Aura Investments

“an investment in knowledge pays the best interest” Benjamin Franklin.

Aaron Leahy Christian Gibney Fergal Rafter Roger Hayes Jeff Hughes

Residual Value

Gross Development Value

Income (Selling price) € 625,000

No. Of units 20

Capital Value € 12,500,000

Development Costs

Building Costs

20 (186sq. Mt. x €1398 per sq. mt.) € 5,200,000

Site Development € 200,000

Professional fees

Architect (3%) € 150,660

Quantity Surveyor (3%) € 150,660

Structural Engineer (3%) € 150,660

Project Manager (3%) € 150,660

€ 602,640

Contingency (5%) € 251,100

Stamp Duty on land (1% of 1st million, 2% after) € 40,000

Marketing (2%) € 100,500

Overheads € 54,000

Planning fees (€65 x 20 units) € 1,300

Site Investigation € 17,500

Sales Cost (1%) € 125,000

Agents Acquisition fee (1%) € 25,000

Legal fees on Acquisition (2%) € 50,000

Building Certifcates € 16,600

Contributions (€21000 x 20 units) € 420,000

Social Housing (20%) € 400,000

Interest on Bank loan (8.25%) € 70,794

Total Development Cost € 7,574,434

Profit @ 20% € 1,514,887

Cost Plus Profit € 9,089,321

Residual Value € 3,410,679

Professional fees as % of Total Development Cost 7.96%

Residual Value as % of Total Development Cost 37.52%

Developers ProfitNet Development Value € 12,500,000

Less Purchasers Cost (2.75%) € 343,750

Net Development Value € 12,156,250

Development Cost

Land Costs

Land Price € 2,500,000

Stamp Duty (1% of 1st million, 2% after) € 40,000

Agents Acquisition fee (1%) € 25,000

Legal fees on Acquisition (2%) € 50,000

€ 2,615,000

Building Costs

20 (186sq. Mt. x €1398) € 5,200,000

Site Development € 200,000

€ 5,400,000

Professional fees

Architect (3%) € 150,660

Quantity Surveyor (3%) € 150,660

Structural Engineer (3%) € 150,660

Project Manager (3%) € 150,660

€ 602,640

Other Costs

Contingency (5%) € 251,100

Overheads € 54,000

Site Investigation € 17,500

Contributions (incl. Social Housing) € 820,000

Planning fees (€65 x 20 units) € 1,300

Advertising/Promotion (2%) € 100,500

Sales Cost (2.5%) € 125,000

Building Certificates € 16,600

€ 1,386,000

Funding fees

Bank's legal/professional fees € 5,000

Bank's arrangement fees € 5,000

Interest on Bank Loan (8.25%) €70,794

€ 80,794

Total Development Cost € 10,084,434

Developer's Profit € 2,071,816

Professional fees as % of Total Development Cost 5.98%

Developers Profit as % of Total Development Cost 20.54%

Sensitivity Analysis

Positive Developers Profit 5% Negative 15% Negative

Selling price rises 10%,

Construction costs

decrease 10%, Land

Price decreases 10%,

bank interest rate

down to 7%

Selling price drops 5%,

Construction costs increase

5%, Land Price increases

5%, bank interest rate up

to 9.5%

Selling price drops 15%,

Construction costs increase

15%, Land Price increases

15%, bank interest rate up to

11%

Net Development

Value €13,371,875 €12,156,250 €11,514,062 €10,332,812

Development Cost €9,259,040 €10,084,434 €10,529,047 €11,343,082

Developers Profit €4,112,835 €2,071,816 €985,015 -€ 1,010,270

98% increase 100% 53% decrease 148% decrease

Month 0 3 6 9 12 15 18 .

