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dmc

VIEWS: 2 PAGES: 34

									 Investment Teaser



DMC International Business Center
            February 6th, 2006




   Coldwell Banker Real Estate Corporation   CITY BRIDGE
Chapter 1        Project Overview


   01. Intro of DMC                1

   02. Intro of IBC                7

   03. Architecture Overview       9

   04. Project Structure       14




                               1
01. Introduction of DMC

 1. Seoul DMC (Seoul Digital Media City) ?

     DMC is located in Sangam Dong, Mapo-Gu, Seoul over 569,738 Square Meter, and it has an
      envision to become the World’s foremost production center for digital media content, a world-
      class industrial-academic research center, the best business city in North East Asia.

     DMC is Korean government initiated project led by the city of Seoul and managed by Seoul
      Metropolitan Development Corporation.

     The basic plans for DMC development were formally announced by the city of Seoul in April
      2000.

     To successfully complete the project, the city of Seoul composed a task force team made up of
      around 30 city workers.

     The land in DMC has been selling since May 2002, and currently about 46% (151,075 Square
      Meter)of the land designated as land for sale has been sold.

     The total of 1,070 billion Won was invested in DMC to prepare the land.

     The city of Seoul is providing various incentives including tax and finance incentives.



                                                                DMC    International Business Center   | Page   2
01. Introduction of DMC –Continued,

 2. Overview of DMC

                           ▌ Location : New Millennium City District, Sangam-Dong,

                                       Mapo-Gu, Seoul
                           ▌ Land Area : 569,738㎡ (172,346 Pyung)

                           ▌ Development period : Yr. 2002 ~ 2010

                           ▌ Government in Charge : The City of Seoul and

                                                      Seoul Metropolitan Development Corporation



 3. Location of DMC
                            ▌7Km from the downtown Seoul
                            ▌ Takes 30 minutes (41Km) by driving to Inchon International Airport.
                            ▌ High-Speed Railway to be built to Inchon international airport.
                            ▌ Susa다 Subway Station is 3 minutes away by walking
                            ▌ Sangam World Cup stadium is 10 minutes away by walking
                            ▌ Restoration of Kyungyee Rail way, New construction of #2 Sungsan
                             Bridge
                            ▌ Connection to many new districts : Magok District (New High Tech),
                             Chongla District (Leisure and Attractions),
                             Youngjong District( International logistics and support for air services)
                             Songdo District (International business and knowledge information)

                                               DMC      International Business Center     | Page    3
01. Introduction of DMC –Continued,

 4. DMC Vision & Concept
  ► The Specific vision is for the City to evolve into a world-class production center
     for digital media contents,
  ►A world-class center of academic-industrial cooperation in digital media               technology,
  ► Becoming the leading business hub for the North East Asia region.
                                                     A world-class center of academic-industrial Cooperation in digital
                                                  •   media technology.미디
                                                      세계적수준     의디   지털 어산 센터조   학        성
                                    Media         •
                                                      송,
                                                      방 게임 애 메이 educational contents for broadcasting, games,
                                                              , 니
                                                      Display of various션등다양          지털
                                                                                 한디 교육컨텐          츠시 의장연
                                                  •   animation문화컨텐 various성
                                                      첨단디               츠산         공간
                                                            지털 and other 업육 digital media.
                                                     Provide most attractive space for advancing digital media contents.


                                                  • 최첨단IT제품   의체   험공간제공
                                                   Hand-on experience space for advanced IT products
                                     Digital      • 24시간최  첨단기술    경험및IT기술      력과환경    경쟁력   을보 줄수있
                                                                                                  여     간창
                                                                                                      는공 출
              DMC
         Disital Media City




                                                      The main business center for the North East Region in 21st
                                         Bu s ines s • 21세기동북아중추도시기능을지원하는최상의비즈니스거점공간창출
                                                            century.




                                                                       DMC      International Business Center      | Page   4
01. Introduction of DMC –Continued,

 5. Land supply of DMC
    “As of January 2006, 28 lots (45,700PY) which made up 46% of 48 lots, have been sold.”


                       54%
                 Plan to announce
                 06년2월중사업      자
                 선 정방식공고예정
                 Sales plans in
                 February, 2006




                   46%
                  공급완료
                  Sold
                                                                                                    Sold
                                                                                                    Not sold




  6. Upcoming plans for DMC

                  DMC Basic development plan


                                                                 Promotion and marketing activities and attracting major tenants


                                         Supplying lands


                                                 Completion of infrastructure and major buildings

                                                                                           Completion of major buildings


                                                                                 DMC       International Business Center           | Page   5
01. Introduction of DMC –Continued,

 7. Incentives




           COME JOIN US                         for the promising future

                                                                         Best business
                                                                              infra
                                                     Easy access to
                                                                         • The Top world class networks of infra
                                                     administration
                                                                           structure.
                                                     • Specifically assigned social workers for foreign investors
                                 Incentives for      • Unified management of foreign investment
                               foreign Investors

         Low Land Price        • Designation of foreigners only zone, additional
                                 evaluation points in bidding
       • Low Land Price        • Preferable tenants for offices
       • Installment payment   • Designation of foreigners only office zone
         for land              • Various investment promotion incentives
       • Low interest for        50years land and building leasing.
         installment payment


                                                                       DMC     International Business Center   | Page   6
02. Introduction of IBC

 1. IBC Project (International Business Center)?
   IBC will be 132 upper ground floors with 540 meter height, and it will encompass an
   international business hotel, service residences, apartments, shopping mall, convention
   center which makes it truly a multi-complex for international business.

