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1 FLORIDA RESIDENTIAL CONSTRUCTION Investor subscription closes March 31 2016

PPG Florida New Builds

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Page 1: PPG Florida New Builds

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FLORIDA RESIDENTIAL CONSTRUCTION Investor subscription closes March 31 2016

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“Through PPG I wanted to create a real estate investment solution with a low-risk, high-yield and short-term focus for a select group of investment partners.” – Candice Schultz, Managing Director PPG

The following presentation outlines our investment process and deal structure.

Prime Property Global is led by commercial lawyer and entrepreneur Candice Schultz, a true powerhouse in SA’s investment community. Candice has a long list of business accolades; she was the youngest person to assume a directorship of Eversheds international law firm and as a deal maker has structured transactions totaling more than R3.5 billion within property, retail and ICT industries. At PPG we are proud South Africans and love this country, but with the progressive weakening of the Rand and economic instability it is imperative, as savvy investors, to preserve our wealth and diversify investment portfolios with offshore assets – particularly as a Rand hedge in strong currencies like the U.S. $. For a limited, select group of investment partners who want to grow their wealth through offshore property, we construct new residential homes in Florida, USA that provides a low-risk, short-term, high-yield investment opportunity. Unlike the highly volatile stock market or longer term unit trusts our model provides consistent, predictable returns. Due to the US regulatory environment; which allows for quicker construction turnaround, a shortened transfer process and favourable tax breaks for foreign investors - our structure has reduced the risks of having your cash tied up for long periods of time and can confidently offer lucrative returns in a safer first world as an ideal strategy for any global investor.

Prosper through property!

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Rand Hedge

-  Continuing depreciation of ZAR/USD

-  In 2015 the ZAR lost 34% to the USD

-  This will continue by a minimum of at least 6.5% per annum

over next 4 years

In 4 years time you would have lost more than 25% of your total wealth if your assets are all kept locally in Rands!

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FLORIDA -  #1 Retirement State in the US

-  Sunshine State: 360 days of sun a year

-  1,000 people move to the state of Florida every day

-  44,000 Single family home shortfall each year

A survey of members of the Association of Foreign Investors in Real Estate said the United States is the most “stable and secure” country for real-estate investment “by a wide margin.” The U.S. is also the top market when it comes to capital appreciation and for future real-estate purchases. U.S. housing market data shows a continual rise in primary prices for residential dwellings. In 2014 the median sales price rose by 15.4% to $305,000.

Why Florida, USA…

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Single Family Home Construction

PPG provides a turn-key service, managing the construction, reporting and sale of the home. We have an unfair advantage - our partners are seasoned experts in the area with over 1,000 projects under their belt. Build Duration: 150 days / Total turnaround: 180 days

-  2450 Sq Ft Lot

-  1625 sq Ft under roof

-  3 Bedroom, 2 Bathroom, 2 Car Garage

Currently there is an undersupply of single family homes in the areas we operate in. As such this specific category of home is usually sold and under contract before construction has been completed.

Total investment per unit: $ 140,000 inclusive of stand Two new builds can be completed back-to-back per year with the above investment amount

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Home Specifications

PLAN A HOME -  2450 Sq Ft Lot -  1625 sq Ft under roof -  3 Bedroom, 2 Bathroom, 2 Car Garage

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Funds for each phase are only released to the builder on delivery of certificates and approvals for the previous phase. An independent appraiser signs-off on every stage.

Draw Schedule: Construction Breakdown

20%

Plot, permit fees and deposit.

$32,000

15%

Slab, block and beams complete.

$20,250

20%

Roof and mechanicals. Plumbing, heating and wiring. Exterior doors and windows hung and glazed. Bathroom tubs set, roof framed. Inspected by City/County and stickers affixed.

$27,000

20%

Exterior and interior: Insulation, drywall and hardwood installed. Siding and exterior trim installed. Building closed from weather.

$27,000

15%

Cabinets and countertops installed. Plumbing and electrics connected. Appliances installed. Interior and exterior paint complete. Sewer and water connections installed.

$20,250

10%

All trades complete. Final lien released for all subs on receiving Occupancy Certificate.

$13,500

1

2

3

4

5

6

Total Cost $140,000

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Deal Flow

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Plot inspected and bought.

Due diligence conducted on area and plot location.

2 2 3

Construction Commences

Property Completed

Property Sold Role over into deal 2

We have invested significant resources in developing:

-  Market Knowledge -  Human Resources

-  Transaction Structure -  Infrastructure

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Detailed Step-by-Step Reporting

Investors can view progress in close to real time At every stage of the build photos and financial reports are submitted so our investment partners feel like they are part of the action

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Detailed Step-by-Step Reporting

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Investor Trips

Twice a year PPG invite investors to attend a 4-day visit to the U.S. This is the ideal opportunity for our investment partners to meet our construction, sales and support teams and witness the construction process and see the final product.

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Profit Sharing Model

PPG offers two profit sharing models: 1) Profit is shared 60/40 in favour of the investor on a deal by deal basis (6 month turnaround per deal)

2) PPG issues a preference share to investor set at 20% over 12 months

-  Profits are paid in U.S. $ and there will still potentially be an additional profit when converting to ZAR

-  There is a $40,000 annual U.S. capital gains tax exemption for foreign investors, thereafter profits are taxed at 15%

-  SA Income tax on profits remain the responsibility of the individual investor

NB: PPG works with a limited group of 10 investors per year. Investor uptake for 2016 closes on 31st March.

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Deal Structure

The investor may at his/her discretion reinvest in a further build or be repaid the investment amount plus the profit portion.

Investors can participate with minimum investment amount of $ 50,000 1

2

3

4

5

Investors each become members of an LLC, incorporated as an SPV for the purpose of holding the title to the land

Investors investing the full amount are entitled to set up their own LLC

In each case the full investment amount is paid into the relevant LLC’s bank account upfront

6 Upon sale of the property, the full sale proceeds will be paid into the LLC’s bank account

The draws for the phases of construction are then debited from the LLC’s bank account

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Candice Schultz MANAGING DIRECTOR

Devon Brough DIRECTOR: STRATEGIC PARTNERSHIPS

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Bianca da Silva DIRECTOR: INVESTOR RELATIONS

Our Core Team Our people know their markets inside and out. Investment managers, researchers, consultants, analysts, marketers, account managers, quantity surveyors and property agents – every single one is experienced, knowledgeable, reliable and passionate

about property investment. Our expert team is our most powerful tool in guiding you through the complexities of international real estate while delivering strong returns.

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Address Text : 28 Roos Street, Sandton, Johannesburg Phone: +27 62 2365180 Email: [email protected] Website: www.primepropglobal.com

Corporate Office