Ring Road 2 Site

Business Plan for the XXXXXXXXXXXXXXXXXXXXXXXXX

Бизнес план за XXXXXXXXXXXXXXXXXXXXXXXX
Table of Contents /// Съдържание:

I. Schedule of the Project /// График на изпълнение на проекта

II. Investment /// Инвестиция

III. Cash Flows /// Парични потоци

IV. Revenue - Detailed Breakdown and Description /// Приходи - детайлна разбивка и описание

V. Expenditures - Detailed Breakdown and Description /// Разходи - детайлна разбивка и описание

VI. Operating Expenses - Detailed Breakdown and Description /// Оперативни разходи - детайлна разбивка и описание

VII. Capital Expenditures incl. Brokerage - Detailed Breakdown and Description /// Капиталови разходи вкл. брокераж - детайлна разбивка и описание

VIII. Bank Loan /// Банков заем

Important Notes:
1. ALL FIGURES ARE INDICATIVE
2. PLAY SENSITIVITY ANALYSIS WITH HIGHLITED RED CELLS
3. XXXXXXXXXXXXXXXXXXX means to enter title or name or company etc
 Ring Road 2 Site

I. Schedule of the Project /// График на изпълнение на проекта

year 2008 year 2009

Calendar Months I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII

project

duration in
months 2008 2009

0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0
9 67% 33%

ground breaking opening

първа копка на официално

обекта откриване
на обекта

N.B. The shedule is used in cash flow projections for both hard and soft costs spendings!
 Ring Road 2 Site

II. Investment /// Инвестиция

ASSUMPTIONS:

site size 20,000 sqm

TBA 12,000 sqm
euro exchange rate 1.95583 BGN

DEVELOPMENT COSTS
A. LAND COSTS building costs /EUR/ building costs /BGN/ costs per unit /EUR/ costs per unit /BGN/

(a1) Land acquisition € 400,000 782,332 лв € 20 39 лв

(a2) Land development € 600,000 1,173,498 лв € 30 59 лв
(A=a1+a2) Total land acquisition and development costs € 1,000,000 1,955,830 лв € 50 98 лв

B. BUILDING HARD AND SOFT COSTS

(b1) Shell and core € 4,498,147 8,797,611 лв € 375 733 лв
(B1=b1+0) Total hard costs € 4,498,147 8,797,611 лв € 375 733 лв

(b2) Architectural/Engineering € 127,803 249,961 лв € 11 21 лв

(b3) Project management € 245,424 480,008 лв € 20 40 лв
(b4) Lease-up costs € 68,627 134,222 лв €6 11 лв
(b5) Marketing and PR € 13,313 26,038 лв €1 2 лв
(b6) Contingency (10%) € 280,453 548,518 лв € 23 46 лв
(b7) Other soft costs €0 0 лв €0 - лв
(B2=b1+b2+b3+b4+b5+b6+b7) Total soft costs € 735,620 1,438,747 лв € 61 120 лв
(B=B1+B2) Total hard and soft costs € 5,233,767 10,236,358 лв € 436 853 лв

(Total=A+B) TOTAL DEVELOPMENT COSTS € 6,233,767 12,192,188 лв € 519 1,016 лв

Ratios:
land costs to development costs 16.04%
building costs to development costs 83.96% 83.96% check
leverage/debt service from development costs 40.00% € 2,493,507
own financing including land 60.00% € 3,740,260
leverage/debt service from building costs 47.64% € 2,493,507
own financing on building costs 52.36% € 2,740,260

Ownership:
XXXXXXXXXXXXXXXXXXXXXXXX 100%
 Ring Road Site 2

Assumptions:
CF period (months): 144 project operational
Cap Rate / Yield: 10.00%
Discount Rate / Hurdle: 15.00%
Gearing to Development / Project: 40%
Gearing to Construction: 48%
Annual Rental Indexation: 3%
Grace Period on Principal and Interest (months): 12
Bank Loan Agreement Duration (months) 96
Lease Agreement Duration (months) 60
Interest Rate on the Debt Service (Bank Loan) 7.00%

0 1 2 3 4 5 6 7 8 9 10 11 12

… year -2 … year -1 H2 year 0 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10
Pre-Start 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2016 2017
Land Project Project Project Project Project Project Project Project Project Project Project Project
Development Development Development Operational Operational Operational Operational Operational Operational Operational Operational Operational Operational
REVENUE

Base Rent Revenue (@ 100% occupancy) - 593,028 790,704 814,425 838,858 862,626 888,505 842,049 942,615 970,893 1,000,020 1,030,020
Service Charge (@ 100% occupancy) - 68,770 91,693 93,527 95,397 97,305 100,224 103,231 106,328 109,518 112,803 116,187
Other Income (utilities, …) - - - - - - - - - - - -
Potential Gross Income - - 661,798 882,397 907,952 934,255 959,931 988,729 945,280 1,048,943 1,080,411 1,112,823 1,146,208

