SAVICO SHOPPING CENTRE

LONG BIEN DISTRICT, HANOI, VIETNAM

FINANCIAL ANALYSIS

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SAVICO SHOPPING CENTRE

DEVELOPMENT AREA & COST
Total Land Area

46,400 m2

Site Coverage:

26%

Plot ratio

0.52

Type of Use

No. of room, units,

parking Spaces

Floor area
(sq.m)

Number of
floors

12,000

Total Built-up Area

Lettable/sella
Gross
ble
Area(sq.m.)
Area(sq.m.)

Efficiency

24,000

15,600

65%

Level 1

12,000

6,600

55%

Level 2

12,000

9,000

75%

Retail/shopping centre

Parking & Common area

34,400

Total

58,400

Total Construction Cost

Pre-construction expenses
Pre-operating expenses
Total
Land Rental
Land rental per sqm (US$/sqm/year)
Land lease term:
(Starting from 2007)
Other land related cost
Infastructure cost:
NOTE: ALL LAND COSTS ARE ESTIMATED

11,073,932 USD
200,000 USD
200,000 USD
11,473,932 USD
146,226 USD/year
3.2 USD/sqm/year
50 years

591,981 USD
591,981 USD

15,600

Total
Cost per
Construction Cost
sq.m. (US$)
(US$)

371

8,892,538

63

2,181,393
11,073,932

SAVICO SHOPPING CENTRE

COSTRUCTION SCHEDULE
2007

Item
PREPARATION & DESIGN
CONSTRUCTION
Retail/shopping centre
Common area & Parking

2008

2009

2010

2011

2012

2013

2014

SAVICO SHOPPING CENTRE

RETAIL RENTAL REVENUE

Revenue and Cost Assumptions
(Values in US$)
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

RENTAL REVENUES
Retail

Estimated Occupancy Rate

Rental Area (sq.m.)

75%
15,600

Incremental rental area (sq.m.)

Rental Rate
Escalation Rate
Escalation Term every

27 US$ per sq.m.

10%

90%

90%

90%

90%

90%

90%

90%

90%

90%

14,040

14,040

14,040

14,040

14,040

14,040

14,040

14,040

14,040

14,040

11,700

2,340

27

27

27
2

30
0

30

30

33

33

33

36

36

3 years

Total Rent Per Month

Total Retail Rent

90%

11,700

12 months

315,900

379,080

379,080

416,988

416,988

416,988

458,687

458,687

458,687

504,555

504,555

3,790,800

4,548,960

4,548,960

5,003,856

5,003,856

5,003,856

5,504,242

5,504,242

5,504,242

6,054,666

6,054,666

OPERATING EXPENSES
Retail

Management Fee
Escalation
Escalation Term every

4 US$/sq.m./month

10%

1 month

Marketing Expense
Rate
Fixed Expense (Maintenance, repairs,
Insurance, Reserve etc.)

% of rental income
5% of rental income

Total Retail Operating Expenses

Other General and Administrative Expenses

4.0

4.0

4.4

4.4

4.4

4.8

4.8

4.8

5.3

5.3

748,800

748,800

748,800

823,680

823,680

823,680

906,048

906,048

906,048

996,653

996,653

315,900

63,180

113,724

136,469

45,490

50,039

50,039

50,039

55,042

55,042

55,042

60,547

60,547

3%

3%

1%

1%

1%

1%

1%

1%

1%

1%

1%

3 years

Total Management Fee

Commission Fee*

4.0

189,540

227,448

227,448

250,193

250,193

250,193

275,212

275,212

275,212

302,733

302,733

1,367,964

1,175,897

1,021,738

1,123,911

1,123,911

1,123,911

1,236,302

1,236,302

1,236,302

1,359,933

1,359,933

113,724

136,469

136,469

150,116

150,116

150,116

165,127

165,127

165,127

181,640

181,640

Total Expenses

1,481,688

1,312,366

1,158,206

1,274,027

1,274,027

1,274,027

1,401,430

1,401,430

1,401,430

1,541,573

1,541,573

Net Operating Income

$2,309,112

$3,236,594

$3,390,754

$3,729,829

$3,729,829

$3,729,829

$4,102,812

$4,102,812

$4,102,812

$4,513,093

$4,513,093

* Assumes lease term of 3 years.

3% of total rental income

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SAVICO SHOPPING CENTRE

Depreciation Assumptions
Total Construction Cost
Construction cost for Retail:

8,892,538 USD

Construction cost for Common area & parking:

2,181,393 USD
Infrastructure cost paid to the Government:

591,981 USD

Pre-construction expenses:

200,000 USD

Pre-operating expenses:

200,000 USD

Building Depreciation

2.13%
over 47 years

Amortization of pre-operating & pre-construction expenses

20%over 5 years

Depreciation

2011

Retail
Common area & parking
Amortization of preop. expenses
Total Depr. + Amort.

2010

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

198,396

198,396

198,396

198,396

198,396

434,012

434,012

434,012

434,012

434,012

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

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SAVICO SHOPPING CENTRE

Depreciation Assumptions
Total Construction Cost
Construction cost for Retail:
Construction cost for Common area & parking:
Infrastructure cost paid to the Government:
Pre-construction expenses:
Pre-operating expenses:

Building Depreciation
Amortization of pre-operating & pre-construction expenses
Depreciation
Retail
Common area & parking

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

Amortization of preop. expenses

Total Depr. + Amort.

