Savills - Vietnam Industrial Park Briefing H1 2015
Golden profitune company
1. WORLD GOOD
FINANCE MONEY
HOLDINGS INVESTMENTS
LIMITED
2. ABOUT US
GOLDEN PROFITUNE LIMITED is a Joint-venture Hong Kong Limited company of Profit and Fortune Limited and
Golden Flower Entertainment (International) Company Limited founded last August 2010 by Gulnarra
Almagambetova and Mr. Kin Kwan Chan, together with Financial Consultant and advisor Inars Babauskis of World
Finance Holdings Limited. The company is based in Hong Kong and has a branch office in Kazakhstan and China.
Since it was founded, the firm has never stopped planning and building up financial development and acquisition
projects in Asia.
ASSET AND PROPERTY MANAGEMENT
GOLDEN PROFITUNE LIMITED provides full asset and property management services as well as having the
expertise in executing complex acquisition and finance strategies.
GOLDEN PROFITUNE LIMITED also provides investment advice, core and alternative asset management solutions.
We stand apart through our exceptional breadth and depth of investment expertise and market insights.
CORPORATE INFORMATION
GOLDEN PROFITUNE LIMITED is a Hong Kong Limited company with Company Registration no. 1369491
BUSINESS ADDRESS
Suite 1577 Horizon Suite at Tolo Harbour
29 On Chun Street, Ma on Chan
New Territories, Hong Kong
Email: goldenprofitune@gmail.com
inquiry@goldenprofitune.com
Website: www.goldenprofitune.com
Skype: golden.profitune.limited
Tel.nos. (852) 6358-6214
(852) 9039-0249
(852) 6896-9477
3. “It is not an ambition to make a Fortune,
nor money-making has never been a goal,
The AMBITION is to BUILD A GOOD FORTUNE!”
“PROFITUNE”
Derived from the word PROFIT and FORTUNE,
the company believes that making GOOD PROFIT
builds a GOOD FORTUNE!
COMPANY OBJECTIVE
The Company's main objective and principle is to have strong ties
to asset management projects not only in Asia but to conquer the market worldwide.
COMPANY OUTLOOK
- To have a good momentum in business
- To attain a good position in the industry
- To contribute to worldwide economic growth and
- To have an investment for long term growth
4. SUMMARY
The goal of the financial projection of the investment project called “Tianjin Window of the World Project” is to
estimate the effectiveness of the investment from the point of view of the owner and financial institutions.
The investment project expects to build, a multi functional facility of the hotel, sporting, recreational, medical and
housing purposes. Along with the commercial infrastructure, it would meet the highest world standards and provide
a varied and attractive form of year long investment.
The advantage of the localization proposed for the investment lies not only in its tourism value, but also the
marvelous landscape, as well as its great communications with large national and foreign cities, be it by land, water,
and air.
The plan for zoning the premises of the project forms a coherent and economically logical description of the
investment. It guarantees full exploitation of the land by dividing it into a number of coexisting functional zones,
independent from each other, but at the same time complementing one another.
The investor also intends to create infrastructure necessary to provide a place suitable for business meetings,
conventions, sports competitions and cultural fairs. Another important aim of the project is to induce the economy of
the whole region, by creating alluring, full-time job opportunities and providing additional income for the
municipalities. The project also intends to preserve the qualities of the local landscape, while intensively utilizing
the natural sources.
The basic target group of customers consists of individual and institutional buyers. The offer will be also directed to
national customers-people with above average income and business clients. In selling products with the highest
world standards, it is vitally important to properly handle the advertisement of a given project. Thus, the
promotional informative campaign is planned to begin along with the first phase of the investment, handled by
professional advertising agencies and, in later stages of the project, by major national and foreign real-estate
agencies.
6. THE INVESTMENT
This project, Tianjin “Window of the World”, is a project development that is fully supported and endorsed by China
Central Government to establish a modern and great potential commercial investment development complex. This
project significantly enhances the fast pace of developing the infrastructure of the whole area of Beijing, Tianjin and
most parts of Northern China. Both from the perspective of commercial investment and economic return as a
whole, the project is considered as a great opportunity for investors. The area for the whole project is about
3,000,000 M2 (i.e. 3 Km2).