Average Occupancy 100% 100% 100% 100% 100% 100% 95% 100% 100% 100% 100%

Effective Gross Income from Rent - 593,028 790,704 814,425 838,858 862,626 888,505 842,049 942,615 970,893 942,615 970,893
Effective Gross Income from Service Charge - 68,770 91,693 93,527 95,397 97,305 100,224 98,373 106,328 109,518 106,328 109,518
Effective Other Income (utilities, …) - - - - - - - - - - - -

TOTAL EFFECTIVE GROSS INCOME - - 661,798 882,397 907,952 934,255 959,931 988,729 940,422 1,048,943 1,080,411 1,048,943 1,080,411

OPERATING EXPENSES

Operating Expenses (utilities, administration, ….) - - (111,573) (112,999) (114,471) (115,949) (117,517) (116,942) (120,807) (122,533) (124,315) (126,156)
Other Operating Expenses - - - - - - - - - - - -

TOTAL OPERATING EXPENSES - - - (111,573) (112,999) (114,471) (115,949) (117,517) (116,942) (120,807) (122,533) (124,315) (126,156)

NET OPERATING INCOME (NOI) - - 661,798 770,824 794,953 819,784 843,982 871,212 823,479 928,135 957,878 924,627 954,255

CAPITAL EXPENDITURES

Tenants Improvements - - - - - - - (40,607) - - - -

Leasing Commissons when functionning - - - - - - - (14,034) - - - -
Capital Improvements/Reserves - - (10,916) (10,916) (10,916) (10,916) (10,916) (10,916) (10,916) (10,916) (10,916) (10,916)
Other - - - - - - - - - - - -

TOTAL CAPITAL EXPENDITURES - - - (10,916) (10,916) (10,916) (10,916) (10,916) (65,557) (10,916) (10,916) (10,916) (10,916)

CASH FLOW from OPERATIONS - - 661,798 759,908 784,037 808,868 833,067 860,297 757,923 917,220 946,962 913,711 943,339

DEVELOPMENT COSTS

Land Costs
Land Acquisition (400,000) - - - - - - - - - - - -
Land Development / Rezoning (600,000) - - - - - - - - - - - -
Total Land Costs (1,000,000) - - - - - - - - - - - -

Construction Costs
Construction / Hard Costs (2,998,765) (1,499,382) - - - - - - - - - -
Soft Costs incl. initial leasing commissions during development (303,445) (151,722) - - - - - - - - - -
Contingency (186,968) (93,484) - - - - - - - - - -
Total Construction Costs - (3,489,178) (1,744,589) - - - - - - - - - -

TOTAL DEVELOPMENT COSTS (1,000,000) (3,489,178) (1,744,589) - - - - - - - - - -

FUNDING / LEVERAGE

Bank Lending
Bank Loan Draws 1,662,338 831,169 - - - - - - - - - -
Interest Payments - (88,627) (157,680) (131,581) (105,482) (79,384) (53,285) (27,186) (3,806) (0) (0) (0)
Principal Repayment - (186,419) (372,839) (372,839) (372,839) (372,839) (372,839) (372,839) (186,419) - - - - €
Total Debt Service - 1,662,338 556,123 (530,518) (504,420) (478,321) (452,222) (426,123) (400,025) (190,225) (0) (0) (0)

Shareholders Loan
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx at 100% ownership 1,000,000 1,826,840 913,420 - - - - - - - - - -
Interest on Loan from Shareholders - - - - - - - - - - - -
Total Equity Service to Shareholders 1,000,000 1,826,840 913,420 - - - - - - - - - -

TOTAL FUNDING - 1,662,338 556,123 (530,518) (504,420) (478,321) (452,222) (426,123) (400,025) (190,225) (0) (0) (0)

CASH FLOW after FINANCING (1,000,000) (1,826,840) (526,669) 229,390 279,618 330,548 380,844 434,173 357,898 726,994 946,962 913,711 943,339

Property Sale
Sale Transaction Costs
Outstanding Loan Balance
Net Sale Proceeds - - - - - - - - - - - - -

PROJECT NET CASH FLOWS (1,000,000) (1,826,840) (526,669) 229,390 279,618 330,548 380,844 434,173 357,898 726,994 946,962 913,711 943,339

PROJECT NET CASH FLOWS incl. Shareholders Loan - - 386,751 229,390 279,618 330,548 380,844 434,173 357,898 726,994 946,962 913,711 943,339

Ratios

Proposed Loan Amount 2,493,507 €

Proposed Equity Investment 2,740,260 €
Equity already Invested 1,000,000 €
Total Equity 3,740,260 €

Debt after Grace Period on Principal and Interest 2,609,870 €

Annual Max Estimated Capital and Leasing Costs 65,557 € at year 6 through the years 10,916 €

