre-‐‑portioned to allow developer to design living areas/courtyards to make the most of a northern aspect – we have a site layout example that suit this site.739 cash Receive the benefit of any capital growth between investment and completion $97. 28metre frontage means there is sufficient room to have two homes face the street and allow double driveway into the complex.8% return on equity investment based on the prospective $78.7% discount to market estimates The 19.739 discount to market value based on the price to acquire the completed townhouse) Immediate upfront saving with potential superior capital growth Forecast high growth area with potential for significant capital growth Positive cash flow anticipated day 1 – post completion Brand new – benefit from potential tax savings and depreciation
.7% discount equates to approx $78. The minimum investment amount is $97. 1 Bathroom) on the site is currently leased until December 2011 at $330/week.500 investment upfront (a 80. giving a holding income while plans are prepared and proceed through Council.
abiding by required setbacks. This positions this development site and these townhouses as investment properties where astute investors should be able to get solid capital growth with positive cash-‐‑ flow as well.
000.500 Partner Capital to purchase the land. They bring a powerful combination of property investment experience. The saving is approximately 23. Proposed Company Name: Malyshka Hume Pty Ltd Entity 1 will be Malyshka Proprietory Limited ACN 153 191 710 as Trustee for the GAJA Family Trust.500 entitles each investor 1 Share representing a specific Townhouse. $97. This amount is equal to 65% GRV (ex GST). with completed projects in excess of $500 million. We will then seek $2.7% discount) for the townhouses range from approximately $320. The offer to investors represents a discount of 19. pay out finance fees and clear the block ready for development. Entities 2-‐‑9 (or part thereof) will be investors. Sole Director & Majority Shareholder is Grant R Muddle. Mainz.13M Bank Debt to build and complete this project.
1. resulting in an average “manufactured” upfront equity of $78. complete the DA and BA works.7% when compared to an ordinary “retail” purchase.000 to $325. A new company will be incorporated for this project and owned by each of the investing entities. but have equal share rights. 1. The Net Cost (after the application of the 19.2 The Financing We are seeking to raise $877.3 Developers and Ownership Structure The Development will be managed by experienced property investment and development professionals – Malyshka Property and its strategic partner.7% to market estimates. incorporated 13 September 2011.739 (based on current valuations). Grant Muddle is the Developer and Project
. project management and building expertise.
and Source and Recommend Property Management companies for those investors wishing to hold the investment as a rental Property. Mainz Developments now concentrates on building various projects in South East Queensland such as duplexes and multi-‐‑ townhouse developments.au It is to be a fixed contract. Corporate governance and compliance obligations. He has a Bachelor of Business (Accounting & Law) from the Northern Territory University and an MBA (Strategic Management) from Charles Sturt University– both Universities are in Australia. Gold Coast Australia (www. He started his career as an apprentice carpenter and completed a Diploma in Building in the United States of America. Grant is finishing his latest property venture a 5 x 4 bedroom townhouse project in Eugaree St. 1.
Manager of this project. Grant Muddle has in excess of 15 years senior management and board experience. Manage the corporate. the roles and responsibilities of the developer are as follows: Oversee and manage the Development. Appoint necessary consultants and sales agents (as necessary). www.mainz. financial and reporting requirements. Financial analysis and modelling. Investor liaison and reporting.com) In summary. Oversee the construction of the Development.4 Builder & Project Manager Builder selected is Mainz.com. BSA License # 1083064
. Project Management and oversee engagement of other consultants.eugareestreet. Mainz was started by Craig Maindonald who has more than 30 years experience within the building industry.
