HOUSING CONSTRUCTION PROJECT OF SOCIAL INTEREST VILLA QUINTANA PHASE 2 AND PHASE No 3 ITAGUI COLOMBIA

1 - EXECUTIVE SUMMARY

In the Department of Antioquia, west-central Colombia is the city of Medellin and the Metropolitan Area consists of eleven municipalities with public administration different from Medellin as the axis of the area. With immense wealth and extensive process of industrial development and services of different nature is ITAGUI municipality that is part of the metropolitan area with a population of approximately 280,000. This town is one of the industry across the country.

This territory is mostly flat has a gently undulating landform and geology that is considered by experts as one of the oldest in the country. With a hydrology consists of streams that drain into the Medellin River. The general population is represented by several communities of Aboriginal ancestral mixture by mixing with different groups of settlers from the mid-seventeenth century slowly settled in the area. The climate of the area has the kind of transition between tropical savannah, alternating with humid with temperatures averaging at 26 degrees Celsius and rain with rainfall reaching 1200 mm per year. Its economy is based on different sized industrial developments, the provision of services and trade in general. However, it is a city with great problems and challenges as most Latin American cities. One of the major problems to be solved is a large deficit in housing and building of them suffering inhabitants. BUSINESS IDEA

Our Housing Association has better future social and active presence in the area. He has developed programs and projects of social housing for the different communities Itag. Currently our ASOCIACIN MEJOR PORVENIR is running (under construction): 1) THE PROPOSED CONSTRUCTION OF HOUSING OF SOCIAL INTEREST QUINTANA VILLA PHASE No. 2, whose object is the construction of 180 (one hundred eighty) housing solutions for the same number of families. 2) In addition we are starting the formalities for the construction of Phase No. 3 with 600 housing solutions. We have all the legal permits and the allocation over the umbrella of the Colombian state for the NO 2 and similarly do the same for the NO 3. Our business idea is the rapid construction of the one hundred eighty (180) dwelling units on the NO 2 ... And the inherent legally advance the construction of the NO 3, which has as its object the construction of 600 housing solutions for the same amount of low-income families and homeless. Future beneficiaries resident homeownership and decent housing at prices within the reach of their annual income (U.S. 10,800 household income) - We will have financial support and sponsorship of the Colombian Government, represented by the Ministry of Environment and Housing (nationally), the Government of Antioquia (Regional level) and the Municipality of Itagui (territorial level). - Our associates conducted and savings each month pay period within which to access

the different projects that our better future ASSOCIATION plans develops,complying with the legal framework required by the laws and authorities.

and

Marketing is 100% guaranteed and will give priority to members of the Association are currently about 500 members and who meet the requirements. VALUE PROPOSITION

We propose and apt to seek partners or financial investors to support our BETTER FUTURE HOUSING ASSOCIATION FOR THE VILLA PROJECT PHASE QUINTANA No 2 and No 3 to integrate and participate in the development and implementation of this ambitious and exceptionally profitable project. In this instance we have secured the auspices called government subsidies and contributions made by partners. We have experience in these projects and we have the support of different communities for 5 years, with assistance and social programs that allow us to represent the community in these projects also result in employment generation and social investment . Our BETTER FUTURE HOUSING ASSOCIATION offers our potential partners or investors this successful project, which responds to the following considerations: A partnership with strategic partners in place to support us with their contributions (planned savings) in the same building, they benefit from the marketing and support in protecting the environment 5 years experience in similar processes. Marketing guaranteed. Working together with the beneficiary community (partners). Possibility of new construction projects run by the political will of the present rulers ensure we build new housing developments. We have the permits required by law The execution was carried out with the community to ensure the safety for our staff and contractors, helping to stay in the region, sparking new projects. The beneficiary community (partners) can develop projects economic, social, environmental, and improvement of the new urban centrality. The return on investment will be safe and fast.

TARGET MARKET Our estimates of this target market penetration, are fully guaranteed by the nature of our

association, government support and the wide and growing demand. Not enough housing supply in the municipality or the Metropolitan Area. Our competitors are among the Colombian businessmen who manage in the middle, and often do not meet the requirements of various kinds that are required by existing regulations. Competition from abroad threatens not recognize our Association, or have references to arrival with projects similar to ours. Estimated revenue for our sales those raised in the financial summary below presents. The next exercise that corresponds to the reality of our Business Plan: MARKET POTENTIAL

Our customers are the current 500 partners and more than 10,000 families who are homeless own the characteristics of our project.

