RIGA SHOPPING MALLRIGA, LATVIA FEASIBILITY STUDY.ppt

RIGA SHOPPING MALLRIGA, LATVIA FEASIBILITY STUDY Preparation and Analysis: Bank Financing of Construction Project The Project Two stories of a commercial Western standard mall area retail commercial establishments a bank service establishments (laundry, dry-cleaning etc) up-scale restaurants fast-food facilities a night-club and disco office and residential This shopping mall space will be the first of its kind in and around Riga The Project The project site is situated on the main highway between Riga and Riga International Airport. 3 - 4 minutes to reach the Mall site from the center of Riga by way of the bridge over the Daugava River 3 minutes drive to the southwest is an old-Soviet-style multiple high-rise housing complexes in which close to a quarter of a million persons presently reside. The Project The project site is situated on the main highway between Riga and Riga International Airport. Most of these people work in Riga and must reach their jobs by using the highway, thus ensuring that they will pass the Mall twice a day There are virtually no shopping facilities of any size or substance in the vicinity of this housing area. Term Sheet DESCRIPTION: $48 million conventional construction and/or take out loan (mortgage); term: 7 – 10 Years (Terms flexible), rate: 10% (or lower). SECURITY: (1) Mortgage of land and improvement to be executed by MESA (land - or such other entity as to which the land may be conveyed at the start of construction) and MOS-MALL (improvement); (2) Full guarantee of initial draw- down; (3) Performance and payment (subcontractors and suppliers) bond. Term Sheet EQUITY: Flexible in terms of debt – equity mix but can be structured to include: (1) straight equity injections (2) land; worth after clearing which has been completed - $1.5 million presently owned by MESA and investors; (3) preparation of design and engineering drawings by MESA ($1 million +/-) (4) condo sales $3 - $5 million held in escrow. (4) LOC enhancemen