Executive Summary Investment Details Annualized ROI Overview Preferred Rental Returns...9% Equity Returns...10% Total Annual Returns...19% *See page 15 for details Minimum Investments The minimum investment is set at $50,000 USD Total Project Investment The total Investment amount is estimated at $1,217,000 USD *Calculated at 2,050 Exchange rate Funding Schedule Phases 1 - $130,000...Fully Funded 2 - $354,000... Open 3 - $732,000...Open *See page 16 for details The Concept Global Express Business Center (GEBC) offers a one stop shop business, office, travel, and tourism solution to the expanding international market. The Global Express centers will be located in key business and travel hubs throughout the world such as major cities, tourist destinations, and transportation centers (airports/bus centers). The concept is designed and perfectly suited to be franchised on an international scale. 4 Facets of Client Services Offered Under One Roof (See detailed list of 40 services included in package) Business Express...Shipping, Printing, Office Supplies etc. Office Express...Furnished Offices, Workspace & Conference Rooms etc. Travel Express...Money Exchange, Tour Info, Reservations etc. Professional Services Express...Legal, Accounting, Visa, escrow services etc. Anchor Tenants First American Realty Medellin and The Apartment Medellin will be the anchor tenants for the Global Express Business Center (GEBC). With a high volume of foot traffic in our offices and countless daily requests for referrals in each of the above categories offered we will leverage the service needs generated by our normal business activities to meet the demands and necessities of our clients. Preliminary Design Proposals Presented By The Flagship Location GEBC Medellin will be located in a three story building in the Zona Rosa district of Medellin, Colombia capitalizing on excellent street (vehicle and foot traffic) exposure to both the business and tourist markets. The commercial center will be built around all the needs for business and travel, creating a synergy between the services offered and creating a destination location. 1
Business Express Convenience Everything at your fingertips Synergy Integrated businesses can look to Business Express for all services that are fundamental to daily operation. Business Express The Business Express - This section will be designed with several kiosks and booth spaces (rented out to private parties/businesses) offering a full suite of business related services. Several of the services will be designed as drops off/pick up to maximize the very marketable space and street exposure allowing for a higher density of functions in a limited space. Additionally, there will be a guest greeting area, secretary/concierges and waiting lounge. Below is a visual selection of some of the key services at Business Express. Greeting Center Secretary/Concierges PO Boxes Taxi Call Luggage Storage Courier Services FedEx Business Express Services Local Mail/Delivery Copier Fax Photo Booth Printing and Marketing (Business Cards etc.) Key Copies and Locks Office Supplies Gift Items and Necessities Coffee/Snacks Community Info Board Cell Phone Rentals/Charges 2
Professional Services/Travel Express Leveraging Contacts FARM will leverage its extensive network of local and foreign professionals to provide clients with a one stop shop for all needs within the professional services realm. FARM will leverage its consistent client traffic to entice our professional service providers to establish booths at GEBC. Professional Services Express - A full Suite of Professional Services for Living, Investing and Doing Business in Colombia. Professional Services and Consultation: Legal, Accounting, Insurance Services, and Medical Tourism Colombian Legal Services Financial Services International Wire Transfers Colombian Accounting Services Ex-pat Accounting Services Translation Services Escrow Services (Possible) Professional Services Express Colombian Visa Applications Loan and Mortgage Solutions Insurance Solutions Notary Services (Possible) Medical Tourism -Medical Treatments -Cosmetic Surgery, Dental etc. Central Service Providers FARM sees demand for all of the Travel Expres services on a regular basis and consistently refers clients to all parts of the city to accomplish that which will soon be available at Global Express. Travel Express - A full Suite of Travel Services for International and National Tourist. Money Exchange Services Western Union (Wire Transfers) ATM (Possible) Bill Pay Services (EPM UNE etc.) Tourism Information Spanish Class Travel Express Services Dance Class Tickets and Event Booking Car/Motorcycle Rentals Airline Tickets Hotel Reservations Bicycle Rentals 3
