ALBRA

STRICTLY PRIVATE & CONFIDENTIAL

FOR INFORMATION PURPOSES ONLY

ESTRATEGIAS IMOBILIARIAS ALBRA

Casa Suiça O primeiro prédio de Ingá

Apartment Building Development Proposal

Investment Presentation, 3 December 2013

ALBRA Executive Summary

A L B R A E S T R A T E G I A S I M O B I L I A R I A S proposes Casa Suiça

Located in Ingá (Rua Projetada 10)

Development of a 32-unit apartment complex

Investment Proposal

Project Description

Market overview

Financial Analysis

Establish the first apartment building in Ingá

Develop affordable, 2 bedrooms units, 58.7 m2

Top ammenities: 24hr Security, Pool, Playground, BBQ

Growing middle class in need of affordable housing

Neighboring Campina Grande economy grew 8% last year

Current affordable housing supply does not meet demand

Low capital requirement

Low interest rate on debt financing of construction

Base scenario expects around a 70% return in 18 months

ALBRA Investment Proposal

A L B R A E S T R A T E G I A S I M O B I L I A R I A S is excited to present the first apartment building in Ingá. It will be a 32-unit complex located near the center of Ingá on Rua Projetada 10. The project will be the premier apartment complex for families and individuals. The units are not only affordable, but have excellent amenities. Ingá is a growing community that has much to offer to its residents. This site can capitalize on those lifestyle benefits and extend them to more potential residents. It’s time to make this happen.

ALBRA Project Description

A L B R A E S T R A T E G I A S I M O B I L I A R I A S

has purchased property in an ideal location and has completed the architectual and engineering design. We are seeking to begin construction immediately with targeted completion within 18 months. This is a residential development project that will be two 4-floor buildings, consisting of 32, two-bedroom units of 58.7m2. Ammenities will include: 24-hour security, parking area, playground, pool, BBQ & picinic area. These apartments qualify for the “Minha Casa, Minha Vida” program, allowing for government aide in the purchase.

ALBRA Building Plan

ALBRA Site Plan – 2D Overview

ALBRA Site Plan – 2D Overview

ALBRA Site Plan – 2D Overview

ALBRA Floor Plan – 3D Overview

ALBRA Apartment Floor Plan

ALBRA Combined Floor Plan

ALBRA Market Overview

INGÁ

Population: 17,912

30 km from Campina Grande

98 km from João Pessoa

Growing middle class

Strong local industries

Lack of affordable housing

Ingá

Source: IBGE, www.ibge.gov.br

ALBRA Market Overview

Socio-Economic Highlights - Paraíba

In the last decade the middle class has more than doubled to reach

42% of inhabitants and expected to exceed 50% in the next few

years.

The economy of nearby Campina Grande has grown 8% this year

and is continually adding jobs.

The government of Paraíba is committed to supporting housing

development, adding 8,500 “Minha Casa, Minha Vida” homes this

year.

Source: IBGE, www.ibge.gov.br

ALBRA Market Overview

Supply & Demand

The middle class population has tripled in the last decade from

approximately 200,000 in 2000 to nearly 600,000 in 2010.

Permanent housing domiciles have only increased 27% in the last

decade, not enough to satisfy income growth.

Demand is outpacing supply with more people who can afford to

purchase a home and not enough affordable housing.

Now is a great opportunity to build affordable housing where the

economy is increasing, jobs are available and supply is low.

Source: IBGE, www.ibge.gov.br

ALBRA Financial Projection

(R$) Total (R$) Per Unit

Income

Units 32

Sales 2,880,000 90,000

Direct Costs

Land Acquistion 120,000 3,750

Conveyence Fee 7,200 225

Planning & Engineering 34,500 1,078

Excavation Cost 5,000 156

Infrastructure: Water, Sewer, Power 25,000 781

Legal and Accounting Fees 3,000 94

Construction Cost 1,255,904 39,247

Subtotal 1,450,604 45,331

Indirect Costs

Interest Expense 50,299 1,572

Marketing 25,000 781

Subtotal 75,299 2,353

Cost of Sales

Sales Commissions (5%) 144,000 4,500

Total Costs 1,669,903 52,184

Net Income 1,210,097 37,816

Tax (5.93%) 170,784 5,337

After Tax Profit 1,039,313 32,479

Key Highlights

Land purchase completed

Construction costs will be

R$650/m2

40% cash deposit on

Construction Cost, the

remaining 60% to be

financed through Caixa

Econômica

All units will be sold prior to

completion of construction

5.93% Tax Rate on Sales

ALBRA Sensitivity Analysis

% Increase (R$) Base (R$) 10% (R$) 20% (R$) 30%

Constrution Costs 1,255,904 1,381,494 1,507,085 1,632,675

Total Revenue 2,880,000 2,880,000 2,880,000 2,880,000 Total Expenses 1,636,370 1,711,725 1,787,079 1,862,433

