BUSINESS PLAN

THE LIFPT FOUNDATION: HOUSING DEVELOPMENT PROJECT

5 ROYAL ROAD,

MUIZENBERG, CAPE TOWN 7950

WESTERN CAPE PROVINCE

SOUTH AFRICA

PHONE: +2779 9425076

FAX: +61285690117

Skype in: +61280050428 (local call cost from Aus)

EMAIL: [email protected]

TABLE OF CONTENTS

I. Executive Summary

II. General Organization Summary

III. The Product

IV. Marketing Plan

V. Operational Plan

VI. Management and Organization

VII. Financial Strategy Forecasting

VIII. Refining the Plan

EXECUTIVE SUMMARY

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The Lifpt foundation is a not- for- profit business incubator and capital fund committed to the
support and development of social enterprises. Lifpt will be involved in a number of income
generating projects with a motive to gain a return on investment, and the profits will be channeled
in to charitable organizations as an additional revenue source over regular grants and donations.
Lifpt also assists individuals, groups and businesses in helping them to use business to make a
social impact.

The Lifpt Foundation Housing Development Project is an income generation project, intended to
raise capital for our capital fund or ‘social bank’. For more information about our model please
refer to www.lifpt.givengain.org .

The Housing Development will construct Individual 2 Bedroom residential town houses in Lusaka
Zambia.

The project will start by raising the capital for a minimum of 3 dwellings. Constructions costs on a
free standing 3 bed house are $28,000USD and $32,000USD of the 2x2bed townhouses.

On completion of the construction phase, the properties will be rented out and be used as equity
to borrow against and finance further projects or be sold with profits being distributed to
shareholders and social projects though the Lifpt Foundation.

Expected return on capital is 150% - 200%. The predicted time frame for this project is 90 days
for construction and a further 90 days for the sale of assets for reinvestment and payment of
returns to investors. (For explanation of why ROI is so high see section on page 5).

The financial capital gained from this project by the Lifpt will be used to fund new social
enterprises (the vision of Lifpt) and to continue the property investment strategy to increase the
capital further.

Please read though the following business plan and forward any questions to the Managing
Executive, Ashley Tuttle (South African based). On the following contact details:

Email [email protected] ; Phone +27799425076 (SA) or +61280050428 (local call

cost from Aus) please remember that Australia is 8hrs ahead of South Africa.

GENERAL ORGANISATION SUMMARY

Mission statement
The Lifpt Foundation is a not- for- profit business incubator and capital fund committed to the
support and development of social enterprises. Our vision is to see community transformation
and people released from poverty through creative income generating projects, not just
handouts. This housing development project will build residential properties for the Zambian
middle class market. The aim is to help us build the financial resources’ we need, both the
human and financial capital to drive our vision of empowerment through enterprise.

Organization goals and objectives

The housing development project is an initiative of a collaborative team of philanthropists filled
with a desire to assist entrepreneurs in the vital cause of serving communities and seeing true
lasting transformation.

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The following are our main objectives:

 To raising the capital for a minimum of 3 dwellings. Constructions costs on a free

standing 3 bed house are $28,000USD and $32,000USD of the 2x2bed townhouses. A
total of approximately $100,000 USD

 To achieve this by the 31 Aug 2010 and invest these funds in developing the residential
properties. This is necessary so that construction will be at a sufficient stage not to be
delayed by rain when the Zambian wet season starts in late October

 To rent or sell the completed houses to realise the return on investment and repay
investors and use the increased capital to fund new social enterprises and continue the
property investment strategy to increase capital further

 Start our capital fund and build the entrepreneurial team.

Keys to success
Our keys to success of this project will be:

 To complete the construction of the residential properties within the scheduled time and
within the budgeted amount

 To secure rental occupants or buyers for the properties before the construction is
completed or soon after completion

 To maintain a high level of occupancy rate and good ongoing tenants

 Re-investing a significant percentage of the income and equity for construction of more
properties and maintain an emphasis on growth and expansion.