Estimated Costs (incl. Dev. and Pre-Start Opearting Expenses) 6,233,767 €

Financial Costs (interest) 647,030 €
Total Costs 6,880,797 €

Developer's Profit % 0.00%

Developer's Profit - €
Market Value

NPV to sale year (geared) 892,693 € 938,129 € 958,034 € 951,626 € 941,087 € 639,721 € 845,583 € 808,201 € 613,673 € 586,696 € 494,459 €
IRR to sale year (after financing/geared) 41.86% 30.00% 25.51% 23.04% 21.53% 18.94% 19.46% 18.84% 17.75% 17.45% 16.97%
NPV to sale year (non-geared) - 973,327 € - 579,067 € - 270,758 € - 39,356 € 145,613 € 4,443 € 341,074 € 357,765 € 163,237 € 129,892 € 44,024 €
IRR to sale year (non-geared) -8.16% 8.01% 12.77% 14.75% 15.76% 15.02% 16.36% 16.30% 15.56% 15.42% 15.14%

Annual Yield when Built (non-geared; geared) 12.37% 16.39%

Debt Coverage on NOI 1.45 1.58 1.71 1.87 2.04 2.06 4.88 ### ### ###
Debt Coverage on Cash Flow before Debt Service (from Operations) 1.43 1.55 1.69 1.84 2.02 1.89 4.82 ### ### ###

Value at Cap Rate 10% at year end 7,708,236 € 7,949,530 € 8,197,843 € 8,439,824 € 8,712,124 € 8,234,794 € 9,281,353 € 9,578,775 € 9,246,271 € 9,542,551 € 9,542,551 €
Sale - Transaction Costs at 2% 7,554,072 € 7,790,539 € 8,033,886 € 8,271,028 € 8,537,881 € 8,070,098 € 9,095,726 € 9,387,200 € 9,061,345 € 9,351,700 € 9,351,700 €
Outstanding Loan Amount - 2,423,451 € - 2,050,612 € - 1,677,774 € - 1,304,935 € - 932,097 € - 559,258 € - 186,419 € - € - € - € - €
Net Sale Proceeds 5,130,621 € 5,739,927 € 6,356,112 € 6,966,093 € 7,605,785 € 7,510,840 € 8,909,307 € 9,387,200 € 9,061,345 € 9,351,700 € 9,351,700 €
Profit 1,390,361 € 1,999,667 € 2,615,852 € 3,225,833 € 3,865,525 € 3,770,580 € 5,169,047 € 5,646,940 € 5,321,085 € 5,611,440 € 5,611,440 €

Loan to Value at year end 31.44% 25.80% 20.47% 15.46% 10.70% 6.79% 2.01% 0.00% 0.00% 0.00% 0.00%
Loan to Cost 40.00%
Debt after Grace period to Cost 41.87%

Value per sqm of TBA 669 € 690 € 712 € 733 € 756 € 715 € 806 € 831 € 803 € 828 € 828 €
Loan Exposure per sqm 216 €
Debt after Grace Period Exposure per sqm 227 €

Breakeven Occupancy 74% 69% 65% 60% 56% 62% 31% 12% 12% 12%
Breakeven Average Rent at Occupancy 100% 4.29 4.08 3.88 3.68 3.47 3.66 1.65 0.18 0.17 0.16
Mortgage Constant 0.20 0.19 0.18 0.17 0.16 0.15 0.07 0.00 0.00 0.00
Breakeven Mortgage Constant 0.29 0.30 0.31 0.32 0.33 0.29 0.35 0.36 0.35 0.36

Return on Assets ROA (using estimated construction costs) average for 10 years period 13.68% 12.19% 12.58% 12.98% 13.36% 13.80% 12.16% 14.71% 15.19% 14.66% 15.13%
Return on Equity ROE (using equity investment) (geared) average for 10 years period 14.82% 6.13% 7.48% 8.84% 10.18% 11.61% 9.57% 19.44% 25.32% 24.43% 25.22%
Return on Equity ROE (non-geared) average for 10 years period 13.68% 12.19% 12.58% 12.98% 13.36% 13.80% 12.16% 14.71% 15.19% 14.66% 15.13%

Notes: The Cash Flow spreadsheet is prepared on an aggregated level. Please refer to the individual spreadsheets to see details for the Revenue, Expenditures, Service Charge and Operationional Expenses incl. all the Assumptions.
 Ring Road Site 2

