Invest In A Student Accommodation Development

Own a share of prime real estate development

2016/08/30 1

Development of Student Accommodation: Vaal University of Technology, Bedworth Park

Investor Packwww.mabindu.com

151 Katherine Street

Sandton

011 384 2931

2016/08/30 2Forecast, data and illustrations, estimates contained in this

document are not guaranteed and are providedfor illustrative purposes only

Company profile

Project teamInvestment Consultant: Mpho Khorombi

Mpho is a qualified engineering professional with a Masters in Management of Finance and Investmentspecialising in real estate investments. He also is well-equipped with essential business skills gained frombeing on the MBA exchange programme in Canada. He is responsible for sourcing and structuring realestate deals

Concept Design and Architect Service: Nzuza Architects

The practice has been growing steadily, with projects ranging in scale from research work, private houses,office blocks, to commercial residential properties. The firm strives to go the extra mile to explore newbuilding techniques, materials development strategies and design philosophies. As a result the buildingprojects differ in form and style, yet are unified by their clean and simple design aesthetics and principles.

Fund Manager: Vunani Private Clients

Vunani Private Clients offers high net-worth clients stockbroking and fund management as well as accessto various derivative trading and hedging instruments. The wide range of products on offer includesgeared derivatives (like CFDs and Single Stock Futures) to money market accounts. In addition, it has arange of absolute, balanced and directional funds. It's also active in both the local and internationalsphere with a range of offshore trading and investment products.

Mabindu is a real estate advisory firm thatallows the public to invest directly intoincome generating property. We specialize inresidential and retail real estate acquisitionand or re-development through ourcrowdfunding platform.

We take an entrepreneurial view in ourendeavours at the same time manage theinherent market uncertainty. We focus onrisk management to ensure anticipatedresults are achieve through our stringentunderwriting and due diligence processes.The team and our associates have deeperinsight on real estate market in South Africa

2016/08/30 3All information herein is deemed accurate. Independent verification of facts is the investor’s sole responsibility.

In the media

Development tackles lack of student accommodation”

http://www.fin24.com/Companies/Property/development-tackles-lack-of-student-accommodation-20160216

“Accommodation crisis also burdens students”

http://www.fin24.com/Companies/Property/Accommodation-crisis-also-burdens-students-20151022

2016/08/30All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

4

2016/08/30

Area locality

5All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

Key Statistics

2016/08/30dept. of high education and emfuleni local municipality report

2013-20146

750000

800000

850000

900000

950000

1000000

2009 2010 2011 2012 2013

Stu

den

ts

Year

Total National Enrolments

18000

18500

19000

19500

20000

20500

21000

21500

22000

22500

2009 2010 2011 2012 2013

Year

VUT Enrolments

Student Accommodation Status at VUT

2016/08/30

15000 17000 19000 21000

Total no. of studentsregistered in 2013

Projected no. of studentsregistered by 2017

Registration figuresAccommodation arrangement figures

Approximate no. of students using university residence

Independently sourced accommodation

7dept. of high education and emfuleni local municipality report

2013-2014

Property Description

Property address

• Ganymede Street

Township

• Bedworth Park, Vereeniging

Land size

• 2000 sqm

Supported zoning

• Residential 2, Medium density

• Buildable area• 640 sqm

• Single bed apartments• 8 units

• 80 sqm/units

• 4 bedrooms/unit

• Open floor lounge and kitchen/unit

2016/08/30 8www.mabindu.com

Project Cost

Total project cost

•R6 056 902.80

• R 600 000.00Land cost

• R 3 776 000.00

Building cost @ R5900/square

metre

• R 415 360.00Professional

costs

• Preliminaries, external works, contingency, escalations and general cost R 1 265 543.00

Other costs

2016/08/30 9All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

Income Model and Yield

2016/08/30

Base rent

• R 2 600,00 for single bedroom indexed to Cpi

Number of bedrooms

• Number of single bed - 32

Gross annual income

• R832 000,00

• Operation expense factor 25%

Net annual operating income

• R 624 000,00

1st year yield

10.30%

10All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

Income Forecast

• Investment analysis

• Based on 5 year holding term

• Sale price

• R 8 179 367.10

• Internal rate of return (unleveraged)

14.3%

2016/08/30 11All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

R-

R200 000,00

R400 000,00

R600 000,00

R800 000,00

R1 000 000,00

R1 200 000,00

1 2 3 4 5

Year

Income Forecast

Revenue p.a Operating cost Operating income

Key Investment Features

R 500 000

already committed

Minimum investment is

R 50 000.00

Great way to earn passive income

Targeted tenants Vaal University of Technology

Bursary and scholarship students

Individual students

2016/08/30All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

12

Deal Schedule

2016/08/30

September 2016-Capital raising opens

April 2017-Capital raising close

May 2017 Construction-Start

December 2017Construction-End

January 2018 Leasing

13All information herein is deemed accurate.Independent verification of facts is the investor’s sole responsibility.

Risk Statement and Disclosure

The performance of the fund is linked to the performance of theunderlying property asset which is and can be influenced by the factorsbelow.

• Business risk• Existing property owners might lower their rents to attract tenants.

• Demand for tenants may not grow as expected because of over supply ofrental space

• Liquidity risk• In an event where the property or shares has to be sold, it might take

longer to sell. Property usually takes between 6-12 months to sell.

• Inflation risk• Unexpected inflation can reduce an investor’s rate of return if the income

from the investment does not increase sufficiently to offset the impact ofinflation, thereby reducing the real value of the investment

• Real estate has historically done well during periods on significant inflationhikes

• Management risk• Income producing properties requires management to keep the space

leased and maintained to preserve the value of the investment.

• Management competency is vital for acceptable rate of return to investors

• Legislative risk• Real estate is subject to numerous regulations such as tax laws, rent control

and other restrictions imposed by government. Legislative risk results fromthe fact that changes in regulations can adversely affect the profitability ofthe investment

• Environmental risk• The value of real estate is often affected by changes in its environment or

sudden awareness that the existing environment is possibly hazardous. Forexample, while it used to be common to use asbestos to insulate buildings,asbestos in buildings is now perceived as a potential health hazard

• Forecast returns are based on current economic assumption and noguarantees can be provided

• Past performances and historic data are not necessarily indicative offuture performances or trend.

• Performance of the fund is directly linked to the underlying asset.

• Mabindu Crowdfund Mortgages is a registered juristic representativeof Unum Capital (formerly Vunani Private Clients) is an AuthorisedFinancial Services Provider (FSP 564)

2016/08/30 www.mabindu.com 14

Your cordially invited to attend one of our Investor Roadshow.

10,17,24 September 2016

Address: 151 Katherine Street, Sandton, Vunani Office Park

Time: 11am

RSVP: invest@mabinduip.com tell: 011 384 2931

www.Mabindu.com

2016/08/30 15

Mabindu Crowdfunded Mortgages is a registered juristic representative of Vunani Private Clients an Authorised Financial

Service Provider (FSP 564)