F0UR 0N 0 |4 Oliver Road, Sea Point

Investment Opportunity

3Blok Raw

Table ofContents|

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05 An Introduction to F0UR 0N 0

06 The Team

07 Development Concept

08 Look & Feel

10 Investment Opportunity

14 Investment Process

20 Building Elevation

22 Site Plan

24 Floor Plans

34 The Neighbourhood

36 Contact Details

5

An Introductionto F0UR 0N 0|

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F0UR 0N 0

In our ongoing exploration of new forms of compact urban living, Blok Raw emerges not only as an evolution of our design principles, but as a response to an increasingly dense city.

Blok Raw ushers in a fresh design aesthetic whilst carrying Blok’s strong principles of thoughtful design, third and shared spaces, a passion for neighbourhoods and urbanism. The considered use and expression of materials is a hallmark of our approach. Blok Raw developments emerge as a harmonious response to the cultural and historical fabric of each locale. Celebrating urban apartment living as a collective experience, we design with human connection in mind.

This six storey building will consist of: - 33 apartments with a mix of studios, one, two and three-bedroom apartments - Studios are approximately 38m² - One beds are approximately 47m² - Two beds are approximately 67m² - Two bed duplexes are approximately 75m² - Three beds are approximately 100m² - Secure parking is to be purchased separately

F0UR 0N 0, Blok’s 12th development, is situated on the localised streets of Oliver and Lincoln that connect the urban life so intrisically a part of Sea Point to the natural wonder of the ocean. This connection,betweenhumanandnature,issomethingpowerfulthatdefinesandsoftensourentireurban way of living and makes Cape Town so unique.

Key development features: - Excellent location - Communal roof deck with plunge pool - Nestled on a quiet street - Communal braai area -ClosetomultipleMyCitibusroutes -High-speeffibreconnectivity -BlokRawaesthetic -Energy-efficient&water-wisefittings - Private parking available for purchase - Generator for common property

4

Façade concept

S K E T C H | N O V 2 0 1 9 |

7Blok Raw

DevelopmentConcept|

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City livingaroundtheworld isevolving inresponsetoanumberof influences, inparticulartheneedtodesigncomfortablelivingconditionsandmakeefficientuseofthespaceavailable.CapeTownisexperiencingthismovementtowardsefficientspaceuse, justasotherglobalcitiesmovetoward compact living. F0UR 0N 0 responds with an innovative architectural design to maximise the use of spaces. The design of each apartment responds to a change in lifestyle amongst fast-paced residents, who seek an uncluttered aesthetic with the ability to alleviate time pressure. With compact living, more shared spaces are becoming the norm. The result is a private seclusion of space for residents.

Located in sought-after Sea Point, the development is cornered by Lincoln and Oliver Roads. Centrally located, Beach Road is 200m away with a number of well-appointed restaurants and shops within easy walking distance. The spatial development of the 33 apartments deliver on maximum interior space. Each urban home has been tailored to maximise the experience based on the allocated area.

The overall volume and elevations of the building have been articulated using a vertical geometric aesthetic along Lincoln and Oliver Roads, in a language punctuated by materials. Two interpretations of this language emerge across each elevation as the brickwork and fenestration dissipate from a dense motif to a lighter interpretation. The surface treatment of the elevations varies between the smoothness of the fenestration and an attractive almost braille-like expression of protruding bagged brickwork. This results in a vibrant pattern-making, which stimulates the street elevations.

The development has two parking basements with parking for cars, motorbikes and bicycles, withagroundandfourfloorsabove.Itistoppedwithtwofloorsofduplexapartmentswhichhaveaspacious, light and airy outlook towards the ocean.

The interiors are characterised by a raw honesty of material expression. Exposed concrete soffitscombinedwithmutedcoloursandtheuseofpatternedsurfaces,resultsinlivingspacesthatare calming and with a sensation of space. The apartments are also designed to make an apt double useofspecificitems,likeasliderthatclosesoffthecupboardsbutalsoactsasaspaceseparatorifrequired.Thepressureremainsonthedesignandprojectteamstomakeeffectivedoubleuseofspace for brilliant homes in compact spaces.