                                                  ▌Project : International Business Center Development ( ‘IBC’)

                                                  ▌Location : Block F1, F2 and Green Area 6 in DMC

                                                  ▌Area : 37,258㎡ (11,270PY)

                                                  ▌Development Period : Yr. 2006 ~ 2012

                                                  ▌Announcement of Developer : 2nd half of 2006.

                                                  ▌Goals : Building a landmark which represents itself as the most

                                                          advanced business center in Korea.

                                                            Include most well organized multi complex of hotel,

                                                            office, shopping and residential area.



                Specially designed zone F-Block
                별 획 역F-Block (랜 마
               특 계 구                      축 블 )
                                    드 크건 물 록
                (Block for a Landmark building)


                                                                  DMC     International Business Center   | Page   7
02. Introduction of IBC

  2. IBC Concept & Planned Facilities

                                                      The Best Business
                                                        Center in North
                                                       East Asia Region



                                              IBC
                                          Development
                        미래를 for opening up Concept
                          Gate                                                      The center for
                               future for                                            international
                              international city of                                    business
                                     Seoul



                                               IBC’s facilities to be implemented



    First Class Hotel           Convention Center             Futuristic Apt                Shopping Mall                Offices

   Best location for                                                                                             Tenants of most
                               For international          Luxury large Apt.            Best brand merchants     reputable companies in
    international travelers
                                conferences and            High class facilities        Duty Free shops          the world
   Most well recognized
                                affairs                    Most safe security           Relax atmosphere        Most expense and
    hotel in Korea due to
                                                            system                       Multiplex cinemas        lucrative office building
    its height
                                                                                                                   in Korea

                                                                                      DMC     International Business Center   | Page     8
03. Architecture Overview of IBC

  1. Architecture overview Of IBC


     Project Name                                 DMC International Media Center Building
          Location              Development Zone 1 and 2, Inside Sangam Development Zone, Mapo, Seoul
    Designated Area                                       General Commercial Area
  Structure of Building                          Steel and Concrete, SRC (Super Structure)
           Floors                            Under ground 8 floors / Upper Ground132 floors
    Site Land Area                                    37,258.00 ㎡ / 11,270.49 Pyung
          Park Area                                      6,837.00 ㎡ / 2,068.18 Pyung
   Construction Land                                   30,421.00 ㎡ / 9,202.31 Pyung
                                                                                                Legal
     Building Area         10,962.74 ㎡ / 3,316.21Pyung             BTL         36.04%                        70.01%
                                                                                                 BTL
                Upper     345,637.32 ㎡ / 104,554.82Pyung
                                                                                                Legal
 Floor          Under     206,104.90 ㎡ / 62,346.45 Pyung           FAR        1,136.18%                     1,137.11%
                                                                                                FAR
                 Total    551,742.22 ㎡ / 166,901.27Pyung
         Build Height                 540m                        Legal                      540m or less
         Parking lots               4,380 lots                    Legal                       3,742 lots
   Land for Donation       6,084.20 ㎡ / 1,840.46 Pyung            Legal         3,042.10 ㎡ / 920.2 Pyung or more



                                                                           DMC      International Business Center   | Page   9
03. Architecture Overview of IBC
 2. Areas by floors
      Floor                                 Area                                        Use
     131~132                 1,814.04㎡ X2     3,628.08㎡    1,097.49 PY              Sky Lounge
     108~130               1,814.04㎡ X 23    41,722.92㎡    12,621.13PY         Hotel, SR, Elec/Mech
     103~107                1,814.04㎡ X 5     9,070.20㎡     2,743.72PY   Restaurant, Banquet, Elec/Mech
       102                  1,814.04㎡ X 1     1,814.04㎡      548.74PY    Hotel Lobby, Restaurant, Banquet
      52~101               1,918.80㎡ X 50    95,940.00㎡    29,021.72PY         Residence, Elec/Mech
      20~51                2,387.59㎡ X 32    76,402.88㎡    23,111.77PY           Office, Elec/Mech
      10~19                2,387.59㎡ X 10    23,875.90㎡     7,222.43PY        Office - Financial Center
       7~9                  9,315.62㎡ X 3    27,406.86㎡     8,290.54PY       Clinic, Fitness, Elec/Mech
       4~6                 10,962.74㎡ X 3    32,888.22㎡     9,948.64PY          Convention Center
       2~3                 10,962.74㎡ X 2    21,925.48㎡     6,632.43PY             Shopping Mall
        1                  10,962.74㎡ X 1    10,962.74㎡     3,316.21PY         Lobby, Shopping Mall
            Total Upper Ground              345,637.32㎡   104,554.82PY                    -
                                                                         Shopping Mall, Airport Bus Terminal,
        1                  24,641.01㎡ X 1    24,641.01㎡     7,453.87PY
                                                                            Movie Theater, Restaurants
                                                                         Shopping Mall, Airport Bus Terminal,
        2                  26,466.27㎡ X 1    26,466.27㎡     8,006.01PY
                                                                            Movie Theater, Restaurants
        3                  22,666.27㎡ X 1    22,666.27㎡     6,856.52PY                Parking
       4~8                 26,466.27㎡ X 5   132,331.35㎡    40,030.05PY                Parking
            Total under Ground              206,104.90㎡    62,346.45PY                    -
              Total Floor Area              551,742.22㎡   166,901.27PY                    -

                                                                  DMC    International Business Center     | Page 10
03. Architecture Overview of IBC

