1

BUSINESS PLAN
OF

(Confidential Document not for re-distribution)

___________________________

SIGNATURE

___________________________

DATE

Written and Development by MOTSHEWA MOTSWAHOLE

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CONTENTS
Business Details........................................................................3

Executive Summary...................................................................4

Sources and Applications of Funds...........................................6

Brief Background on Land Breeze 699 CC................................7

Property Development Industry...............................................10

Rationale for Developing Erf 19777.........................................12

Marketing Strategy...................................................................14
Product Service Offerings..........................................................14
Pricing and Vacancy Rate.........................................................15
Marketing & Advertising through Market Makers.......................15
Location.....................................................................................17
Competitive Environment..........................................................19
SWOT Analysis.........................................................................21

Operational Strategy................................................................22

Financial Performance & Projections.......................................23

Projected Cash Flow Statement................................................24
Projected Income Statement.........................................................
Projected Balance Sheet...............................................................
Break Even in R-Value...............................................................

Indices..........................................................................................

SEPTEMBER 2016
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BUSINESS DETAILS
Business Name : Land Breeze Trading 669 CC
Trading Name : Land Breeze Developers

Nature of the Business : Property Development

Business Address : 4502 Mosieleng Street

: Bochabela Location
: Bloemfontein
: 9301

Postal Address : 4502 Mosieleng Street

: Bochabela Location
: Bloemfontein
: 9323

Business Telephone : 073 817 8563 / 078 458 5482

Business Fax Number :
E Mail Address : landbreeze669@yahoo.com
Website Address : Under Construction

Contact Person : Sydney Radebe

Capacity : Managing Director
Contact Details : 078 694 1338

Email Address : landbreeze669@yahoo.com

Required Assistance : R38, 140 Million

Purpose : Development of a Shopping Complex & a Leisure

Centre & Working Capital

Security Offered : Acquired Land & Buildings

Repayment Period : Negotiable

 4

EXECUTIVE SUMMARY

Through this business plan Land Breeze 699 CC aims to acquire erf number 19777
in Wynand Mouton Street, Universitas area in order to develop a shopping
complex and leisure centre. This piece of land currently belongs to Mangaung
Metropolitan Municipality (MMM). A proposal for the (release of the) identified piece
of land has already been forwarded to MMM requesting the land.

In order to achieve this objective, Land Breeze 699 CC (herein after referred to as
Land Breeze) also (through this business plan) intends to raise a seed capital to the
value of R45 million for the above mentioned objectives. According to the research,
Land Breeze Management has established that property development is clearly as
vulnerable to fluctuation and wider economic change as any other industry. And
unlike other businesses, in property development when things take a turn for the
worse, there are very few ways to cut costs or reduce overheads. Thus when times
are hard one could be left with a property that cannot shift or that could be fast
decreasing in value.

According to the Investment Property Databank (IPD) 2012 seems to be a more

challenging years for property market (including commercial property market). The
FNBs All Commercial Property Performance Indices already point to a weakening
performance ahead. Such condition clearly dictate that anyone investor should take
a long term prospect of asset being invested in, and locations such as Universitas
will clearly hold its own under these prevailing adverse economic conditions.

During this expected period of economic downturn, prime properties/areas generally

perform (look set to hold up) better than the "less illustrious" ones. Already, the IPD
has reported a significantly more rapid rise in office vacancies of Central Business
Districts (18.1% in H1 of 2011) compared to de-centralised nodes (10.4%).

Universitas points to appreciation rate of 8% in line with national rates. Thus the
development of the shopping complex and leisure centre in the area will ensure the
protection of maximum return on investment is realised through cash flow income
streams, tax incentives and leveraging on borrowed funds. Other social benefit
includes creation of employment and improved standard of living.
 5

Universitas Area.

The targeted piece of land for development is located with 500m radius of the Free
State University, which is adjacent to Universitas Hospital. Universitas forms part of
the most affluent suburbs in the Bloemfontein (high income levels LSM 3). The N1
passes through the Universitas Bridge that is within 100m distance

DIAGRAM A

Cash Flow Streams

The envisaged development is expected to result not only in an appreciating asset,

but also cash flow asset. This means monthly rental income expected to be
generated from the development should results in an average of 50m x R450 = R22
500 per month per tenant. Assuming occupancy rate of 70% over 36 months from a
minimum of 43 retail outlets and offices, this translates into an average monthly cash
flow of R650 000.00 per month.

Mr Mike Spencer

The management of Land Breeze will have Mr Mike as an integral part of the Board
Members providing much needed mentorship and couching to the rest of the team.
Mr Mike Spencer is an accomplished property personality and a well known
entrepreneur in the Bloemfontein business community, his profile is discussed under
section Brief Background on Land Breeze on page 7 below.
 6

SOURCE AND APPLICATION OF FUNDS

Own Constributions
R140 000
Loan Capital
Sources of Funds R38 000 000

Total Funds
R38 140 000

Land & Buildings

R33 000 000
Working Capital
Applications of Funds
R5 140 000
Total Funds
R38 140 000
 7

BRIEF BACKGROUND ON LAND BREEZE 699 CC

Land Breeze Trading 669 CC is a Bloemfontein based, black youth own emerging
development enterprise, located at 4502 Mosieleng Street, Bochabelo, Bloemfontein.
The organization is looking to acquire and develop a business shopping complex in
vacant ERF number 19777 at Universitas.

The organization has been in existence since 2010 and it was incorporated as a
construction organization. Between 2011 and 2012 the organization started
indentifying the need to diversify into other construction and development related
products and services. During 2011 the management of Land Breeze Trading started
investigating and research the property development industry in South Africa with a
particular focus in Mangaung Metropolitan Municipality. The change in municipality
status to a metro after the election also motivated the organization into further
investigating the need and potential for growth in the municipality.

During the beginning of 2012 the organization took a strategic and deliberate
position to enter the property development market in the Bloemfontein area. To date
the organization is been assisted by Small Enterprise Development Agency (SEDA)
to develop a comprehensive business plan with the primary goal of sourcing seed
finance for the development of stand / ERF number 19777 in Universitas for the
shopping complex and leisure centre.

The organization has already solicited the support of commercial banks (FNB), and
also research a number of other government agencies such as National
Empowerment Fund (NEF), Industrial Development Corporation (IDC), etc. Land
Breeze management comprises of driven young black entrepreneurs herein under
discussed.

Owing to the magnitude of the project, the management have also engaged the
services of Mr Mike Spencer, one of the successful property developers around as a
mentor and he has Mr Spencer have showed his willingness to come on board as a
mentor. (For the purpose of the business plan the words property development and
real estate will be used interchangeably)
 8

Mr Sydney Radebe

Mr Sydney Radebe is one of the four owners of the Land Breeze 699 cc enterprise.
He is responsible for the overall management of the business, acting in the capacity
of Managing Member (Director). Similar to other co-owners Mr Radebe was involved
in the organizations undertaking of the construction projects mention in page 7
below. He is also working with Universitas Hospital as a Boiler Operator, the position
that he has occupy since 2010 to date.

Mr Ntsikelelo Ncedo MKhetshane

Mr Ntsikelelo Ncedo Mkhetsane is responsible for the organizations finances. He

has a Bcom Degree from the University of the Free State and also studied Advance
Financial Management with IQ Academy in 2010. He is currently employed with
Kopanang Local Municipality as a Payroll Administrator, the position that he
occupied from March 2012 to date. He was also part of the construction projects the
organization undertook as indicated under Organizational Highlights on page 7
below.

