SeD Home, Inc. (SHI)Investor Deck (August, 2019)
www.sedhomeinc.com
THE FUTURE IS HOMETarget listing in Nasdaq or NYSE
Common Shares IPO (Offering Size: Up to US$ 50 Mil)
Subscribe to 1 Common share Get 1 Bonus REIT share
DISCLAIMER
THIS PRESENTATION IS PROPRIETARY AND CONFIDENTIAL: IT MAY NOT BE REPRODUCED, IN WHOLE OR IN PART,AND MAY NOT BE DELIVERED TO ANY PERSON WITHOUT THE PRIOR CONSENT OF SED HOME INC. THISDOCUMENT IS BEING PROVIDED TO YOU SOLELY FOR INFORMATIONAL PURPOSES. IT IS NOT INTENDED TO BE,NOR SHALL IT BE CONSTRUED AS, AN OFFER, OR A SOLICITATION OF AN OFFER, TO BUY OR SELL AN INTEREST INTHE COMPANY. NOTHING IN THIS DOCUMENT CONSTITUTES ACCOUNTING, LEGAL, REGULATORY, TAX OR OTHERADVICE. ANY DECISION TO SUBSCRIBE FOR INTERESTS IN THE COMPANY MUST BE MADE SOLELY ON THE BASISOF INFORMATION CONTAINED IN SUBSCRIPTION AGREEMENT, WHICH INFORMATION MAY BE DIFFERENT FROMTHE INFORMATION CONTAINED IN THIS DOCUMENT, INCLUDING ANY DATA, PROJECTIONS, AND UNDERLYINGASSUMPTIONS ALL OF WHICH ARE ACCORDINGLY SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. INPREPARING THIS DOCUMENT, WE HAVE RELIED UPON AND ASSUMED, WITHOUT INDEPENDENT VERIFICATION,THE ACCURACY AND COMPLETENESS OF ALL INFORMATION AVAILABLE FROM PUBLIC SOURCES OR WHICH WASOTHERWISE REVIEWED BY US. WHILE INFORMATION PROVIDED HEREIN IS BELIEVED TO BE RELIABLE, THECOMPANY MAKE NO REPRESENTATION OR WARRANTY WHETHER EXPRESS OR IMPLIED, AND ACCEPT NORESPONSIBILITY FOR ITS COMPLETENESS OR ACCURACY OR RELIABILITY. PAST PERFORMANCE OF PROGRAMSARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
What we do:
We provide integrated services consisting of land development, home building, home sale, property management and home investment.
Through the collaboration with our various business partners, SeD Home International Inc. provides quality designer homes at affordable
prices with excellent value. Our management has vast industry knowledge. With our corporate strategies the Company will effectively
mitigate risk while maintaining maximum returns for the shareholders.
Vision:
Provide eco-friendly, quality affordable homes with excellent value for sales and rental
Philosophy:
Mitigating risks with maximum returns for shareholders
INTRODUCTION
SeD Home Brochure
STRATEGY ONE
We build next generation residential homes, with the main focus being
Gated Communities of Single Family Homes (“SFHs”)
✓ More Americans are turning to rentals due to changing needs andincreased home prices nationwide
✓ This model appeals to a rising market segment that are facingincreased debt load and limited savings
✓ Tenants to enjoy the privacy of their own homes without beingburdened with a huge down payment
✓ Allows for significant economies of scales in operations, maintenanceand management with all the rental communities within near vicinityfrom one another
✓ After one full year of rental, to transfer the Single-Family communitiesinto the REIT company
For Rental
BUILD FOR RENT, TRANSFER TO REITs
Source: U.S. Censes Bureau (fred.stlouisfed.org)
✓ Utilize existing pipeline with optimum yield
✓ Portfolio comprises of houses located in areas with high
employment and occupancy rates
✓ Consistent rental yield from portfolio + Potential Capital
Appreciation
✓ Target to raise substantial Asset Under Management (AUM)
✓ Funds will be deployed to purchase mature rental yield
communities from SHII or other cherry-picked houses by our
in-house experts
✓ Constant risk mitigation, flexible investment philosophy,
actively seeking investment opportunities
Gated Single Family
Homes REITs
Target to provide investors with semi annual pay-
out of 8% per annum
Move into
STRATEGY ONE
SED HOME REIT INC. (SHR)
BUILD FOR RENT, TRANSFER TO REITs
STRATEGY TWO
100% PRESALE OF BUILDABLE LOTS
One Two Three Four Five
Target to develop on
lands with
Reimbursement
Eligibility
Engage Strategic
Partners to do
home building for
the developed land
Pre-Sell 100% of
developed
buildable lots with
prominent
homebuilders in the
US
Engage in
infrastructure