 3. Area Per Use


                         Elec/Mech
                           3.73%
                                                                        Residence           Office
                    Parking                                              25.88%            25.99%
                    26.88%            Facility
                                     69.39%                                   Ratio per Facility
                         Ratio By Use
                                                       Culture and
                                                      Gathering7.34%                         Hotel
                                                                                            19.73%
                                                      Clinic&Fitness          Commercial
                                                                               19.73%
                                                          4.30%




            Use               Facility       Parking           Elec/Mech           Total FA           Ratio

           Office              98,319.60         38,265.99         6,796.81        143,382.40           25.99%
           Hotel               81,983.16         23,811.83         3,084.07        108,879.07           19.73%
        Commercial             63,404.57         24,677.06         4,383.14          92,464.77          16.76%
       Fitness& Clinic         16,267.24          6,334.18         1,124.55          23,725.97           4.30%
       Convention &
                               27,778.20         10,821.00         1,920.30          40,519.50           7.34%
       Movie Theater
         Residence             95,094.40         44,382.52         3,293.60        142,770.52           25.88%
           Total              382,847.17     148,292.57           20,602.48        551,742.22          100.00%


                                                                                   DMC       International Business Center   | Page 11
03. Architecture Overview of IBC

 4. Facility Exclusive Area Per Use
      Facility                   Use                             Area                        Ratio            Remark

       Office          Financial Center, Offices    98,319.60㎡           29,741.55PY             25.68%      Designated

                              Business              40,424.38㎡           12,228.32PY             10.56%
       Hotel                                                                                                 Designated
                         Serviced Residence         41,558.78㎡           12,571.47PY             10.86%

                        Dept. Store, Shopping
    Commercial                                      63,404.57㎡           19,179.80PY             16.56%
                          Mall, Restaurant

  Fitness Center       Fitness, Swimming Pool        8,949.82㎡            2,707.31PY              2.34%

   Medical Clinic           Clinic Center            7,317.42㎡            2,213.51PY              1.91%
Convention & Movie        Convention, Movie
                                                   27,778.20 ㎡            8,402.87PY              7.26%      Designated
     Theater                  Theater
    Apartment            Residence Complex          95,094.40㎡           28,765.92PY             24.83%

 Total Facility Area                               382,847.17㎡          115,810.75PY                 100%
    Parking and
                                                   168,895.05㎡           51,090.52PY
     Ele/Mech
       Total                                       551,742.22㎡          166,901.27PY
   Facility Area
                                  Office + Hotel + Culture and Gathering = 52.65% > 50%(Legal Requirement)
   Requirement


                                                                              DMC      International Business Center   | Page 12
03. Architecture Overview of IBC
5. Detail Breakdown of Residence (Residence Complex)
                             Unit      Exclusive         Common                               Saleable        Parking           Total        Total per
Type (PY) No. of suits                                                        Core                                                             Type
                             ㎡             164.74                 46.80              7.33         211.54            98.73           317.60    30,461.72
  63.99         144
                             py                49.83              14.16              2.22          63.99            29.87            96.07     9,214.63
                             ㎡             178.69                 50.76              7.95         229.45           107.09           344.49    22,027.45
  69.41         96
                             py                54.05              15.36              2.40          69.41            32.39           104.21     6,663.27
                             ㎡             211.88                 60.19              9.42         272.07           126.98           408.48    19,606.84
  82.30         48
                             py                64.09              18.21              2.85          82.30            38.41           123.56     5,931.04
                             ㎡             239.68                 68.09          10.66            307.77           143.64           462.07    44,358.77
  93.10         96
                             py                72.50              20.60              3.22          93.10            43.45           139.78    13,418.47
                             ㎡          74,056.32          21,038.08          3,293.60         95,094.40       44,382.52      142,770.52     116,454.78
  Total         384
                             py         22,401.94           6,363.99            996.31         28,765.93       13,425.65       43,187.89      35,227.41

 6. Detail Breakdown of Other Facilities
     Facility         Unit        Exclusive       Common             Saleable          Elec/Mech         Parking            Total            Remark

                      ㎡           58,991.76        39,327.84          98,319.60             6,796.81       38,265.99    143,382.40       Exclusive Area
      Office
                      py          17,844.93        11,896.62          29,741.55             2,056.03       11,575.41        43,372.98      Ratio 60%

                      ㎡           34,872.51        28,532.06          63,404.57             4,383.14       24,677.06        92,464.77    Exclusive Area
   Commercial
                      py          10,548.89            8,630.91       19,179.80             1,325.89        7,464.78        27,970.47      Ratio 55%

                      ㎡             9,760.34           6,506.90       16,267.24             1,124.55        6,334.18        23,725.97    Exclusive Area
Fitness and Clinic
                      py            2,952.49           1,968.33           4,920.82           340.17         1,916.08         7,177.07      Ratio 55%


                                                                                                       DMC     International Business Center      | Page 13
04. Project Structure

1. Project Structure and Participants

     Various parties with different expertise will involve in this project to make the project successful
            PM                        Finance                 Construction         Experts in Technical area


                               Strategic                                               CM         Architecture
                                                           Korean
                                Investor
         Developer
                                           Financial
                                                                     Foreign
                                           Investor                                   Sales          Lease




                                      Investment         + Return of
                                                         Investment
  The City of Seoul   Sales of Land
                                       Project Finance Vehicle Bidding                        Construction
                                               (PFV)                                           Company
                        Loan                                   Complete of
       Banks                                                            Construction
                      Paying Back
                                           Assign         Service               Inspection


                                      자금관리자            Asset Management (AMD)