Business philosophy
Our vision is to see collaboration between individuals and companies that are willing to invest
their financial resources for a good financial return on investment. As well as assisting social
entrepreneurs, and the poor who need our assistance, for the betterment of the society.

Target market
The Lifpt Foundation Housing Development Project will provid dwellings for Zambians who are in
the middle income class. As the economy of Zambia is more stable and growing, there is an
increase in income and thus a huge influx of people moving into this middle income group. We
are also targeting many foreigners living in Zambia who often find it difficult to find adequate
accommodation.

Strengths and core competencies

Our dedicated team has formed strategic partnerships with organizations with much experience
in projects with a similar strategy. We have drawn on the experience of Investment Ministries
International, which has already built houses in Zambia to support local projects such as schools.
We have gathered a team of highly experienced and qualified professionals to pursue our vision.
Among them is architect Hannes van Jaarsveldt.

The houses will be constructed using high quality materials, workmanship and technology. We
will offer a range of styles to meet the needs of our target market

Legal form of ownership

The Lifpt Foundation Housing Development Project is a not for profit organization. The project
will be completed under a company structure in Zambia in which Lifpt will hold shares along with
other investors.

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THE PRODUCT

In this option you could invest in 2 double bedroom townhouses, each with a Dining Room,
Kitchen, Bathroom, 2 Bedrooms and spacious Living Room, a total of 115.8m² per unit. The
units will cost 30,000USD for a total of 2 built. A key strength is that these units will be sold at an
affordable price for a large section of the market, $40,000 - $45,000 USD.
The advantages of this investment are that the rent is high at 400 per month per unit if rented
out. Renters will mostly be couples, thus generally more stable. Also, contract workers from
abroad may be interested in something more than what is currently available and willing to sign a
12-36 month contract of lease, depending on the length of their stay in the country.

See http://www.nha.co.zm/price_list.htm for examples and prices of other properties being

development in Zambia.

Return on investment when the property is rented out

The table below gives a layout of all monthly expenses and the estimated Return on Investment:
(Please note that Government Tax is set at 3% per month) Please note the exchange rates are
as current as 25 June 2010.

Exchange Initial Rent per Gov Tax Land Tax Electricity Water Levy Fee for Total Profit Return on
to ZMK Investment Month per 17.5% per Bill per Bill per Maintenance per Month Investment
Your Month Month Month
Curren
cy

ZMK 1 150,000,00 4,000,000. -595,000.00 - -330,000.00 - -150,000.00 2,851,833.3 25.97%

0.00 00 29,166.67 80,000. 3
00

USD 5,135.00 29,211.30 778.88 -116.63 -5.68 -64.23 -15.58 -29.21 547.55 25.97%

AUD 4,426.89 33,866.49 899.52 -134.10 -6.56 -74.28 -18.01 -33.77 622.80 25.97%

ZAR 671.39 223,502.64 5,949.34 -891.43 -43.41 -491.30 -119.12 -223.37 4267.53 25.97%

Return on investment when the property is sold

Please note the exchange rates are current as 25 June 2010.

Your Exchange Initial Marketing fee Proceeds on sale of
Currency to ZMK investment @ 10% property Net Return on Investment
before tax (end value less

4
 capital and expenses)

ZMK 1.00 150,000,000.00 40,000,000.00 400,000,000.00 210,000,000

AUD 4,426.89 33,866.49 9,030.92 90,309.23 47,461.80

USD 5,135.00 29,211.30 7,790.89 77,908.92 41,169.93

ZAR 671.39 223,502.64 59,594.73 595,947.27 312,700.94

For a more detailed cost breakdown please see appendix A at the back.
Investment options
There are 3 Investment options available. The minimum investment $2000.00 USD will be
required for options 1 & 2, with no minimum for option 3.