COMPANY ORGANOGRAM

DIAGRAM B
 9

Mr Mike Spencer Mr Sydney Radebe

Advisor & Mentor Managing Director

PA
Vacant

Mr Mvala Ntengemtu Hans Mr Putsuane Geoffrey Mr Ntsekelelo Ncedo

Operations & Development Serobe Mkhetshane
Manager Marketing Manager Financial Manager

Construction &
Development Team Sales & Consultant
Team
(Project Dependant)
 10

PROPERTY DEVELOPMENT INDUSTRY

The SA property market size as per listed companies on the Johannesburg Stock
Exchange (JSE) is R125 billion. Following the annual conference held in Sun City
during the month of June 2012 by Merrill Lynch (bank of America), more capital is
expected to flow in South Africa. This inflow of capital is however expected to target
listed property sector.

The result could be an increased search for hot investment commodities among both
local and offshore investors. The governments preferential procurement practices
thus create an opportunity for emerging black property development organizations
such as Land Breeze to take part in this lucrative market, once they are owners of
such potentially viable commercial properties.

According to the economist Mike Schussler, South Africans are getting richer today
than in the 70s and the 90s, hence it is justifiable to build shopping complex and
leisure centres. The other most important factor is that today in South Africa, there
are 112 000 people entering the country legally every month without leaving (legally),
this point to the potential increase in population over the next five to ten years. These
two abovementioned facts further makes investing in commercial property a viable
business venture (even from a third party investors point of view).

The above observation should not detract from the fact that property market is
probably one of the markets that is highly sensitive to economic upswings and
downturns. The nature of property development prescribe that anyone developer
brings with a team of experts in aspects legal property development as well as the
aspects of business of investing in property development.

Small micro and medium enterprises (SMMEs) such as Land Breeze are unable to
meet such a position as building a stable and strong entrepreneurial takes years of
experience. Land Breeze will be relying on the expertise of specialised experts in
various field of the projects life span, Mr Mike Spencer has already being mentioned
above, Dr Jones will be used for architectural design and will advice on aspects of
 11

quantity survey and related matters. The organization will also enlist the services of a
conveyance to assist in further investigation on:

o Any restriction on the property

o How much stamp duty, searches fees
o The value of other properties in the area

While Land Breeze takes a view of property development as a long term investment
because of the appreciation and cash flow advantages, hence their approach of buy
and hold. They are acutely aware of the work that lies ahead in acquiring the
property, adding value and developing value (for the tenant) if one expects high
vacancy rate and high return on investment and not just sitting and waiting for the
market to rise (strategies discussed under marketing strategy section on page XX
below).

Owing to the risky nature of property development business, the organization has
undertaken research on the property identified. Given the fact that the property
currently belong to MMM and there are no plans at this stage to develop the
property, Land Breeze have approach the Municipality in its attempt to acquire the
land but also to establish if there any restrictions on the property.

The organizations research also included finding out how much other properties are
sold for in that area, example vacant plot in the area, sold by Engel & Volkers sells
for R4 750 000, another erf (unit) that could be used for developing a residential
home sells for R340 000 and its size is 2349 m

One of the most important recommendations by the renowned Rawson Properties is

that SMME organization such as Land Breeze will do well by acquiring own
properties at this stage. This is because commercial properties are rising.
Commercial property rentals are rising steadily with an annual increase of 8 percent
now almost standard. This means that five years down the line the tenant will be
paying 50 percent more rental each month and this makes for a good argument as to
why buying property is far better than renting one (www.rawsonproperties.com ).
One of the major advantages of buying is that the bond rate will be fixed at fairly low
levels. Rawson says property values tend to be cyclical and expects that by 2015, they
will see a steady annual value increase.
 12

RATIONALE FOR DEVELOPMENT OF ERF 19777

Universitas is one of the prime areas in the city of Bloemfontein. Bloemfontein serves
as the administrative and economic hub of the Free State. Residents will be attracted
to Bloemfontein's multitude of accommodating, hospitable, affordable and safe
boroughs. Housing prices in Bloemfontein are very reasonable for such an
economic centre, and the city contains a large number of high quality public and
private schooling facilities, from primary to tertiary level.

The identified vacant land leading is less than 100m away from the University of the
Free State and has a road alongside leading to Langehovenpark. Thus the location
speaks of a maximum exposure to the desired traffic. The location is ideal for

According the RoomsforAfrica.Com, there are over 6000 beds within the Universitas
area. This makes Universitas one of the most sought after destination for visitors in
the Bloemfontein area (over 1 million enquiries for accommodation and conference
facilities in 2011 www.RoomforAfrica.com )

The ability to acquire a portfolio and consequently the value of the portfolio is
depended on the ability to secure stable long term tenants. Given that Universitas is
one of the level income residential areas getting established and dependable retailer
tenants such as PnP should be possible. Through the assistance of Mr Mike
Spencer three well established brands have already indicated their wiliness to take
up spaces in the envisaged shopping complex. Their letters of interest expression
are hereto attached.

Most financial institutions, including commercial banks will be willing to finance

development in an area such as Universitas because of its existing infrastructure, the
stability of the area, high income levels of the people in and around the area, as well
as the ability to resell the property should the project not succeed.

According National Real Estate, Universitas is one the area in Bloemfontein, were
inhabitants still get value for money in terms of rental rates and property value,
hence few property stay long without tenants or buyers for property offered on the
market
 13

Universitas meet all the five basic elements of a good investment, viz:

A good location

The importance of location in property development can never be over emphasised.

It is for this reason that Land Breeze is willing to consider even paying a reasonable
premium price to acquire the required piece of land

A growing market

The University and changes made to transform Universitas Hospital and create
Universitas Academic Hospital as road leading to Langehovenpark, increases the
market size of Universitas. Aggressive marketing from accommodation and
hospitality sector also helps growth the area.

Good income potential

The income level of Universitas comprises of middle to high professional and young
newly employed graduates. The area also boosts lots of student population with
disposable income

Eager seller
Eager seller condition is based on the Municipalitys land policy to ensure that SMME
access and acquire business land for viable business ventures. It is for this reason
that a proposal has already been sent to municipality requesting access to land and
highlighting the economic benefits to all parties concerned.

Favourable financing

After soliciting appetite for the project FNB officials indicated their support for the
project, notwithstanding various requirements to be met including the submission of
this business plan.
 14

MARKETING STRATEGY

Few industries place the success of business venture directly at the owners abilities
as the property development industry does. It is said that if one is to succeed in the
property business, one have to take a pragmatic view of things, understanding that this is an
industry acutely prone to boom and bust. Research have shown that successfully marketing
and navigating the SMME business in property development, is very much depended on the
owners ability to work as a team. Thus their people skills is very important, they must display
the passion about their project, borne out of their understanding of the project to be
undertaken.

While commercial property is not believed to be as over-priced as residential, and its

yields are estimated to be higher than residential, it is subject to the same interest
rate and economic trends as residential, and thus generally tracks the direction of
residential price growth trends, with something of a lag.