Paragon Architects

6

TheTeam||

ProjectDeveloper: ProjectManager:Blok Blok

Architect: QuantitySurveyor:Paragon Multi QS

StructuralEngineer: ElectricalEngineer:Sutherland Sutherland

TownPlanner: LandSurveyor:D&S Planning Studio David Hellig & Abrahamse

FireEngineer: MechanicalVentilationEngineer:Sutherland Ekcon

TrafficEngineer: ConveyancingAttorney:Kantey & Templa STBB

9F0UR 0N 0

Exterior Inspiration

8

Look&Feel||

Interior Inspiration

11F0UR 0N 0

In designing thoughtful, compact homes, Blok has delivered a product that has nominal impact on the return value of the space. F0UR 0N 0 homes are roughly 10% smaller in size, reducing the cost of each apartment, but combined with thoughtful design, this decrease has nominal impact on living experience, as well as net income. For short stay apartment rentals, apartment size has a marginally significantimpactonnetincome.Bydesigningacompacthome,Blokhasbroughtdowntheoverallpurchaseprice,whichintandemwiththeRawfinish,wherebuildingcostsarereduced,makingtheyield and investment more attractive.

Cape Town is a rapidly growing investment location and the Atlantic Seaboard is one of the most desirable lifestyle destinations in the world. This targeted-location investment approach leverages in-demand locations that typically retain their value throughout the property cycle and in times of uncertainty. For local homeowners, travellers, and tourists abroad, these areas are viewed as highly attractive, which in turn, translates into higher occupancy and average daily rates per room as well as buoyancy in a tough market.

STATS FOR A STUDIO IN SEA POINT

88%Average Occupancy 2018

R229 497Total Rental Revenue

R1 117Peak ADR (Jan)

R25 959Peak Revenue PM (Jan)

R788,08Annualised ADR

R19 125Annualised Monthly Revenue

*AlldataissourcedfromAirDnA&reflectsfiguresforthe75thpercentile

F0UR 0N 0 STUDIO

10

InvestmentOpportunity||

F0UR 0N 0 is an exciting new development that brings the market to levels of global trends, featuring raw design, as seen in markets such as Sao Paulo and Tel Aviv, combining natural elements to create thoughtful design, rooted in powerful simplicity; bringing together concept, design, culture and living with the ethos of less, but better.

F0RTY 0NL:Blok Raw development

Compact Apartment in Sao Paulo

With the promotion of urbanisation and density, building cities for a small planet requires innovation. Blok is challengeing the limitations of space with modern design solutions, ensuring that every square metre adds value. F0UR 0N 0 is the epitome of smart design planning, creating a robust urban home that has evolved in an increasingly dense city.

Compact Apartment in Lebanon

13Blok Raw

Based on lump sum pricing, apartments under the R3 000 000 mark represent the most liquid real estate in South Africa. With this in mind, F0UR 0N 0 has been designed to ensure that value meets investor demand. Future developments promise growth, and Cape Town is currently bursting with opportunity. The announcement of a R7,5 billion capital investment in the expansion of Cape TownInternationalAirportoverthenextfiveyearsisaclearindicatorofaninfluxofinvestmentinCapeTown.Additionally,UnitedAirlineshasrecentlylaunchedtheairline’sfirst-everdirectfl ightsbetween New York and Cape Town and this has already led to an 11% increase in forward bookings by US tourists to the Mother City for the upcoming summer season. The scrapping of the unabridged birthcertificatefortravellingminors,aswellastherecoveryfromthedrought,hasfurtherresultedinincreased forward bookings to Cape Town, not only from the US, but also up 30% from the UK and up 20% from Germany.

4 096 251

1 125 705

106 5110

1 000 000

2 000 000

3 000 000

4 000 000

Domestic Arrivals International Arrivals Regional Arrivals

Cape Town Airport Arrivals July '17 - June '18

*Data is sourced from Airports Company South Africa (ACSA)

There has been no better time to invest in Cape Town. Whether as local homeowners or to rent out to travellers and tourists, the possibilities are endless. F0UR 0N 0 gives investors the ideal opportunity to share in the growth that the city offers.