Option 1– 50-50 – Where the investor will purchase shares in a registered Zambian company
where the project will sit. The profits will be split half with the investor and half with Lifpt
Foundation. Capital being returned to investor.

Option 2 – loan option - lend funds to Lifpt Foundation that then is invested. The return for the
investor would be 2% per month if loan is made in local Zambian currency or 12% if in USD,
AUD, or ZAR

Option 3 – Willing individuals are also able to donate funds to the Lifpt Foundation that will then
be invested in this project. All donations will be multiplied and only the proceeds used, therefore
you gift will keep on giving. You can donate using the donation button at www.lifpt.givengain.org .

Return on investment
We expect the property to be valued at approximately 2 to 2.8 times initial capital invested with
annual rental yields of between 25-40% of capital invested depending on the type of property and
location. As an example if 10,000USD was invested the investor would receive approximately
$15,000USD under option 3.
Why the Return on Investment is so high
We understand that this ROI look unbelievably high, particularly to anyone accustomed it
investing in countries with highly developed economies. Zambia has a largely under developed
economy. However it is developing rapidly and is seeing huge levels of foreign investment
flowing into the economy. Most of this activity is directed in to commodities sectors like mining
and agriculture. This is creating jobs and huge growth in the service sectors.
This growth is creating massive housing demand, which the market is struggling to meet for a
number of key reasons.
 Housing is not a high priority for foreign investors, therefore capital is not being
allocated to this sector in adequate levels
 Housing is largely being left to small local investors, with less access to capital
 It is still expensive; and somewhat difficult to borrow locally for new construction.
 The general mortgage interest rate is 22-28 percent pushing up the cost of local capital
or borrowings.

Fundamentally it is an issue of supply and demand. It is estimated that is will take 3-5 year for
the market to absorb the current shortages even if investment is tripled over this same period.

Time frame and process

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In response to this prospective investors are asked to do their own due diligence, including
forwarding any questions to us. Then to express interested in writing by the 31st of July 2010.
Interest will be assessed with a final decision being made on the viability based on level of
investment. Then if sufficient investment is found, funds will be required to be transferred in by 10
August. Construction will take approximately 90days then a maximum further 90days may be
required to process the sale and make dispersements . Therefore this investment should be
viewed as a 6 month investment.

MARKETING PLAN

Market research
Eight years ago Zambia opened its doors to foreign investors, lifting all foreign exchange
regulations and encouraging privatization of nationally owned companies and investment into the
country. Due to the massive increase in economic activity many great opportunities in Zambia,
particularly the property investment market, offers extremely good returns with minimum risk. We
expect the property to be valued from approximately 2 to 2.8 times initial capital invested with
annual rental yields of between 25-40% of capital invested depending on the type of property and
location. These returns are extremely high, for a number of key reasons; mainly that Zambia is
experiencing high economic growth, and with that comes a growing number of middle class
consumers, creating high demand for these types of properties. However it is still quite difficult
for local Zambians to access capital to building new homes. Local banks have the policy of
lending only against existing property, they are also reluctant to lend to self employed people;
being the majority of the local middle class.

Strategy
The houses will be either rented or sold at completion. Investors will be paid by a combination of
rental and equity drawings, or from sale proceeds. The sale and distribution of funds will be the
preferred option. The rental option is an alternative in the unlikely event that the properties
cannot be sold for an adequate price at time of completion.

Promotion
We will use the services of well respected local property agents to market our properties for
either sale or rent.

Pricing
The units will cost 15,000USD per unit. A key strength is that these units will be sold at an
affordable price for a large section of the market, $40,000 - $45,000 USD.

OPERATIONAL PLAN

Lifpt Foundation will initially focus their efforts on buying 1-3 residential block of land, which will
then develop them into modern properties. Each property will feature a variety of good amenities,
and safety measures will be implemented during construction so as to efficiently utilize capital
and establish a good reputation within the community.

