présentation otc- invest
TRANSCRIPT
ODESA TRANSACTIONS & SERVICES
V2 - O.T.C. - Pierre-François BEUCHARD 02/2012
Plan
1)Due Diligence
2)Investment strategyShort term delivery
Mid term delivery
Long term delivery
3)Process
Due diligence
a) Project• Bizplan• Financial tables
b) O.T.C. documents• Statutes• Memo of the lawyer according to OTC
partnership contract• Office’s lease• Legal documents
c) Management• Work Permit• Residence Card• Propiska• Resume
d) Accounting & Bank• Tax administration reports• Bank’s address (Head manager of bank
agency)• OTC bank account contract
e) Specifications• To prospect• To make works & repairs
All those documents are at your disposal and it includes our partnership contract with foreign entities or individuals living outside Ukraine.
STATEMENT
Variable Geometry Strategy for a safe and profitable investment with a positive environment • Odessa : positive image thru the World• OTC specifications to observe : reach your aims and optimize IRR • Politics : a strategy which takes into account political changes• Take benefit from Tourism : increase year by year
INVESTMENT STRATEGY
Short term delivery: Deribasovkaya's opportunities or similar(available 2/3 months after acquisition)
Mid term delivery: Apartment’s acquisitions with renovation“.... from soviet's or out-fashion style to modern apartment.”(available in a half to one year after acquisition)
Long term delivery: Hostel's acquisitions (available in nearly one and half year after acquisition)
investment strategy
investment strategy
First step in Odesa
• 2/3 months from purchasing to delivery
• On this prestigious avenue, some good real estate opportunities exist according to the crash in the real estate market in Ukraine last Quarter 2008.
• Several (foreign) investors are stuck and today they need cash money. Others bought real estate and would like to sell some of them today.
• Deleveraging prompted real estate owners to sell some real estate already renovated for which just finishing works need to be done.
• Buying opportunities at attractive prices=> Real estate readily available=> Fast renovation (finishing works).
SHORT TERM DELIVERY Deribasovkaya's opportunities or similar
DERIBASOVKAYA short term investment project
investment strategy
Action Plan:
• From 1 to 3 apartments to purchase
• Negotiate prices
• From purchasing to end of works: 2/3 months
• Furnished Rental income per day: 150 / 200 $ high (& peak) season100 /150 $ low season
DERIBASOVKAYA short term investment project
investment strategy
Full step in Odesa
• Apartment’s acquisitions with renovation from soviet's or out-fashion style to modern's apartments.
• Prospect real estate to buy• Check ownership & occupancy• Check technical viability of the project• Negotiate price • Authorizations to start works & repairs• Supervising & monitoring works• Manage real estate assets.
• Acquisition to delivery – average estimate time: 6 to 10 months
MID TERM DELIVERY Apartment’s acquisitions with renovation
targets
• GAVANAYA'S LOCATION, Example of a large apartment (1,000 m²) in Gavanaya street
• VORONTSOVSKI PER'S LOCATION, Example of a standard apartment (190 m²) in Sovonaya street
investment strategy
GAVANAYA'S LOCATION Mid term investment projectExample of a large apartment (1 000 m²) in Gavanaya street
specifications
• Surface 1,000 m²
• Negotiated Price Package 900 /1,200 k$
Works & Repairs main costs: Heavy Works 200 / 250 US$ per m² Finishing Works 180 / 300 US$ per m²
1 - Apart2 - City garden3 – main street4 – Opera5 – Cathedral6 – Shopping Center7 – Shopping Center
investment strategy
investment strategy
GAVANAYA'S LOCATION Mid term investment projectExample of a large apartment (1,000 m²) in Gavanaya street
Gavanaya's top floor plan from our pre-study
GAVANAYA'S LOCATION Mid term investment projectExample of a large apartment (1 000 m²) in Gavanaya street
Gavanaya's inside Design example
investment strategy
GAVANAYA'S LOCATION Mid term investment projectExample of a large apartment (1,000 m²) in Gavanaya street
Gavanaya's attic plan
investment strategy
GAVANAYA'S LOCATION Mid term investment projectExample of a large apartment (1 000 m²) in Gavanaya street
Gavanaya's inside Design example
investment strategy
MID TERM DELIVERY large apartment (1 000 m²) in Gavanaya street
investment strategy
Project summary:
Acquisition / Surface bought: - Surface bought : 2 apartments of 250 m² each and 1 attic : 500 m²
- Negotiated Price for all: 800 / 900 k$
Works & Repairs (main costs):• Heavy Works 200 / 250 US$ per m²• Finishing Works 180 / 300 US$ per m²
Furnished rental Income per day:- 150 / 200 US$ high (& peak) season- 100 / 150 $ low season
Delivery • from purchasing to end of works: 7 / 9 months • Creation of 7 apartments from 1 bedroom apartment to 3 bedrooms apartments
investment strategy
VORONTSOVSKI PER'S LOCATION Mid term investment projectExample of a standard apartment (190 m²) in Sovonaya street
specifications
• Surface 190 m²
• Negotiated Price Package 120 /140 k$
• Works & Repairs main costs:Heavy Works 200 / 250 US$ per m²Finishing Works 180 / 300 US$ per m²
Action Plan:
• Prospection already started, a few apartments already targeted and preselected.