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Cape Town is well positioned to retain its appeal as it is consistently ranked as one of the world’s favourite travel and food destinations in global opinion polls. Between 2018 and 2019, there has been a 2% increase in occupancy rates, indicating that the market is recovering after the water crisis. Furthermore, the Western Cape held 19,3% of the bed nights recorded in South Africa, and currently, the buy-to-let sector of the property market only accounts for 10,6% of total sales.

F0UR 0N 0 is perfectly located in the heart of Sea Point as an investment opportunity for short stay home rentals. From 1 June 2017 through 31 May 2018, host and guest activity on Airbnb generated an estimated R8,7 billion in South Africa. In 2018, Airbnb reported a 65% year-on-year growth in South Africa.

0

10

20

30

40

50

60

70

80

90

100

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Average Occupancy in Sea Point

Studio One Bed Two Bed

R 0,00

R 500,00

R1 000,00

R1 500,00

R2 000,00

R2 500,00

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Average Daily Rate in Sea Point

Studio 1-bedroom 2-bedroom

*AlldataissourcedfromAirDnA&reflectsfiguresforanaverageacrossallpercentiles

15F0UR 0N 0

ApartmentInformation

Studio One Bedroom Two Bedroom

Regular F0UR 0N 0 Regular F0UR 0N 0 Regular F0UR 0N 0

UnitValue 1 995 000 1 995 000 2 450 000 2 450 000 3 500 000 3 500 000

InvestorBenefit - (249 375) - (306 250) - (437 500)Total Unit Cost 1 995 000 1 745 625 2 450 000 2 143 750 3 500 000 3 062 500Return on Investment - 50,00% - 50,00% - 50,00%IRR - 31,07% - 31,07% - 31,07%

As F0UR 0N 0 offers both your standard off-plan sale agreement and the investor agreement, the key differentiator between the two agreements is that the investor takes on an element of risk that a traditional buyer would not under a standard sale agreement. This risk that the investor takes oninordertoaccesstheinvestorbenefit,isthattheinvestmentisreturnedtotheDeveloperforR1ifthey fail to come up with the balance of the funds.

Due to the low base purchase price of the F0UR 0N 0 product, coupled with the further reduction receivedthroughtheinvestorbenefit,theestimatedyieldsontheapartmentswithinthisprojectarehighly competitive, with apartments conservatively ranking in the 75th percentile or above, in terms of performance.

Expenses per Type Studio One Bedroom Two Bedroom

ProjectedRentpermonth 22 786 24 336 34 238

ProjectedRentperannum 273 431 292 029 410 856

Furniture costs 98 700 105 000 141 000Gross Yield (incl. VAT price) 13,71% 11,92% 11,74%Gross Yield + Furniture 13,06% 11,43% 11,28%

Rates&Leviesperannum 25 785 32 442 46 694

Management Fee (incl OTA* commission) 41 015 43 804 61 628

Electricity p.a. 8 400 8400 15 000

Linen p.a. 13 020 13 020 24 738

Maintenance Allowance p.a. 10 000 10 000 10 000

Other(WiFi,Netfl ix,Insurance,etc.)p.a. 6 300 6 300 6780

The above table illustrates the estimated annual short-term rental income and expenses on the units within F0UR 0N 0. Through the combination of Blok Raw, lower capital pricing, and an increase in the homestay market both globally and locally in Cape Town, research has shown that short-term letting at F0UR 0N 0 yields investors one of the best returns possible.

*OTA is the 3% commission that the booking platform takes

14

InvestmentProcess||

50%Targeted Return

9,1%Targeted Yield

31,07%Targeted IRR

F0UR 0N 0 presents an opportunity for investors with capital to offset risk in an uncertain market by unlocking value.

Through the investor opportunity presented within F0UR 0N 0, investors can access property in the most resilient market in South Africa, with limited risks and excellent returns.

CombiningtheBlokRawfinishwithefficientandintelligentdesigntechniques,F0UR 0N 0,at a base level, is one of the best valued, newly developed products currently on offer in the Atlantic Seaboard.