The project development is divided into 3 phases, comprising of Project Promotion & Marketing Tower, Top grade
Hotels, Exhibition Centre, Shopping malls and Famous Brand linked shops, Multi-storey Residential Towers,
Decoration Materials Warehouses, Storage, Amenity Facilities, and International Office Buildings etc. Total sale
revenue is expected to RMB 25.6Bil (i.e. US$ 3.71Bil), deducted from the RMB 4.9Bil development cost, RMB
0.85Bil land cost, and tax that amounts to RMB 3.84Bil (i.e. 15% of sale revenue). The expected net profit is thus
equal to RMB16.01Bil (i.e. US$ 2.32Bil), whereas other management fee, huge sales income and job
opportunities, tremendous tax revenue to the central government, related businesses, commercial, and residential
activities that radiated around the area, are not included, it will give remarkable benefits both to the country and
investors/stake holders as a whole. Thus, related businesses, commercial activities will be radiated around the
area, together with residential and amenity developments serving the core building material business.
7. International
Tianjin City Airport
Tia njin Port
45km
19km
Jinghai County
60km
8. Development Data
The whole project will be developed in three phases. The comprehensive planning data of the
development is as below :
Square Meter (M2)
Total occupied land area : 3,000,000
Total constructed floor area : 3,292,596
Comprising : Building Material City 2,128,568
R&D, Conference, exhibition 565,084
Hotel 144,098
Residential 112,838
Kindergarten 2,000
Logistic, warehousing 259,200
Commercial 80,808
Main roads occupied area 400,200
Constructed land area 3,000,000
Building coverage density 25%
Port ratio 1.09
9. 3rd phase
2ndphase 3rd phase 2ndphase
1st phase
Development Status and Phases
1. The whole usable land area is about 3,000,000 M2 (i.e. 3000 KM2).
2. Purchase price of the whole usable land is RMB 850Mil (i.e. US$ 123Mil).
3. The project development is divided into 3 phases. The first phase is proposed to commence in August 2010, land
to be developed is 1,200,000 M2. The theme of the development is the “ Window of Building Materials in the World “
comprising of :
a. Project Promotion and Marketing Tower
b. Hotels
c. Exhibition Centre
d. Linked Shops with individual shop fronts, 3-storey high
The development period is about 18 months. Constructed floor area is 1,200,000 M2 and respective development cost is
RMB 1.8Bil (i.e. US$ 260Mil). Having the current market sale price at RMB 8,000 per M2, then the total sale price will be
RMB 9.6Bil (i.e. US$ 1.4Bil). The profit before tax is thus equal to RMB 7.8Bil (i.e. US$ 1.13Bil) (excluding land price
and other preliminary costs).
10. 4. The second phase will commence 12 months after the first phase started in overlapping. Land to be developed is
1,000,000 M2 and constructed floor area is also 1,000,000 M2, construction period is 15 months. The developed structures
will be :
a. Linked Shops with individual shop fronts, 3-storey high
b. Multi-storey Residential Towers
c. Decoration Materials Warehouses, Storage
d. Amenity Facilities
The development cost is RMB1.5Bil (i.e. US$ 217Mil). Having the current sale price at RMB 8,000 per M2, total sale price wil
l be RMB 8.0Bil (i.e. US$ 1.16Bil). Profit before tax is equal to RMB 6.5Bil (i.e. US$ 0.94Bil) (excluding land price and other
preliminary costs).
5. The third phase will be similar to the second phase in which the development will commence 80 days after the second phase
starts(800,000 M2 or about 80% sales of second phase). The main development of third phase includes :
a. Shopping malls for brand-named business
b. International Office Buildings
c. Top grade High-rise Residential Towers
Total developed floor area will be about 800,000 M2, construction cost is about RMB1.6Bil (i.e. US$ 232Mil). With the
prevailing
market price at RMB10,000 per M2, total sale price will be RMB 8.0Bil (i.e. US$ 1.16Bil). Profit before tax will be RMB 6.4Bil
(i.e.
US$ 0.93Bil) (excluding land price and other preliminary costs).
Summary From Above
1. Total developed land area is about 3,000,000 M2 (based on Agreement).
2. Total developed floor area is 3,000,000 M2 (based on current planning).
3. Total cost of the whole developed land area is RMB 850Mil (i.e. US$ 123Mil).
4. Total development cost of land area (i.e. total three phases) is RMB 4.9Bil (i.e. US$ 0.71Bil) (can use as rolling
development capital).
5. Total sale of properties is RMB 25.6Bil (i.e. US$ 3.72Bil) (based on current evaluation of market price, whereas the 8.7%
annual appreciation is not yet considered).
