Further emalangeni investments goal is to invest in

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upon completion of renovation, rehabilitation and expansion. Further Emalangeni Investment’s goal is to invest in quality – both in its properties and in its tenants. One of the largest mistakes made by new real estate investors is poor tenant selection, this often involves little or no background and credit check. At Emalangeni Investments the owners are extremely devoted to their business and their commitment to the long term can be seen in their extreme dedication to both their properties and their meticulous selection process of finding long term tenants. 1.3 KEYS TO SUCCESS Emalangeni Investments is fully committed to make its rental property business a long-term success with future plans for expansion. It is this dedication and drive which will set them 2
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apart from their local peers. The following are what Emalangeni Investments believes are its keys to success: Acquisition of undervalued residential properties. The greater the discount that properties can be purchased, the greater the upside for short term or long term gains will be. Complete the renovation or rehabilitation work within the scheduled time and within the budgeted amount. Find rental occupants for the selected properties before renovations are completed, or at the first opportunity after completion. Generate cash flow from rental income sufficient to cover debt and expenses and provide funding for new property acquisitions. Maintain an average 92% occupancy rate each year on rental properties. Provide projected overall 5%-6% cash-on-cash return on the portfolio of assets. 1.5 FINANCIAL SUMMARY The total project cost is estimated to be E28 million, E25 million for acquisition of the property and E3 million construction costs for construction of the addition 28 units on the vacant land. These estimates are a little high to err on the conservative side. Emalangeni Investments seeks to secure the E28 million from bank financing. Proforma Profit and Loss (Yearly)* See excel version for full financial model Year 2020 2021 2022 2023 Rental Income E 1 382 400 E 1 423 872 E 1 466 588 E 1 510 586 Operating Expenses E 124 660 E 128 400 E 132 251 E 136 219 EBITDA E 1 257 740 E 1 295 472 E 1 334 337 E 1 374 367 1.6 MANAGEMENT TEAM 2.0 MARKET ANALYSIS 3
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2.1 LOCATION ANALYSIS The first real estate investment Emalangeni Investments intends to invest in is a property located in the highly affluent, in demand and growing area of Ezulwini. Ezulwini is a small predominantly residential town in Eswatini, it is located along the Mbabane – Manzini corridor and is in close proximity to Matsapha. Whilst Mbabane is the Capital City, Manzini the economic hub and Matsapha the industrial town, Ezulwini can be classified as a tourism hub of the Kingdom of Eswatini. Ezulwini houses the largest number of hotels, tourist attraction sites, close to nature conservation reserves, cultural centers and other buildings of national importance.
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