Net Income 1,243,630 1,168,275 1,092,921 1,017,567

Tax (5.93%) 170,784 170,784 170,784 170,784 Net Profit 1,072,846 997,491 922,137 846,783

ROI 66% 58% 52% 45%

Sensitivity analysis based on increase Construction Cost as they

constitute 87% of the total cost of the project. Return on Investment

(ROI) is heavily influenced by the accuracy of this cost. The chart

below demonstrates the impact on return should this cost increase.

ALBRA Capital Requirement

TOTAL EQUITY INVESTMENT ($R)

Direct Costs 1,450,604

Indirect Cost 75,299

Total Cost of Project 1,525,903

Loan Amount (753,542)

Required Capital Investment 772,361

R$500,000 capital requirement

secured

Seeking R$250,000 among 1

or 2 investors to break

ground

Net Profit after Taxes is

estimated to be R$1,039,313,

after which will provide for

around 70% return in 18

months.

ALBRA Team Principals

STEFAN ZIMMERMAN – Stefan has extensive experience as a real estate developer in

Switzerland and Germany. He has been a principal developer in both commercial and residential

properties for over 20 years. His ties to Brazil began more than 20 years ago when he first come

to Brazil with his wife Sandra, a native of Campina Grande. He has invested in Brazil for many

years and is currently developing the first apartment complex in the city of Ingá, with 32 units. His

international real estate experience gives him a unique perspective to see the value in an area

and to pursue projects that have high return potential. Stefan holds a degree in Economics from

the Bern University in Switzerland. Stefan is fluent in German, Portuguese and English.

SANDRA ZIMMERMAN – Sandra is originally from Campina Grande, though she has spent the

last 20 years living in Switzerland assisting her husband in a variety of capacities in real estate

transactions. Her experience in Sales and Marketing, along with her strong network and

understanding of the people in the region, make her a valuable asset to the team. She is a

graduate of Colégio 11 de Outubro in Campina Grande. Sandra is fluent in German and

Portuguese.

MARIZA TAILLEFER – born and raised in the United States, Mariza’s family is originally from

Campina Grande and Ingá. Her professional experience includes Finance and Project

Management, mainly in the insurance industry in the U.S. Mariza’s strengths are in planning and

execution. She is accustomed to performing rigorous due diligence when undertaking projects and

her tenacious nature ensures they are completed timely and economically without sacrificing

quality or integrity. Mariza holds a degree in Finance and an MBA from the University of

Connecticut in the United States. She is fluent in English and Portuguese.

ALBRA Key Investment Benefits

Low capital investment. A L B R A is specifically focused on finding opportunities for

investment that requirement low initial capital investment, with the intent to finance any

required construction costs for real estate development.

Speed-to-Market. The capital requirement from investors is intended to fund land

acquisition costs and if required, any pre-construction phase costs such as final

architectural design, site excavation, licensing, and permits. Sales can begin even

before we break ground.

High Demand, Quick Sales. The demand for real estate properties (e.g. land,

apartments, and condominiums) in this region remains high. An effective marketing

plan will sell these properties quickly (within 12 weeks from beginning construction).

60% of construction costs will be financed through Caixa Economica once 80% or

more of the apartments are sold, so construction may begin and be completed without

any additional capital required from investors.

Active, On-site Management. A L B R A will be responsible for on-site management

during all stages of development, sales and construction.

ALBRA Building the Future

Construction for Casa Suiça is targeted to begin March 2014!

Let’s take advantage of the opportunity to profit from the growth in the

Northeast by providing quality, affordable housing to growing middle

class families.

For more information contact: Stefan Zimmermann P: +41 (0) 79 197 13 36 E: sszservices@bluewin.ch Mariza Monteiro Taillefer P: +55 (11) 9 5240 5148 E: mariza.taillefer@gmail.com