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CORPORATE PROPOSAL EPIC DEVELOPMENT Committed to designing, developing and building commercial properties with a focus on social and environmental longevity.
| Date post: | 20-Jun-2015 |
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Real Estate |
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CORPORATE PROPOSAL
EPIC DEVELOPMENTCommitted to designing, developing and building commercial properties with a focus on social and environmental longevity.
60,000 Sq.ft. LEEDs Gold Certification$11.5 million
PRODUCT
FARMER
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
PRODUCT
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
PRODUCT
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
LEEDS GOLDRATING
60,000 Sq.ft. LEEDs Gold Certification$11.5 million
Green Benefits
PRODUCT
• Green Benefits• Reduce impact on the environment
• Competitive Advantage
• Enhance occupant comfort
• Increase productivity
• Improve the bottom line
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
PRODUCTAverage Cost Premium for Green Buildings
4% Premium = $401 467 equating to $3.50 per square foot in cost savings via energy, water, and waste efficiencies.
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
PRODUCTPremium Cost Break Even
sept. '07 march '08 march '09 march '10 march '11 march '12 march '13
-$500,000
-$400,000
-$300,000
-$200,000
-$100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
Pay Back Period=1.9 years based on $210 000 cost savings with 96% occupancy
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
PRODUCT
EPIC Development Rent Structure for Green Buildings
Revenue Source Revenue Amount /sq.ft.
Leasing Space $23.66
Operational Costs $4.35
Utility Cost $0.50
Total $28.51
Average Industry Rent Structure of Conventional Buildings
Revenue Source Revenue Amount /sq.ft.
Leasing Space $20.16
Operational Costs $7.85
Utility Cost $0.50
Total $28.51
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
Lease Price and RevenueRevenue Source Revenue Amount /sq.ft.
Leasing Space $23.66
Operational Costs $ 4.35
Utility Cost $0.50
Total $28.51
Based on 96% occupancy
Year After Tax Income
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
FINANCIALS
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
Break-Even
• BE cash flow early 2010• Yearly occupancy of 30% is needed to cover
expenses and financial obligations
2008 2009 2010 2011 2012
100%
96%
90%
Ending Cash Balances
FINANCIALS
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
Our Tenants need to:• Assist in building a community centre• Match our ‘green’ values• Satisfy the needs of Westhill residents
MARKET
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
MARKET
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
Target Market• Sustainability Innovators• Anchor Tenant: Niche Grocer
Market Size• Canadian Green Business Industry Size - $15 billion• Development will be competing based on a
differentiation strategy
• Global Trend• Massive public pressure = creation of “green”
development industry
• Industry Trend • Commercial development industry – 9% growth• “Green” commercial development industry - 34%
growth
INDUSTRY
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
• Top 3 reasons green development are gaining in popularity
1. Rising Energy Costs2. Superior Building Performance3. Customer Demand
INDUSTRY
0
200
400
600
800
1000
1200
1400
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2002 2003 2004 2005 2006
Growth in LEED Membership
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
Alignment of Values
Available Sq.ft.
Commercial lease space currently
available
Population Density
Westhills Yes 60,000 0-5% 5950 residencies
Dockside Green Yes 7,000 0-5% 920 residencies
Goldstream Meadows No 100,000 0-5% 420 residencies
Bear Mountain No 2,000 0-5% 2,200 residencies
Olympic View N/A N/A 0-5% 917 residencies
INDUSTRY
Greater Victoria Area = Average 0.5% vacancy rate in neighbourhood shopping centres
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
DocksideGreen
Goldstream Meadows
Olympic View
BearMountainAlignment of
Values
Population Density of Development HighLow
High
INDUSTRY
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
SUCCESS FACTORS
Critical Success Factors:
• Anchor tenant acquisition
• LEED Certification
• Like-minded tenants
• Tenant retention
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
TIMELINE
Build Partnerships and Relationships
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
CHALLENGES
Challenges Solutions• Ensure all employees are
trained and are on board
• Not getting certified by LEED
• Securing Anchor Tenant Proactive Marketing and mutually beneficial lease
• Following Construction Timeline
Work closely and communicate with project manager and suppliers
Continuously re-evaluate progress
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
PROPOSED OFFER
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
• $4.2 million investment
• Funding uses
• Lakeside provided as collateral
• Percentage of available ownership
CONCLUSION
Product Financials Market Industry CSF Team Timeline Challenges Offer Conclusion
EPIC DEVELOPMENT
THANK YOU
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