Corporate Name: 3GEN REALTY & DEVELOPMENT CORPORATION BUSINESS: CASA BLANCA TERRACES Main Line of Business: • Sales of Condominium Units

for its 8-Storey Residential/ Commercial Building in Baguio.

• Operations of a 50-Room Hotel

Type: Corporation Main Proponents: Ms. Katherine J. Torres Main Office: Metro Manila, Philippines

The proposed business venture of 3GEN Realty and Development Corporation is CASA BLANCA TERRACES. It is an 8-Storey 50-Room Residential-Commercial Condominium Building which shall be established in Baguio City. With a strong demand for quality residential facilities in the infamous summer capital of the Philippines, the company shall establish a noteworthy residential condominium building that shall serve as a second home for unit owners, as well as the opportunity to gain profits from the investment through the operations of the facility as a fully-equipped Hotel.

Guarantee of Success : The main proponents of this venture has taken

great efforts to determine the viability of the Project through the conduct of a detailed feasibility study and has commenced initial discussions with business partners (i.e. contractors, designers, etc).

Total Infusion of Capital : Php 118.00 Million For this Project to become a reality, the Company

shall require an additional infusion of Capital that would be used for construction of the 8-Storey Building. The Management, through Ms. Katherine J. Torres will be investing the required 665 square meter lot which shall be the site for Casa Blanca Terraces and shall be further utilized as Bank Collateral for the venture.

A Quick Look at the Economy (2014) ECONOMIC PROSPECTS • Business process outsourcing firms expects that growth in the

industry’s revenue this year will exceed last year’s 19% gain. • As of November 2013, cash remittances reached $20.6 billion,

up 6.1 percent from a year ago. It is expected that overseas remittance flows to the Philippines will likely expand at a faster pace of 8 to 8.5 percent in 2014 on improved global growth prospects and post-super typhoon “Yolanda”(Haiyan) reconstruction

• Construction output, or gross value added, was worth 4.3% of GDP ($ 1.27 B), and the construction sector employed 1.78 M people, accounting for 5.5% of total employment.

BPO Industry

OFW Remittances

Construction

Baguio City – An Opportunity • The City of Baguio, since the time it was founded, has been a

prime tourist attraction in the country. For all those years it has been a mecca of tourists. Baguio has a role as a tourism center in the North.

• Baguio City keeps reign as the Summer Capital of the Country because of its unique environmental quality and climate making it a preferred destination for many domestic and foreign tourists and visitors alike.

• Baguio’s economy is dependent mainly on tourism and education Inadequate housing for transient students/workers • One of the more progressive industries under the Services Sector

is Real Estate and Renting activities. Due to the very high demand for housing, some existing residential houses are utilized as quarters for students/workers and often times are overcrowded.

The CASA BLANCA TERRACES, an initial venture of 3GEN REALTY AND DEVELOPMENT CORPORATION aims to provides high-quality, comfortable residential condominium units in the summer capital of the Philippines - Baguio City. The Condominium Units offer state-of-the-art living conditions reflective of the construction and development innovations of modern times while incorporating the natural beauty of Baguio's surroundings. Further, the development shall answer the growing needs for quality housing of Baguio City. All units shall be sold as fully-furnished residential condominium units dedicated to a hassle free living environment in which our tenants can enjoy all of the benefits of safe, attractive, and functional units.

Total Initial Investment : Php 118.00 Million Location : South Drive, Baguio City, Philippines A 665 square meter prime property shall be directly invested by the

Proponents of the Project. The site is situated along the South Drive Road, contiguous to Camp John Hay, Baguio Country Club, and is situated just beside the long-standing Teacher’ Camp. The property has a market value of Php 26.6 Million. The Php 118.00 Million shall be directly utilized for Construction of the 8-Storey Building.

Proposed Programs and Developments

Phase 1 Sourcing of Funds Identify potential key stakeholders and investors for the

Business. The would-be Investors/Stakeholders shall be primarily involved in setting strategic directions for the envisioned Business.

Funding is through a Private Investor and Bank Loan Phase 2. Construction of Building Upon acquiring necessary permits and licenses,

Construction and Selling of the 50-room residential units and 12 commercial units shall commence.

Phase 3. Hotel Operations Unit Owners shall be given the option to partake in the

Condo Pool where owners who are part of the Condo Pool shall gain a share in revenues that can tentatively amount to 35% of Gross Revenues of the Hotel Operations.

PROJECT HIGHLIGHTSCASA BLANCA TERRACES

1 Lot Area 665 2 Lot Value 26,600,000Php (Php 40K/sq.m.)3 Developments/Improvements

Floor Area 3,705 No. of Rms 62

Total Project Cost 118.87 MPhp

REVENUE - CONDO SALES

At End-of-ProjectTotal Units For Sale 62 Total Floor Area 3,705.20

Projections Total Revenues 213.00 MPhp Less: Cost of Sales 143.75 M Less: Opex 11.66 M Net Income 57.59 MPhp Loan (Interest Payment) 17.50 M

Income at End of Project 40.08 MPhp

Net Profit Margin 19%Return on Invesment 63%

REVENUE - HOTEL OPERATIONSYear 1 Year 2 Year 3 Year 4 Year 5

Total Available Rooms 50 50 50 50 50

Ave. Occupancy Rate 45% 55% 60% 60% 60% Total Rooms Occupied (Yr) 8,100 9,570 10,440 10,440 10,440 Ave. Room Rate/Day 2,500 2,625 2,756 2,894 3,039 Expected Revenues (in PHP) 20.25 MPhp 25.12 MPhp 28.78 MPhp 30.21 MPhp 31.72 MPhp Less: Unit Owner's Rev (35%) 7.09 M 8.79 M 10.07 M 10.57 M 11.10 M

Less: Opex (in PHP) 10.78 M 11.09 M 11.94 M 12.82 M 13.79 M

Net Income (after tax) PHP 0.30 MPhp 1.78 MPhp 2.48 MPhp 2.35 MPhp 2.17 MPhp

The Proponents of the proposed venture is confident of its success in this industry.

However, in taking the initial steps, the Company would require the support of key Investors who would also have confidence in

this business undertaking. With this in mind, the Management Team is offering you the opportunity to be part of this Venture.

Our Proposal for the Investor/s A. Investment of individuals/corporations shall be treated as common shares. B. The Php 20.00 Million investment represents 20% ownership in the Business

and shall gain corresponding dividends every end of the year. C. Individual/Corporations can buy-in with as little as Php 1.00 Million Investment D. Dividends shall be sourced from Sale of Condo Units and Net Income

from Hotel Operations of Casa Blanca Terraces.

Your Security

There will be a detailed Contract of Undertaking for the new partnership that we will be having. The P26.6 Million, 665 square meter lot in South Drive, Baguio City shall be infused as a company asset. A Highly Credible Name in the Industry.

The Support Needed Infusion of Capital for during the preparation stages of setting-up the Business, primarily as mobilization, start-up (OPEX) funding of the venture. This would require an amount of Php 20.00 Million.