IV. Revenue - Detailed Breakdown and Description /// Приходи - детайлна разбивка и описание

Areas by level /
Разпределение на площите по нива
ASSUMPTIONS:
level built-up common areas
annual increase of rent levels 3% кота area / ЗП общи части
0.00 9,229 103 * build-up area incl. between floors
3.70 636 92 * build-up area incl. between floors
6.90 636 92 * build-up area incl. between floors
10.10 636 92 * build-up area incl. between floors
13.30 385 55 * build-up area incl. between floors
TOTAL 11,522 433

year 1 year 2 year 3 year 4 year 5 year 6

Заетост 100% 2010 (2009 period too) 2011 2012 2013 2014 2015

EUR /sqm/ EUR /sqm/ EUR /sqm/ EUR /sqm/ EUR /sqm/ EUR /sqm/ EUR /sqm/
Tenant Area month Occupancy EUR / month month Occupancy month Occupancy month Occupancy month Occupancy month Occupancy month Occupancy
Part 1
1 Office / офис 175 € 11.00 100% € 1,925 € 11.00 100% € 1,925 € 11.33 100% € 1,983 € 11.67 100% € 2,042 € 12.02 100% € 2,103 € 12.38 100% € 2,167 € 12.75 100% € 2,232
2 Warehouse 1 / склад 1 4,086 € 5.20 100% € 21,248 € 5.20 100% € 21,248 € 5.36 100% € 21,886 € 5.52 100% € 22,542 € 5.68 100% € 23,219 € 5.85 100% € 23,915 € 6.03 80% € 19,706
3 Warehouse 2 / склад 2 2,332 € 5.20 100% € 12,126 € 5.20 100% € 12,126 € 5.36 100% € 12,490 € 5.52 100% € 12,864 € 5.68 100% € 13,250 € 5.85 100% € 13,648 € 6.03 100% € 14,057
4 Warehouse 3 / склад 3 2,317 € 5.20 100% € 12,050 € 5.20 100% € 12,050 € 5.36 100% € 12,412 € 5.52 100% € 12,784 € 5.68 100% € 13,168 € 5.85 100% € 13,563 € 6.03 100% € 13,970
5 Showroom / шоурум 168 € 17.00 100% € 2,849 € 17.00 100% € 2,849 € 17.51 100% € 2,935 € 18.04 100% € 3,023 € 18.58 100% € 3,113 € 19.13 100% € 3,207 € 19.71 100% € 3,303
6 Common areas / Общи части 103
100% 100% 100% 100% 100% 96%
GLA Part 1 9,181 € 5.47 100% € 50,199 € 50,199 € 51,705 € 53,256 € 54,854 € 56,499 € 53,268

Part 2
1 Office 1 / офис 1 153 € 11.00 100% € 1,687 € 11.00 100% € 1,687 € 11.33 100% € 1,738 € 11.67 100% € 1,790 € 12.02 100% € 1,844 € 12.38 100% € 1,899 € 12.75 80% € 1,565
2 Office 2 / офис 2 102 € 11.00 100% € 1,125 € 11.00 100% € 1,125 € 11.33 100% € 1,159 € 11.67 100% € 1,194 € 12.02 100% € 1,230 € 12.38 100% € 1,267 € 12.75 100% € 1,305
3 Office 3 / офис 3 173 € 11.00 100% € 1,902 € 11.00 100% € 1,902 € 11.33 100% € 1,959 € 11.67 100% € 2,018 € 12.02 100% € 2,078 € 12.38 100% € 2,141 € 12.75 100% € 2,205
4 Common areas / Общи части 92
100% 100% 100% 100% 100% 93%
GLA Part 2 520 € 9.06 100% € 4,715 € 4,715 € 4,856 € 5,002 € 5,152 € 5,306 € 5,074

Part 3
1 Office 1 / офис 1 153 € 11.00 100% € 1,687 € 11.00 100% € 1,687 € 11.33 100% € 1,738 € 11.67 100% € 1,790 € 11.90 100% € 1,826 € 12.26 100% € 1,881 € 12.63 80% € 1,550
2 Office 2 / офис 2 102 € 11.00 100% € 1,125 € 11.00 100% € 1,125 € 11.33 100% € 1,159 € 11.67 100% € 1,194 € 11.90 100% € 1,218 € 12.26 100% € 1,254 € 12.63 100% € 1,292
3 Office 3 / офис 3 173 € 11.00 100% € 1,902 € 11.00 100% € 1,902 € 11.33 100% € 1,959 € 11.67 100% € 2,018 € 11.90 100% € 2,058 € 12.26 100% € 2,120 € 12.63 100% € 2,183
4 Common areas / Общи части 92
100% 100% 100% 100% 100% 93%
GLA Part 3 520 € 9.06 100% € 4,715 € 4,715 € 4,856 € 5,002 € 5,102 € 5,255 € 5,025