Product Service Offering

Land Breeze seeks to develop a commercial property that consists of retail outlets
and offices in a form of shopping complex and leisure centre. Owing to the
environment that the centre is to be located, cognisance will be taken to ensure that
complex leverage on the potential complementary hospitality industry within
Universitas. Land Breeze Service Product Offering includes:

DIAGRAM C

General
Property Project
Contruction Auctioneering
Development Management
Servives

Universitas suburb mainly consists of professionals and student population in tertiary

levels. There is also very high level of tourists in the area, both national and
international. Thus Land Breeze offering will ensure that a balanced mixture of
restaurants, retail shops and office services is available in the centre. There will also
 15

be a family leisure entertainment to cater for the needs of the households within
Universitas area.

Pricing and Vacancy rate

Attracting and keeping stable timeously paying tenants requires that the property
continually meet the needs of the clients. The organization will look to manipulate
rental in line on changing market conditions in order to maximise profits. This will be
achieved through making real time market decision by comparing own rental with
competitors rental, deposits, and other concessions and making necessary
adjustments accordingly.

Land Breeze believe that raising rental is not necessarily the answer to pricing
space, the dynamic process of managing property might also mean lowering rental
or offering some concession. The propertys occupancy rate is of importance in this
case. Adding value, offering offices / shops that are user friendly and technologically
relevant to the clients needs is part of how the organization will control the
operational performance of the property in adding value.

Marketing and Advertising through: Market Makers

(Strong Entrepreneurial Team)

Given that fact that property development is a team sport, the organization believes
that key secret to its success is to surround itself with individual and professional in
the property business that are at the coalface of what is happening in the property
development industry every day.

The organization is currently on the lookout to establishing a good relationship with

estate agents that are accredited and reputable in the Bloemfontein area,
specializing in commercial property, and hence budgetary allocation for estate agent
(property broker) fees in our projected cash flow statement. Included in key individual
and professional that the organization will be working with include the following:
16
 17

Professional Function & Services Required

Estate Agent Process of searching for specialised agent in commercial property ongoing

Expert Property Developer - Mentor Mr Mike Spencer

Conveyance & Attorneys Process of searching for specialised agent in commercial property ongoing

Architecture Dr Jones from Free State University

Contractor Contract to be recommended by Mr Spencer

Commercial Banker F N B (t be given first preference)

Property Trekker
(Property Tracker provides you with
various milestones to track your
property transaction)
Purchaser documents signed
Seller documents signed
Transfer duty paid
Transfer duty receipt received
Rates certificates received
Suspensive conditions met
Bond documents signed
Bond cancellation consent signed
Bond registration
Transfer registration
 18

Location

The required plot (erf), Wynand Mouton Road passing the Free State University and
the Universitas Hospital and also leading to Langehovenpark
 19

While research the property market in Bloemfontein, it was discovered that of the
275 properties available for rental 56% of them were immediately available. However
of interest was the fact that only 23% of available properties were from Universitas.
Thus suggesting over 70% vacancy rate, this confirms that Universitas area was
really one of the suitable location for development.

Universitas is also ridding on the back of favourable conditions, which includes:

Interest rates (which may peak at 6.0%, but these are still historically quite low),

Low unemployment (in and around the area),

Low inflation,

Demand and supply,

And the very important 'feel-good factor'.

 20

Competitive Environment

Looking at the vicinity near the envisaged space for development, there is a mini
complex within 500 metres radius. The existing complex is in the process of being
renovated and increased in term of number of shops.

The following is the future competing mini shopping complex

 21

Two critical tenants in the existing mini complex are the Spar and the Friendly
Supermarket. The area also has a pharmacy and a liquor outlet.

The area is however having limited parking space and is also very much away from
the traffic to Langehovenpark
 22

SWOT Analysis

STRENGTHS
o BEE Status
o Availability of Dr Jones as an in-
house architecture for the
organization
o Commitment and passion of the
members to succeed
o The presence of Mike Spencer as
part of Management Team
o Appreciating asset that also cash
flow
o Ability to proactively manage the
property investment in order to
increase its value (add value)
WEAKNESSES
o Limited Financial Resources to
finance required Development
o Limited experience in the property
development industry
o Land Breeze does not have any
track record with commercial banks
o Development is depended on
Municipality land and there is no
agreement of sale that make Land
Breeze a bona fide land owner to
register a bond in its name

OPPORTUNITIES THREATS

o The nature of property to o Potential politics around acquisition

appreciate of required piece of land
o Commercial property as a cash o Outlaying suburbs not regarded as
flow asset ideal for government tenants, who
o Potential of getting an anchor
turn to sign long term lease
tenant that may ensure long
agreements
sustainability of the project
o Upcoming shopping complex in the
o Road passing through required
area as page 19 above
location to Langehovenpark
o Slowing down economy
means access to two suburbs
o Entry requires significant capital
o High occupancy rate of
outlay, thus excluding majority of
Universitas
property investors
o Complementary businesses in the
o Specialised knowledge required to
area such as guest houses and
select and manage properties
infrastructure such as Universitas
profitably
Hospital and the University
 23

OPERATIONAL STRATEGY

The ability of Land Breeze management to create an aura of exclusivity about the
area will to a great extend depend on the extensive research conducted as well as
the advice from above mentioned market makers that will be utilized. In all cases,
independent and professional advice will be sought before buying, selling, letting or
renting the property.

The organization will also create great views within the area, through ensuring that
external landscaping experts are used. Although market conditions are not
favourable, the organization will use the principle that it is possible to manipulate the
operations of the property investment to respond to prevailing market conditions

Given the position that the value of a commercial property is in direct proportion to
the income it generates, the most important operational strategy of Land Breeze will
be to check the rental in other areas, what offering (as well as concessions) are
available and based rental charges in line with prevailing prices. Giving clients value
for money is the overall summation of the approach.

The dynamic of real estate required that one keeps high occupancy rate and high
rent sound management and constant improvement to operations will be the order of
the day in this regard. Given that the organization is a small entity making speedy
real time decisions leading to implementation be critical and at the centre of the
organizations operations.

Land Breeze Product Services includes

General
Property Project
Contruction Auctioneering
Development Management
Servives

With auction services and Project Management services are currently being
developed and not yet fully offered to the market.
 24

FINANCIAL PROJECTIONS

Given the plot size as estimated above, as well as the standard office sizes, the
following financial projections are based on the following assumptions:

Everyone tenant will need at least one back office to in addition to the front office
or shop for customers
The total space rented will be no less than 50 square metre (50m) at R450m
Annual Rental increase will be at eight percent per annum (8%pa)
Given the Universitas area it is further estimated that 25% of the space will be
sold off the plan and next fifty percent will be sold on completion of the first
phase, with the rest of the available office / shops taken on completion of the
project
Although the project is expected to take two years to complete, an additional six
months is estimated due to limited experience from managing a project of this
magnitude by the management of Land Breeze (notwithstanding the fact that the
organization have in the past undertaken construction project).
Given the fact that rental agencies such as National Real Estate will be used to
manage tenants occupancy it is further assumed that timeous notices will be
received from tenants with the results that enough time will available to advertise
vacant offices / shops
An occupancy rate of 70 % is assumed for the duration of the financial statement
as projected

The projected financial statements herein enclosed consist of the following:

Cash Flow Statement for five years, compounded monthly for the first twenty four
months and annualized for five years thereafter
Income Statement, also compounded for five years, compounded monthly for the
first twenty four months and annualized for five years thereafter
Balance Sheet compounded annually for five years