                                                                               DMC   International Business Center   | Page 14
04. Project Structure

 2. Participants


   Project Management                                            Finance

             CITY BRIDGE

                                    Deutsche Bank          Kyobo Life
   Sales & Marketing
                                    Seven Mountain Group
             Coldwell Banker Real
             Estate Corporation



                                                                 Others


   Construction Company

             Dalim Industrial
                                               Kolon Info.Com㈜

             Samsung Construction              Turner
                                               Construction Company




                                         DMC    International Business Center   | Page 15
 04. Project Structure

      3. Time Schedule

                                                       2006년
                                                        2006             2007년
                                                                         2007               2008년
                                                                                             2008   2009년
                                                                                                     2009   2010년
                                                                                                             2010        2011년
                                                                                                                          2011       2012년
                                                                                                                                      2012
                     공고
Announcement of land supply                        ↑
                         사업계획서작성
Preparing of business plan                                 2006.2~2006.4
                         사업계획서제출
Submission of business plan                            ↑
                          서울시사업계획서검토
Evaluation of business plan by the city of Seoul                   2006.5~2006.7
                                                                     8
Selection of the developer사업자선정                            ↑
Planning for zoning       지구단위계획자문도면작성                              2006.8~2006.9
Discussion for zoning     사업계획관련추가내용협의
Apply for zoning          지구단위계획자문신청                           ↑
                                                                      2006.10
Evaluation of zoning      지구단위계획자문
Completing of zoning      지구단위계획자문완료                           ↑
Traffic / Environ. study 교통환경평가/건축심의협의                                     2006.11~2007.1

Evaluation of construction마포구건축심의
                          by Mapo-Gu                                 ↑
Evaluation of construction서울시건축심의 Seoul
                          of the City of                                     2007. 2
                          교통영향평가접수
Submission of Traffic / Environ. Study                                ↑
                          서울시건축심의완료
Completion of evaluation of construction                               ↑
Apply for project approval 마포구사업계획승인접수                                 ↑
Review                    마포구사업계획검토                                             2007. 4
Project approval       마포구사업계획승인                                         ↑
Ready for construction 착공신고도서준비/사업계획승인                                           2007. 5
Begin construction      공사착공                                               ↑
Construction            공사                                                                                                                  2007.6~2012.5
                        준공신청
Apply for approval of completion of construction                                                                                      ↑
Complete construction 준공                                                                                                                    2012. 6



                                                                                                      DMC   International Business Center    | Page 16
Chapter 2        Feasibility Study


   01. Project Revenue                   18
   02. Project Cost                      20
   03. Project Income before Operation   24
   04. Project Cash        flow                 25
   05. IRR & NPV                         30
   06. Sensitivity Study                 33




                                              DMC   International Business Center   | Page 17
01. Project Revenue
 1.   Scenario 1 – Selling Every Facility
                                                Sales Price per
                           Sales Area(PY)                             Subtotal(Mill. )         Sales Date
                                                   PY(000' )
        Office Building             43,373                14,500               628,908           Jun-12
        Business Hotel              16,240               15,300                248,472           Jun-12
      Serviced Residence            16,696               15,000                250,436           Nov-09
      Convention Center             12,257               14,000                171,599           Jun-12
         Retail Shops               19,180               26,467                507,626           Jun-07
        Fitnes & Clinic              7,177               13,500                 96,890           Jun-12
          Apartment                 28,766               28,556                821,453           Jun-07
         Total Sales                                                         2,725,386


 2. Scenario – Leasing Office Building
                                                Sales Price per
                           Sales Area(PY)                             Subtotal(Mill. )         Sales Date
                                                   PY(000' )
        Office Building                     -                     -                      -         N/A
        Business Hotel              16,240               15,300                248,472           Jun-12
      Serviced Residence            16,696               15,000                250,436           Nov-09
      Convention Center             12,257               14,000                171,599           Jun-12
         Retail Shops               19,180               26,467                507,626           Jun-07
        Fitnes & Clinic                     -                     -                      -         N/A
          Apartment                 28,766               28,556                821,453           Jun-07
         Total Sales                                                         1,999,587


                                                                                 DMC         International Business Center   | Page 18
01. Project Revenue – Continued,

 3. Scenario 3 – Operating Hotel, Leasing Office Building
                                                   Sales Price per
                              Sales Area(PY)                             Subtotal(Mill. )        Sales Date
                                                      PY(000' )
       Office Building                         -                     -                      -        N/A
        Business Hotel                         -                     -                      -        N/A
     Serviced Residence                  16,696              15,000               250,436          Nov-09
     Convention Center                         -                     -                      -        N/A
         Retail Shops                    19,180              26,467               507,626          Jun-07
       Fitnes & Clinic                         -                     -                      -        N/A
          Apartment                      28,766              28,556               821,453          Jun-07
         Total Sales                                                            1,579,515

   * Sales Area for office building, business hotel and convention center are based on total floor area. Other facilities are
   based on saleable area.