Office Express Office Express Private Offices Fully furnished private rental offices with a flexible number of employee desks per office designed for clients running a business. Office Express - Offers office suites that are fully equipped and furnished with a common secretary and service package. These units are configurable sizes based on the client s needs and allow either private individuals or businesses to be able to quickly establish a presence in Medellin. Services to include private offices, common reception and waiting area, conference room, phone lines, high speed internet, voice mail box, etc. There will be various complimentary services such as business cards, marketing assistance, lunch ordering service, etc. Spaces rented daily or long term. Workspaces Fully furnished private cubicle workspaces offering a turnkey office solution. Meeting Rooms Two private meeting rooms/ class rooms/conference rooms will be provided on a sign up usage basis. Break Room Common break room, kitchen, etc. will be provided as part of the building for use by all clients renting booth space or office space. Common Receptionist All offices will be served by a common building receptionist 4
Anchor Tenants/Proposed List of Services Anchor Tenants FARM and TAM The building anchor tenants would include First American Realty Medellin (FARM) and The Apartment Medellin offering full service apartment rental, real estate sales and commercial investments. FARM will offer full service commercial management services on behalf of all Global Express Business Center clients in the building and manage common areas and employees. Comprehensive List of Proposed Services for Foreign Residents, Visitors, Tourists and Executives Business Express Small office supply store (mini Office Depot) Small printing/copy center (for business cards, marketing brochures, etc) Mailbox room (Additional service of luggage storage, long term, short term etc.) Local mail service agency (one of 5 companies) Shipping center (such as FedEx or UPS with logo on building exterior) Cell phone rental/recharge or purchase booth (Claro, Tigo, Movistar etc.) Coffee shop/kiosk Bill pay center/insurance payment center (similar to Exito) Photo booth for VISA photos Small gift/convenience /snack store (sell Colombian travel books, trinkets, Spanish dictionaries, phone cards, etc) Delivery stand: with access to motorcycle delivery team for pickups/drop off (move documents around town) Errand stand: offer services to clients that need to get stuff done 5
Proposed List of Services (Continued) Comprehensive List of Proposed Services for Foreign Residents, Visitors, Tourists and Executives Travel Express Travel insurance booth Tourist info center (possibly Medellin Chamber of Commerce or private entity) May also offer commercial info such as free trade agreement details, etc Tour services sales and packages Lodging referral (apartments, hotels, hostels) Ticket sales (plane tickets, bus tickets, events) Community info area (post it board, newspaper, events, notices, business cards) Logistics center Money exchange booth Western Union/wire transfer Internet kiosks/skype stations International phone booths Spanish school class sign up Dance classes sign up Car/motorcycle/bike rental booth (similar to in an airport where the cars are located off site and they take your order only) ATM machine Laundry services (either pickup/drop off, or small laundry center) Taxi call center Professional Services Express Financial institution location/mini Bank Outlet? (Global Securities, Alianza, or Bolsa y Renta, etc) Allow for wire transfers, opening of accounts for foreigners investors Home/car/moto and other insurance booth Notary booth Escrow services booth 6 Mortgage solutions/financing booth Possible hard money loan Legal advisory stand/referrals Document translation services (drop off and pick up) Medical tourism referrals, dentist, etc (TV ads) Colombian VISA info/application booth
Acquisition Property Acquisition Property for Global Express Medellin Building Specifications Area...574 m 2 #Levels...3 Price...$520,000 USD Location...Calle 10 Poblado Current Use...Offices/Local Location Advantages 1 Block from Avenida Poblado On Calle 10 5 Blocks from Parque Lleras On central Poblado artery High visibility Good frontage area Status of Building Full renovation needed Workable existing layout (minimal layout interventions) Great lighting throughout Perfect for the concept Large open patio 7