Running expenses are estimated to increase annually by 10%. Pre-operating

expenses for professionals (e.g.: Architecture Fees) are included in the first year.
PROJECTED CASH FLOW STATEMENT YEAR 1
DESCIPTIONS MNTH 1 MNTH 2 MNTH 3 MNTH 4 MNTH 5 MNTH 6 MNTH 7 MNTH 8 MNTH 9 MNTH 10 MNTH 11 MNTH 12 25 TOTAL
OPENING CASH BALANCE 0 909 381 287 042 160 073 66 114 995 33 686 10 587 125 038 242 279 320 040 436 841 2 592 076
LONG TERM LOAN - CAPITAL PORTION 33 000 000 33 000 000
WORKING CAPITAL - LOAN 3 000 000 500 000 500 000 510 000 400 000 500 000 5 410 000
CASH INCOME - RENTAL INCOME 100 000 100 000 100 000 100 000 100 000 336 000 150 000 787 500 787 500 787 500 787 500 787 500 4 923 500
TOTAL CASH RECEIVED (IN) 36 100 000 1 009 381 887 042 760 073 676 114 736 995 683 686 798 087 912 538 1 029 779 1 107 540 1 224 341 45 925 576

TOTAL CASH PAYMENT (OUT) -35 190 619 -722 339 -726 969 -693 959 -675 119 -703 309 -673 099 -673 049 -670 259 -709 739 -670 699 -670 969 -42 780 128
SALARIES - MANAGEMENT & STAFF -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -324 000
CONTRATOR DEVELOPMENT EXPENSE -33 000 000 0 0 0 0 0 0 0 0 0 0 0 -33 000 000
INSURANCE -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -300 000
ELECTRICITY EXPENSES -8 000 -8 000 -8 100 -8 100 -8 100 -8 100 -8 100 -8 000 -8 000 -8 000 -8 000 -8 000 -96 500
WATER EXPENSES -3 400 -3 400 -6 700 -6 700 -6 700 -8 200 -8 200 -8 200 -8 200 -8 200 -7 200 -5 600 -80 700
MARKETING EXPENSES - BUS CARDS -2 500 0 0 0 0 0 0 0 0 0 0 0 -2 500
MARKETING EXPENSES - ADVERTBOARD 0 0 0 -15 000 0 0 0 0 0 0 0 0 -15 000
MARKETING EXPENSES - LIGHT BOX 0 0 0 0 0 0 0 0 0 -25 000 0 0 -25 000
MARKETING EXPENSES - BUS BRANDING 0 0 0 0 0 -20 000 0 0 0 0 0 0 -20 000
POST BOX FEE -350 0 0 0 0 0 0 0 0 0 0 0 -350
STATIONERY EXPENSES -1 500 -650 -600 -700 -900 -1 500 -1 200 -900 -780 -360 -380 -900 -10 370
OFFICE TEL / FAXES - EXPENSES -2 100 -910 -1 200 -1 600 -900 -340 -400 -350 -400 -700 -400 -400 -9 700
CELL PHONE EXPENSES -1 200 -1 200 -1 500 -1 600 -1 600 -2 100 -2 050 -1 800 -1 750 -1 800 -1 290 -1 200 -19 090
INTERNET EXPENSES - DATABUNDLES -400 -300 -300 -300 -300 0 0 0 0 0 0 0 -1 600
BANK CHARGES -1 200 -1 600 -890 -980 -1 840 -1 020 -980 -980 -1 260 -1 600 -1 280 -890 -14 520
BOND REGISTRATION & TRANSFER COST -850 000 0 0 0 0 0 0 0 0 0 0 0 -850 000
OTHER PETROL EXPENSES -1 090 -600 -1 500 -3 000 -3 800 -3 500 -3 700 -1 300 -1 500 -3 800 -3 600 -2 900 -30 290
VEHICLE MAINTENANCE & SERVICES 0 0 0 0 0 0 0 0 0 0 0 0 0
CLEARNING MATERIAL -1 200 -1 500 -1 500 -1 800 -1 800 -1 870 -1 790 -1 840 -1 690 -1 900 -1 870 -1 400 -20 160
CASUAL LABOUR / TEMPs -4 000 -4 500 -5 000 -5 000 0 0 0 0 0 0 0 0 -18 500
LOAN REPAYMENT -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -6 205 344
INTEREST ON LOAN -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -930 804
BOND COSTS -309 000 0 0 0 0 0 0 0 0 0 0 0 -309 000
PROPERTY BROKER F / ESTATE AGENT -30 000 -30 000
QUANTITY SURVAYOR FEES -45 000 0 0 0 0 0 0 0 0 0 0 -45 000
ARCHITECTURE FEES -120 000 0 0 0 0 0 0 0 0 0 0 0 -120 000
MENTORSHIP FEES -10 000 0 0 0 0 -10 000 0 0 0 0 0 0 -20 000
ATTORNEYS & CONVEYANCERS -150 000 -50 000 -50 000 -2 500 -2 500 0 0 0 0 -5 000 0 0 -260 000
ACCOUNTING / AUDITORS EXPENSES -3 000 -3 000 -3 000 0 0 0 0 -3 000 0 -6 700 0 -3 000 -21 700
NET CASH RESULT 909 381 287 042 160 073 66 114 995 33 686 10 587 125 038 242 279 320 040 436 841 553 372 3 145 448
 26

PROJECTED CASH FLOW STATEMENT YEAR 2

DESCIPTIONS MNTH 1 MNTH 2 MNTH 3 MNTH 4 MNTH 5 MNTH 6 MNTH 7 MNTH 8 MNTH 9 MNTH 10 MNTH 11 MNTH 12 TOTAL

OPENING CASH BALANCE 0 161 571 274 752 380 823 472 374 570 933 640 487 304 739 405 758 503 280 573 601 681 485 4 969 803
LONG TERM LOAN - CAPITAL PORTION 0 0
WORKING CAPITAL - LOAN 100 000 200 000 300 000
CASH INCOME - RENTAL INCOME 787 500 787 500 787 500 787 500 787 500 787 500 150 000 787 500 787 500 787 500 787 500 787 500 8 812 500
TOTAL CASH RECEIVED (IN) 887 500 949 071 1 062 252 1 168 323 1 259 874 1 358 433 990 487 1 092 239 1 193 258 1 290 780 1 361 101 1 468 985 14 082 303