                                                                                     DMC        International Business Center   | Page 19
02. Project Cost

   1. Scenario 1
       Project Cost for scenario 1 is as follows.
                                                                                                              (Unit: KRW Million)

     Item                  Detail Item               Amount                              Description
                               Land                    281,762 11, 270. 49 PY × KRW 25 Mill. Per PY
                        Removal of Waste                 5,635 11, 270. 49 PY × KRW 500, 000
     Land
                       Installment Interest                   - Unpaid Land cost X annual interest of 6%
                             Land sub                  287,398
                        Construction Cost             1,324,033 166, 901. 27 PY × Average construction cost per PY
Construction Cost
                      Construction Cost sub           1,324,033
                           Architecture                 52,961 Construction Cost X 4%
                        Inspection and CM               52,961 Construction Cost X 4%
                            Appraiser                    6,620 Total Floor Area × KRW 5, 000 per PY
                        Study & Research                 1,669 Total Floor Area × KRW 10, 000 per PY
Service Fee
                       Accounting and Tax                2,500 Estimated
                          Legal Service                  1,200 Estimated
                       Traffic&Envir. Study             13,240 Total Floor Area × 10, 000 Per PY
                         Service Fee Sub               131,152




                                                                               DMC     International Business Center   | Page 20
02. Project Cost – continued,

 1. Scenario 1 –Continued,
                                                                                                         (Unit: KRW Million)
  Item               Detail                Amount                                  Description
           Trust Fee for Sales amount         20,440 Total Sales amount x 0. 15%/Year x Total Construction Period(5Year)
         Legal Assistance(Land Purchase)         254 KRW 9, 000 per KRW 10 Mill. of land purchase cost
           Legal Service(Registration)         2,648 Total area X KRW 2, 000
             Security & Management             6,620 Security for complted building until the opening, KRW 9, 000 per PY
             Acq. & Reg. tax(Land)            12,961 Land Cost X 4. 6% (Including local tax)
          Reg. Tax(Building Acq. /Reg. )      45,364 Construction Cost X 3. 16% (at the completion )
                  Property Tax                 7,864 For 5 years

 Taxes          High Density Tax              34,159 Accrding to the guideline
  and         Art & Decoration tax             2,611 Accrding to the guideline
 Dues
               Housing Bond(Land)                905 Govt. Appriased value X Purchase ratio X Discount rate
            Housing Bond(Approval of
                                                 122 Total Floor Area X Price Per㎡ X Discount Rate
                  construction)
                                                        Standard Constructio Cost Per1㎡ X Levied Rate X Total Floor Area -
           Greater Seoul Traffic Dues          9,235
                                                       Deduction
               Infra structure Dues           13,240 Construction Cost X 1% (Past Experience)
               Development Dues                     - (Increase of land value-development cost) X 25%

                      VAT                    210,746 Sales amount X 10%
               Taxes & Dues Sub              367,169




                                                                        DMC      International Business Center   | Page 21
02. Project Cost – continued,

  1. Scenario 1 –Continued,
                                                                                                                (Unit: KRW Million)
   Item                 Detail item            Amount                                     Description
                Rent fee for Sample Houses         2,000 Estimated
              Construction of Sample Houses        5,600 total land 800PY X KRW 7 Mill per PY
               Operation for Sample Houses         1,200 12 Months X 100 Mill per Month
   Sales       Promotion and Advertisement        10,000 Estimated
  related
   cost         Interest payment for buyers             - Interest rate of 8%, 70% of total sales amount of residences
               Sales commission(Residence)         4,107 0. 5% of sales amount
             Sales commission(Non-residence)      19,039 1% of sales amount
                  Sales related cost Sub          41,947

                     General expenses              8,000 SPC Employee Salaries and operating cost (KRW 100 Mill. Per M)
 Operating
                                                            Outsourcing Fees for PM, Treasury & Asset Management( KRW 150
   cost              Outsourcing Fees             12,000
                                                            Mill. Per M. )
                    Operating cost Sub            20,000
Total project cost before finance cost          2,171,698
                                                             Monthly Balance X 0. 591% Per Month, Initial fee of 0. 05% of total
                     Interest for loans          100,354
                                                            loan amount
  Finance
    cost         Interest for late payment           113 Unpaid construction cost by the end of the month X 1% per month
                     Finance Cost Sub            100,467
              Total Project Cost                2,272,165


                                                                              DMC      International Business Center     | Page 22
02. Project Cost – continued,

 2. Summary of Project Cost
   Summary of project costs for each scenario is as follow.
                                                                               (Unit: KRW Million)

                                              1 Scenario       2 Scenario          3 Scenario

            Land                                    287,398          287,398              287,398

            Construction                           1,324,033       1,324,033            1,324,033

            Service                                 131,152          131,152              131,152

            Taxes & Dues                            367,169          306,413             272,499

            Sales related cost                       41,947           34,689              30,488

            Operating cost                           20,000           20,000              20,000

            Cost before finance cost               2,171,698       2,103,684            2,065,569

            Finance cost                            100,467           92,764              94,294

            Total project cost                     2,272,165       2,196,448            2,159,863




                                                                               DMC     International Business Center   | Page 23
03. Project Income before operation

 1. Project Income per Scenario
   Project Income per Scenario with capital investment of KRW 250 Billion.
                                                                                   (Unit: KRW Million)
                                              1 Scenario         2 Scenario             3 Scenario
                    Project Revenue                2,725,386          1,999,587              1,579,515
                Office                              628,908                    -                         -
                Business Hotel                      248,472            248,472                           -
                Serviced Residence                  250,436            250,436                250,436
                Conventions                         171,599            171,599                           -
                Retails                             507,626            507,626                507,626
                Fitness & Clinic                     96,890                    -                         -
                Residence                           821,453            821,453                821,453
                       Project Cost                2,171,698          2,103,684              2,065,569
                Land                                287,398            287,398                287,398
                Construction                      1,324,033           1,324,033              1,324,033
                Services                            131,152            131,152                131,152
                Taxes and dues                      367,169            306,413                272,499
                Sales related cost                   41,947             34,689                 30,488
                Operating cost                       20,000             20,000                 20,000
                         Finace Cost                100,467              92,764                 94,294
                Bank Interest                       100,354             92,723                 94,225
                Late payment                            113                   42                     69