11. 1600
Prof it bef ore Tax
1400
Development Cost
1200
US$ ( in M illi on)
1000
800
600
400
200
0
1st Phase 2nd Phase 3rd Phase
Investor's Participation
Currently the whole piece of land is in the hand of a local Chinese company, who is seeking for a new investor (preferable in
China) to purchase the land and development rights. The new investor can simply own / assign another local Chinese
company to acquire this local Chinese company (100% share and control rights) in order to own the land and all the
development rights in the amount of USD 120Mil (i.e. 3,000,000 M2 land plus development rights), or other joint venture
opportunity as negotiated. The Chinese company is currently working on the development plans and getting approvals from
different government authorities. All the development rights, approvals, plans, architectural designs and proposals, cost
analysis, procedural requirements will be included in the sale. Investors having the interest can be arranged to meet with this
Chinese company to review the details of the development project to further the acquisition process.
Profit and Cost Analysis
1. Total sale revenue is RMB 25.6Bil, deducted RMB 4.9Bil development cost, deducted RMB 0.85Bil land cost, and further
deducted tax RMB 3.84Bil (i.e. 15% of sale revenue), the net profit is thus equal to RMB16.01Bil (i.e. US$ 2.32Bil).
2. The planned project period is 5 years, the actual development period is only 3.5 years.
3. If taking the consideration of 8.7% annual appreciation, the total revenue of this project over the years is close to RMB 50Bil
(i.e. US$ 7.25Bil).
4. After the whole project is completed and in operation, the estimated annual management fee generated from the properties
can be calculated as :
a) Management fee : 3,000,000 M2 x RMB3.0 x 12 months = RMB 108Mil (i.e. US$ 15.65Mil) per year.
b)Sales Tax to the Government : not less than RMB 5Bil (i.e. US$ 725Mil) per year.
12. This project is a major development in Tianjin Municipality in the recent year. With the rapid growth of real estate price
in China, the land value of the project is very attractive. With the price of USD 120Mil for 3,000,000 M2 land, it is only
talking the land costs at USD 39 / M2. Having the port ratio of 1.09, the accommodation value (AV) is only USD 36 / M2,
which is far below the market value. As researched in the market, the unit price of a comparable land is about USD
66/M2.
Apart from the “under-market” land price, this piece of land is ready to develop with the established infrastructure
around the site. In addition, an investor can have the alternative of selling parcels of the land to individual developers
with immediate return to reduce the development costs. The interesting part is that, upon fulfilling the theme of
building materials depot, investors can develop the major area into commercial and residential properties which will
definitely bring in huge benefits.
For the first phase of development + 3Million M2 land cost, total investment is talking about USD 440Mil. Major banks
in China already have interests to finance the project due to the high feasibility of the project.
For quick reference, the following information are the sale price and construction costs in comparative China market :
Residential sale price : USD 2,900 / M2
Commercial sale price : USD 3,630 / M2
Construction cost : USD 650 / M2
With the low cost of land (AV = USD 36 / M2), the profit is easily justified including other calculated risks.
In Summary, this development project is highly recommended to an investor due to:
1. The land cost is very reasonable in an area with mature infrastructure around, and is close to developed
municipalities.
2. The project is ready to go, endorsed and blessed by local and central governments.
3. The project is large scale and divided into 3 phases having flexibility of other creative development opportunities
which
could generate more income than as originally planned.
Most importantly, the project-in-charge, Mr. K. K. Chan, has a very good relationship with the current land owner and
local government authorities. Therefore, the project could be smoothly implemented.
13. CONSTRUCTION PLANS
The Development of Tianjin's Construction World Project is a crossing over to a new century in its blend of new
construction materials, in its concentration development, exhibition, wholesale and as Northern China's
connection between Beijing and Tianjin as the modern industrial area. The planned design considers the use of
very striking and interesting construction materials for the customer, business people, the plant and office work
force. From it's multi-purpose standpoint, its accessibility, its controlled density and robustness, it will become
Northern China's most resplendent and vibrant Tower of Commerce.
The whole project occupies 2,783,805 square meters (4,175.50 acres) The designed space occupies 3 Million
square meters comprising 8 major structures. Among them are high rising hotels, mega business towers, and even
the International Conference and Exhibition Center. Most of the hotel rooms are facing the north western lake
views, inter connecting multi-level business areas/centers. Tourists can visit furniture and lighting stores, apparel
and fabric stores, boutiques, beauty and wellness centers for a more fruitful and relaxed visit, coffee shops and
restaurants strips are included. The business areas and window and terrace room face the southeast lake view.