Acquisition Property Location Building Location Calle 10 #42-28 / #42-24 El Poblado, Medellin, Colombia Walking Traffic High Volume of Pedestrian traffic Easily accessible On a heavily traveled pedestri an corridor to the Metro and major bus stops Central to El Poblado foreigner activities City tour bus leaves Parque Poblado every hour Vehicle Traffic Located on high traffic volume street (great visibility) Slow traffic ensuring maximum visibility Several nearby parking options 8
Property Transformation Layout Level One, Two and Three BUSINESS EXPRESS PROFESSIONAL SERVICES TRAVEL EXPRESS FARM OFFICES LEVEL 1 OFFICE EXPRESS FARM OFFICES LEVEL 2 ROOF 9 LEVEL 3
Property Transformation Level One Layout, Business and Travel Express BUSINESS EXPRESS PROFESSIONAL SERVICES TRAVEL EXPRESS LEVEL 1 To Go Coffee Shop SHIPPING CENTER ACCESS Photo booth BUSINESS EXPRESS Copy/Plotter center Luggage / mail storage LEVEL 1 LAUNDRY DROP LUGGAGE DROP OFFICE SUPPLIES SNACKS AND GIFTS PHONE RENTAL MAIDS SERVICES RECEPTION / CONSIERGE: Cashier Credit Card Machine - Reception ACCESS ATM TRAVEL EXPRESS TOUR AND INFO SERVICES EVENTS AND TICKETS SPANISH CLASS DANCE CLASS MONEY EXCHANGE RESERVATIONS ACCOMIDATION AND TRANSPORT: Airline tickets, Rental cars, Motorcycles, Bicycles Hotel Apartment Rental - Travel Insurance - International Phone Booth Internet Workstation Kiosks 10
Property Transformation Level One Layout, Professional Express BUSINESS EXPRESS PROFESSIONAL SERVICES TRAVEL EXPRESS LEVEL 1 FLEXIBLE CONFERENCE ROOM LEVEL 1 PROFESSIONAL SERVICES EXPRESS WAITING LOUNGE LUNCH / BREAK ROOM FEMALE BATHROOM MALE BATHROOM 11
Property Transformation Global Express Concept Renderings Existing Building Facade Global Express Conceptual Facade Rendering Existing Building Interior Global Express Conceptual Interior Rendering 12
Financial Analysis Global Express Capital Contributions Exchange Rate: 2050 1,064,000,000 Purchase Price (Building) 26,600,000 3rd Party Commissions (fund raising fees only if needed) Building Cost (on purchase): 16,896,320 Closing Costs Square Meters: 540 1,107,496,320 Total Acquisition Acquisition Cost/ SM (pesos): 2,050,919 Acquisition Cost/ SM (dollars): $ 1,000 10,000,000 Holding Expenses (till operational including taxes, utilities, etc) 10,000,000 Permitting, Engineering & Structural Design Expenses New Construction: 20,000,000 Legal Fees (Promesa/Purchase Agreement, SAS set up, Partnership Contract, Other) Square Meters Addition: 34.5 15,000,000 GE Branding, Website, Marketing & Trademark (business) 20,000,000 SAS Taxes Renovation Cost: 75,000,000 Total General Expenses Renovation Cost/ SM (pesos): 1,255,004 Renovation Cost/ SM (dollars): $ 612 500,000,000 New Construction and Renovation (complete building renovation) 50,000,000 Building Signage (pass portion to tenants) Total Building Cost (after renovations): 40,000,000 Technology (phone systems, TV displays, etc) Square Meters: 574.5 30,000,000 Facade, Awning, Sidewalk, & Other Building Investment/SM (pesos): 3,478,671 120,000,000 A/C, Lighting Systems, Lock Systems, Security Building Investment/SM (dollars): $ 1,697 400,000,000 Furnishing, Decorations, Equipment, Booths, Cubicals & Systems 171,000,000 FADS Fees (discounted rate - 15% of renovation/furnishings/finishings budget) 1,311,000,000 Total Renovation & Furnishing 2,493,496,320 Total (Pesos) $ 1,216,340 Total (Dollars) Global Express (Calle 10) - Capital Contributions Summary 13
Financial Analysis Global Express Division of Spaces Exchange Rate Used for Calculations = 2050 Office Sizes (on Completion): Sq Meters Sq Feet 1st Floor Constructed/Enclosed 230 2476 1st Floor Usable Patios (9.5 sq mtr & 38 sq mtr) 49 527 2nd Floor Constructed/Enclosed 219 2360 2nd Floor Usable Patios (10.4 sq mtr) 12 129 3rd Floor Constructed/Enclosed 64.25 692 Total Constructed/Enclosed: 513.5 5527 Total Usable Patios: 61 657 Total Building Size: 574.5 6184 Global Express Rental Income Summary Rental Income Model Dedicated Sq Mtrs Rate per Sq Mtr (pesos) Rate per Sq Mtr (USD) Occupancy Monthly Rent Income # of Spaces Sq Mtr Per Space Price Per Space 1st Floor Business Express (Booths) 49 100,000 $ 49 80% $ 1,912 7 7.0 $ 273 1st Floor Travel Express (Booths) 72 110,000 $ 54 80% $ 3,091 9 8.0 $ 343 1st Floor Professional Services Express (Offices) 44 110,000 $ 54 90% $ 2,125 6 7.3 $ 354 1st Floor Common Areas (circulation, meeting