COMPETITIVE ADVANTAGE

We believe that the key factors of success of our project is what everything listed above. In addition, studies, georeferencing and characterizations made by the Ministry of Housing, the Colombian Chamber of Construction - CAMACOL and Fedelonjas (entity that studies price trends in the sector), we generated huge competitive advantage when marketing our project. We have all our documentation and approvals duly approved and organized, ready to enter the construction phase (see attached photo folders of documents)

SUMMARY BUSINESS SYSTEM

With our experience and the progress that we currently have deployed advanced business system is based on the construction of social housing, at affordable prices and government support to ensure economic and social benefits.

We have a work plan for the short, medium and long term, with clear goals and performance indicators to ensure compliance with these and the economic benefits of our partners and investors.

2 - GENERAL INTENTION-

SUBJECT'S IDENTIFICATION

THE ASOCIACIN MEJOR PORVENIR is duly incorporated in the Chamber of Commerce South Aburr have a group of partners from different sectors of production and economic, that as interdisciplinary team, offer their personal and financial support unconditionally, with the aim to meet projected goals. 3 PROJECT DESCRIPTION

QUALITATIVE To promote a better quality of life seven hundred eighty (780) FAMILIES welfare is

about 1500 people within the family group, who do not own their own homes or worthy family whose income per capita is U.S. 10,800. year. QUANTITATIVE PHASE TWO: Completion of construction of 180 dwellings, urban works, facades and finishes. Green areas and 30 parking PHASE THREE: Diligence legal issues, permits, grants from the Colombian State, design and construction of 600 houses, besides the works of planning and completion of the details of the facades and interior finishes them. 4.- TECHNICAL ANALYSIS

Optimal size. The size of the project is represented by the capacity (or the one installed by the project). The optimum size is one that ensures the highest profitability. - This is the construction of social housing - Construction of 180 dwellings and 600 dwellings on a lot that we have pre-negotiated, subsidized to a great extent by the state. Also be taken into account the following factors that are regulated by the state housing program of social interest (VIS): Supplies of goods and materials. The power supplies in quantity and quality of inputs is a key aspect of our project, so we had to check the availability of them in the market, the potential exhaustion of inputs, price changes, etc.. We have a place to store raw materials and to preserve their quality and are readily available. The technology and equipment. We have considered the size and space requirements for equipment to be used in the project, availability of spare parts in case of breakage, among other things that we have analyzed to select the technology for the project. Financing. is necessary to obtain financing, either through external or own resources. Organization: We have adequate staff to assist you. Optimal location. In determining the sites where the project will have selected the location that will allow us to obtain the maximum profit. The determinants that were assessed are:

 Transportation costs of inputs and outputs The availability and relative costs of factors and inputs: Local and regional analysis. Access to services (electricity, water, gas, Internet, etc.). The location that had the highest score is where the project was installed in Phase 2 and will be installed in Phase 3.

Project engineering. Technical specifications and production processes are assessed according to the following items that will be the engineering of the project and included: Technical evaluation. Technical information (description and specific features) on products, processes, technology and permits. Analysis of the design and construction. Confirmation or technical adjustment of the process. Preparation of flow diagrams. Manpower requirements. Distribution of fronts. Complementary facilities and electrical installations. Security systems.

5 - SKILLS AND RESOURCES

PROJECT FEASIBILITY

In the summary of the project in Phase 2 and Phase 3 presented to you the main points discussed at a general level, corresponding to four basic evaluations to assess the feasibility and leads us to give approval or approval of the assessments is that the project is viable. the feasibility analysis studied and are generally summarized here:

FEASIBILITY OF MARKETING

In our case since social housing built by Housing Association better future, under the auspices of the National Government, State and Municipal, in addition to the regular contribution of partners, who are now over 500, the marketing is absolutely guaranteed, because the relevant procedures have advanced, we have 100% of buyers ready to purchase their promises to phase two and there is a waiting list for PHASE THREE no, that is there to go find customers for the sale of the properties of the project. As for prices, have government subsidies, are easily accessible to our partners, having to leave out several people under the high demand for housing of this nature and we are concerned about setting a policy of prices. TECHNICAL FEASIBILITY

The conventional design is the design work and construction of 561.27 square meters housing both in the phase 3 As in Phase 2 and is based on experience, where he has given excellent results. We have ready the soil survey, topography and designs have been few changes in response to the law regulations. We also have a human resource of great qualities that ensure effectiveness and efficiency of project

Among the technical factors were considered all relevant aspects: 1. The water supply and access to all public services. 2. The designs were developed and structured so that the housing units will have the basic amenities and decent.