(A) Total -€3,613,065.75 -€104,292.44 €1,578,316.04 €1,005,817.99 €374,895.74 €1,652,958.14 €402,043.59

(B) Opening Balance €0.00 -€3,613,065.75 -€3,682,966.98 -€2,068,500.75 -€1,060,470.25 -€685,574.51 €967,383.63

(C) Total (a+b) -€3,613,065.75 -€3,717,358.19 -€2,104,650.94 -€1,062,682.76 -€685,574.51 €967,383.63 €1,369,427.22

(D) Interest €0.00 €34,391.21 €36,150.19 €2,212.51 €0.00 €0.00 €0.00

Closing Balance (c+d) -€3,613,065.75 -€3,682,966.98 -€2,068,500.75 -€1,060,470.25 -€685,574.51 €967,383.63 €1,369,427.22

Closing Balance - Cap. Investment -€1,613,065.75 -€1,682,966.98 -€68,500.75

Total

Borrowings Required €1,650,000.00 €1,700,000.00 €70,000.00

Drawdown €1,650,000.00 €50,000.00 €1,700,000.00

Repayment to Bank €1,630,000.00 €70,000.00

Capital Investment €935,817.99 €374,895.74 €689,286.27 €2,000,000.00

€ 1,650,000.00 0.69% € 11,385.00

€ 1,661,385.00 0.69% € 11,463.56

€ 1,672,848.56 0.69% € 11,542.66 € 34,391.21

€ 1,734,391.21 0.69% € 11,967.30

€ 1,746,358.51 0.69% € 12,049.87

€ 1,758,408.38 0.69% € 12,133.02 € 36,150.19

€ 106,150.19 0.69% € 732.44

€ 106,882.63 0.69% € 737.49

€ 107,620.12 0.69% € 742.58 € 2,212.51

€ 72,753.91

Along with €2,000,000 of Capital Investment, Aura require a loan facility of€1,700,000. Including interest, this is paid off through money raised byselling houses. When this is paid off, the Capital Investment of €2,000,000must be accounted for before the company is debt free, so to speak. Thecapital investment is not debt, however if you put €2,000,000 capitalinvestment into a project, and make €2,000,000 profit, this is not actuallyprofit as you are no better off than before.

Cash flow analyse is spread over 27 months.

It shows our outgoing expenses and our incoming revenue.

The end of the first quarter is where we’re most exposed, thus determining the size of the loan we must obtain.

Along with €2,000,000 of Capital Investment, Aura require a loan facility of €1,700,000. Including interest, this is paid off through money raised by selling houses. When this is paid off, the Capital Investment of €2,000,000 must be accounted for before the company is debt free, so to speak. The capital investment is not debt, however if you put €2,000,000 capital investment into a project, and make €2,000,000 profit, this is not actually profit as you are no better off than before.

Column1 Month 0 Month 3 Month 6 Month 9 Month 12 Month 15 Month 18 Month 21 Month 24 Month 27 Total

Cash Flow Statement Aura

Income

Sales €0.00 €0.00 €1,875,000.00 €1,875,000.00 €1,250,000.00 €2,500,000.00 €1,250,000.00 €1,250,000.00 €2,500,000.00 €0.00€12,500,000.0

0

Total Income €0.00 €0.00 €1,875,000.00 €1,875,000.00 €1,250,000.00 €2,500,000.00 €1,250,000.00 €1,250,000.00 €2,500,000.00 €0.00€12,500,000.0

0

Costs €

Site Cost -€2,590,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€2,590,000.00

Site Development -€28,571.44 -€42,857.16 -€7,142.86 -€7,142.86 -€7,142.86 -€78,571.46 -€7,142.86 -€14,285.72 -€7,142.86 -€200,000.08

Building Costs -€19,149.00 -€96,289.80 -€786,653.40 -€800,329.40 -€759,257.00 -€701,079.20 -€612,012.00 -€743,059.00 -€682,171.20 -€5,200,000.00

Professional Fees -€180,792.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€46,872.00 -€602,640.00

Other Fees -€18,800.00 -€2,490.00 -€2,490.00 -€1,660.00 -€3,320.00 -€1,660.00 -€1,660.00 -€3,320.00 -€35,400.00

Contributions -€420,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€420,000.00

Overheads -€2,000.00 -€4,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€6,000.00 -€54,000.00

Social Housing -€400,000.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 -€400,000.00

Marketing -€1,473.75 -€5,700.00 -€83,425.00 -€1,273.75 -€600.00 -€5,700.00 -€1,273.75 -€500.00 -€500.00 €0.00 -€100,446.25

Sales Fees €0.00 €0.00 -€18,750.00 -€18,750.00 -€12,500.00 -€18,750.00 -€12,500.00 -€18,750.00 -€12,500.00 -€12,500.00 -€125,000.00