room, greeting, kitchen, other) 114 2nd Floor Office Express 142 100,000 $ 49 70% $ 4,849 20 7.1 $ 242 2nd Floor FARM & TAM Offices 80.85 40,000 $ 20 100% $ 1,578 2nd Floor Common Areas (Vertical circulation) 8.5 3rd Floor FARM & TAM Offices 53.75 40,000 $ 20 100% $ 1,049 3rd Floor Common Areas (Vertical circulation) 10.5 Professional Services Express Referral Fees $ 2,000 Travel Express Referral Fees $ 500 Business Express Managed Services $ 500 Signage Lease (facade and interior) $ 500 Meeting & Conference Lease $ 200 Daily Office Space Rentals $ 200 Total Monthly Rental Income: 574.6 $ 18,503 Annual Rental Income: $ 222,035 Management Fee (FARM covers marketing expenses) 10% Expenses (Utilities, Tax,Cleaning, Maintenance, Secretary, Systems): 20% Total Expenses $ 66,611 Net Annual Income (pre-tax): $ 155,425 Annual Rental ROI: 12.78% General Office Features included in all tenants lease rates: Common Secretary, A/C, Security Systems, Alarm, Phone System, Message System Access of Indoor-Outdoor Kitchen, Meeting Rooms, Lounge, TV & Café Bar Phone Systems, Fully Wired Internet, Utilities, Maid Services Furnishing: Desks, phones, lockable drawers, office supplies (some sellable) Parking Garage Directly across on Calle 10 Access to use Printing and Copying Area FARM can relocate to another location and just keep a booth for Real Estate Services if more space is needed 14
Financial Analysis Global Express Investors Summary Global Express (Calle 10) - Returns Summary Project Total Investor(s) FARM Total Funds Required: $ 1,216,340 Contribution Amount 100% na Capital Returns Investor Funds are First Funds Out on Resale na If Multiple Investors Pro-Rated based on Contribution Percentage na Reserves: Additional Fundraising Round if Needed $ 150,000 100% na FARM Fees: Building Acquisition & Project Analysis Fees na None (seller paid via commission) Property Management Fees na 10% discounted rate (from 20%) Administration Fees na waived Renovation Fees (FADS) na 15% discounted rate (from 25%) Project Management & SAS Administration na waived Resale Commission na standard 3% split with buyers agent Annual Rental Income (pre-tax ROI): 12.78% Split 9% balance Order of Distribution preferred returns up to 9% none Project Equity Upsides (pre-tax): Split 60% 40% Building Resale Valuation at 8% cap w/ 5% re-sale exp (dollars) $ 1,845,667 Equity on Resale $ 629,327 $ 377,596 $ 251,731 Brand & Franchise Value (Colombia) TBD 50% 50% Brand & Franchise Value (International) na 100% Annualized Equity Returns: (on investor capital over a 3 year hold) 10% na Estimated Combined Annual Returns (Rental Income + Equity) 19% na Other Investment Considerations: * Currently at a very favorable exchange rate (not considered in returns) * Rental Income will Increases Over Time (not considered in returns) * Additional Building Appreciation Over Time (not considered in returns) * No Value Given to the Global Express brand and expansion opportunity * Peso Strengthen Over Time vs USD (not considered in returns) * Hedge Against the US Dollar * FARM has existing relations with 70% of proposed tenants 15
Funding Rounds Investment Details Annualized ROI Overview Preferred Rental Returns...9% Equity Returns...10% Total Annual Returns...19% *See page 15 for details Minimum Investments The minimum investment is set at $50,000 USD Total Project Investment The total Investment amount is estimated at $1,217,000 USD *Calculated at 2,050 Exchange rate Funding Schedule Phases 1 - $130,000...Fully Funded 2 - $354,000... Open 3 - $732,000...Open 82% of Phase 2 funds goes to Property Acquisition Legal Fees Trademark and Business Create Corporation Open GEBC Bank Accounts Three Funding Phases Funding Phase 1 Amount...$130,000 USD Status...Fully Funded Deadline for Receipt of Funds...March 1, 2014 Funds from this round will go entirely to towards the building acquisition Funding Phase 2 Amount...$354,000 USD Status...Open Deadline for Receipt of Funds...June 30, 2014 Funds from this round go toward the following: Purchase agreement Branding Marketing Preliminary Design Costs Structural Design Work SAS Setup Fees and Taxes Presented By Funding Phase 3 Amount...$732,000 USD Status...Open Deadline for Receipt of Funds...December 1, 2014 Funds from this round go toward the following: 13% of Phase three funds Goes to Property Acquisition Holding Costs Renovation 34 m 2 Addition AC install Sidewalk reconstruction Signage/Marketing Equipment Network Systems Setup Furnishing Security Decorations Utility connections 16