3. The security of the area 4. Machinery and equipment used 5. Plant operational and administrative staff 6. Easy access to the centers of early childhood education, preschool, primary elementary, middle, secondary and higher education different both in the municipality of Itagui as in neighboring municipalities, including the municipality of Medellin. 7. Infrastructure 8. Control and storage 9. Maintenance ECONOMIC AND SOCIAL FINANCIAL FEASIBILITY

The social impact of the project is a priority matter. We seek to meet the human and spiritual needs of the communities especially our partners through social benefits and economic costs for them. Drawing on the analysis in the presentation of the project, we observe that the variables to consider are: 1. Number of meters to meters built daily, in this variable we consider: a. The speed of construction b. The number of hours worked each day 2. Progress in implementing a revised critical path interdisciplinary consistently averages 3. Price of housing units and the Colombian state subsidies Build cash flow independent of the Phase 2 and Phase 3 under the minimum of each variable so that was the best scenario. Given the above it is concluded that the project is viable and profitable solid.

BACKGROUND OF THE COMPANY

The housing construction project VILLA QUINTANA PHASE 2 AND PHASE 3 will run on our ASOCIACIN MEJOR PORVENIR. Be supported by a group of professionals

who will cover different aspects such as technical, legal, organizational, economic and financial. Our legal representative Fernando Quintana Valds his life has been integrated into the community, especially the most needy and low income in the municipality of Itagui. So in 2007, in company with others in the same vocation formed the nonprofit entity they called ASOCIACIN MEJOR PORVENIR initially helped its partners to improve housing and subsequently under its management designed and built a housing project beneficiaries widely accepted and acclaimed by other partners who were coming to the Association for opportunities to access their own homes and have the possibility to pay with their modest economic resources. Thus today ASOCIACIN MEJOR PORVENIR has been released as developer and builder of this ambitious project that will deliver 780 homes housing the same number of families. Its partners are convinced of the form and manner of construction of their homes and participate actively in the various assemblies and special meetings as exercise partners. Some of our partners have resided in the municipality of Itagui life and for some years without prime in these no discrimination. For 5 years we have been working with people in social support with a series of programs and projects with different objects. DESCRIPTION OF THE OPERATION OF THE COMPANY

Main activity: Development and construction of housing programs of social interest. Secondary activities: Manage natural resources to different public and private entities, like to make available to the community an interdisciplinary group of professionals to develop these benefits through from the discussion in the main activity.

NATURE OF BUSINESS AND INVESTMENT PROJECT

Vision

Being the first in 2015 in Antioquia Housing Association to change, improve and optimize the way to build social housing with respect and protection of natural resources, benefiting the people and communities in their quality of life, social responsibility and environmental commitment.

Mission

Promoting, associate, design and build affordable housing effectively and efficiently, with high standards of safety and preserving the environment by using resources to operate profitably, while creating value for partners and investors and development opportunities for their workers and society.

OBJECTIVES 1. Consolidate as an organization builder to ensure the welfare housing for the community to ensure social, environmental and economic. 2. Meeting the demand for housing solutions in the community directly or indirectly related to the ASOCIACIN MEJOR PORVENIR direct and coordinate the investigations and studies required for the definition of strategies related to the sector, based on the identification, design, formulation and development of mechanisms, programs and tools necessary for the proper execution of the same. 3. Take advantage of the National Government, State and Municipal grants awarded under the Act

POLICIES Policy is ASOCIACIN MEJOR PORVENIR, the pursuit of business development associated with the growth and development of their environment. Therefore, it carries out programs of social development for people and communities, managing and executing, for several years, various plans and cross-housing projects and in the field of health, education, training, sanitation, health care promotion and career development, allowing you to collaborate and encourage partners to better quality of life. PROJECT JUSTIFICATION Environment variables analyzed: Political and Legal Variables: Government measures implemented for the development of construction industry especially social housing in the country have been developing rapidly. This is because today is fully aware of the potential and the need for our needy population with few economic resources. The regulatory framework comes from our Constitution, the Statute of urban planning Municipal Land Use Plan Itagui Township, and several environmental and planning rules that govern the matter and detailed in the Annexes to this document. There is legislation on monopolies that is directly supervised by the Superintendency of