Apartment Information Studio One Bedroom Two Bedroom

UnitValue(InclVAT) 1 995 000 2 450 000 3 500 000

Average Unit Size (m²) 37,5 47 67

Average Unit Rate (R/m²) 53 200 52 128 52 239

The investment opportunity available to a select number of Blok clients is that they become investors in the F0UR 0N 0projectbyinvestinginthedevelopmentcompany.

Theinvestor,inreturnforprovidinganupfrontinvestmentintotheproject,isabletorealiseaninvestorbenefiteitherbybuyingpropertyatasetrate,orashareintheprofitsofthedevelopmentbasedonmarketconditionspresentuponprojectcompletion.

Apartment Information Studio One Bedroom Two Bedroom

UnitValue(Incl.VAT) 1 995 000 2 450 000 3 500 000

InvestmentValue* 498 750 612 500 875 000

Investment Term 18 18 18

InvestorBenefit(12,5%) 249 375 306 250 437 500

*25%ofincludingVATOriginalValue

Theupfrontinvestorpaymentof25%ofthePurchasePrice(incl.VAT)ofaspecificapartmentineffect entitles the investor to acquiring built space at approximately R 5 200p/m² lower than market rates.

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Therefore, if the scenario plays out whereby the investor takes ownership of an apartment on Projectcompletionthatapartment,throughtheirinvestorbenefit,isatalowervaluethanastandardsale agreement price would be.

Toanalysetheinvestorbenefitreceivedvstheupfrontinvestorpaymentrequired–thisbenefitboasts a 50% Return on Investment and further translates into a 31,07% IRR over the 18-month investment period.

f o r m v e r t i c a l o r i e n t a t i o n v e r t i c a l g r a d i e n t b r i c k w o r k g r a d i e n t

C O N C E P T | N O V 2 0 1 9 |

INVESTMENT TIMELINE*

Investment Start Date Completion

0 18+/- 18 Month Term

(498 750)Deposit

-1 246 875Due 30 days before transfer

*based off studio apartments information

16

The F0UR 0N 0 product is thought to be an excellent defensive property investment as the ownerisabletoearnsizableyieldswhilstwaitingforthestocktoreachitsspecificdesirablecapitalappreciation value, should they wish to exit at a point in time.

The F0UR 0N 0 investor agreement is an alternative to the standard off-plan sale agreement wherebytheinvestortakesonadditionalrisktoearnthemselvesaninvestorbenefit.TheinvestorwillsubscribetoshareswithintheDevelopmentSPV(SpecialPurposeVehicle)tothevalueofanapartmentlesstheinvestorbenefit.

The investor is only required to make their upfront, non-refundable investor payment to the valueof25%oftheOriginalApartmentValue(incl.VAT)onthestartoftheinvestmentterm.Afteran18-month term, or when the F0UR 0N 0Projectiscomplete,thebalanceofthesharesubscriptionispayable by the investor.

At this point, the investor’s shares are either ceded into taking ownership of an apartment of theirchoice,ortheirfundsalongsidetheirprofitsharearepaidtothem.

Investor Yield Analysis Studio One Bedroom Two Bedroom

InvestorUnitValue(InclVAT&Furniture) 1 844 325 2 248 750 3 062 500

Average 12 Month Net Rental 168 911 178 063 246 015Net Yield on Investment 9,16% 7,92% 7,68%

PROPOSED STRUCTURE FOR INVESTORS

DEVELOPMENTSPV

INITIAL SHAREHOLDERS

Shareholder withinDevelopmentSPV

INVESTOR

ShareSubscription

21Blok Raw20

BuildingElevation||

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17 955 _______________________________ '52 ____ 0 6 SIXTH STOREY