                   Net Project Income                453,220           (196,861)              (580,347)



                                                                                   DMC     International Business Center   | Page 24
04. Project Cash Flow

  1. Scenario 1
    Yearly cash flow for Scenario 1 is as follow.
                                                                                                                  (Unit: KRW Million)
                  Item            2006        2007       2008       2009       2010        2011       2012       2013           2014
     Capital Investment           250,000            -          -          -          -           -          -            -             -
           Office                        -           -          -          -          -           -   628,908             -             -
           Business Hotel                -           -          -          -          -           -   248,472             -             -
           Serviced
                                         -           -          -    60,105     60,105            -   130,227             -             -
 Project Residence
 revenue Convention                      -           -          -          -          -           -   171,599             -             -
             Retail                      -     81,220     81,220     81,220     81,220            -  182,745            -              -
             Fitness & Clinic            -           -          -          -          -           -   96,890            -              -
             Residence                   -    164,291    164,291    164,291    164,291            -  164,291            -              -
              Loan                104,000            -    24,000     60,000    130,000     260,000          -           -              -
   Project Net Cash flow
     Cash flow from Operation            -           -          -          -          -           -         -           -              -
    Cash Inflow Subtotal          354,000     245,511    269,511    365,616    435,616     260,000 1,623,133            -              -
             Land                 281,762       5,635           -          -          -           -         -           -              -
             Construction                -     66,202    221,113    262,228    348,221     345,573    80,809            -              -
 Project Services                   7,552      39,991     10,764     10,764     10,764      16,060    35,258            -              -
  cost       Taxes & dues          21,984      22,620     23,390     23,073     31,206      14,742   230,154            -              -
             Sales related cost          -     14,300      3,767      2,235      2,235            -   19,410            -              -
             Operating cost         2,597       3,117      3,117      3,117      3,117        3,117    1,818            -              -
             Finance Cost           2,978       7,374      7,777     12,211     15,515      34,009    20,490            -              -
     Repayment of Loan                   -           -          -          -          -           -  578,000            -              -
   Cash Outflow Subtotal          316,874     159,239    269,929    313,628    411,057     413,500   965,939            -              -
   Yearly Net Cash flow            37,126      86,272       (418)    51,988     24,558    (153,500)  657,194            0              0
  Accumulated Cash flow            37,126     123,398    122,981    174,969    199,527       46,026  703,220      703,220        703,220


                                                                                DMC       International Business Center       | Page 25
04. Project Cash Flow – Continued,

  2. Scenario 2
    Yearly cash flow for Scenario 1 is as follow.
                                                                                                                  (Unit: KRW Million)
                  Item            2006        2007       2008       2009       2010        2011       2012       2013           2014
     Capital Investment           250,000            -          -          -          -           -          -            -             -
           Office                        -           -          -          -          -           -          -            -             -
           Business Hotel                -           -          -          -          -           -   248,472             -             -
           Serviced
                                         -           -          -    60,105     60,105            -   130,227             -             -
 Project Residence
 revenue Convention                      -           -          -          -          -           -   171,599             -             -
            Retail                       -     81,220     81,220     81,220     81,220            -   182,745          -               -
            Fitness & Clinic             -           -          -          -          -           -          -         -               -
            Residence                    -    164,291    164,291    164,291    164,291            -   164,291          -               -
              Loan                104,000            -    21,000     65,000     59,000     320,000           -         -               -
   Project Net Cash flow
     Cash flow from Operation            -           -          -          -          -           -     6,486     29,304          40,499
    Cash Inflow Subtotal          354,000     245,511    266,511    370,616    364,616     320,000    903,820     29,304          40,499
            Land                  281,762       5,635           -          -          -           -          -         -               -
            Construction                 -     66,202    221,115    262,178    348,229     345,577     80,774          -               -
 Project Services                   7,552      39,991     10,764     10,764     10,764      16,060     35,258          -               -
  cost      Taxes & dues           21,984      21,579     22,403     22,083     30,260      13,709    174,394          -               -
            Sales related cost           -     14,300      3,767      2,235      2,235            -    12,152          -               -
            Operating cost          2,597       3,117      3,117      3,117      3,117        3,117     1,818          -               -
            Finance Cost            2,978       7,374      7,727     10,487     14,463      29,523     20,171          -               -
     Repayment of Loan                   -           -          -          -          -           -   569,000          -               -
   Cash Outflow Subtotal          316,874     158,198    268,893    310,864    409,067     407,986    893,567          -               -
   Yearly Net Cash flow            37,126      87,313     (2,382)    59,752    (44,451)    (87,986)    10,254     29,304          40,499
  Accumulated Cash flow            37,126     124,439    122,057    181,809    137,357       49,371    59,625     88,929         129,428

                                                                                DMC       International Business Center       | Page 26
04. Project Cash Flow – Continued,

