BH-TECBH-TECBelo Horizonte Technology ParkBelo Horizonte Technology Park

Ronaldo Tadêu PenaCEO

BH-TEC:BH-TEC:

BH-TEC is the result of a partnership among: • State Government of Minas Gerais;• City of Belo Horizonte;• Federal University of Minas Gerais (UFMG);• Federation of Industries of MG (FIEMG);• MG Brazilian Service of Support for Micro and Small Enterprises (SEBRAE-MG).

BH-TEC is a non-profit, private institution aimed at research and high tech activities, designed to house:• Companies dedicated to the research and development of new technologies in their

products and processes;• Public and private Research & Development Centers;• Areas for Shopping and Services.

Partners Institutional ArrangementPartners Institutional Arrangement

Support: Support:

BH-TEC:BH-TEC:

It is being implanted in a 556.000 sq meter (137 acres) area:• 185.000 sq meter (45 acres) for construction;• 371.000 sq meter (92 acres) is a permanent urban green zone;

The area is a property of the Federal University of Minas Gerais (UFMG).

The Park is allowed to use the area for 30 years (07/01/2041). Afterwards, the University returns as the landholder, receiving rental payment that will go into its budget.

Governance modelGovernance model

Industry sectors focusedIndustry sectors focused

Life Sciences (biotechnology, human and animal health, pharmaceuticals);

Information and Communication Technologies (ICTs);

New materials and process technologies;

Renewable Energies;

Environmental Technologies;

Entertainment and culture.

UFMG in numbersUFMG in numbers

The Federal University of Minas Gerais is the main research institution in the metropolitan area;

3,000 faculty members (80% Ph.D); 75 undergraduate programs; 58 doctorate programs and 68 master programs; 30.000 undergraduate students (5,000 in engineering); 7.000 graduate students:

• 4,000 M.A./M.Sc. Students (1,300 master thesis/year)• 3,000 Ph.D. students (700 Ph.D. dissertations/year)

Leader institution in number of biotech patents in Brazil

(Updated: 17/06/11 UFMG site)

Minas Gerais - MGMinas Gerais - MG

Belo Horizonte

BrazilBrazil

LocationLocation

Mineirão Stadium

UFMG

BH-TECBH-TEC

Pampulha Lake

Downtown

20’

Tancredo Neves International

Airport 40’

Rua Prof. José Viera de Mendonça

Av. Antônio Abrahão Caram

Av. Presidente Antônio Carlos

Master PlanMaster Plan

R&D Zone:46,000 m2

Shopping and Services: 27,000 m2

Institutional Zone:26,200 m2

Green area: Green area:

350,000 m²350,000 m²

Aerial photo taken in December 2006.Source: PBH

Source: BH-TEC

Institutional BuildingInstitutional Building

Source: BH-TEC

Institutional BuildingInstitutional Building

Source: BH-TEC

Institutional BuildingInstitutional Building

Tenant companies of the first Institutional building:Tenant companies of the first Institutional building:

Tenant companies of the first Institutional Tenant companies of the first Institutional Zone building:Zone building:

Tenant companies of the first Institutional Tenant companies of the first Institutional Zone building:Zone building:

22ndnd Institutional Building of BH-TEC - Institutional Building of BH-TEC - preliminary designpreliminary design

Edifícios Institucionais do BH-TEC - Edifícios Institucionais do BH-TEC - Fases de desenvolvimentoFases de desenvolvimento

BH-TEC DevelopmentBH-TEC Development

Institutional Zone (area: 26,200 m2)• First institutional building (in a 4,600 m2 area):

15 companies April/2012 – official launch

• FIOCRUZ in Minas Gerais (in a 12,000 m2 area) Rene Rachou Research Center (FIOCRUZ Branch in Minas Gerais) Center for the Development of Health Technologies of Minas Gerais (CDTS-MG)

will house biotechnology platforms, vivariums, biopharmaceutical enterprises and academic spin-offs;

US$ 42 million (total investments).