MANAGEMENT AND ORGANISATION

Lifpt Foundation is composed by team members who are highly skilled in different areas of
business and among the team is Hannes van Jaarsveld who is a qualified Architect with a lot of
experience in the construction industry. Hannes was born in South Africa and currently lives and
works in Kabwe Zambia with his wife Christél, and son Dian. He studied Architecture at the
University of the Free State in South Africa. Hannes first visited Zambia in June 2005. It was
then that he experienced a great love for the people of Zambia and up to today he is constructing
houses and letting them and all the proceeds are taken to feed under nourished school children
through his initiative project called Investment ministries Int. Hannes will be responsible for all
the construction and operations management, in his role as project manager.

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Ashley Tuttle is the ‘Ideas Guy’ and the core founder of Lifpt, he is a social entrepreneur with a
passion for using business and real markets to bring development. He has a considerable level
of experience in the property finance sector. He was Born and raised in Australia and went to
came to Zambia at the age of 18 and that’s when he purposed in his life to make a lasting impact
in poor communities. Over 10 years Ashley has built extensive business and personal networks
in Zambia, which is an essential requirement for success when doing business in Africa. Ashley
will be involved in sourcing land and assuring the project gets started well. As well as being in
Zambia for at least a week every month during the process to liaise with those involved in the
project to make sure things are on schedule. As well and doing any ‘trouble shooting’ that may
arise.
Teboho Phooko is the organisations business strategist and holds a degree in Business science
from the University of Cape Town. Teboho will be involved in the financial management aspects
of the project. Checking all expenditure is on budget and keeping all records up to date. He has
a strong passion to see Africa being changed to a continent not characterised by poverty and
believes he can achieve this through the work of the Lifpt Foundation.

Investors financial risk and security

As Lifpt Foundation we value our investors and their interests will be protected with diligence. In
order to have investor security assured, Lifpt Foundation will start a separate legal entity in the
form of a Zambian Limited Company. Investors will be issued shares and have full shareholder
rights based on this ownership.
The main risks of this project are as follows –
Completion risk:
The project involves the development of sub-urban housing and is therefore subject to the
standard risk involved with any long term construction project, for example, costs shortfalls, input
shortages, construction delays, etc. The project will require major inputs that may be subject to
price volatility or shortage, such as steel or cement, but mitigated through binding contractual
undertakings from suppliers upfront, and coordination with public authorities, including approvals
for environmental clearance from the municipality which will be received before any successful
financing raised will be dispersed.
The risks associated with the construction of the housing units are relatively minor as
performance guarantees are issued by the third party contracted entity, furthermore, these units
are not subject to major input risk, are standard in design, and will be approved by appropriate
regulatory authorities prior to project implementation. The borrower (Lifpt Foundation) and
associated consortium will attempt to mitigate this risk through proper planning and project
management that monitors progress and risks to development through various stages of the
project, moving forward at agreed milestones based on evaluation of success criteria to date.

Foreign exchange risk

This facility and the project are to be funded in ZMK and the guarantee will be in ZMK no fee,
interest and principal payments related to this project will be in ZMK. The Zambian market is
very closely linked to the USD. As such it is usually the case that if there is exchange rate
movement, the price of Zambian assets and consumer goods also adjusts to the foreign currency
value.

Regulatory and environmental risk

As a development project with social and economic implications, this project will be subject to
approval by both national and local governments in order to proceed. Any regulatory and
environmental approvals required to develop this project will be obtained prior to the
disbursements of any funds.

Additional security

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The Lifpt Foundation further guarantees that it will obtain pre approval from local banks for
obtaining a mortgage bond upon the completion of the units. This will ensure that should there be
no off takers for the properties; the loan can be refinanced by the mortgage.

*Please forward any questions to the Managing Executive, Ashley Tuttle. On the following
contact details:

Email [email protected] ; Phone +27799425076 (SA) or +61280050428 (local call

cost from Aus) please remember that Australia is 8hrs ahead of South Africa.