Industry and Commerce that seeks to provide balance to the domestic and foreign entrepreneurs. Our environmental protection laws are now very demanding, regulated and governed by the Ministry of Environment and autonomous corporations and regional support agencies. Our country has a fiscal policy that has been developed in recent years and offers a generous view to the development of domestic and foreign investment. In our project for social housing in the 2 phases are tax benefits for having the participation of the state and because its construction is who runs an association The labor law requires respect for workers and the fulfillment of obligations. The stability of the government throughout our history is a pledge of ensuring overall stability sponsoring a flattering future effective protection policies, tax policy, export promotion, promotion laws manpower training, technological research, between other possibilities. Our project is located in the domestic market (marketing), where our major clients are associated with them needs to have an economical solution for housing where there are preferential provisions for foreign funders (rebates, credit facilities and tax privileges, etc.).

MARKET ANALYSIS

Recipients and needs to satisfy:

End users are partners ASOCIACIN MEJOR PORVENIR, which have modest periodic payments and debt capacity. Penetration: Penetration Our estimates are guaranteed under the elements and details described above, this target market, are fully ensured by the large and growing demand. Not enough local supply of housing units of this type.

The bargaining power of buyers. Our potential customers (partners) are not competitive threats to our project because they do not have the power to force us to reduce prices, demand higher quality and better service. Potential buyers (partners) can not change your provider, ie it is not easy to select one of our competitors and allow our project due to insufficient supply of housing and limited such projects

The bargaining power of suppliers. Our potential suppliers can not be regarded as a threat because they are not able to impose the price we pay for inputs and machinery due to the large number of alternatives to supply goods. There is no threat because even though most providers are labor organizations, many different sizes and tend not to integrate forward (ie, follow a step in the chain). MARKETING MANAGEMENT (Marketing Plan) Who are the buyers? The 180 families already selected (list of recipients who have already given to you) and another 600 to be selected according to the criteria required by law How will you promote? No need to promote the relief because of the subsidies granted by the State. How are sales going to do? With the payment beneficiaries organized and subsidies by the Government

7 - FUNDING OF INVESTMENTS MADE IN THE PERIOD OF INSTALLATION

PHASE 2 PREINVESTMENT ASOCIACIN MEJOR PORVENIR, has made significant progress and in terms of the investment made which are summarized below: Capital Expenditures and general construction costs Land: We have a lot of land with an area of 56532.57 square feet, which has a market value of U.S. 466,554. The lot has been adequate to removal of land and currently has an excellent physical condition to begin preliminary construction work. Your situation or legal regime of occupation and ownership is duly legalized by public deed. Credit should be a third part of U.S. 252,951. The value includes improvements made. Its location is in the race 55 No 69-98 Itagui - Antioquia - Colombia. There have been matching jobs worth U.S. 120,000

Building and Construction: House was built office and warehouse to store materials for Works for the safety of land Administration: Legal Documents: Valued at Contingencies: Valued at PREINVESTMENT TOTAL: U.S. 70,000 U.S. 6.000 U.S. 32,000 U.S. 70,000 U.S. 14,000 U.S. 778,554

PHASE 3 PREINVESTMENT Promise to Purchase Price: U.S. 960,000

8 - ECONOMIC ANALYSIS - FINANCIAL - Cash Flow The purpose of this section is to provide basic information necessary to demonstrate that the proposed project is profitable for the Association and if external funding is required to demonstrate that you have the ability to successfully meet financial commitments arising from the implementation and operation of the project.

CONSTRUCTION OF PHASE TWO (running) FINANCIAL ANALYSIS General evaluation PRODUCTION AND SALES YEAR YEAR LEVEL OF SALES SALES GROWTH AVERAGE INFLATION FIXED INVESTMENT AMORTIZATION EXPENSES WORKING CAPITAL REQUIRED PRODUCTION COSTS VARIABLE COSTS FIXED COSTS PROFITS TAXES

ONE YEAR USD $6.070821 0% 4% USD $3.541.315 INCLUDED IN FIXED INV USD $3.541.315 INCLUDED IN FIXED INV INCLUDED IN FIXED INV INCLUDED IN FIXED INV NOT APPLICABLE (NON PROFIT)