• Second institutional building in the remaining 9,600 m2 area

Second Institutional BuildingSecond Institutional Building

• Preliminary architectural design (arq. Robert McCauley, UJMN office Philadelphia, USA);

• March/2012: Approval of the preliminary project;

• March- April/2012: additional studies to estimate the budget for construction.

• Next phase of construction will depend on the results of a study for the land concession, coordinated by the Development Bank of Minas Gerais (BDMG).

Overview of BH-TEC implementation

Nov/ 2011Kick off for the bid

modeling of the Concession Zone

Feb/2011Release of 15

selected companies (out of 25)

22

2005BH-TEC Set

up

Jun/2012Release of the public

bid document

2008Started

construction of the first institutional

building

2006Beginning of infrastructure works by the Municipality

Apr/ 2012Startup of the first building

in the Institutional

Zone

2014Startup of 1st building in the Concession

Zone

The conclusion of the first stage of BH-TEC is marked by The conclusion of the first stage of BH-TEC is marked by the startup of the first building in the Institutional Zonethe startup of the first building in the Institutional Zone

Public Bid for construction, operation and maintenance of the BH-TEC

First building construction with investments of US$ 19 Million by the State Government

Signing of the agreement among UFMG, Minas Gerais State Government and City Government

Concession Zone

Institutional Zone

Overview of BH-TEC Phase II Concession

23

2011Concession

modeling Kickoff

2041End of

concession

Oct/2012Bid document

signature

Jun/ 2012Public bid

2013Start the

construction of the 1st building in the Concession Zone

Phase II modeling for the Concession Zone estimates Phase II modeling for the Concession Zone estimates investments up to US$ 300 MM in a BOT approachinvestments up to US$ 300 MM in a BOT approach

•Investments (CAPEX) up to US$ 300 million

•IRR range between 12% to 16%,

•Concession Term: 30 years

Concession Zone

Institutional Zone

•Public Bid for construction, operation and maintenance of the second phase of BH-TEC.

•Potential 266.000 m2 of constructed area

Main aspects of the concession

•Stage development implementation

subject to occupancy and demand

•Contract with flexibility to mitigate

demand risks

•Opportunity to built-to-suit buildings for

anchor companies

Main aspects of the concession

•Stage development implementation

subject to occupancy and demand

•Contract with flexibility to mitigate

demand risks

•Opportunity to built-to-suit buildings for

anchor companies

The Economic Model of BH-TEC Concession The Economic Model of BH-TEC Concession - tangible drivers- tangible drivers

BH-TEC Concession Capital

Efficiency

Revenue

Marketing and Branding

BH-TEC fee

UFMG fee

1

2 3

Rental

Economic Indicators

Non-controllable factors

Management Costs

Cash In

CashOut

CashIn

Costs

Tangible Drivers of Economic Value

GDP Growth/ Diversification

University (UFMG)

Entrepreneurship Environment

Offices Rental contracts

StoresRental contracts

Facilities services

Rental rate

Offices Available area

Rental rate

Stores Available areaCommission / fee

# services provided

(x)(x)

(x)(x)

Stage Development CAPEX

Demand drives the Implementation

Facilities

Rental Demand

Low Working Capital

(+)(+)

(+)(+)

(+)(+)

(+)(+)

(x)(x)

Time Schedule for the 2Time Schedule for the 2ndnd. Fase. Fase

Mariana de Oliveira Santos - Executive Advisor

Vicente de Paula Azevedo Jr. - Administrative Manager

Eduardo F. Roscoe - Engineering Advisor

Nanci Lacerda - Executive Secretary

Janaine Farrane Cardoso - Technical Advisor

Guilherme de Castro Leite - Data Network Analyst

Ronaldo Tadêu Pena C.E.O

rpena@bhtec.org.br

Rua Prof. José Vieira de Mendonça, 770 – Engenho NogueiraBelo Horizonte / MG - Brazil

Tel.: 55 31 3409-7391 | Fax: 55 31 3409-7392www.bhtec.org.br

StaffStaff