• Technical and architectural pre-studies done for some of them.
• Depending on starting investments we plan to quickly buy 2/3 large top floors apartments with attics.
- purchase, cutting, transformation & remodelling, renovation, rental -
That's what we do!
MID TERM DELIVERY Apartment’s acquisitions with renovation
investment strategy
Rooms with view in Odesa
• available in nearly one and half year after acquisition
• Financial Objective: maximize gain with tourism while diversifying real estate portfolio by adding furnished rental units & apart-hotels.
• Take advantage of tourism increase (10/15% per year)
LONG TERM DELIVERY Hostel's acquisitions
targets
• ODESSA EXECUTIVE SUITES, a downtown hotel (2,500 m²) in Deribasovkaya street in order to build extensions.
• LANGERONSKAYA'S APART-HOTEL, top floor apartments with attic of 550 m² in Langeronskaya street transformed into 20 rooms of apart-hotel with of total surface of 1,000 m².
investment strategy
ODESSA EXECUTIVE SUITES Long term investment projecta downtown hotel (1,500 m²) in Deribasovkaya street
specifications
• Hotel http://www.odessaexecutivesuites.com/
Actually1,500 m² with 23 aparts480 k$ turnover per year100 k$ Expenses per year
In the same block, original hotel can beextended by adjunction with 2 adjacentexisting buildings.
Extension planed 1 :2,000 m² with 50 new aparts
Extension planed 2 :3,000 m² with about 60 to 70 new aparts
investment strategy
ODESSA EXECUTIVE SUITES Long term investmenta downtown hotel (1,500 m²) in Deribasovkaya street
Deribasovskaya's Extensions
investment strategy
ODESSA EXECUTIVE SUITES Long term investmenta downtown hotel (1,500 m²) in Deribasovkaya street
Deribasovskaya's Extension 1 cross section plan from our pre-study
investment strategy
ODESSA EXECUTIVE SUITES Long term investmenta downtown hotel (1,500 m²) in Deribasovkaya street
Deribasovskaya's Extension 2 (view of the hotel) from our pre-study
investment strategy
Extension 2
Extension 1
ODESSA EXECUTIVE SUITES Long term investmenta downtown hotel (1,500 m²) in Deribasovkaya street
Deribasovskaya's Extension 2 - 2nd& 3rd and 4th& 5th floor project
2nd& 3rd
4th& 5th
investment strategy
LONG TERM DELIVERY ODESSA EXECUTIVE SUITES
investment strategy
Project summary:
Acquisition / Surface bought: - Original Hotel: 1,500 m²- extension 1: 2,000 m²- extension 2: 3,000 m²
• Negotiated Price for all: 220 / 240 k$
Works & Repairs (main costs):• Heavy Works 600 / 800 US$ per m²• Finishing Works 200 / 400 US$ per m²
Delivery • 10 months per extension.• Creation of an apart-hotel of 130 / 140 apartments rooms).
LANGERONSKAYA'S APART-HOTEL Long term investment projectAparts and attic transformed into 20 rooms/apart-hotel in Langeronskaya street
investment strategy
specifications
• Surface 545 m²
Attic : 300 m² - 8 meters high→ With possibility to create 2 levels
Negotiated Price Package 240 / 280 k$
Works & Repairs main costs: Heavy Works 350 / 500 US$ per m² Finishing Works 180 / 300 US$ per m²
LANGERONSKAYA'S APART-HOTEL long term investment projectAparts and attic transformed into 20 rooms/apart-hotel in Langeronskaya street
Langeronskaya's apart-hotel project location
investment strategy
Project summary:
Acquisition • Surface bought: 2 apartments 235 m² and 1 attic: 300 m²• Negotiated Price for all: 220 / 240 k$
Works & Repairs (main costs):• Heavy Works 300 / 450 US$ per m²• Finishing Works 180 / 300 US$ per m²
Delivery • 2 levels done in the attic's volume (2 X 300 m²) extended the total surface to 1,000 m².• Creation of an apart-hotel of 15 / 20 apartments.
Future extension: on the same floor one more apartment of 80 m² could be purchased.
LONG TERM DELIVERY LANGERONSKAYA'S APART-HOTEL
investment strategy
Action Plan:
• Contact and negotiation started with hotel's owner
• Technical and architectural pre-studies done.
• => Get 65% of hotel's owner company shares
• => Take immediate advantage of original hotel's turnover while building extension
1 and preparing extension 2 elevation.
• Depending on starting investments we plan to quickly invest in hote(ls) and buy 1/2 large top floors apartments with attics to transform in mini apart-hotels to take benefit of the insufficient number of hotels rooms in Odesa.
LONG TERM DELIVERY Hostel's acquisitions
investment strategy
Process
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