Cash flow
FLUJO DE CAJA AO 1 AO 2 AO 3 AO 4 AO 5

CAPACITY SALES SALES BUDGET SALES PRODUCTION COSTS VARIABLE COSTS CONTRIBUTION MARGIN FIXED COSTS DEPRECIATION AMORTIZATION DIFER C.T. Operating Income LOAN INTEREST INCOME BEFORE TAX NET INCOME DEPRECIATION + AMORTIZATION LOAN AMORTIZATION

100,00%

100,00%

100%

US 1.742.551 US 3.541.315

US 1.967.396 0 0

US 786.958 0 0 US 786.958 0 0 0 US 786.958 0 US 786.958 0 US 786.958 0

US 786.958

US 786.958

_____________________________ _ _______________ _______________ _______________ US -1.798.764 0 0 0 US 1.798.764 0 US 1.798.764 0 US 1.798.764 0 US 1.967.396 0 0 0 US 1.967.396 0 US 1.967.396 0 US 1.967.396 0 US 786.958 US 786.958

_____________________________ _ _______________ _______________ _______________ US 786.958 0 US 786.958 US 786.958 0 US 786.958

_____________________________ _ _______________ _______________ _______________

_____________________________ _ _______________ _______________ _______________ US 786.958 US 786.958

_____________________________ _ _______________ ____786.958_______ US 786.958

OPERATIVE FLOW - INV ADICIONAL C.T. OPERATIVE CASH FLOW

US 1.798.764 0

US 1.967.396

US 786.958

_____________________________ _ _______________ _______________ _______________ US 1.798.764 US 1.967.396 US 786.958 US 786.958 US 786.958 ============= ============= ============= = =========================

SUMMARY OF REVENUE BY SOURCE SALES DETAIL MEANING CONTRIBUTIONS OF GOVERNMENT INSTITUTIONS YEAR 1 USD 550.871 USD 404.722 YEAR 2 YEAR 3 YEAR 4 YEAR 5

TOWNSHIP GOVERNORATE

USD 1.180.438 NATION PARTNERS PAYMENTS YEAR INCOME TOTAL USD 786.958 USD 786.958 USD 786.958 USD 786.958 USD 786.958 USD 786.958

USD 786.958 USD 786.958 USD USD 1.742.551 1.967.396 USD 6.070.821

AMORTIZATION OF THE CREDIT CREDIT DTF (INFLATION) ADITIONAL ITEMS TOTAL ANUAL RATE TERM PERIODS 1 2 3 4 5 CAP INC USD 4000000,0 USD 3200000,0 USD 2400000,0 USD 1600000,0 USD 800000,0 4.000.000 0,00% 4,04% 4,04% 5 CAPITAL USD 800000,0 USD 800000,0 USD 800000,0 USD 800000,0 USD 800000,0 INTEREST USD 161600,0 USD 129280,0 USD 96960,0 USD 64640,0 USD 32320,0 BALANCE USD 3200000,0 USD 2400000,0 USD 1600000,0 USD 800000,0 USD ,0

Financial indicators CASH FLOW 4000000 -1798764 1967396 786958 786958 786958

PERIOD 0 1 2 3 4 5

IRR NPV

63% $ 6.104.690,91

CONSTRUCTION OF THREE PHASE

FINANCIAL ANALYSIS

Investments to be made

- INVESTMENT FIXED - WORKING CAPITAL (EQUIPMENT, LABOR, SUPPLIES AND AMORTIZATION OF EDUCATION, INFRASTRUCTURE CONSTRUCTION: U.S. 11,600,000 --OTHER OPERATING EXPENSES: U.S. 400,000 TOTAL: U.S. 12,000,000

TYPE OF FUNDING FINANCIAL RESOURCES (CREDIT) FOR FINANCING U.S. 12,000,000 of the complete work. BASIC CASH FLOW EXPECTED TO FIVE YEARS

FLOW OF INCOME

HOLA DAVID, ACA PEGAS POR FAVOR LOS CUADROS EN EXCELL QUE ADJUNTO EN EL OTRO CORREO. OJALA LES COLOQUES TITULOS COMO LO HICIMOS AYER, BUENO, MIL Y MIL GRACIAS 9 - CLOSING COMMENTS This blueprint is for a vocation of social and community service permanent member of our Housing Association better future. Within our programs and projects constantly seek the elements of planning and planning to implement this important project that aims to provide better quality of life in 1500 people with the support of the Colombian State. We have the support necessary and sufficient to achieve our goals. Detailed information is subject to expansion and we are required to develop this project in stages as necessary.

Sincerely,

Fernando Quintana Legal representative ASOCIACIN MEJOR PORVENIR