  2. Scenario 2 – Continued,
                                                                                                                           (Unit: KRW Million)
                                                                                                                         2023 and
                  Item           2015       2016       2017       2018       2019        2020        2021       2022                    Total
                                                                                                                           after
     Capital Investment                 -          -          -          -          -            -          -          -         -      250,000
            Office                      -          -          -          -          -            -          -          -         -             -
            Business Hotel              -          -          -          -          -            -          -          -         -      248,472
            Serviced
                                        -          -          -          -          -            -          -          -            -   250,436
 Project Residence
 revenue Convention                    -          -           -          -          -          -           -           -           -   171,599
            Retail                     -          -           -          -          -          -           -           -           -   507,626
            Fitness & Clinic           -          -           -          -          -          -           -           -           -          -
            Residence                  -          -           -          -          -          -           -           -           -   821,453
             Loan                      -          -           -          -          -          -           -           -           -   569,000
    Project Net Cash flow
     Cash flow from Operation     50,131     53,660     55,036     56,448     57,898      59,387      60,917     62,487            -   532,252
    Cash Inflow Subtotal          50,131     53,660     55,036     56,448     57,898      59,387      60,917     62,487            - 3,350,840
            Land                       -          -           -          -          -          -           -           -           -   287,398
            Construction               -          -           -          -          -          -           -           -           - 1,324,075
 Project Services                      -          -           -          -          -          -           -           -           -   131,152
   cost     Taxes & dues               -          -           -          -          -          -           -           -           -   306,413
            Sales related cost         -          -           -          -          -          -           -           -           -    34,689
            Operating cost             -          -           -          -          -          -           -           -           -    20,000
            Finance Cost               -          -           -          -          -          -           -           -           -    92,723
     Repayment of Loan                 -          -           -          -          -          -           -           -           -   569,000
   Cash Outflow Subtotal               -          -           -          -          -          -           -           -           - 2,765,448
    Yearly Net Cash flow          50,131     53,660     55,036     56,448     57,898      59,387      60,917     62,487            0   585,391
   Accumulated Cash flow         179,559    233,219    288,254    344,702    402,601     461,988     522,905    585,391      585,391   585,391


                                                                                        DMC     International Business Center     | Page 27
04. Project Cash Flow – Continued,

  3. Scenario 3
     Yearly cash flow for Scenario 1 is as follow.                                                                (Unit: KRW Million)

                 Item              2006        2007       2008       2009       2010       2011        2012       2013           2014
    Capital Investment             250,000            -          -          -          -          -           -            -            -
          Office                          -           -          -          -          -          -           -            -            -
          Business Hotel                  -           -          -          -          -          -           -            -            -
          Serviced
                                          -           -          -    60,105     60,105           -   130,227              -            -
Project Residence
revenue Convention                        -           -          -          -          -          -           -            -            -
             Retail                       -     81,220     81,220     81,220     81,220           -   182,745            -              -
             Fitness & Clinic             -           -          -          -          -          -          -           -              -
             Residence                    -    164,291    164,291    164,291    164,291           -   164,291            -              -
              Loan                 104,000            -    20,000     64,000     59,000    320,000           -           -              -
   Project Net Cash flow
      Cash flow from Operation            -           -          -          -          -          - - 15,659       31,940         45,185
    Cash Inflow Subtotal           354,000     245,511    265,511    369,616    364,616    320,000    461,604      31,940         45,185
             Land                  281,762       5,635           -          -          -          -          -           -              -
             Construction                 -     66,202    221,119    262,171    348,237    345,602     80,771            -              -
 Project Services                    7,552      39,991     10,764     10,764     10,764     16,060     35,258            -              -
  cost       Taxes & dues           21,984      21,091     22,071     21,747     30,049     13,244    142,311            -              -
             Sales related cost           -     14,300      3,767      2,235      2,235           -     7,951            -              -
             Operating cost          2,597       3,117      3,117      3,117      3,117       3,117     1,818            -              -
             Finance Cost            2,978       7,374      7,710     10,435     14,321     29,346     22,062            -              -
     Repayment of Loan                    -           -          -          -          -          -   235,000      31,940         45,185
   Cash Outflow Subtotal           316,874     157,710    268,547    310,469    408,723    407,368    525,172      31,940         45,185
   Yearly Net Cash flow             37,126      87,801     (3,037)    59,147    (44,107)   (87,368)   (63,568)           0              0
  Accumulated Cash flow             37,126     124,927    121,890    181,037    136,930      49,562   (14,006)    (14,006)       (14,006)


                                                                                  DMC      International Business Center       | Page 28
04. Project Cash Flow – Continued,

  3. Scenario 3 – Continued,
                                                                                                                           (Unit: KRW Million)
                                                                                                                         2023 and
                  Item           2015       2016       2017       2018       2019        2020        2021       2022                    Total
                                                                                                                           after
     Capital Investment                 -          -          -          -          -            -          -          -         -      250,000
            Office                      -          -          -          -          -            -          -          -         -             -
            Business Hotel              -          -          -          -          -            -          -          -         -             -
            Serviced
                                        -          -          -          -          -            -          -          -            -   250,436
 Project Residence
 revenue Convention                     -          -          -         -          -           -           -           -           -          -
            Retail                      -          -          -         -          -           -           -           -           -   507,626
            Fitness & Clinic            -          -          -         -          -           -           -           -           -          -
            Residence                   -          -          -         -          -           -           -           -           -   821,453
              Loan                      -          -          -         -          -           -           -           -           -   567,000
      Cash Net Cash flow
    Projectflow from Operation    58,008     64,078     69,570    75,325     80,833       83,174      83,893     86,398            -   662,745
    Cash Inflow Subtotal          58,008     64,078     69,570    75,325     80,833       83,174      83,893     86,398            - 3,059,260
            Land                        -          -          -         -          -           -           -           -           -   287,398
            Construction                -          -          -         -          -           -           -           -           - 1,324,101
 Project Services                       -          -          -         -          -           -           -           -           -   131,152
   cost     Taxes & dues                -          -          -         -          -           -           -           -           -   272,499
            Sales related cost          -          -          -         -          -           -           -           -           -    30,488
            Operating cost              -          -          -         -          -           -           -           -           -    20,000
            Finance Cost                -          -          -         -          -           -           -           -           -    94,225
     Repayment of Loan            58,008     64,078     69,570    63,219           -           -           -           -           -   567,000
   Cash Outflow Subtotal          58,008     64,078     69,570    63,219           -           -           -           -           - 2,726,863
    Yearly Net Cash flow                0          0          0   12,106     80,833       83,174      83,893     86,398            0   332,397
   Accumulated Cash flow         (14,006)   (14,006)   (14,006)   (1,900)    78,933      162,106     245,999    332,397      332,397   332,397


