2. Solar City – Country
houses. An ideal place
for a country life.
2
3. Category
• Sector: development
• Clients: top-managers of large companies, successful businessmen, middle class
• Monetization model: sale of houses with installments for 3 years (down payment 30%)
Geography
• Kazakhstan, Akmola region, Solar City. 15 minutes from the business center of the left bank and the main
facilities of the city - Mega Silkway and EXPO
Phase
• Revenues: quarterly
• Founders’ investments: $ 1,200,000
• The first block is 90% ready ; Sold: 4/6
• The second block is 80% ready ; Sold out: 1/6
• Readiness concept: 10 types of housing, 233 houses / apartments, 66 612 m2
Team
• Founders: 4 (Principal Director, Technical Director, Promotion Director, Lawyer)
• State: 15
• Technical department: 3; Marketing: 3; Back-office: 1; Call center: 1; Architectural supervision: 1; Technical
Supervision: 1; Supply: 3; Security guard: 1, Accountant-financier: 1
• Freelance: 5 brigades 10 builders
Dates
• Company foundation date: August 2004
• Solar City design start date: April 02, 2016
• Start date of Solar City construction: July 29, 2016
• Date of first transaction: September 11, 2016
• Date of the second transaction: December 29, 2016
• Date of the third transaction: December 29, 2016
• Date of third transaction: February 10, 2017
• Date of fourth transaction: April 29, 2017
• Date of fifth transaction: May 11
• Date of the first order: June 2017
3
4. REQUIRED
INVESTMENTS
Total amount: 45 592 500 USD
• For the construction of 66 610m2 - 233 houses: 40 817 000 USD
• To buy land 7.7 hectares: 1,500,000 USD
• For salary and current expenses: 1 310 000 USD
• On marketing: 420 000 USD
• On the improvement of adj. Territories 2500m x 21m: USD 907,000
• On equipment for natural gas: 246,000 USD (it is possible to invest in whale equipment)
• Development of projects (draft, AR, QL, GP, OB, VC, EL, FGP): 192 000 USD
CONDITIONS
• 6% per annum
• Payback period 4 years
• sub contract in the ratio - 1/3, where 1 - foreign nationals
• It is possible to consider special equipment, materials and equipment for purchase in China
GUARANTEES • AIFC
LAND
The length of 2,5 km
• Total for the project: 85 plots - 850 hectare - 8.5 hectares
• Under the living space: 77 plots - 770 acres - 7.7 hectares
• Under public buildings: 8 plots - 80 acres - 0.8 hectares
• In the company’s ownership: 10 plots - 100 acres - 1 hectare
• In the property of the partner: 75 plots - 750 hectare - 7.5 hectares
• Cost of 1 plot - 20,000 USD
• The cost of 75 plots - 1,500,000 USD
We can make a purchase at any time and arrange all the documents for 1 working day
DEVELOPMENT
• Cost of construction: 45 592 500 USD
• Cost of construction: 40,817,000 USD
• Marg: 40%
• Market value: 64,242,800 USD
• Expected gross profit: 18,650,800 USD
• Cost of m2
: 700 USD
• Market value of m2: 980 USD
PROJECT RATES AND TAXES:
• VAT rate - 0%
• Income tax rate - 20%
• Discount rate annual - 15% * official 11 but we
expect 15 minimum
• Quarterly discount rate - 3.75%
4
Net present value (NPV) is 10,07 million. usd
Quarterly Internal Rate of Return (IRR) - 5.25 *%
Internal rate of return (IRR) is 21%
14. Geography
Solar City is only
15 minutes away
from the center
of the left side.
14 KM
EXPO MEGA
SILKWAY
11 KM
AIRPORT
THIS IS THE
CLOSEST
TERRITORY
FOR A
SUBURBAN
RECREATION
Availability of
infrastructure
45 min
15 min
Airport
Bus station
MEGA Silkway Shopping mall
Cafe
Shops
EXPO - 2017
Railway station
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16. Geology
Engineering and geological section along the I-I line Scale:
vertical 1: 100, horizontal 1: 500
Conventional notation
Soil-vegetative layer
Loam
Sand gravel
Sand interlayers
Engineering
geological elements
The established level of groundwater
Date of measurement
Place of water sampling, it number
Place of sampling of soil of
undisturbed structure and its number
The site of sampling the soil of the
disturbed structure and its number
Moisture content
of sands
Consistency of
loam and clay
Solid
Semi-solid
Turgid
Soft-plastic
Viscous
Saturated with
water
16
17. Phase
On May 11, 2017 -
2 blocks are ready
for 80%. watch the story of
construction
17
19. The target
audience
30% audience 70% audience
Generation X Y
Year of birth 1968 - 1980 1981 - 1999
What is important to them? Balance Freedom
What are they reading?