Part 4
1 Office 1 / офис 1 153 € 11.00 100% € 1,687 € 11.00 100% € 1,687 € 11.33 100% € 1,738 € 11.67 100% € 1,790 € 11.90 100% € 1,826 € 12.26 100% € 1,881 € 12.63 80% € 1,550
2 Office 2 / офис 2 102 € 11.00 100% € 1,125 € 11.00 100% € 1,125 € 11.33 100% € 1,159 € 11.67 100% € 1,194 € 11.90 100% € 1,218 € 12.26 100% € 1,254 € 12.63 100% € 1,292
3 Office 3 / офис 3 173 € 11.00 100% € 1,902 € 11.00 100% € 1,902 € 11.33 100% € 1,959 € 11.67 100% € 2,018 € 11.90 100% € 2,058 € 12.26 100% € 2,120 € 12.63 100% € 2,183
4 Common areas / Общи части 92
100% 100% 100% 100% 100% 93%
GLA Part 4 520 € 9.06 100% € 4,715 € 4,715 € 4,856 € 5,002 € 5,102 € 5,255 € 5,025

Part 5
1 Conference hall / конферентна зала 64 € 7.00 100% € 449 € 7.00 100% € 449 € 7.21 100% € 463 € 7.43 100% € 477 € 7.57 100% € 486 € 7.80 100% € 501 € 8.04 100% € 516
2 Buffet hall / зала бюфет 45 € 20.00 100% € 894 € 20.00 100% € 894 € 20.60 100% € 921 € 21.22 100% € 948 € 21.64 100% € 967 € 22.29 100% € 996 € 22.96 100% € 1,026
3 Buffet / бюфет 10 € 20.00 100% € 206 € 20.00 100% € 206 € 20.60 100% € 212 € 21.22 100% € 219 € 21.64 100% € 223 € 22.29 100% € 230 € 22.96 100% € 236
4 Common areas / Общи части 55
100% 100% 100% 100% 100% 100%
GLA Part 5 174 € 8.91 100% € 1,549 € 1,549 € 1,596 € 1,644 € 1,677 € 1,727 € 1,779

TOTAL leasable area incl. Commom areas/

ОБЩО отдаваеми площи вкл. Общи части 10,916 € 6.04 100% € 65,892 6.04 € 100% € 65,892 6.22 € 100% € 67,869 6.40 € 100% € 69,905 6.59 € 100% € 71,885 6.78 € 100% € 74,042 6.43 € 95% € 70,171
€ 790,704 on total GLA € 790,704 on total GLA € 814,425 on total GLA € 838,858 on total GLA € 862,626 on total GLA € 888,505 on total GLA € 842,049

Common areas between floors / Общи части на

междинни нива 606

TOTAL areas / Общо площи 11,522

 Ring Road Site 2

year 7 year 8 year 9 year 10

2016 2017 2018 2019

EUR /sqm/ EUR /sqm/ EUR /sqm/ EUR /sqm/

month Occupancy month Occupancy month Occupancy month Occupancy

€ 13.13 100% € 2,299 € 13.53 100% € 2,368 € 13.93 100% € 2,439 € 14.35 100% € 2,512
€ 6.21 100% € 25,372 € 6.40 100% € 26,133 € 6.59 100% € 26,917 € 6.78 100% € 27,724
€ 6.21 100% € 14,479 € 6.40 100% € 14,913 € 6.59 100% € 15,361 € 6.78 100% € 15,822
€ 6.21 100% € 14,389 € 6.40 100% € 14,821 € 6.59 100% € 15,265 € 6.78 100% € 15,723
€ 20.30 100% € 3,402 € 20.91 100% € 3,504 € 21.54 100% € 3,609 € 22.18 100% € 3,718

100% 100% 100% 100%

€ 59,940 € 61,738 € 63,590 € 65,498

€ 13.13 100% € 2,015 € 13.53 100% € 2,075 € 13.93 100% € 2,138 € 14.35 100% € 2,202
€ 13.13 100% € 1,344 € 13.53 100% € 1,384 € 13.93 100% € 1,425 € 14.35 100% € 1,468
€ 13.13 100% € 2,271 € 13.53 100% € 2,339 € 13.93 100% € 2,409 € 14.35 100% € 2,482

100% 100% 100% 100%

€ 5,629 € 5,798 € 5,972 € 6,151

€ 13.01 100% € 1,995 € 13.40 100% € 2,055 € 13.80 100% € 2,117 € 14.21 100% € 2,180
€ 13.01 100% € 1,331 € 13.40 100% € 1,371 € 13.80 100% € 1,412 € 14.21 100% € 1,454
€ 13.01 100% € 2,249 € 13.40 100% € 2,316 € 13.80 100% € 2,386 € 14.21 100% € 2,457

100% 100% 100% 100%

€ 5,575 € 5,742 € 5,914 € 6,092

€ 13.01 100% € 1,995 € 13.40 100% € 2,055 € 13.80 100% € 2,117 € 14.21 100% € 2,180
€ 13.01 100% € 1,331 € 13.40 100% € 1,371 € 13.80 100% € 1,412 € 14.21 100% € 1,454
€ 13.01 100% € 2,249 € 13.40 100% € 2,316 € 13.80 100% € 2,386 € 14.21 100% € 2,457