development to
meet deliverables
Monetize lots to the
homebuilders upon
completion of
deliverables
Collaborate with Prominent Homebuilders in the US
CHAIRMAN’S PAST REITS TRACK RECORD
American Housing ReitGlobal Medical Reit
10% annualised yield quarterly10% annualised yield quarterly
NYSE Listed
Market Cap
(Common Shares and
Preferred A shares)
Over USD 800 MilIN NYSE
Single Family Homes
+
Senior Homes
(BEFORE)
(CURRENT)
NEWS ARTICLES
STRATEGY THREE
✓ Sale upon completion to potential homes owners orinvestors. Flexible business model to cater to changingneeds of market demands
✓ Contemporary homes appeal to first time home owners andinvestors looking to own a next-generation smart home
✓ Bulk sale: opportunity to sell to SFR Reit or publichomebuilder seeking inventory at or above a certainmultiple to book value
The capital spent to build a numberof homes, when reinvested cangenerate a return 3X of eachbuilding cycle
Targeted Return per Year
It take approximately 120 days tobuild a home from scratch in theUnited States
Targeted Return per 120 Days
20% 60%
HOME DEVELOPMENT PROGRAMME
Gross Margins per House
BUILD FOR SALE
For Sale
1 COMMON SHARES 1 BONUS REIT
OFFERING SIZE: Up to US$ 50 Mil
Entitlement of bonus REIT sharesonly for IPO subscribers
(not any other shareholders)
Common Share is targeted to trade
on World-Class Exchanges –
Nasdaq / NYSE
Common Shares for GrowthREIT Shares for Income
For every 1 Common Share subscribed on IPO, entitled to
1 Bonus SeD Home REITs Inc. shares
*Indicated timeline for spin-off listing: 12 months from Common Share IPO
Increase Liquidity through
listing and
Price Appreciation potential
SeD Home REIT Shares targets to pay
dividends of up to 8% annualized yield on a Semi-Annual Basis
BONUS SED HOME REITS INC. SHARES
1SED HOME
REITS
SHARE
1COMMON
SHARE BONUS
* Both are targeted to be listed on Nasdaq or New York Stock Exchange
For GROWTH
8% Yield per annum
For DIVIDEND INCOME
PARTNERS
STRATEGIC PARTNER (BALLENGER PROJECT)
Industry leader in:
- Return on Capital
- Inventory Turnover
- Return on Equity
- Interest Coverage
- Return on Revenue
- Debt to Capital
How builder NVR survived and thrived after the housing bubble
*Contracted to purchase every Single-Family buildable lots of Ballenger Project
#4 BIGGEST HOME BUILDER IN THE US
http://www.nvrinc.com/
STRATEGIC PARTNER (BLACK OAK PROJECT)
Rausch Coleman Homes is recognized as one of the top builders inthe United States, offering quality construction at a priceyou can afford.
The awards program also honors top building companies on a local level with the Avid Gold Award, given to leading builders within five regions of the United States who received the highest scores on their New Home Move In Experience survey. Avid Gold Award winners are:
South Central Region- Rausch Coleman - Little Rock, Arkansas Division
60 Years of experience and
more than 20,000 homes built
*Sold Phase 1 (140 lots) of BlackOak Project to Rausch Coleman
#36 BIGGEST HOME BUILDER IN THE US
https://www.rauschcolemanhomes.com/
CURRENT SINGLE-FAMILY
COMMUNITY PROJECTS
BALLENGER LAND DEVELOPMENT PROJECT
Project Summary
• Ballenger Run is a land development project located in Frederick County, Maryland USA
• Approximately 197 acre land entitled for 852 residential units which consist of 443 entitled Residential Lots, 210 entitled Multi-family Units and 200 entitled age restricted units.
• The entity is 83.55% owned by SeD Ballenger LLC and 16.45% own by CNQC Maryland Development, LLC.
• In line with our corporate strategy, All 443 residential lots (100%) representing 88% of the revenue have been contracted for sale to NVR at the time of closing of the land development. Deposit of $5.6 Million have been paid.
• Home Building companies have created a concept plan for the residential units to maximise the value of the project and achieve an optimal product mix.
• Multi-family site is already sold to a reputable regional builder/developer, Orchard Communities and nearing completion of construction.