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SAVICO SHOPPING CENTRE

Depreciation Assumptions
Total Construction Cost
Construction cost for Retail:
Construction cost for Common area & parking:
Infrastructure cost paid to the Government:
Pre-construction expenses:
Pre-operating expenses:

Building Depreciation
Amortization of pre-operating & pre-construction expenses
Depreciation
Retail
Common area & parking

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

Amortization of preop. expenses

Total Depr. + Amort.

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SAVICO SHOPPING CENTRE

Depreciation Assumptions
Total Construction Cost
Construction cost for Retail:
Construction cost for Common area & parking:
Infrastructure cost paid to the Government:
Pre-construction expenses:
Pre-operating expenses:

Building Depreciation
Amortization of pre-operating & pre-construction expenses
Depreciation
Retail
Common area & parking

2049

2050

2051

2052

2053

2054

2055

2056

189,203

189,203

189,203

189,203

189,203

189,203

189,203

189,203

46,413

46,413

46,413

46,413

46,413

46,413

46,413

46,413

235,616

235,616

235,616

235,616

235,616

235,616

235,616

235,616

Amortization of preop. expenses

Total Depr. + Amort.

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SAVICO SHOPPING CENTRE

Income Statement

Year

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Operating Revenue
Revenue
Retail/shopping centre

3,790,800

4,548,960

4,548,960

5,003,856

5,003,856

5,003,856

5,504,242

5,504,242

5,504,242

6,054,666

31,983,527

3,790,800

4,548,960

4,548,960

5,003,856

5,003,856

5,003,856

5,504,242

5,504,242

5,504,242

6,054,666

31,983,527

1,481,688

1,312,366

1,158,206

1,274,027

1,274,027

1,274,027

1,401,430

1,401,430

1,401,430

1,541,573

8,717,776

Car parking
Total Operating Revenue

Operating Expense
Retail/shopping centre
Car parking
Other general and admin expenses
Land rental

146,226

168,160

168,160

168,160

168,160

168,160

193,385

193,385

193,385

193,385

5,724,182

Total Operating Expense

1,627,914

1,480,526

1,326,367

1,442,188

1,442,188

1,442,188

1,594,814

1,594,814

1,594,814

1,734,957

14,441,958

EBITDA

2,162,886

3,068,434

3,222,593

3,561,668

3,561,668

3,561,668

3,909,427

3,909,427

3,909,427

4,319,709

17,541,568

434,012

434,012

434,012

434,012

434,012

235,616

235,616

235,616

235,616

235,616

1,728,874

2,634,422

2,788,581

3,127,657

3,127,657

3,326,053

3,673,812

3,673,812

3,673,812

4,084,093

17,541,568

1,728,874

2,634,422

2,788,581

3,127,657

3,127,657

3,326,053

3,673,812

3,673,812

3,673,812

4,084,093

17,541,568

484,085

737,638

780,803

875,744

875,744

931,295

1,028,667

1,028,667

1,028,667

1,143,546

4,911,639

1,244,789

1,896,784

2,007,779

2,251,913

2,251,913

2,394,758

2,645,144

2,645,144

2,645,144

2,940,547

12,629,929

Depreciation +Amortization

EBIT
Interest Expense

EBT
Corporate Tax

Earnings After Tax

Income Tax:28%

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SAVICO SHOPPING CENTRE
PROJECTED CASHFLOWS
Year

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Cash inflows
Bank loan
Net operating revenue
Retail

2,309,112

3,236,594

3,390,754

3,729,829

3,729,829

3,729,829

4,102,812

4,102,812

4,102,812

4,513,093

Car park
Total

2,309,112

3,236,594

3,390,754

3,729,829

3,729,829

3,729,829

4,102,812

4,102,812

4,102,812

4,513,093

146,226

146,226

146,226

168,160

168,160

168,160

168,160

168,160

193,385

193,385

193,385

193,385

484,085

737,638

780,803

875,744

875,744

931,295

1,028,667

1,028,667

1,028,667

1,143,546

630,311

905,799

948,963

1,043,904

1,043,904

1,099,455

1,222,052

1,222,052

1,222,052

1,336,931

1,678,801

2,330,796

2,441,790

2,685,925

2,685,925

2,630,374

2,880,760

2,880,760

2,880,760

3,176,162

Cash outflows
Infastructure cost paid to the Government

591,981

Land rental

146,226

Development Cost
Pre-construction cost

200,000

Parking

2,181,393

Retail

3,557,015

5,335,523

Pre-operating cost

200,000

Interest
Debt payment obligation
Income tax
Total
Net Cashflow

All Equity IRR:

NPV, discounted @ 15%

938,208

3,703,242

7,863,143

(938,208)

(3,703,242)

(7,863,143)

19.24%
2,426,631 USD

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SAVICO SHOPPING CENTRE
PROJECTED CASHFLOWS
Year

2020

Cash inflows
Bank loan
Net operating revenue
Retail

31,983,527

Car park
Total

31,983,527

Cash outflows
Infastructure cost paid to the Government
Land rental

5,724,182

Development Cost
Pre-construction cost
Parking
Retail
Pre-operating cost
Interest
Debt payment obligation
Income tax

4,911,639

Total

10,635,821

Net Cashflow

21,347,705

All Equity IRR:

NPV, discounted @ 15%