TV, Newspaperps,
magazines
Socilal networks
Preferred ways of communication Calls Messangers
Working with gadgets E-mail
2 screens
(PC + smartphone) (TV +
smart phone)
19
20. Communication
channels
30% audience 70% audience
Generation X Y
Year of birth 1968 - 1980 1981 - 1999
What is important to them? Balance Freedom
What are they reading?
TV, Newspaperps,
magazines
Socilal networks
Preferred ways of communication Calls Messangers
Working with gadgets E-mail
2 screens
(PC + smartphone) (TV +
smart phone)
Communication channels
Email-mailing, Magazines,
OK social network, Youtube
advertising, Radio
Chat-mailing, SMS-mailing,
Facebook, Instagram,
Youtube-advertisement,
Airport
Live presentations
20
21. Automation,
CRM and Big Data
• For communications, we use the Digital pipeline. The
system catches up with a person’s advertising on the
Internet, sends letters and notifies about the action
automatically. All data is stored in the system.
• Ip-telephony and recording of all calls
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26. For Astana - this is a new
format of country life.
The lack of competition
in suburban housing and
demand has served as
the reason for designing
not one line, but a whole
cottage town.
26
38. Astana
Astana is divided into: the right side - the old city and
the left side - the business and entertainment center.
2/3 build on the left side.
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41. AIFC
• Astana International Financial Centre (AIFC) is a financial hub
for Central Asia, the Caucasus, EAEU, the Middle East, West
China, Mongolia and Europe. The Centre will be situated within
EXPO-2017 and supported by modern infrastructure & the
latest technology.
«I signed a decree on the establishment of the Astana
International Financial Centre. It will be based on the principles
of English law, the preferential tax regime and an independent
financial court»
N. Nazarbayev
President of the Republic of Kazakhstan
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42. AIFC law
• Applicable law of the AIFC is guided by principles, norms and
precedents of England and Wales`s law and standards of the
leading international financial centers.
• Justice based on English law in AIFC will be rendered by
independent AIFC`s Courts. International level judges of AIFC`s
Court will have exclusive jurisdiction over disputes between
the AIFC’s participants, Bodies and/or their foreign employees,
disputes relating to operations carried out in the AIFC and
regulated by the law of the AIFC, disputes transferred to the
AIFC’s courts by agreement of the parties, except criminal and
administrative proceedings.
42
43. Tax exemptions
• Bodies and participants of the AIFC, as well as their employees,
shall be exempted from tax payments, including corporate tax,
individual income tax, land and property tax for the first 50
years.
43
44. Simplified currency
control, visa and
employment regime
• A special visa regime up to 5 years is available for the
employees of the AIFC bodies and participants, and similarly
for their families. This will provide a great opportunity for the
AIFC participants to employ foreign staff members without
having to obtain quotas and permits.
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46. Simplified registration
process
• A simplified registration regime has been introduced, based on
“one-stop-shop” principle for the issue of visas, work permits,
and other documentary procedures in the territory of the AIFC.
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47. Official language
• All business activities will be conducted in English within the
AIFC. Legislation shall be drafted and applied in English.
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48. Location
• The Centre, located right in the heart of the central business
district of Astana, is surrounded by Parks, shopping malls,
luxury residential properties and the Nazarbayev University.
Astana International Airport is just 11 kilometers away from the
Centre.
• The AIFC will be located on the grounds of the EXPO – 2017
- in the Esil district, and bounded by the streets of Orynbor,
Hussein bin Talal, Kabanbay Batyr and Turar Ryskulov (total
area – 25 hectares.).