100% PRESOLD
BALLENGER RUN DEVELOPMENT PROJECT
Ballenger Run, Maryland
BLACK OAK LAND DEVELOPMENT PROJECT
Project Summary
• Black Oak is a land development project located near Woodlands inHouston, Texas.
• Situated on approximately 136 acre land, which SeD Home Inc willsub-divide the land into approximately 511 buildable lots complete withall infrastructural works, recreational facilities eg. Parks, walking trailetc.
• Phase 1 (124 lots) has been sold to Rausch Coleman Homes
• Balance of buildable lots will be building Gated Single Family Homesfor rental
10 min away
Disclaimer: Lots Size & Future possible lots available are estimates and subjected to change without prior notice which will change the projected returns
Lake side living
Life Style Amenities
BLACK OAK LAND DEVELOPMENT PROJECT
APPRAISAL REPORTS (2 of Our Communities)
Located on the west end of Black Oak Drive and south of
Red Bay
Circle in Magnolia, Montgomery County, Texas 77354
CBRE File No. 17-361HO-0930
Effective Date of Valuation: February 27, 2017
Valuation: US$ 25.4 Mil
70 Finished and Recorded (Phase I) Lots
East Side of Ballenger Creek Pike
Tax Map 0086, Grid 0001, Parcels 0053, 0054, 0243
Frederick, Maryland 21703
Effective Date of Valuation: December 31, 2017
Valuation: US$ 29.5 Mil
COMBINED VALUATION: US$ 54.9 Mil
Developing Ballenger Run BLACK OAK SUBDIVISION
AMERICA’S FASTEST GROWING CITIES
- Houston
LARGEST COMPANIES HEADQUARTERED IN TEXAS
Source: Office of the Governor | Economic Development and Tourism | 2014
BLACK OAK LAND DEVELOPMENT PROJECT
- World Class Country Club, Amenities and Schools
College & University
1. Lone Star College-University Center
2. Prairie View A&M University
3. Sam Houston State University
4. University of Phoenix – Woodlands
5. Rice University
6. North American College
7. Remington College North Houston Campus
8. Culinary Institution Inc
9. Stanford Brown College
10. University of Houston Downtown
11. American InterContinental University Houston
12. Houston Baptist University
Shopping Malls
1. The Woodlands Mall
2. Lake Woodlands Plaza
3. Market Street
4. Pinecroft Center
5. PC Penny
6. Sterling Ridge Shopping Center
7. Cochran’s Crossing Shopping Center
8. Portofino Shopping Center
9. Oak Ridge North Shopping Center
Super Markets
1. Krogner Supermarket
2. H.E.B
3. Trader Joe’s
Schools
1. The John Cooper School
2. Tough Elementary School
3. Conroe Independent School District
4. Woodlands High 9th Grade Campus
HOME DESIGNS
TRADITIONAL HOUSTON HOME DESIGNS
Average Size:
Approx. 2,000 Sq. Ft.
Average Pricing:
Approx.
USD 220,000 – USD
250,000
Average Rental:
6% Yield
(Unleveraged)
SMART DESIGNS (In-House Designer)
Website: http://villasyarquitectura.com/en/
COMPANY INFORMATION
ORGANISATION CHART
Singapore eDevelopment Limited (SeD)
SGX Listed Company (SGX: 40V)
SeD Home International, Inc.USA
SeD Intelligent Home Inc. USA
SeD Home Inc.
100%
99.96%
100%
100%
SeD USA, LLC
SeD Development
USA, Inc.
SeDBallenger,
LLC
SeDDevelopmentManagement,
LLC
SeD Builder,
LLC
SeD Texas Home,
LLC
150 Black Oak GP,
Inc.
150 CCMBlack Oak Ltd
SeD Maryland Development,
LLC
100% 99.50% 83.55%
0.5%
100%100% 85% 100% 100%
SeD Home Reit Inc.