TOTAL CASH PAYMENT (OUT) -725 929 -674 319 -681 429 -695 949 -688 941 -717 946 -685 748 -686 481 -689 978 -717 179 -679 616 -680 699 -8 324 214
SALARIES - MANAGEMENT & STAFF -29 700 -29 700 -29 700 -29 700 -29 700 -29 700 -29 700 -29 700 -29 700 -29 700 -29 700 -29 700 -356 400
CONTRATOR DEVELOPMENT EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0
INSURANCE -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -330 000
ELECTRICITY EXPENSES -12 000 -8 800 -8 910 -8 910 -12 600 -14 000 -15 000 -15 600 -8 900 -9 000 -8 100 -8 800 -130 620
WATER EXPENSES -4 400 -3 740 -6 700 -6 700 -6 700 -8 200 -8 200 -8 200 -8 200 -8 200 -7 200 -5 600 -82 040
MARKETING EXPENSES - BUS CARDS -2 500 0 0 0 0 0 0 0 0 0 0 0 -2 500
MARKETING EXPENSES - ADVERT BOARD 0 0 0 -15 000 0 0 0 0 0 0 0 0 -15 000
MARKETING EXPENSES - LIGHT BOX 0 0 0 0 0 0 0 0 0 -25 000 0 0 -25 000
MARKETING EXPENSES - BUS BRANDING 0 0 0 0 0 -20 000 0 0 0 0 0 0 -20 000
POST BOX FEE -350 0 0 0 0 0 0 0 0 0 0 0 -350
STATIONERY EXPENSES -1 500 -650 -600 -700 -900 -1 500 -1 200 -900 -780 -360 -380 -900 -10 370
OFFICE TEL / FAXES - EXPENSES -2 100 -910 -1 200 -1 600 -900 -340 -400 -350 -400 -700 -400 -400 -9 700
CELL PHONE EXPENSES -1 200 -1 200 -1 500 -1 600 -1 600 -2 100 -2 050 -1 800 -1 750 -1 800 -1 290 -1 200 -19 090
INTERNET EXPENSES - DATABUNDLES -400 -300 -300 -300 -300 0 0 0 0 0 0 0 -1 600
BANK CHARGES -890 -1 290 -890 -980 -902 -1 020 -980 -998 -1 260 -1 600 -1 350 -890 -13 050
BOND REGISTRATION & TRANSFER COST 0 0 0 0 0 0 0 0 0 0 0 0 0
OTHER PETROL EXPENSES -1 090 -600 -1 500 -3 300 -4 180 -3 850 -4 070 -1 430 -1 650 -4 180 -3 960 -3 190 -33 000
VEHICLE MAINTENANCE & SERVICES 0 0 0 0 0 0 0 0 0 0 0 0 0
CLEARNING MATERIAL -1 320 -1 650 -1 650 -1 980 -1 980 -2 057 -1 969 -2 024 -1 859 -2 090 -2 057 -1 540 -22 176
CASUAL LABOUR / TEMPs 0 0 -3 000 -3 000 -4 500 -3 000 0 0 0 0 -3 000 -3 000 -19 500
LOAN REPAYMENT -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -517 112 -6 205 344
INTEREST ON LOAN -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -77 567 -930 804
BOND COSTS 0 0 0 0 0 0 0 0 0 0 0 0 0
BROKER FEES / ESTATE AGENT -33 000 -33 000
QUANTITY SURVAYOR FEES 0 0 0 0 0 0 0 0 0 0 0 0
ARCHITECTURE FEES 0 0 0 0 0 0 0 0 0 0 0 0 0
MENTORSHIP FEES -10 000 0 0 0 0 -10 000 0 0 0 0 0 0 -20 000
ATTORNEYS & CONVEYANCERS 0 0 0 0 -2 500 0 0 0 -10 000 -5 000 0 0 -17 500
ACCOUNTING / AUDITORS EXPENSES -3 300 -3 300 -3 300 0 0 0 0 -3 300 -3 300 -7 370 0 -3 300 -27 170
NORMAL SA TAX PAYMENT 0 0 0 0 0 0 0 0 0 0 0 0 0

NET CASH RESULT 161 571 274 752 380 823 472 374 570 933 640 487 304 739 405 758 503 280 573 601 681 485 788 286 5 758 089
 27

PROJECTED CASH FLOW STATEMENT OF LAND BREEZE

DESCRIPTIONS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
OPENING CASH BAL 0 639 138 1 216 310 1 287 266 1 825 975 4 968 690
OWN CONTRIBUTIONS 0 0
SALES INCOME 4 923 500 8 812 500 9 517 500 10 278 900 11 101 212 33 532 400
LOAN - WORKING CAPITAL 5 140 000 300 000 0 0 0 5 440 000
LONG TERM LOAN - CAPITAL PORTION 33 000 000 0 0 0 0 33 000 000
TOTAL CASH INFLOW 43 063 500 9 751 638 10 733 810 11 566 166 12 927 187 76 941 090

TOTAL CASH OUTFLOW -42 424 362 -8 535 328 -9 446 545 -9 740 191 -10 076 320 -61 245 213
SALARIES - MANAGEMENT & STAFF -324 000 -356 400 -392 040 -431 244 -474 368 -1 503 684
CONTRATOR DEVELOPMENT EXPENSE -33 000 000 0 0 0 0 -33 000 000
INSURANCE -300 000 -330 000 -363 000 -399 300 -439 230 -1 392 300
ELECTRICITY EXPENSES -96 500 -130 620 -442 926 -487 219 -535 940 -1 157 265
WATER EXPENSES -80 700 -82 040 -270 732 -297 805 -327 586 -731 277
MARKETING EXPENSES - BUS CARDS -2 500 -2 750 -3 025 -3 328 -3 660 -11 603
MARKETING EXPENSES - ADVERT BOARD -15 000 -16 500 -18 150 -19 965 -21 962 -69 615
MARKETING EXPENSES - LIGHT BOX -25 000 -27 500 -30 000 -33 000 -36 300 -115 500
MARKETING EXPENSES - BUS BRANDING -20 000 -22 000 -48 000 -52 800 -58 080 -142 800
POST BOX FEE -350 -385 -410 -451 -496 -1 596
STATIONERY EXPENSES -10 370 -10 831 -34 221 -37 643 -41 407 -93 065
OFFICE TEL / FAXES - EXPENSES -9 700 -10 430 -32 010 -35 211 -38 732 -87 351
CELL PHONE EXPENSES -19 090 -26 726 -62 997 -66 147 -72 762 -174 960
INTERNET EXPENSES - DATABUNDLES -1 600 -1 600 -5 280 -5 808 -6 389 -14 288
BANK CHARGES -14 520 -20 358 -28 131 -30 944 -34 039 -93 953
BOND REGISTRATION & TRANSFER COST -850 000 0 0 0 0 -850 000
PETROL EXPENSES -30 290 -33 000 -108 900 -119 790 -131 769 -291 980
VEHICLE MAINTENANCE & SERVICES 0
CLEARNING MATERIAL -20 160 -22 176 -73 181 -80 499 -88 549 -196 016
CASUAL LABOUR / TEMPs -18 500 -19 500 -44 550 -49 005 -53 906 -131 555
LOAN REPAYMENT -5 296 602 -5 296 602 -5 296 602 -5 296 602 -5 296 602 -21 186 406
INTEREST ON LOAN -794 490 -794 490 -794 490 -794 490 -794 490 -15 972
BOND COSTS -309 000 0 0 0 0 -309 000
BROKER FEES / ESTATE AGENT -30 000 -33 000 0 0 0 -63 000
QUANTITY SURVAYOR FEES -45 000 0 0 0 0 -45 000
ARCHITECTURE FEES -120 000 0 0 0 0 -120 000
MENTORSHIP FEES -20 000 -20 000 -11 000 0 0 -51 000
ATTORNEYS & CONVEYANCERS -260 000 -17 500 0 0 0 -277 500
ACCOUNTING / AUDITORS EXPENSES -21 700 -27 170 -54 450 -59 895 -65 885 -163 215
14% VAT -689 290 -1 233 750 -1 332 450 -1 439 046 -1 554 170 -4 694 536
NORMAL SA TAX PAYMENT -89 479 -170 283 -180 217 -255 636 -399 121 -695 617