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49. Airport
• The construction of a new passenger terminal at Astana
International Airport is scheduled prior to the start of EXPO-
2017 The annual capacity of the airport will grow from 3 million
passengers to 7 million. Air Astana, the national air carrier, is
expected to launch new direct flights to the main financial
centers: New York, Tokyo and Singapore in the near future.
47 000 m2
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53. Astana population
Until 2016, the population growth averaged 35,000
people.
After 2017, the average population growth plan will be
50,000 people.
* Data taken: Agency for Statistics of the Republic of Kazakhstan
53
54. Transactions with real
estate in Astana
March 2017............................... 2713
February 2017......................... 2918
January 2017........................... 2520
December 2016...................... 3194
November 2016..................... 2588
October 2016.......................... 2019
September 2016.................... 1950
August 2016............................ 2096
July 2016................................... 1722
June 2016................................. 2208
May 2016................................... 2685
April 2016 ................................. 2615
March 2016.............................. 2220
February 2016 ........................ 1941
January 2016........................... 1270
December 2015...................... 2351
October 2015.......................... 1552
July 2015................................... 1422
* The data is take: krisha.kz
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55. • In 2016 more than one million square meters of housing or
16,671 apartments were put into operation in Astana.
• Currently under construction are 273 multi-apartment, multi-
storey and low-rise commercial residential complexes with
a total area of 7 million 246 thousand square meters
(75 thousand apartments).
For 19 years in
Astana, about
17 million square
meters of housing
was introduced.
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56. Competitors
Name S m2 Price m2
Land Repair Land purchase terms Communications Other Company
1 Garden Villadge
cottage 188 1 763 8,6 no
Rent Installment plan Gas, Centralized water
supply, electricity,
sewerage
brick, decorative
plaster, no garage
BI Group
2 duplex 150 737 4 no
4 - quadrohouse. - no no 100 %
8 - splithouse - no no 100 %
2 BI Village cottage 234 1 259 6-10 no ownership mortgage All centralized
brick, decorative
plaster, garage
BI Group
3 Diplomatic town cottage 500 2 179 15 no ownership 100 %
Gas or electricity, other
centralized
brick, Gas block
, decorative plaster,
travertine, garage
4 Karaotkel cottage 400 1 506 17 yes rent 100 % no centralized
SK Story-
Contract
5 Telman Build by yourself
6 Saranda Village
villas
500-
1500
2200
20-
80
no ownership Installment plan All centralized Gas block, decorative
plaster, travertine,
garage
«MABETEX
GROUP»
condominium 55-128 2200 no no no Installment plan All centralized
7 Solar City townhouse 120-225 980 3,5 no ownership Installment plan
Autonomous
communications
brick,HPL, Cembrit,
wood windows,
seamless tin roof
VEM
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57. Law
• Blocked house do not fall under the law on equity participation. It
means we can sell at the design stage.
• For one foreign employee, two Kazakhstan citizens are required.
• The project has the support of the regional government, therefore
all procedures related to commissioning are speeded up.
• We are not required to approve or coordinate architectural or
engineering projects for blocked houses in local executive bodies.
Only agree on a sketch.
• The land is owned, which gives an advantage.
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58. The Land Code of the
Republic of Kazakhstan
of June 20, 2003 No. 442-II (with amendments and additions as
of February 27, 2017) 23 article, item 4:
In private ownership of foreigners, stateless persons and foreign
legal entities (non-governmental), land plots may exist for
the purposes specified in paragraph 3 of this article, with the
exception of land intended for conducting commercial agricultural
production and afforestation.
It is not allowed to provide land plots located in the border zone
and border zone of the Republic of Kazakhstan to the private
ownership of foreigners, stateless persons and foreign legal
entities.
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59. Ecology
• The index of atmospheric pollution in Astana is 6-7. This indicator
grows by an average of 0.7 points per year.
• The index of air pollution in Solar City - 2-3
Low index - less than 5
The average index is 5-7
High index - 7-14
Very high index - above 14
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61. Reasons for buying
• In the winter in the city with children there is nowhere to go, except
shopping malls
• In Kazakhstan people really want to have their own piece of land.
• They love houses more than apartments.
• They like to live closer to nature.
• They want their children to grow up in an environmentally friendly
environment.
We conducted a survey and found out why
they buy country houses:
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