100%
CHAIRMAN
An accomplished global business veteran of more than 40 years Mr. Chan Heng Fai specializes in financial restructuring and corporate transformation to unlock value and unleash
entrepreneurial zeal while managing risk. He has successfully restructured more than 35 corporations in different industries and countries. Some of the remarkable companies that he has built,
rescued or transformed include - American Pacific Bank (USA) which became the top 21 bank in the US before it was sold; China Gas Holdings Limited (Stock Code: 0384.HK) which was
transformed from a restructuring failing fashion company into a utility company with a current market capitalisation of over US$ 17 Billion http://www.chinagasholdings.com.hk/; Heng Fai
Enterprises Limited (Stock Code: 0185.HK) was formally a failing construction company with market capitalisation below US$ 5 Million and was restructured into an enterprise holding company
which was then sold in the year 2014 with a market capitalisation of approximately US$ 250 Million http://en.zhsuccess.com/; Global Med Technologies, Inc. (a U.S. medical software company
exited for US$ 60 Million in the year 2000); Global Medical REIT Inc. (NYSE: GMRE) where Mr Chan was the sole founder who funded the entire company from ground zero before taking it
listed on the New York Stock Exchange with a current market capitalisation of over US$ 400 Million https://www.globalmedicalreit.com/; and Singhaiyi Group Ltd (SGX: 5H0.SI) which was
formally a failing store fitting and fixture company which was restructured and sold at a market capitalisation of over S$ 250 Million. http://www.singhaiyi.com/. Mr Chan is currently the
Executive Chairman of Singapore eDevelopment Limited (Stock Code: SGX:40V), previously a bankruptcy construction company in Singapore. Mr Chan has personally funded in excess of S$
70 Million (US$ 51 Million) in capital to date into this company. Professional valuation for Singapore eDevelopment currently stands at over SG$ 1.07 Billion (US$ 783.5 Million).
More details of his achievements and track record can be found at http://fai185.com/.
CHAN HENG FAI Financial Architect Restructuring Expert
Chan Heng FaiBIO
Personal Website
CHAIRMAN’S TRACK RECORD
Global Medical Reit ChinaGasSinghaiyi LtdFormerly Known as SingXpress Land
ZH International LimitedFormerly Known as Heng Fai Enterprises
How to become a teenage millionaire CNA Money Mind 25/11/2012 part 1 CNA Money Mind 25/11/2012 part 2
New York Stock Exchange ListedSingapore Exchange Listed Hong Kong Stock Exchange Listed
Hong Kong Stock Exchange Listed
Restructured from BankruptcyRestructured from Bankruptcy
Restructured from Bankruptcy
Founded and Funded from Ground Zero
Approx. Current Market Cap from 4 out of 35 previously restructured companies:
Over USD 18.5 Bil AND GROWING
MANAGEMENT TEAM
Jeffrey Busch DirectorSeD Development Management, LLC USA
▪ Former U.S. Assistant Secretary of Housing & Urban
Development
▪ Received Annual Nomination for the Nobel Peace
Prize since 2003
▪ Over 25 years of real estate experience as
developer, manager and investor
▪ Has developed properties valued at hundreds of
millions of dollars in large-scale residential,
commercial, hospitality, and retail projects
▪ 20+ years of business association with
holding company Heng Fai Enterprises
Chan Tung MoeGroup Chief Development OfficerSingapore eDevelopment Ltd
▪ Currently a director of the Toronto Stock
Exchange – listed RSI International Systems Inc.
▪ Previously Chief Investment Officer of the Heng
Fai Enterprises, responsible for the overall
management of the Investment Division of the
Group
▪ Previously the Executive Director and Chief of
Project Development of SGX-listed Singhaiyi Group
Ltd, overseeing all of its property development
projects worth over $1 billion SingaporeDollars.
▪ More than 19 years of real estate experience in
residential, office/flex, retail, industrial, land and
redevelopmentprojects
▪ Involved in more than 42 partnerships and also as a
limited partner in over 2 million square feet of office,
retail and flex projects within various limited
partnership
▪ Specializes in site selection, contract negotiations,
marketing and feasibility analyses, building design,
construction and management oversight and investor
relations.
▪ Developed over 650, 000 square feet of office
and retail projects totalling more than US$80
million.
Charles W.S. MacKenzieChief Development OfficerSeD Development Management LLC USA
MANAGEMENT TEAM
Conn FlaniganIn-House CounselSeD Home Inc.
▪ Over 20 years of experience in corporate law
▪ General Counsel and Secretary for several of HFE’s current and past US subsidiaries. Named HFE in-house Corporate Counsel in 2000 and as General Counsel in 2007.
▪ Advises on all corporate and securities matters, corporate finance and structure, debt and equity offerings, security finance, and all commercial transactions, guiding contract processes.
Frank D. HeuszelDirector of Group FinanceSeD Home, Texas LLC.
▪ A Certified Public Accountant, Certified Internal Auditor and a Practicing attorney.