15 000 _______________________________ 'Q'. ____ 0 5 FIFTH STOREY

12 045 ���:_. _______________________________ 'Q ____ 0 4 F OU RTH STOREY

9 090 tg��tll--------------------------------9_ ____ 03 TH IR D STOREY

6 135 -----,--... ________ 9-____ 02 SECOND STOREY

3 180

23F0UR 0N 022

SitePlan||

LINCOLN ROAD

25

Blok R

aw

N

GA

3 BED+/- 120m²

GA

GB

2 BED+/- 131m²

GB

24

Ground FloorPlan||

OLI

VER

RO

AD

GC

2 BED+/- 118m²

GC

ApartmentsGA,GB&GC

LINCOLN ROAD

27

F0UR 0N 0

N

Apartments1A,1B,1C,1D,1E,1F&1GApartments2A,2B,2C,2D,2E,2F&2GApartments3A,3B,3C,3D,3E,3F&3GApartments4A,4B,4C,4D,4E,4F&4G

1A

1 BED+/- 47m²

1D

STUDIO+/- 38m²

1C

STUDIO+/- 38m²

1B

STUDIO+/- 37m²

1G 2 BED+/- 65m²

1A1B1C1D

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Floors One, Two, Three,&FourPlan||

OLI

VER

RO

AD

1F

2 BED+/- 65m²

1E

STUDIO+/- 37m²

1E1F

1G

Floors1,2,3&4arerepeated

LINCOLN ROAD

29

Blok R

aw

N

5A

2 BED+/- 49m²

Total:107m²

5A PLUNGEPOOL

SUNDECK

BRAAIAREA

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FifthFloorPlan&Communal Deck||

OLI

VER

RO

AD

Apartments5A&5B-lowerstorey5B

2 BED+/- 49m²

Total:113m²

5B

LINCOLN ROAD

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F0UR 0N 0

N

5A

2 BED+/- 25m²

Total:107m²

5A

30

Sixth FloorPlan ||

OLI

VER

RO

AD

Apartments5A&5B-upperstorey

5B

2 BED+/- 33m²

Total:113m²

5B

33F0UR 0N 032

35Blok Raw

Neighbourhood Map

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1. The Promenade - 656 steps

2. Harveys at the Mansion - 853 steps

3. Rockpool - 1181 steps

4. Artem Centre - 853 steps

5. The Duchess of Wisbeach - 656 steps

6. Laughton’s Hardware - 590 steps

7. Ninety One Indian Restaurant - 393 steps

8. Ristorante Posticino - 288 steps

9. La Bohéme - 183 steps

10.BonjourBakery-157 steps

11. Lion’s Head Path - 4593 steps

12. Bentleys Bread Co - 196 steps

13.ThePressBar&Grill-393 steps

14. Hot Dog Yoga Studio - 590 steps

15. Piazza St. John - 605 steps

16. Health Matters - 721 steps

17.MojoMarket-984 steps

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TheNeighbourhood||

With its feel of sea side town and its beautiful surrounds, Sea Point holds a completely unique charmbetweenanurbansettingandthenaturalmajestyof thehillsandmountainssurroundingit. It’s a complex mix of urban growth and natural splendour. The ocean and the steep inclines of Lion’s Head meet in the middle to sandwich a densely populated strip of real estate that could rub shoulderswithsomeofthefinestcitiesintheworld.

On a clear day, its views over the sea go on forever, with the far side of the ocean shimmering white like stars across the galaxy. Standing on the promenade with your back to the busyness of Beach Road, you can feel the energy of the buildings around you, holding you with something akin to a gravitational pull. Keeping you grounded as you look out across the seemingly endless brushstrokes of blue both above and below the horizon line. This is a unique place. Holding a unique collection of people and cultures. And it’s locked in an entirely unique hold between urban energy and a natural flairthattrulyissecondtonone.

Thesettingsun.Abuzzofpeoplerushinghomejusttoheadoutagain.Friendsandfamiliesstrewn along the promenade squeezing the last few minutes of sunlight into their week. Getting one morerunin,onemorecycle.Thesmelloffreshseaairandanticipationofanightyetunfulfilled.

Ice Cream. Oysters. Drinks with a view. A dog walker’s paradise. A quiet spot in the park. Time totakeadvantageoftheseaair,thewarmthofthesunandthepeople.It’syourstoenjoyhowyouseefit.

F0UR 0N 0

blok.co.zasales@blok.co.za+27 87 820 0050

51 Regent RoadSea PointCape Town