NET CASH RESULT 639 138 1 216 310 1 287 266 1 825 975 2 850 867 15 695 876
PROJECTED INCOME STATEMENT OF LAND BREEZE YEAR 1
28
DESCRIPTIONS MNTH 1 MNTH 2 MNTH 3 MNTH 4 MNTH 5 MNTH 6 MNTH 7 MNTH 8 MNTH 9 MNTH 10 MNTH 11 MNTH 12 TOTAL
LOAN - CAPITAL PORTION 33 000 000 33 000 000
LOAN - WORKING CAPITAL 100 000 200 000 300 000
GROSS TURNOVER 225 000 225 000 225 000 225 000 225 000 675 000 675 000 787 500 787 500 787 500 787 500 787 500 6 412 500
COST OF SERVICES 0 0 0 0 0 0 0 0 0 0 0 0 0
GROSS PROFIT 33 325 000 225 000 225 000 225 000 225 000 675 000 875 000 787 500 787 500 787 500 787 500 787 500 39 712 500
TOTAL EXPENSES -34 368 054 -1 216 365 -1 220 995 -1 187 985 -1 169 145 -1 260 335 -1 230 125 -1 245 825 -1 243 035 -1 282 515 -1 243 475 -1 243 745 -40 459 069
FIXED EXPENSES -601 614 -601 614 -601 614 -601 614 -601 614 -601 614 -601 614 -601 614 -601 614 -601 614 -601 614 -601 614 -7 219 369
SALARIES - MANAGEMENT -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -324 000
DEPRECIATIONS -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -504 278
LOAN REPAYMENT -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -5 296 602
INTEREST ON LOAN -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -794 490
INSURANCE -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -25 000 -300 000
VARIABLE EXPENSES -33 766 440 -614 751 -619 381 -586 371 -567 531 -658 721 -628 511 -644 211 -641 421 -680 901 -641 861 -642 131 -33 239 700
CONTRATOR DEVELOPMENT EXPEN -33 000 000 0 0 0 0 0 0 0 0 0 0 0 -33 000 000
ELECTRICITY EXPENSES -8 000 -8 000 -8 100 -8 100 -8 100 -8 100 -8 100 -8 000 -8 000 -8 000 -8 000 -8 000 -96 500
WATER EXPENSES -3 400 -3 400 -6 700 -6 700 -6 700 -8 200 -8 200 -8 200 -8 200 -8 200 -7 200 -5 600 -80 700
MARKETING EXPEN - BUS CARDS -2 500 0 0 0 0 0 0 0 0 0 0 0 -2 500
MARKETING EXPEN - ADVERT BOARD 0 0 0 -15 000 0 0 0 0 0 0 0 0 -15 000
MARKETING EXPEN - LIGHT BOX 0 0 0 0 0 0 0 0 0 -25 000 0 0 -25 000
MARKETING EXPEN - BUS BRANDING 0 0 0 0 0 -20 000 0 0 0 0 0 0 -20 000
POST BOX FEE -350 0 0 0 0 0 0 0 0 0 0 0 -350
STATIONERY EXPENSES -1 500 -650 -600 -700 -900 -1 500 -1 200 -900 -780 -360 -380 -900 -10 370
OFFICE TEL / FAXES - EXPENSES -2 100 -910 -1 200 -1 600 -900 -340 -400 -350 -400 -700 -400 -400 -9 700
CELL PHONE EXPENSES -1 200 -1 200 -1 500 -1 600 -1 600 -2 100 -2 050 -1 800 -1 750 -1 800 -1 290 -1 200 -19 090
INTERNET EXPENS - DATABUNDLES -400 -300 -300 -300 -300 0 0 0 0 0 0 0 -1 600
BANK CHARGES -1 200 -1 600 -890 -980 -1 840 -1 020 -980 -980 -1 260 -1 600 -1 280 -890 -14 520
BOND REGIST & TRANSFER COST -350 000 0 0 0 0 0 0 0 0 0 0 0 -350 000
PETROL EXPENSES -1 090 -600 -1 500 -3 000 -3 800 -3 500 -3 700 -1 300 -1 500 -3 800 -3 600 -2 900 -30 290
VEHICLE MAINTENANCE & SERVICES 0 0 0 0 0 0 0 0 0 0 0 0 0
CLEARNING MATERIAL -1 200 -1 500 -1 500 -1 800 -1 800 -1 870 -1 790 -1 840 -1 690 -1 900 -1 870 -1 400 -20 160
CASUAL LABOUR / TEMPs -4 000 -4 500 -5 000 -5 000 0 0 0 0 0 0 0 0 -18 500
LOAN REPAYMENT 0 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -4 855 218
INTEREST ON LOAN 0 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -728 283
BROKER FEES / ESTATE AGENT -30 000 -30 000
QUANTITY SURVAYOR FEES -45 000 0 0 0 0 0 0 0 0 0 0 -45 000
ARCHITECTURE FEES -120 000 0 0 0 0 0 0 0 0 0 0 0 -120 000
MENTORSHIP FEES -10 000 0 0 0 0 -10 000 0 0 0 0 0 0 -20 000
ATTORNEYS & CONVEYANCERS -150 000 -50 000 -50 000 -2 500 -2 500 0 0 0 0 -5 000 0 0 -260 000
ACCOUNTING / AUDITORS EXPENSES -3 000 -3 000 -3 000 0 0 0 0 -3 000 0 -6 700 0 -3 000 -21 700
14% VAT -31 500 -31 500 -31 500 -31 500 -31 500 -94 500 -94 500 -110 250 -110 250 -110 250 -110 250 -110 250 -897 750
OPERATING PROFIT BEFORE TAX -1 043 054 -991 365 -995 995 -962 985 -944 145 -585 335 -355 125 -458 325 -455 535 -495 015 -455 975 -456 245 -746 569
NORMAL SA TAX PAYMENT 0 0 0 0 0 0 0 0 0 0 0 0
OPENING RETAINED INCOME -1 043 054 -2 034 419 -3 030 414 -3 993 399 -4 937 545 -5 522 880 -5 878 005 -6 336 330 -6 791 865 -7 286 880 -7 742 855 -54 597 646

PROFIT AFTER TAX & INTEREST -1 043 054 -2 034 419 -3 030 414 -3 993 399 -4 937 545 -5 522 880 -5 878 005 -6 336 330 -6 791 865 -7 286 880 -7 742 855 -8 199 100 -55 344 215
PROJECTED INCOME STATEMENT OF LAND BREEZE YEAR 2
DESCRIPTIONS MNTH 1 MNTH 2 MNTH 3 MNTH 4 MNTH 5 MNTH 6 MNTH 7 MNTH 8 MNTH 9 MNTH 10 MNTH 11 MNTH 2912 TOTAL
OPENING RETAINED INCOME 0 629 196 619 081 634 336 752 601 799 705 708 620 199 495 -261 330 -719 365 -1 216 880 -1 675 355 470 104
LOAN - CAPITAL PORTION 0 0
LOAN - WORKING CAPITAL 2 100 000 500 000 530 000 600 000 510 000 400 000 500 000 5 140 000
GROSS TURNOVER 787 500 787 500 787 500 787 500 787 500 787 500 150 000 787 500 787 500 787 500 787 500 787 500 8 812 500
COST OF SERVICES 0 0 0 0 0 0 0 0 0 0 0 0 0
GROSS PROFIT 2 887 500 1 916 696 1 936 581 2 021 836 2 050 101 1 987 205 1 358 620 986 995 526 170 68 135 -429 380 -887 855 14 422 604

