Feasibility of Dream Global expanding

1. Presented by:
Zelalem Tekle, Gavin Long, David Wang, Veronica
Maestrocampo, Qi An

2. LOGO
OUR BEST
TEAM
David Wang, Zelalem Tekle, Gavin Long,
Veronica Maestrocampo, Qi An
Valor consulting Inc.

3. CANADA
AUSTRIA
Sweden
O ur N e w M a rk e t
Netherlands, Austria and
Germany.
Curre nt B ra nche s
Headquarter located in
Canada.
P a re nt Co m pa ny
GERMANY
SWEDEN
NETHERLANDS
Canada’s leading real estate companies with over 1,000 employees and
approximately $14 billion of assets under management in North America and Europe.

4. LOGO
Endeavours include:
•
•
•
•

5. Cultural & Political
Analysis
PRESENTED BY GAVIN
Action &
Contingency Plan
PRESENTED BY ANGELA
Marketing Plan
PRESENTED BY VERONICA AND ZEE
Economic & Competitive
Analysis
PRESENTED BY DAVID
Agenda

6. PRESENTED BY GAVIN
Cultural &
Political Analysis

7. Hofstede
Dimensions

8. • Low corruption
• Incentives for investment
• Favorable laws for real estate
Proposed changes in tax system
Political Analysis

9. PRESENTED BY DAVID
Economic &
Competitive Analysis

10. LOGO
Canada Sweden
Population 36 M Population 10 M
Population
Growth Rate
1.2% Population
Growth Rate
1.06%
Urban
Population
Proportion
82% Urban
Population
Proportion
86%
Working-age
Population
48% Working-age
Population
60%
Economic AnalysisEconomic Analysis

11. LOGO
Economic Analysis
Canada Sweden
Labour Force 20 M Labour Force 5.2 M
Employment in
Services
79% Employment in
Services
79%
Unemployment
Rate
7.07% Unemployment
Rate
7.09%
Economic Analysis

12. LOGO
Economic Analysis
Canada Sweden
GDP (PPP) $1.6 T GDP (PPP) $487 B
GDP Growth
Rate
1.5% GDP Growth
Rate
3.2%
GDP
Composition
69% in services GDP
Composition
73% in services
Inflation 1.4% Inflation 0.98%
Business Tax 21% Business Tax 49%
Economic Analysis

13. LOGO
Canada Sweden
Benchmark Rate 1% Benchmark Rate -0.5%
Mortgage Rates 2% Mortgage Rates 1.6-2%
Net Inflows FDI 31 B Net Inflows FDI 18 B
Economic Analysis

14. 0
1
2
3
4
5
6
7
8
9
10
Portfolio
Diversification
Cohesive Corporate
Culture
Balance Sheet Gaining new
Tenants
Retaining Existing
Tenants
Operating
Efficiencies
Dream Global's Strengths and Weaknesses
Dream Global Hufvudstaden Fabege
Competition: Strength & Weakness

15. Location Vacancy Rate
Central Business District (CBD) 3.5%
City Center 6.5%
Decentralised Areas 12%
Overall Vacancy 9%
Demand Conditions

16. PRESENTED BY ZEE & VERONICA
Marketing Plan

17. What?
How?
Why?
Ergonomic work environment
Modular renovations and Dual
adaption strategy
Customizable real estate
office space
Product

18. LOGO
• Standard lease based on Sweden's market
• Lease adjusted to inflation
• Premium rates for specialize needs
• Value-based Pricing
• SEK per square meter
Price

19. Partnerships Consultation office Internet
Place

20. Objective Gain attention Build trust
Strategy Push Pull
Mode Adapt Product
Adapt
Communication
Promotion

21. Promotion (cont’d)

26. PRESENTED BY ANGELA
Action &
Contingency Plan

27. 1. Increase Dream Global’s revenues from their Sweden portfolio gradually with
a long-term view. Revenue increases should at least increase at the rate of
inflation for operating expenses on an annual basis.
2. Maintain high retention rates of at least 80% annually for the Sweden
portfolio.
3. Increase marketing efficiency by reducing marketing costs on an annual basis
by 5%. Looking on a quarterly basis for which channels reach the most
number of tenants and conversion rates.

28. 2018
Further understand the local
landscape.
Acquire real estate in Stockholm.
2019
2020
(and future Successive years)
Continue to look for opportunities to
acquire additional office buildings
Timetable

29. Rental Revenues 10M
(Variable cost) 0
Total Contribution 10M
Total Marketing Costs 11300
Net marketing contribution 9988700
(Operating expenses) 3M
Net profit (before taxes) 6988700
Budget

30. 1. Rebranding and repositioning of the office buildings.
2. Implementing co-working spaces to increase utilization of
office space capacity.
3. Converting office spaces into residential apartments by
renovating the current building.
Contingency Plan

31. LOGO
• Sweden's Economic, political and cultural environment makes it
the ideal target.
• Our dual product and promotion adaption will ease the transition
to the new market.
• There are many contingency alternatives to exit the Swedish
market, upon economic and political turmoil.
Conclusion

32. Any Questions?
Thank you