000.00 100.4% 0.261. Toowoomba QLD Gross Acquisition Independent Evaluation Estimated Market Value at Today'ʹs Price (Nov 2011) Estimated Total Cost for Ordinary "ʺRetail"ʺ Buyer COMPARISON TO ORDINARY PURCHASE Estimate "ʺRetail"ʺ Price Stamp Duty Estimated Legals Total Cost INVESTMENT RETURNS SUMMARY Cash Equity Invested Manufactured Equity Return on Investment COMPARISON TO ORDINARY PURCHASE Estimated "ʺRetail"ʺ Price Stamp Duty Estimated Legals Total Costs Cash Equity Investment Implied Loan Property Purchase Price Each Townhouse COMMENTS 19.33 $97.00 $105.11 N/A $400.8%
$3.5 High Level P&L Forecast
$420.600.00 $105.200.8% $420.800.738.00
4.000.8% Total cost saving versus "ʺretail"ʺ purchase
$321.800.00 $420.00 76.800.500.600.00 $400.7% Discount to Estimate Market Value Estimate based on discussions with local agents and Actual Sales Comparisons 23.00 $3.000.233.33 $97.
1.500.00 $17.8% $400.00 $78.89 80.4% 0.00
$420.2% $323.233.00 23.0%
.800.00 $17.300.07 Discount to Ordinary "ʺRetail"ʺ Buyer 4.200.
89 $16.68 Estimate by local Agent Based on Estimate Market Value Based on Malyshka Exclusive Offer Approx Current Market Rate 25 Year (P&I) Principal and Interest loan 25 Year (IO) Interest Only (weekly) Cash flow positive/Neutral day 1 Cash flow positive/Neutral day 1 $78.933.602.00 $12.738.5% 6.00
0.8% LVR of Loan to Estimated Market 59.20 76.32 $1.11 -‐‑ $2.500.09 $318.570.083.840.756.23 $317.329.11 $5.000.00 5.831.20 $97.7% $420.73 $238.73 $323.8%
.7% 6.9% $386.89 $321.7% Value 59.510.51 $20.00 $21.091.261.
Malyshka Exclusive Offer Purchase price (Average) Less Manufactured Equity Net Purchase Price Stamp Duty Estimated Legals Total Cost Cash Equity Investment Less Malyshka Project Fee/Townhouse Implied Loan Amount Property Purchase Price LVR Comparison Chart Data Ordinary "ʺRetail"ʺ Purchase Exclusive Malyshka Offer (on Independent) Exclusive Malyshka Offer (Estimated Market Value) Rental Yield Comparisons Calculations Estimated Weekly Rental (Gross) Implied Annual Rental Yield on "ʺRetail"ʺ Purchase Yield on Cost (Malyshka Exclusive Offer) Estimated Current Mortgage Rate Implied Weekly Interest Cost Implied Weekly Interest Cost Implied Annual Interest Cost (P&I) Implied Annual Interest Cost (IO) Implied Positive Cash Flow on Gross Rental (P&I) Implied Positive Cash Flow on Gross Rental (IO)
By aligning with an aggressive and well reputed Sales Agents.domain. a small number ‘off-‐‑the-‐‑plan’ sales will be heavily marketed and successful.52 $22.175.510.829.091.083.au.32
At Current Mortgage IO over 25 years on "ʺOrdinary Purchase Implied Loan"ʺ At Current Mortgage IO over 25 years on "ʺMalyshka Exclusive Offer Implied Loan"ʺ
1.03 $16. www.41
At Current Mortgage P&I over 25 years on "ʺOrdinary Purchase Implied Loan"ʺ At Current Mortgage P&I over 25 years on "ʺMalyshka Exclusive Offer Implied Loan"ʺ
Estimated Annual Interest of Malyshka Exclusive Offer Implied Interest Saving per annum Estimate Annual Interest on "ʺRetail"ʺ Purchase Estimated Annual Interest of Malyshka Exclusive Offer Implied Interest Saving per annum
Interest Saving Comparison Estimate Annual Interest on "ʺRetail"ʺ Purchase
$27.au ).realestate.com as well as utilizing the real estate sites in Australia (inter alia www.6 Exit Strategy It is envisaged that the prestige of this location and product.71
.com.com. We will develop websites similar to www.eugareestreet.340.89
$7. we will be also proactively marketing the investment properties via databases of pre-‐‑vetted and pre-‐‑approved investors.