Total Costs -€3,613,065.75 -€104,292.44 -€296,683.96 -€869,182.01 -€875,104.26 -€847,041.86 -€847,956.41 -€692,936.86 -€826,536.72 -€754,686.06 -€9,727,486.33

(A) Total -€3,613,065.75 -€104,292.44 €1,578,316.04 €1,005,817.99 €374,895.74 €1,652,958.14 €402,043.59 €557,063.14 €1,673,463.28 -€754,686.06 €2,772,513.67

(B) Opening Balance €0.00 -€3,613,065.75 -€3,683,203.19 -€2,069,697.15 -€1,062,430.16 -€687,534.42 €965,423.72 €1,367,467.31 €1,924,530.45 €3,597,993.73 €0.00

(C) Total (a+b) -€3,613,065.75 -€3,717,358.19 -€2,104,887.15 -€1,063,879.16 -€687,534.42 €965,423.72 €1,367,467.31 €1,924,530.45 €3,597,993.73 €2,843,307.67 €2,772,513.67

(D) Interest €0.00 €34,155.00 €35,190.00 €1,449.00 €0.00 €0.00 €0.00 €0.00 €0.00 €0.00 €70,794.00

Closing Balance (c+d) -€3,613,065.75 -€3,683,203.19 -€2,069,697.15 -€1,062,430.16 -€687,534.42 €965,423.72 €1,367,467.31 €1,924,530.45 €3,597,993.73 €2,843,307.67 €2,843,307.67

A Program of Works shows what work will be taking place over a certain time.

It is estimated that this project of 20 houses will take 24 months to complete.

The project is divided into 9 sections. The first 2 sections represent 3 house each. The 7 other Green sections represent 2 house each.

It is planned that the houses will close in the month that they are complete.

3 Houses = Blues INDICATIVE PROGRAMME OF WORKS

2 Houses = Greens

Works DescriptionDuration WK

Month 1 Month 2Month 3Month 4Month 5 Month 6Month 7Month 8Month 9

Month

10

Month

11

Mont

h 12

Month

13

Month

14

Month

15

Month

16

Month

17

Month

18

Month

19

Month

20

Month

21

Month

22

Month

23

Month

24

NR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 95 96 97 98

Site Development

SUBSTRUCTURES

Excavate Top Soil

Excavate

Foundations

Foundations Poured

Blockwork

Floor Slab

HOUSE

SUPERSTRUCTUR

E

Blockwork

Joisting

Roof Finishes

Windows

Plaster Works

External

Additional External

Finishes

Carpentry 1st Fix

M & E First Fix

Plastering Works

Internal

Carpentry Works

2nd Fix

M & E 2nd Fix

Fixtures & Fittings

Kitchens

Tiling

Painting

Final Clean

EXTERNAL

WORKS

Pavings

Landscaping

13.6% of a Loan to Value ratio is very healthy. The majority of the

money required for the Construction of the units is being

provided through the sale of completed houses.

• We have a very healthy interest cover ratio.

The break-even selling price of the project is the price we have to sell the houses at to cover our costs. If we sell each house for

€486374.32 then we will not make a loss or a profit. This is a good indication of how

reasonable our selling price of €625000 is.

The design for the houses were developed by studying the design of houses in the surrounding area and adapting a similar style.

Dun Laoghaire/ Rathdown County Council for pre planning consultation informed us, via email, that the development would be viable.

The were happy that we satisfied the KilternanGlenamuck Local Area Plan, as well as the Government Guidance for ‘Sustainable Residential Development in Urban Areas’

Develop a marketing plan.

Using local demographics and recent statistics we plan to expose our catchment market and develop our market plan around this.

Relating back to our SWOT analysis, a strategic plan can be optimised to exploit the sites strengths and opportunities.