100% 100% 100% 100%

€ 5,575 € 5,742 € 5,914 € 6,092

€ 8.28 100% € 531 € 8.53 100% € 547 € 8.78 100% € 564 € 9.04 100% € 581
€ 23.65 100% € 1,057 € 24.36 100% € 1,089 € 25.09 100% € 1,121 € 25.84 100% € 1,155
€ 23.65 100% € 244 € 24.36 100% € 251 € 25.09 100% € 258 € 25.84 100% € 266

100% 100% 100% 100%

€ 1,832 € 1,887 € 1,944 € 2,002

7.20 € 100% € 78,551 7.41 € 100% € 80,908 7.63 € 100% € 83,335 7.86 € 100% € 85,835
on total GLA € 942,615 on total GLA € 970,893 on total GLA € 1,000,020 on total GLA € 1,030,020
 Ring Road Site 2

V. Expenditures - Detailed Breakdown and Description /// Разходи - детайлна разбивка и описание

Anticipated
Очаквана сума amount per sqm
EXPENDITURES / РАЗХОДИ Anticipated amount Очаквана за кв.м.
/BGN/ сума /EURO/ /EURO/

А HARD COSTS / РАЗХОДИ ЗА СТРОИТЕЛСТВО 8,797,611 лв 4,498,147 € € 374.97 euro exchange rate 1.95583
Б SOFT COSTS / РАЗХОДИ, СВЪРЗАНИ СЪС СТРОИТЕЛСТВОТО 890,229 лв 455,167 € € 37.93
В CONTINGENCY / НЕПРЕДВИДЕНИ РАЗХОДИ 548,518 лв 280,453 € € 23.37

TOTAL=А+Б+В TOTAL SOFT AND HARD COSTS / ОБЩО РАЗХОДИ ЗА СТРОИТЕЛСТВО И СВЪРЗАНИ 10,236,358 лв 5,233,767 € € 436.27

7/11
 Ring Road Site 2

VI. Operating Expenses - Detailed Breakdown and Description /// Оперативни разходи - детайлна разбивка и описание

ASSUMPTIONS:

service charge (EUR/sqm/month) € 0.70 per sqm

GLA 10,916 sqm

annual increase in service charge

(after year 5) 3%
annual increase in service charge
(till year 5) 2%
annual increase in expense 3.50%

year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10
A. OPERATING EXPENSES January 2010 January 2011 January 2012 January 2013 January 2014 January 2015 January 2016 January 2017 January 2018 January 2019

utilities 18 000 annual € 1,500 € 1,553 € 1,607 € 1,663 € 1,721 € 1,782 € 1,844 € 1,908 € 1,975 € 2,044
property tax* 0.15% € 654 € 654 € 654 € 654 € 654 € 654 € 654 € 654 € 654 € 654
garbage removal fee* 1.00% € 4,361 € 4,361 € 4,361 € 4,361 € 4,361 € 4,361 € 4,361 € 4,361 € 4,361 € 4,361
insurance* 0.07% € 305 € 305 € 305 € 305 € 305 € 305 € 305 € 305 € 305 € 305
advertising 2 400 annual € 200 € 207 € 214 € 222 € 230 € 238 € 246 € 254 € 263 € 273
management fee 3% € 1,977 € 2,036 € 2,097 € 2,157 € 2,221 € 2,105 € 2,357 € 2,427 € 2,500 € 2,575
provisions fixed amount € 300 € 300 € 300 € 300 € 300 € 300 € 300 € 300 € 300 € 300

Total operating expenses € 9,298 € 9,417 € 9,539 € 9,662 € 9,793 € 9,745 € 10,067 € 10,211 € 10,360 € 10,513

B. SERVICE CHARGE € 7,641 € 7,794 € 7,950 € 8,109 € 8,352 € 8,603 € 8,861 € 9,126 € 9,400 € 9,682

C. NET CASH FLOW (A-B) -€ 1,657 -€ 1,623 -€ 1,589 -€ 1,554 -€ 1,441 -€ 1,143 -€ 1,207 -€ 1,085 -€ 959 -€ 831

expenses as percentage of income 14.11% 13.87% 13.65% 13.44% 13.23% 13.89% 12.82% 12.62% 12.43% 12.25%

service charge per sqm of GLA € 0.70 € 0.71 € 0.73 € 0.74 € 0.77 € 0.79 € 0.81 € 0.84 € 0.86 € 0.89

€ 165
 Ring Road Site 2

VII. Capital Expenditures incl. Brokerage - Detailed Breakdown and Description /// Капиталови разходи вкл. брокераж - детайлна разбивка и описание

CAPITAL EXPENDITURES

tenant improvements
new tenants after year 5 20% 2,183 sqm
annual monthly
tenant improvements for new tenants 7.00 € 15,282 € 2,547 €
tenant improvements for existing tenants 2.90 € 25,325 € 4,221 €
total tenants improvements 6,768 €
turnover vacancy while new tenants enter (months) 6

leasing commissions after year 5

average monthly rent for year 6 6.43 €
brokerage 14,034 €
monthly brokerage fee 2,339 €

per sqm GLA annual monthly

capital improvements € 1.00 10,916 € 10,916 € 910
(common area maintenance)