                                                                                        DMC     International Business Center     | Page 29
05. IRR & NPV

 1. Scenario 1
                                                                                    (Unit: KRW Million)

                  2006       2007       2008       2009       2010       2011       2012       2013
      FCFE               -          -          -          -          -          -   703,220           -
     Capital     (250,000)          -          -          -          -          -          -          -

     PV factor    93.46%     87.34%     81.63%     76.29%     71.30%     66.63%     62.27%     58.20%
    PV of FCFE   (233,645)          -          -          -          -          -   437,930           -

                  2014       2015       2016       2017       2018       2019       2020       2021       After 2022
      FCFE               -          -          -          -          -          -          -          -            -
     Capital             -          -          -          -          -          -          -          -            -

     PV factor    54.39%     50.83%     47.51%     44.40%     41.50%     38.78%     36.24%     33.87%        31.66%
    PV of FCFE           -          -          -          -          -          -          -          -                -

      Yield         7.00%
       NPV        204,285
       IRR        18.81%




                                                                            DMC       International Business Center        | Page 30
05. IRR & NPV

 2. Scenario 2
                                                                                    (Unit: KRW Million)

                  2006       2007       2008       2009       2010       2011       2012       2013
      FCFE               -          -          -          -          -          -   59,625     29,304
     Capital     (250,000)          -          -          -          -          -          -          -

     PV factor    93.46%     87.34%     81.63%     76.29%     71.30%     66.63%     62.27%     58.20%
    PV of FCFE   (233,645)          -          -          -          -          -   37,131      17,055

                  2014       2015       2016       2017       2018       2019       2020       2021       After 2022
      FCFE         40,499    50,131     53,660     55,036     56,448     57,898     59,387     60,917       955,155
     Capital             -          -          -          -          -          -          -          -            -

     PV factor    54.39%     50.83%     47.51%     44.40%     41.50%     38.78%     36.24%     33.87%        31.66%
    PV of FCFE     22,029    25,484     25,494     24,436     23,424     22,454     21,525      20,635       302,378

      Yield         7.00%
       NPV        308,399
       IRR        12.21%




                                                                            DMC      International Business Center     | Page 31
05. IRR & NPV

 3. Scenario 3
                                                                                      (Unit: KRW Million)

                  2006       2007       2008       2009       2010       2011         2012       2013
      FCFE               -          -          -          -          -          - -   14,006            0
     Capital     (250,000)          -          -          -          -          -            -          -

     PV factor    93.46%     87.34%     81.63%     76.29%     71.30%     66.63%       62.27%     58.20%
    PV of FCFE   (233,645)          -          -          -          -          -     (8,722)           0

                  2014       2015       2016       2017       2018       2019         2020       2021       After 2022
      FCFE               0          0          0          0   12,106     80,833       83,174     83,893      1,320,653
     Capital             -          -          -          -          -          -            -          -            -

     PV factor    54.39%     50.83%     47.51%     44.40%     41.50%     38.78%       36.24%     33.87%        31.66%
    PV of FCFE           0          0          0          0    5,023     31,348       30,146      28,417       418,085

      Yield         7.00%
       NPV        270,653
       IRR        10.33%




                                                                            DMC        International Business Center     | Page 32
06. Sensitivity Study

 1. Capital Investment
   Changing capital investment by KRW 50 Billion.                              (Unit: KRW Million)

  A. Scenario 1          tal
                    C ap i           Lo an           tal
                                                C ap i R ati
                                                           o        ect I
                                                               P ro j    nco m e         R
                                                                                        I R
                      150,000        722,000         17.20%          408,496            24.50%
                      200,000        641,000         23.78%          433,723            21.19%
                      250,000        578,000         30.19%          453,220            18.81%
                      300,000        499,000         37.55%          485,905            17.41%
                      350,000        426,000         45.10%          511,157            16.19%

  B. Scenario 2          tal
                    C ap i           Lo an           tal
                                                C ap i R ati
                                                           o        ect I
                                                               P ro j    nco m e         R
                                                                                        I R
                      150,000        719,000         17.26%         (249,294)           13.26%
                      200,000        644,000         23.70%         (222,876)           12.60%
                      250,000        569,000         30.53%         (196,861)           12.21%
                      300,000        494,000         37.78%         (170,965)           11.88%
                      350,000        419,000         45.51%         (145,476)           11.60%


  C. Scenario 3           tal
                     C ap i          Lo an           tal
                                                C ap i R ati
                                                           o        ect I
                                                               P ro j    nco m e          R
                                                                                         I R
                      150,000        717,000         17.30%         (633,060)            11.25%
                      200,000        642,000         23.75%         (606,675)            10.70%
                      250,000        567,000         30.60%         (580,347)            10.33%
                      300,000        492,000         37.88%         (554,073)            10.07%
                      350,000        417,000         45.63%         (528,170)             9.87%

                                                                                DMC       International Business Center   | Page 33

								
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