Create business cards for each member of the company

Current Property Market Prices For Listed Properties In The Surrounding 5km Radius

PROPERTY ADDRESS NO. OF BEDS BATHROOMS TYPE SIZE PRICE PRICE PER SQ.M

1 1 Sleeping Meadow, Enniskerry Road, Kilternan, Dublin 18 4 5 Detached 337 sq.m €900,000 €2,670.62

2 5 Moss Cottages Enniskerry Road, Kilternan, Dublin 18 3 1 Semi-Detached 80 sq.m €375,000 €4,687.50

3 Hillfield, Rathmichael, Co. Dublin 5 5 Detached 370 sq.m €1,200,000 €3,243.24

4 Wheatfield, Kilternan, Co Dublin 5 4 Detached 284 sq.m €695,000 €2,447.18

5 Rathmichael Brook, Ballycorus Road, Rathmichael, Dublin 7 8 Detached 867 sq.m €1,995,000 €2,301.04

6 Four Winds, Ballycorus Road, Kilternan, Dublin 18 4 2 Detached 186 sq.m €450,000 €2,419.35

7 Seaview, Ballybetagh Road, Kilternan, Dublin 18 5 3 Detached 230 sq.m €950,000 €4,130.43

8 Rowan Hill, Ballybrack Road, Glencullen 4 2 Detached 242 sq.m €1,650,000 €6,818.18

9 59 Cairnbrook Avenue, Glenamuck Road, Carrickmines, Dublin 18 2 2 Apartment 113 sq.m €350,000 €3,097.35

10 5 Cairnbrook, Carrickmines, Dublin 18 1 1 Apartment 56 sq.m €199,000 €3,553.57

11 4 The Green, Carrickmines Manor, Dublin 18 3 2 Terrace 115 sq.m €415,000 €3,608.70

Average price per sq.m = €3,543.38

Our price per sq.m = €3,360.22

Our property is €183.16 per sq.m cheaper than the surrounding area

Sold Property Prices In The Surrounding 5km Radius Over The Last 12 Months

PROPERTY ADDRESS DATE SOLD NO. OF BEDS TYPE PRICE

A Kilternan Villa, Ballybetagh RD, Kilternan, Dublin 18 15/10/14 N/A N/A €650,000

B Carrig Dolgen, Barnaslingan Lane, Kilternan, Dublin 18 02/09/14 N/A Detached €1,217,000

C 2 Moss Cottages, Enniskerry Road, Kilternan, Dublin 18 20/08/14 1 Bungalow €285,000

D Merrifield, Barnaslingan Lane, Kilternan, Dublin 18 17/06/14 N/A N/A €625,000

E 9 Wayside Cottages, Kilternan, Dublin 18 13/06/14 4 Bungalow €415,000

F Kingston House, B arnaslingan, Kilternan, Dublin 18 21/02/14 N/A N/A €495,000

G Santa-Maria, Glencullen, Kilternan, Dublin 18 19/12/13 N/A N/A €275,000

H Verney House, Kilternan, Dublin 18 16/12/13 N/A Detached €2,060,000

Social Media marketing;

◦ LinkedIn

◦ Facebook

◦ Twitter

◦ Website: http://c12740375.wix.com/aurainvestments

Aura Investments

facebook.com/Aura Investments

twitter.com/Aura_Invest

Design and create a property brochure with detailed description of the development, the local area and the plan drawings.

Billboards, newsletters, bus ads, newspaper ads, property sites such as daft.ie and myhome.ie

Environment Analysis

Is there a demand in the area

Social environment

Competitors

Industry structure

Who’s in the market

Identify Options

How much money do we have

How much land do we have

Evaluate Options

Is the option suitable

Is the option feasible – enough money

Will it be acceptable

Strategic Choice

Do we have the skills and resources

What can we do?

Planning and Allocating Resources

Construction Programme (timing)

Do a tactical plan

People / finance / plan / builders – in place

Project Risk Assessment Project Risk Control

Identify risk Measure & control risk

Analyse risk Respond to risk

Classify risk Mitigate residual risk

Prioritise risk Establish contingencies

Rating Description Criteria

1 Very low or none Minor nuisance

2 Low or minor Product operable at reduced

performance

3 Moderate or significant Gradual performance degradation

4 High Loss of function

5 Very high or catastrophic Safety-related catastrophic failures

Residual Value € 3,410,679

Developers Profit € 2,071,816

Loan to Value Ratio 13.60%

Looked at cash flow, construction program,

compounded interest, banking financials,

marketing plan, market competition, and strategy

plan.

Thank you all for your attention, we welcome any question you may have.