TOTAL EXPENSES -2 258 304 -1 297 615 -1 302 245 -1 269 235 -1 250 395 -1 278 585 -1 159 125 -1 248 325 -1 245 535 -1 285 015 -1 245 975 -1 221 495 -7 464 319
FIXED EXPENSES -604 114 -604 114 -604 114 -604 114 -604 114 -604 114 -604 114 -604 114 -604 114 -604 114 -604 114 -579 364 -7 224 619
SALARIES - MANAGEMENT -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -27 000 -324 000
DEPRECIATIONS -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -42 023 -504 278
LOAN REPAYMENT -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -5 296 602
INTEREST ON LOAN -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -794 490
INSURANCE -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -27 500 -2 750 -305 250
VARIABLE EXPENSES -1 654 190 -693 501 -698 131 -665 121 -646 281 -674 471 -555 011 -644 211 -641 421 -680 901 -641 861 -642 131 -239 700
CONTRATOR DEVELOPMENT EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0
ELECTRICITY EXPENSES -8 000 -8 000 -8 100 -8 100 -8 100 -8 100 -8 100 -8 000 -8 000 -8 000 -8 000 -8 000 -96 500
WATER EXPENSES -3 400 -3 400 -6 700 -6 700 -6 700 -8 200 -8 200 -8 200 -8 200 -8 200 -7 200 -5 600 -80 700
MARKETING EXPENSES - BUS CARDS -2 500 0 0 0 0 0 0 0 0 0 0 0 -2 500
MARKETING EXPENSES - ADVERT BOARD 0 0 0 -15 000 0 0 0 0 0 0 0 0 -15 000
MARKETING EXPENSES - LIGHT BOX 0 0 0 0 0 0 0 0 0 -25 000 0 0 -25 000
MARKETING EXPENSES - BUS BRANDING 0 0 0 0 0 -20 000 0 0 0 0 0 0 -20 000
POST BOX FEE -350 0 0 0 0 0 0 0 0 0 0 0 -350
STATIONERY EXPENSES -1 500 -650 -600 -700 -900 -1 500 -1 200 -900 -780 -360 -380 -900 -10 370
OFFICE TEL / FAXES - EXPENSES -2 100 -910 -1 200 -1 600 -900 -340 -400 -350 -400 -700 -400 -400 -9 700
CELL PHONE EXPENSES -1 200 -1 200 -1 500 -1 600 -1 600 -2 100 -2 050 -1 800 -1 750 -1 800 -1 290 -1 200 -19 090
INTERNET EXPEN - DATABUNDLES -400 -300 -300 -300 -300 0 0 0 0 0 0 0 -1 600
BANK CHARGES -1 200 -1 600 -890 -980 -1 840 -1 020 -980 -980 -1 260 -1 600 -1 280 -890 -14 520
REGISTRATION & TRANSFER COST -850 000 0 0 0 0 0 0 0 0 0 0 0 -850 000
PETROL EXPENSES -1 090 -600 -1 500 -3 000 -3 800 -3 500 -3 700 -1 300 -1 500 -3 800 -3 600 -2 900 -30 290
VEHICLE MAINTENANCE & SERV 0 0 0 0 0 0 0 0 0 0 0 0 0
CLEARNING MATERIAL -1 200 -1 500 -1 500 -1 800 -1 800 -1 870 -1 790 -1 840 -1 690 -1 900 -1 870 -1 400 -20 160
CASUAL LABOUR / TEMPs -4 000 -4 500 -5 000 -5 000 0 0 0 0 0 0 0 0 -18 500
LOAN REPAYMENT 0 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -441 383 -4 855 218
INTEREST ON LOAN 0 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -66 208 -728 283
BOND COSTS -309 000 0 0 0 0 0 0 0 0 0 0 0 -309 000
BROKER FEES / ESTATE AGENT -30 000 -30 000
QUANTITY SURVAYOR FEES -45 000 0 0 0 0 0 0 0 0 0 0 -45 000
ARCHITECTURE FEES -120 000 0 0 0 0 0 0 0 0 0 0 0 -120 000
MENTORSHIP FEES -10 000 0 0 0 0 -10 000 0 0 0 0 0 0 -20 000
ATTORNEYS & CONVEYANCERS -150 000 -50 000 -50 000 -2 500 -2 500 0 0 0 0 -5 000 0 0 -260 000
ACCOUNTING / AUDITORS EXPEN -3 000 -3 000 -3 000 0 0 0 0 -3 000 0 -6 700 0 -3 000 -21 700
14% VAT -110 250 -110 250 -110 250 -110 250 -110 250 -110 250 -21 000 -110 250 -110 250 -110 250 -110 250 -110 250 -1 233 750
OPERATING PROFIT BEFORE TAX 629 196 619 081 634 336 752 601 799 705 708 620 199 495 -261 330 -719 365 -1 216 880 -1 675 355 -2 109 350 -1 639 246
NORMAL SA TAX PAYMENT 0 0 0 0 0 0 0 0 0 0 0
PROFIT AFTER TAX & INTEREST 629 196 619 081 634 336 752 601 799 705 708 620 199 495 -261 330 -719 365 -1 216 880 -1 675 355 -2 109 350 -1 639 246
 30

PROJECTED INCOME STATEMENT OF LAND BREEZE

YEAR 3 FEBRUARY ENDING

DESCRIPTIONS QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 TOTAL

OPENING RETAIN INCOME -1 180 257 -703 168 -336 457 -632 620 -2 852 501
OTHER INCOME 0 0
RENTAL INCOME 2 551 500 2 551 500 1 863 000 2 551 500 9 517 500
COST OF SALES 0
GROSS PROFIT 1 371 243 1 848 332 1 526 543 1 918 880 9 517 500

TOTAL OPERATING EXPENSES -2 074 410 -2 184 789 -2 159 163 -2 152 260 -8 570 622
FIXED EXPENSES -1 837 602 -1 837 602 -1 837 602 -1 837 602 -7 350 410
SALARIES - MANAGEMENT -98 010 -98 010 -98 010 -98 010 -392 040
DEPRECIATIONS -126 069 -126 069 -126 069 -126 069 -504 278
LOAN REPAYMENT -1 324 149 -1 324 149 -1 324 149 -1 324 149 -5 296 596
INTEREST ON LOAN -198 624 -198 624 -198 624 -198 624 -794 496
INSURANCE -90 750 -90 750 -90 750 -90 750 -363 000
VARIABLE EXPENSES -236 808 -347 187 -321 561 -314 657 -1 220 213
CONTRATOR DEVELOPMENT EXPENSE 0 0 0 0 0
ELECTRICITY EXPENSES -98 043 -117 183 -130 350 -97 350 -442 926
WATER EXPENSES -48 972 -71 280 -81 180 -69 300 -270 732
MARKETING EXPENSES - BUS CARDS -3 025 0 0 0 -3 025
MARKETING EXPENSES - ADVERT BOARD 0 -18 150 0 0 -18 150
MARKETING EXPENSES - LIGHT BOX 0 0 0 -30 000 -30 000
MARKETING EXPENSES BUS BRANDING -1 350 -1 350 -24 000 -24 000 -50 700
POST BOX FEE -410 0 0 0 -410
STATIONERY EXPENSES -9 075 -10 230 -9 504 -5 412 -34 221
OFFICE TEL / FAXES - EXPENSES -13 893 -9 372 -3 795 -4 950 -32 010
CELL PHONE EXPENSES -12 870 -17 490 -18 480 -14 157 -62 997
INTERNET EXPENSES - DATABUNDLES -3 300 -660 -660 -660 -5 280
BANK CHARGES -10 197 -9 577 -10 685 -12 672 -43 131
BOND REGISTRATION & TRANSFER COST 0 0 0 0 0
PETROL EXPENSES -10 527 -37 389 -23 595 -37 389 -108 900
VEHICLE MAINTENANCE & SERVICES 0 0
CLEARNING MATERIAL -15 246 -19 856 -19 312 -18 767 -73 181
CASUAL LABOUR / TEMPs -9 900 -34 650 0 0 -44 550
BROKER FEES / ESTATE AGENT 0 0 0 0 0
QUANTITY SURVAYOR FEES 0 0 0 0 0
ARCHITECTURE FEES 0 0 0 0 0
MENTORSHIP FEES 0 0 -11 000 0 -11 000
ATTORNEYS & CONVEYANCERS 0 0 0 0 0
ACCOUNTING / AUDITORS EXPENSES -32 670 0 -21 780 0 -54 450
14% VAT -191 974 -258 767 -213 716 -268 643 -933 100
OPERATING PROFIT BEFORE TAX -703 168 -336 457 -632 620 -233 380 -1 905 624

