INTRODUCTION

Sotos One Group Investments Limited is a Limited Liability Company registered in the Republic of Cyprus at the Registrar of Companies under the Companies Law, Cap 113 Section 15 [1]. They hold a Certificate of Incorporation Number HE 386206 issued on 12 July, 2018 with the purpose of engaging in real estate business development.
The development of real estate industry is a many sided business covering many aspects ranging from acquisition of raw lands, to selling, renting or leasing of either fully finished or and fully furnished properties. All real estate developers acquire lands and finance the real estate deals, engage in building projects and sell, lease, rent, and even manage properties on behalf of their clients.

BACKGROUND & CONTEXT

INDUSTRY OVERVIEW

One of the most profitable, creative and interesting aspect of the real estate industry is that developers become major players in determining property prices. However, this type of business venture is a leading indicator for expected expansionary activities of
business entities.
Commercial real estate ownership and leasing is seen as a long term asset investment that can provide abnormal / extraordinary returns. This has led to the opening of capital market activity for real estate through investment vehicles. Market research studies have shown that the global commercial real estate market focuses on the market activity within the key subsectors, such as offices, retail, industrial and multifamily businesses across countries and continents. The main factors affecting commercial real estate markets include the following:-

• Economic Activity / Policy, exchange rate, inflation and employment activity.
• Industry sector and the property’s suitability and business cycliicality.
• Demographic and socio-economic trends.
• Real estate demand, supply and pricing.
• Regulatory landscape and compliance requirements.
• Technological changes, adaption and disruption in the industry.
• Time of project completion for ongoing projects and sales trend (for projects that are ready).
• Taxes related to the real estate business.
• Rent to be paid by buyers.

All the above will be taken into account in the financing plan and financial projections section of this business plan.

ECONOMIC ACTIVITY

The most important factor affecting the value of real estate is the health of the economy where economic data such as GDF, employment, manufacturing, inflation, exchange rate fluctuations, interest rates, mortgage rates etc used as measures of the economy is slow it affects the health of the real estate industry. On the other hand, the cyclicality of the economy can have varying effects of the real estate industry. The revenues/returns arising from real estate industry during economic downturn are more vulnerable than that of office space which is usually secured through long term leases and sometimes through outright purchase.

Capital Markets

Real estate is one of the most favoured investment options for long term value retention and its ability to generate higher returns than any other investments. In particular, the development of commercial real estate capital market related to the expansion of markets for equity and debt securities are important in transforming the industry. This is likely to provide exceptional capital availability and pricing reshaping valuation metrics.
Such a situation heavily influences the private capital formation and provides investors with greater selection of investment, hedging and arbitrage opportunities.

Asset Class Performance

Offices:- Institutional investors favour putting their investments in offices which is a category of asset class. This is because there is an increase in office based jobs due to an increasing economy where employment opportunities are also improving.

RETAIL

Retailers and shopping mall operators are adopting new place making strategies to compete with e-commerce, combined with stronger consumers, fueling more demand for retail space. However, all these businesses are usually cautious about location, size and formats of stores.

Industrial

There is a strong demand from e-commerce and third party logistic firms for distribution and warehouse space including sites that continue to reshape the industrial market. Concepts of shared economy and optional usage of space, driven by the web, data science, and analytics may create an additional layer of supply within the commercial real estate market notwithstanding the pace at which these changes could occur differently within developed and emerging economies.

Multifamily

This sector continues to benefit from fundamental shifts in demographics, home ownership, economic improvement, and current abundant supply of capital. This is the single most important driver for the growth and improved success of other sectors such as retail and self-storage.

BUSINESS DESCRIPTION

Sotos One Group Investment Limited is a real estate company which specializes in real estate properties in Nicosia, Cyprus. The company wishes to purchase, develop and
manage the following properties:

i) Multi-Storey Building in Kaimakli , Nicosia.
– Housing the following assets: 1 shop, 1 penthouse, 8 bedroom apartments and 1
roof [all rented]
ii) Multi-Storey Building in Egkomi, Nicosia with:-
• 4- 2 Bedroom Apartments.
• One Bedroom Apartment.
iii) Warehouse in Dali Industrial Area with:-
• 4 Warehouses
• Photovoltaic Solar Panels in Dali Industrial Area with Solar Panels
(installed on the roofs of the above 4 warehouses).
iv) Multi-Storey Building in Paouriotissa, Nicosia with:-
• 6- 2 Bedroom Apartments
v) Two land plots in Egkomi, Nikosia (under construction) that will have:-
• 8- 2 Bed Apartments.
• 4 – One Bedroom Apartment.
• 2 Studios.

Purpose of the Business Plan

The purpose of this Business Plan is to provide a comprehensive financial and operational overview of raising a total facility of Euros 4.6 Million that will be used by Sotos One Group Investments Limited to purchase, develop and manage various real
estate projects that will provide apartments, warehouses and photovoltaic solar panels invarious areas of Nicosia (i.e. Kaimakli, Egkomi, Dali Industrial Area and Paouriotissa in Nicosia, Cyprus.
Further, the business plan provides the financial viability of the company, shows models
of operation of the plan, and provides management modalities of the company as well as investment equirements to expand business operations and takes into account financial risks (if any) inherent in the business as well as mitigation measures to be undertaken. It is expected that the management of the company will achieve a higher growth rate of the company’s operations and therefore a higher level of profitability.
The acquisition of the above finances will significantly support the success of the business through increased purchases of more real estate properties with visible and accessible location areas in the Central Business District of Nicosia, Cyprus.

Location and Address of the Company

The office of the company is located in Nicosia, Cyprus.
The Physical Address is:-
Michael Karaoli 5,
Illiopolis 2546,
Dali,
Nicosia,
Cyprus

HOW CAN WE HELP YOU

SOTOS ONE GROUP INVESTMENT LTD really helped us achieve our financial goals. The slick presentation along with fantastic readability ensures that our financial standing is stable.

Amanda Seyfried

Sales & Marketing, Alien Ltd.

SOCIO ECONOMIC JUSTIFICATION

This project has both direct and indirect Socio-economic impacts and these include:

Employment generation.

It is hoped that the project will generate more employment opportunities to both skilled and unskilled labour after the purchase of the real estate properties.

Government Revenue

Generation The project will generate a certain level of revenue to the Government coffers in terms of taxes during the years in operation. These taxes are as follows:
➢ Corporate tax 30%: Euro 38,272.30 in year 2022 and Euro 65,986.83 in year 2036

CONCLUSION

The Statement of Income and Expenditure shows that this project is innovative. Profitability levels in the Trading, Profit and Loss Account shows improved performance in the purchase of real estate properties carried out by Sotos One Group Investments Limited.
The anticipated benefits and cost advantages to the lender and borrower allow meaningful consideration. In particular, the proposed project of extending business finance to the real estate company for development and improvement of housing in Nicosia, Cyprus is profitable. Based on the project’s feasibility and economic viability, this project is a good investment undertaking and available information in this Business Plan shows that it is commercially and economically sound.

WHO WE ARE