Another aspect of the project is construction of the city. Here, walkways and product specific stores are
interconnected. It's easy for them to buy construction materials. Warehouses are a stone's throw away from office
superstores, resulting to more efficient time management. Construction of the city also has an open plaza suitable
for trade shows or exhibitions.
Breath taking lake views are overseen by the project residential areas, and houses are distributed in independent
clusters. Each cluster centers a garden-type living area. Playing courts and hike trails provide much needed
exercise and activities for everyone. Lush green surroundings maintain ventilation and cleanliness. Public areas
such as clinics, day care centers and police stations are very accessible and blend with the environment.
17. A1 CONSTRUCTION CITY
(B12 EXHIBITION, EXCLUSIVE
STORES, WAREHOUSES
1,550,000 SQM
A2 EUROPEAN STYLE HQ OFFICE
CENTER
140,000 SQM
B1 EXCLUSIVE RESIDENTS
B2 PUBLIC AREAS
400,000 SQM
C1 MULTI-PURPOSE BIZ CITY
300,000 SQM
C2 FOOD, ENTERTAINMENT,
RELAXATION
150,000 SQM
D1 HOTEL
100,000 SQM
D1 EXHIBITION CENTER
150,000 SQM
E EXCLUSIVE OFFICES
200,000 SQM
F GOVERNMENT OFFICES
132,000 SQM
TOTAL AREA 3,072,000 SQM
TIANJIN - CONSTRUCTION DESIGN PLAN
22. LAKEVIEWS
ORDINARY LANDSCAPING
& GREEN CONSTRUCTION
EXPENSIVE/WIDE VIEWS WITH
LAKEVIEW AS FOCUS OF THE DESIGN
INDEPENDENCE OF EACH AREA
BRING ABOUT THE CITY’S
PLURALISM BUT INTERCONNECTED
BY LAKEVIEWS
TIANJIN - CONSTRUCTION DESIGN PLAN
23. CONSTRUCTION CITY
TERRACE STRUCTURE EVOLVES
AROUND NATURE
GREEN SLOPING ROADS, ROOFS GIVE
MORE THAN JUST SHOPPING PLEASURE,
THEY ALSO GIVE ENJOYMENT OF
PLANTS & VIEWS
TIANJIN - CONSTRUCTION DESIGN PLAN
24. WAREHOUSE AREA
CONVENIENT & EFFICIENT
FOR LOGISTICS
THE NATURE GIVES VALUE
TO ENVIRONMENT
TIANJIN - CONSTRUCTION DESIGN PLAN
25. MULTI-PURPOSE BUSINESS STREET
CONCEPT OF ‘GREEN’ BLENDS WITH THE
SURROUNDINGS - SIMILAR TO CONSTRUCTION STREET
GARDEN TYPE LOBBY ENHANCES THE CITY’S HARMONY
GREAT VIEWS AT TOWER HIGH LEVELS
TIANJIN - CONSTRUCTION DESIGN PLAN
26. BUSINESS AREAS
MULTI LEVELS FOR SHOPPING, LEISURE,
SOCIALIZING & EVERYDAY LIVING
BODY & MIND: FOOD, BEAUTY, APPAREL,
HEALTH & WELLNESS
INTERIOR DESIGN: FURNITURE, LIGHTING &
OTHER INTERIOR FURNISHINGS
TIANJIN - CONSTRUCTION DESIGN PLAN
28. GREEN CITY
ENHANCES VALUE OF ENVIRONMENT & PROMOTES THE CITY’S STABLE HARMONY
TIANJIN - CONSTRUCTION DESIGN PLAN
29. RESIDENCES
EACH BUILDING HAS ACCESS TO CENTRAL COMMON AREAS
FOREST, POND & LOBBY PROVIDES NATURAL VENTILATION
& CHEERFUL VIEWS
PLAYING & JOGGLING TRAILS PROVIDE HEALTHY LIFESTYLE
TIANJIN - CONSTRUCTION DESIGN PLAN
31. THE PEOPLE BEHIND GOLDEN PROFITUNE
MS. GULNARA ALMAGAMBETOVA
Director and Chief Executive Officer
MR. KIN KUAN CHAN
Director and Investment Project Manager
MR. INARS BABAUSKIS
Managing Director and Financial Consultant
32. ACKNOWLEDGMENT
MANY THANKS TO OUR PARTNERS
WORLD
FINANCE
HOLDINGS
GOOD
MONEY
INVESTMENTS
LIMITED