▪ Mr. Frank Heuszel has been in banking his entire professional career and as a banker he has served as Auditor, CFO, Manger of Special Assets, Creditor Officer and General Counsel.
▪ Excellent banking reputation as a strong credit officer, special assets manager, director of compliance and banking operation officer.
▪ Grew and manage Bank’s assets from $3.5 Billion to $65 Billion over 21 years. Leading a Special Assets Group team which service problem loan portfolio consisting of over 2,300 loans. On average his department managed a $4.6 plus billion commercial problem loan portfolio.
▪ Specialise in design and implementation of credit polices related to all commercial problem loans, proper loan grading and calculation of related loan loss reserves.
▪ Merger and acquisition of over 25 financial institution, nonbanking businesses and FDIC failed financial institutions.
▪ Successfully solve a portfolio of problem loans that exceed 230% of capital and assist in taking banks public or selling the bank
▪ Licensed professional engineer in the State of Texas
▪ Over 10 years of residential land acquisition & development experience in the Greater Houston & surrounding areas
▪ Strong background in land sourcing, due diligence, creative financing, front end planning, feasibility modeling, entitlements, land & lot purchase contracts, engineering & architectural design management, construction management, & budget management
▪ Developed commercial retail, lodging, and small office/flex properties ranging from 5000-200,000 SF
▪ Developed master plan and mixed use communities ranging from 50 – 3000 acres
▪ Managed over $500M in land assets, produced over 3500 residential lots, and recovered over $55M in infrastructure reimbursements
Shamar O'BryantVice President Land DevelopmentSeD Home, Texas LLC.
Arturo Roldan HuberChief Design Architect, FounderA.R.T. Projects and Architecture
▪ Arturo is the 3rd generation of a family of architects originating from Spain. He started A.R.T. in 2000 and has always drawn his inspiration from the Mediterranean as his projects reflect light, pureness andfunctionality.
▪ Arturo believes in passing his essence to the rest of the world, with elegance, character, rationality, strength and coziness. And today, with more than 1,000,000 sqm designed and built in Spain, Brazil, Middle Africa, France and Canada, each and every one of his creations consistently reflect his personal philosophies.
PROPERTY DEVELOPMENT & INVESTMENTS TRACK RECORD
Average IRR – 50%
Average Investment Multiple – 3.9
Total Property Value – S$805M / US$640M
Total Investment Period – 14 years
* All track records pertain to Mr. Chan Heng Fai from his pervious and current companies under his management
PROPERTY DEVELOPMENT & INVESTMENTS TRACK RECORD
Textile Centre • 36% Investor IRR realised Island Place Tower • 30% investor IRR realized
Singapore • 3.1 times investment multiple Hong Kong • 5.1 times investment multiple
Commercial property realized Commercial property realized
Entry in 2007 • Exit gross value of S$18 million Entry in 2004 • Exit gross value of S$23 million
TheArcadia • 30% investor IRR realized TheSail • 30% investor IRR realized
Singapore • 4.3 times investment multiple Singapore • 1.7 times investment multiple
Residential property realized Residential property realized
Entry in 2006 • Exit gross value of S$11 million Entry in 2004 • Exit gross value of S$3 million
Hong KongApartment • 58% investor IRR realized Suntec City Tower • 199% investor IRR realized
Portfolio* • 2.5 times investment multiple Singapore • 5.4times investment multiple
Hong Kong realized Commercial property realized
Residential property • Exit gross value of S$19 million Entry in 2006 • Exit gross value of S$26 million
Entry in 2009
* All track records pertain to Mr. Chan Heng Fai from his previous and current companies under his management
Southbank* • 56% investor IRR realized
Singapore • 2.6 times investment multiple realized
Residential/Commercial property • Exit gross value of S$12 million
Entry in 2011
The Central* • 49% investor IRR realized
Singapore • 3.2 times investment multiple realized
Commercial property • Exit gross value of S$34 million
Entry in 2010
CityLife@Tampines * • 24% investor IRR realized
Singapore • 2.2 times investment multiple realized
Executive condominium development • Total development value of S$528
Entry in 2012 million
Charlton Residences* • 39% investor IRR realized
Singapore • 3.4 times investment multiple realized
Terraced housing development • Total development value of S$60
Entry in 2010 million
Realized Investments
PROPERTY DEVELOPMENT & INVESTMENTS TRACK RECORD
Fai Chan’s Successful track record – Global Property Development & Investments
PROPERTY DEVELOPMENT & INVESTMENTS TRACK RECORD