LEASING COMMISSIONS INCLUDED INTO SOFT COSTS (under DEVELOPMENT COSTS)

leasing commissions during development (brokerage)
leasing duration (months) 9
first year monthly rent 65,892 €
monthly leasing commissions 7,321 €
 Ring Road Site 2

VIII. Bank Loan /// Банков заем

Bank loan utilization and repayment schedule / План за усвояване и погасяване на банков кредит
(1-year grace period for the principal and interests/ 1 годишен гратисен период за главницата и лихва)

Loan amount / Размер на кредита: € 2,493,507

Currency / Валута: EUR
Utilization (months) / Период на усвояване (месеци): 9
Grace period (months) / Гратисен период (месеци): 12

PART 1: Loan Utilization / Усвояване на кредита

* При проста месечна

Годишен лихвен % лихва

7.00% * With simple monthly
Annual interest rate
interest

Пореден месец Годишно Месечна сума за Усвоена сума (с * Лихва за периода към Изплащане на лихва Изплащане на главница
Successive month Annually Interest repayment Principal repayment
усвояване натрупване) края на месеца
Monthly amount Utilized amount (on * Interest for the period at
for utilization accrual basis) the end of the month

1 277,056 € 277,056 € 1,616 € - € - €

2 277,056 € 554,113 € 3,232 € - € - €
3 277,056 € 831,169 € 4,848 € - € - €
4 277,056 € 1,108,225 € 6,465 € - € - €
5 277,056 € 1,385,281 € 8,081 € - € - €
6 1,662,338 € 277,056 € 1,662,338 € 9,697 € - € - €
7 277,056 € 1,939,394 € 11,313 € - € - €
8 277,056 € 2,216,450 € 12,929 € - € - €
9 277,056 € 2,493,507 € 14,545 € - € - €
10 - € 2,493,507 € 14,545 € - € - €
11 - € 2,493,507 € 14,545 € - € - €
12 831,169 € - € 2,493,507 € 14,545 € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
999 - € - € - € - € - €
общо за периода на усвояване
total for the utilization period 2,493,507 € 2,493,507 € 2,493,507 € 116,364 € - € - €

Amount of debt at the end of utilization period / Задължение в края на периода на усвояване:

Principal / Главница 2,493,507 €

Interests / Лихва 116,364 €

Repayments on principal and

interests
Изплатена главница и лихва - €

Total loan amount

Общо задължение 2,609,870 €

Period of repayment (months) / Период на погасяване (месеци): 84

PART 2: Bank loan repayment schedule / Погасителен план на кредита

Годишен лихвен % 7.00% *** При проста месечна
Annual interest rate лихва
Simple interest rate
Amount of the sum to be repaid € 2,609,870
Размер на задълженето за погасяване

