Three Storey Units of Apartments

1. DESCRIPTION : The company is seeking funding from investors, for the development of a 3 storey unit

of apartments, comprising of 2 units of 2 bedroom at and 1 unit of studio apartments per floor. The property would sit on a 655sqm of land as annotated in the survey plan. The funding is required for the growth of the business in order to benefit both parties.

2. LOCATION : The property is located at No. 8 Akinola Street, Fadeyi, Lagos. The street is off the ever

busy Ikorodu Road, that has swift access to various business districts in Lagos.

3. PROPERTY : The said property would be tastefully nished with modern day textures and fitting and

adequately finished to attract a competitive rent and eventual end users / class of tenants.

4. FUNDING : The cost of completing this project is estimated at N50,000,000.00 (Fifty million naira

only). This sum has been divided into 4 tranches of N12,500,000.00 per slot to enable investors partake and have a holding in the property. Each investment tranche gives the investor 2 units of 2 bedroom in the property for 17 years.

5. RETURN ON INVESTMENT : With the going rent of 2 bedroom flats in the locale tagged at

N1,000,000.00 - N1,200,000.00 , an investor is posited to receive the minimum of N2,000,000.00 per annum for 17 years given the investment trench of 12,500,000.00. Investment = N12,500,000.00 ; Duration = 17 years ; Yearly income =N2,000,000

TOTAL INCOME: Income over the investment period is N2m x 17= N34m The calculated ROI is however not xed given the steady increase of rent in this prime area of Lagos. The rate of increase has been investigated to be 25% every 5 years. Going by the aforementioned deductions, the return on investment would be;

First 5 years = N2,000,000.00; 5x2.0 = N10,000,000.00 Second 5 years, applying 25% increment = N2,500,000.00; 5x2.5 = N12,500,000.00 Third 5 years, applying 25% increment = N3,125,000.00; 5x3.1 = N15,625,000.00 Remaining 2 years, applying 25% increment = N3,906,250.00; 2x3.9 =N7,812,500.00 TOTAL INCOME BASED ON 25% INCREMENT: = N45,937,500.00 ROI @ Normal rent for 17years: N34m @ 272% profit plus capital. ROI @ 25% increment 5 yearly: N45.9m@ 367% profit plus capital.