NORMAL SA TAX PAYMENT

NET PROFIT AFTER TAX & INTEREST -703 168 -336 457 -632 620 -233 380 -1 905 624
 31

PROJECTED INCOME STATEMENT OF LAND BREEZE

YEAR ENDING FEBRUARY

DESCRIPTIONS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
OPENING RETAIN INCOME -1 905 624 -2 241 983 -2 693 970 2 678 312 1 453 321 -4 163 264
OTHER INCOME 0 0
RENTAL INCOME 2 551 500 2 551 500 9 517 500 2 551 500 2 755 620 17 172 000
COST OF SALES 0
GROSS PROFIT 645 876 309 517 6 823 530 5 229 812 4 208 941 9 517 500

TOTAL OPERATING EXPENSES -2 887 859 -3 003 487 -3 103 652 -3 211 312 -3 329 738 -12 206 309
FIXED EXPENSES -2 651 051 -2 656 301 -2 782 091 -2 857 595 -2 940 649 -10 947 037
SALARIES - MANAGEMENT -324 000 -324 000 -392 040 -431 244 -474 368 -1 471 284
DEPRECIATIONS -504 278 -504 278 -504 278 -504 278 -504 278 -2 017 111
LOAN REPAYMENT -1 324 149 -1 324 149 -1 324 149 -1 324 149 -1 324 149 -5 296 596
INTEREST ON LOAN -198 624 -198 624 -198 624 -198 624 -198 624 -794 496
INSURANCE -300 000 -305 250 -363 000 -399 300 -439 230 -1 367 550
VARIABLE EXPENSES -236 808 -347 187 -321 561 -353 717 -389 089 -1 259 273
CONTRATOR DEVELOPMENT EXPENSE 0 0 0 0 0
ELECTRICITY EXPENSES -98 043 -117 183 -130 350 -143 385 -157 724 -488 961
WATER EXPENSES -48 972 -71 280 -81 180 -89 298 -98 228 -290 730
MARKETING EXPENSES - BUS CARDS -3 025 0 0 0 0 -3 025
MARKETING EXPENSES - ADVERT BOARD 0 -18 150 0 0 0 -18 150
MARKETING EXPENSES - LIGHT BOX 0 0 0 0 0 0
MARKETING EXPENSES - BUS BRANDING -1 350 -1 350 -24 000 -26 400 -29 040 -53 100
POST BOX FEE -410 0 0 0 0 -410
STATIONERY EXPENSES -9 075 -10 230 -9 504 -10 454 -11 500 -39 263
OFFICE TEL / FAXES - EXPENSES -13 893 -9 372 -3 795 -4 175 -4 592 -31 235
CELL PHONE EXPENSES -12 870 -17 490 -18 480 -20 328 -22 361 -69 168
INTERNET EXPENSES - DATABUNDLES -3 300 -660 -660 -726 -799 -5 346
BANK CHARGES -10 197 -9 577 -10 685 -11 754 -12 929 -42 213
BOND REGISTRATION & TRANSFER COST 0 0 0 0 0 0
PETROL EXPENSES -10 527 -37 389 -23 595 -25 955 -28 550 -97 466
VEHICLE MAINTENANCE & SERVICES 0 0 0 0
CLEARNING MATERIAL -15 246 -19 856 -19 312 -21 243 -23 367 -75 656
CASUAL LABOUR / TEMPs -9 900 -34 650 0 0 0 -44 550
BOND COSTS 0 0 0 0 0 0
BROKER FEES / ESTATE AGENT 0 0 0 0 0 0
QUANTITY SURVAYOR FEES 0 0 0 0 0 0
ARCHITECTURE FEES 0 0 0 0 0 0
MENTORSHIP FEES 0 0 -11 000 -12 100 -13 310 -23 100
ATTORNEYS & CONVEYANCERS 0 0 0 0 0 0
ACCOUNTING / AUDITORS EXPENSES -32 670 0 -21 780 -23 958 -26 354 -78 408
14% VAT -90 423 -43 332 -955 294 -732 174 -589 252 -1 821 223
OPERATING PROFIT BEFORE TAX -2 241 983 -2 693 970 3 719 878 2 018 501 879 203 802 427

NORMAL SA TAX PAYMENT -1 041 566 -565 180 -246 177 -224 679

NET PROFIT AFTER TAX & INTEREST -2 241 983 -2 693 970 2 678 312 1 453 321 633 026 577 747
 32

LAND BREEZE 699 PROJECTED BALANCE SHEET FOR THE PERIOD

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CAPITAL EMPLOYED 37 393 431 36 959 743 36 234 376 38 773 026 38 717 747

Capital 0 0 0 0 0
Reserves & Shareholders' Loans 0 0 0 0 0
Retained Profit / Loss for the Year -746 569 -1 180 257 -1 905 624 633 026 577 747

Non-Current liabilities 38 140 000 38 140 000 38 140 000 38 140 000 38 140 000
Long Term Loan 38 140 000 38 140 000 38 140 000 38 140 000 38 140 000

EMPLOYMENT OF CAPITAL 37 393 431 36 959 743 36 234 376 38 773 026 38 717 747

Fixed Assets 37 630 333 37 630 333 37 630 333 37 630 333 39 630 333
Utility Vehicle 250 000 250 000 250 000 250 000 250 000
Land & Buildings 33 000 000 33 000 000 33 000 000 33 000 000 33 000 000
Furniture & Fittings 800 000 800 000 800 000 800 000 2 800 000
Computers & Printers 30 333 30 333 30 333 30 333 30 333
Built in Fixture 50 000 50 000 50 000 50 000 50 000
Other Equipments 3 500 000 3 500 000 3 500 000 3 500 000 3 500 000
Other 0 0 0 0 0

Net Current Assets -236 902 -670 590 -1 395 957 1 142 693 -912 586
Current Assets 6 737 328 2 086 410 3 753 269 6 291 919 5 236 640
Debtors 1 355 560 557 567 1 383 715 2 495 000 2 495 000
Bank 5 381 768 1 528 843 2 136 448 2 582 612 2 741 640
Other 0 0 233 106 1 214 307 0
VAT
Current Liabilities -6 974 230 -2 757 000 -5 149 226 -5 149 226 -6 149 226
Creditors -1 603 781 -1 378 500 -2 574 613 -2 574 613 -3 074 613
Bank -5 140 000 -300 000 0 0 0
VAT 0 0 0 0 0
Accumulated Depreciations -230 449 -1 078 500 -2 574 613 -2 574 613 -3 074 613