Пореден месец Годишно Плащане на Задължение в началото *** Лихва за периода към Amount of overall monthly
Successive month Annually главница към
края периода на месеца края на месеца
Principal Debt in the beginning of Interest for the period at obligation - repayment of
repayment at the the month the end of the month
end of the period principal and interest
01.07.2009 г.
1 31,070 € 2,609,870 € 15,224 € 46,294 €
2 31,070 € 2,578,800 € 15,043 € 46,113 €
3 31,070 € 2,547,731 € 14,862 € 45,932 €
4 31,070 € 2,516,661 € 14,681 € 45,750 €
5 31,070 € 2,485,591 € 14,499 € 45,569 €
6 186,419 € 31,070 € 2,454,521 € 14,318 € 45,388 €
7 31,070 € 2,423,451 € 14,137 € 45,207 €
8 31,070 € 2,392,381 € 13,956 € 45,025 €
9 31,070 € 2,361,311 € 13,774 € 44,844 €
10 31,070 € 2,330,241 € 13,593 € 44,663 €
11 31,070 € 2,299,171 € 13,412 € 44,482 €
12 186,419 € 31,070 € 2,268,102 € 13,231 € 44,300 €
13 31,070 € 2,237,032 € 13,049 € 44,119 €
14 31,070 € 2,205,962 € 12,868 € 43,938 €
15 31,070 € 2,174,892 € 12,687 € 43,757 €
16 31,070 € 2,143,822 € 12,506 € 43,576 €
17 31,070 € 2,112,752 € 12,324 € 43,394 €
18 186,419 € 31,070 € 2,081,682 € 12,143 € 43,213 €
19 31,070 € 2,050,612 € 11,962 € 43,032 €
20 31,070 € 2,019,543 € 11,781 € 42,851 €
21 31,070 € 1,988,473 € 11,599 € 42,669 €
22 31,070 € 1,957,403 € 11,418 € 42,488 €
23 31,070 € 1,926,333 € 11,237 € 42,307 €
 Ring Road Site 2
24 186,419 € 31,070 € 1,895,263 € 11,056 € 42,126 €
25 31,070 € 1,864,193 € 10,874 € 41,944 €
26 31,070 € 1,833,123 € 10,693 € 41,763 €
27 31,070 € 1,802,053 € 10,512 € 41,582 €
28 31,070 € 1,770,983 € 10,331 € 41,401 €
29 31,070 € 1,739,914 € 10,149 € 41,219 €
30 186,419 € 31,070 € 1,708,844 € 9,968 € 41,038 €
31 31,070 € 1,677,774 € 9,787 € 40,857 €
32 31,070 € 1,646,704 € 9,606 € 40,676 €
33 31,070 € 1,615,634 € 9,425 € 40,494 €
34 31,070 € 1,584,564 € 9,243 € 40,313 €
35 31,070 € 1,553,494 € 9,062 € 40,132 €
36 186,419 € 31,070 € 1,522,424 € 8,881 € 39,951 €
37 31,070 € 1,491,354 € 8,700 € 39,769 €
38 31,070 € 1,460,285 € 8,518 € 39,588 €
39 31,070 € 1,429,215 € 8,337 € 39,407 €
40 31,070 € 1,398,145 € 8,156 € 39,226 €
41 31,070 € 1,367,075 € 7,975 € 39,044 €
42 186,419 € 31,070 € 1,336,005 € 7,793 € 38,863 €
43 31,070 € 1,304,935 € 7,612 € 38,682 €
44 31,070 € 1,273,865 € 7,431 € 38,501 €
45 31,070 € 1,242,795 € 7,250 € 38,320 €
46 31,070 € 1,211,726 € 7,068 € 38,138 €
47 31,070 € 1,180,656 € 6,887 € 37,957 €
48 186,419 € 31,070 € 1,149,586 € 6,706 € 37,776 €
49 31,070 € 1,118,516 € 6,525 € 37,595 €
50 31,070 € 1,087,446 € 6,343 € 37,413 €
51 31,070 € 1,056,376 € 6,162 € 37,232 €
52 31,070 € 1,025,306 € 5,981 € 37,051 €
53 31,070 € 994,236 € 5,800 € 36,870 €
54 186,419 € 31,070 € 963,166 € 5,618 € 36,688 €
55 31,070 € 932,097 € 5,437 € 36,507 €
56 31,070 € 901,027 € 5,256 € 36,326 €
57 31,070 € 869,957 € 5,075 € 36,145 €
58 31,070 € 838,887 € 4,894 € 35,963 €
59 31,070 € 807,817 € 4,712 € 35,782 €
60 186,419 € 31,070 € 776,747 € 4,531 € 35,601 €
61 31,070 € 745,677 € 4,350 € 35,420 €
62 31,070 € 714,607 € 4,169 € 35,238 €
63 31,070 € 683,537 € 3,987 € 35,057 €
64 31,070 € 652,468 € 3,806 € 34,876 €
65 31,070 € 621,398 € 3,625 € 34,695 €
66 186,419 € 31,070 € 590,328 € 3,444 € 34,513 €
67 31,070 € 559,258 € 3,262 € 34,332 €
68 31,070 € 528,188 € 3,081 € 34,151 €
69 31,070 € 497,118 € 2,900 € 33,970 €
70 31,070 € 466,048 € 2,719 € 33,788 €
71 31,070 € 434,978 € 2,537 € 33,607 €
72 186,419 € 31,070 € 403,909 € 2,356 € 33,426 €
73 31,070 € 372,839 € 2,175 € 33,245 €
74 31,070 € 341,769 € 1,994 € 33,064 €
75 31,070 € 310,699 € 1,812 € 32,882 €
76 31,070 € 279,629 € 1,631 € 32,701 €
77 31,070 € 248,559 € 1,450 € 32,520 €
78 186,419.31 € 31,070 € 217,489 € 1,269 € 32,339 €
79 31,070 € 186,419 € 1,087 € 32,157 €
80 31,070 € 155,349 € 906 € 31,976 €
81 31,070 € 124,280 € 725 € 31,795 €
82 31,070 € 93,210 € 544 € 31,614 €
83 31,070 € 62,140 € 362 € 31,432 €
84 186,419.31 € 31,070 € 31,070 € 181 € 31,251 €
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € 0€ 0€ 0€
999 - € - € 0€ 0€ 0€
общо за периода на погасяване
total for the repayment period € 2,609,870 € 2,609,870 € 647,030 € 3,256,901

В края на периода на погасяване:

Principal / Главница 2,493,507 €
Interests / Лихва 763,394 € accrued: 116,364 € paid: 647,030 €

Repayments on principal and

interests
Изплатена главница и лихва 3,256,901 €

Total obligation
Общо задължение - €