APPENDIX A: Break down of costs

Please note that all the amounts listed bellow are in Zambian currency. The rate is 1 AUD = 4,343.51
ZMK as of 25 March 2010. For latest exchange rates please visit www.xe.com/ucc

Item Description Units Price/Unit Price Total Price List Price/Unit

Price/I
tem

Foundation Ant Poison 6.00 60,000.00 360,000.00 4,143, Stone Wheelbarrow 5,000.00
780.00

Stone 161.70 5,000.00 808,500.00 River Sand 6,000.00

Wheelbarrow

River Sand 161.70 6,000.00 970,200.00 Building Sand 5,000.00

Wheelbarrow

Cement 32.34 62,000.00 2,005,080.00 Cement 50kg 62,000.00

Box Bricks 1,320.00 1,000.00 1,320,000.00 2,655, Ant Poison 1l 60,000.00

953.22

Brick Force 9.78 13,000.00 127,111.11 Brick Force 4” 13,000.00

Building Sand 69.47 5,000.00 347,368.42 Bricks 6” 1,000.00

Cement 13.89 62,000.00 861,473.63 DPC 100m 120,000.00

Slab DPC 1.00 120,000.0 120,000.00 2,898, Con-Force 36,000.00

0 030.00 2.4mX2.4m

Con-force 24.29 36,000.00 874,440.00 Grill Doorframe 425,000.00

Stone 81.35 5,000.00 406,750.00 1”X6” Softwood 4.5m 30,000.00

River Sand 81.35 6,000.00 488,100.00 Y12 Re-Bar 6m 28,000.00

Cement 16.27 62,000.00 1,008,740.00 2”X6” Softwood 4.5m 40,000.00

Walls Bricks 6,600.00 1,000.00 6,600,000.00 18,614 2”X3” Softwood 4.5m 25,000.00
,210.5
3

8
 Brick Force 50.77 13,000.00 660,000.00 6” Nails 1kg 8,000.00

Building Sand 347.37 5,000.00 1,736,842.11 CGI Sheets 2.5m 50,000.00

Cement 69.47 62,000.00 4,307,368.42 Wood Preservative 5l 20,000.00

Grill Doorframe 4.00 425,000.0 1,700,000.00 Kerosene 1l 5,000.00

0

Window Frame 2.00 270,000.0 540,000.00 Roofing Cap 2m 20,000.00

Kitchen 0

Window Frame 2.00 135,000.0 270,000.00 Roofing Nails 1kg 15,000.00

Toilet 0

Window Frame 2.00 95,000.00 760,000.00 Binding Wire Small 20,000.00

Shower Roll

Window Frame 4.00 415,000.0 3,320,000.00 Toilet 425,000.00

Bedrooms 0

Window Frame 2.00 415,000.0 3,320,000.00 Bathtub 550,000.00

Living Room 0

Ring Beam Y12 Re-Bar 33.40 28,000.00 935,000.00 2,035, Hand Basin 95,000.00
150.00

Stone 12.75 5,000.00 63,750.00 Kitchen Basin 350,000.00

River Sand 12.75 6,000.00 76,500.00 Double Taps 85,000.00

Cement 2.55 62,000.00 158,100.00 Geyser 50l 700,000.00

1”X6” Softwood 26.72 30,000.00 801,600.00 Panel Door 175,000.00

Roof 2”X6” Softwood 50.00 40,000.00 2,000,000.00 10,605 3mm Glass Sheet 180,000.00
,000.0 1.2mX2.4m
0

2”X3” Softwood 55.00 25,000.00 1,375,000.00 Lights 35,000.00

6” Nails 5.00 8,000.00 40,000.00 Light Switches 15,000.00

CGI Sheets 110.00 60,000.00 6,600,000.00 Double Sockets 35,000.00

Wood 5.00 20,000.00 100,000.00 1.5mm Twin-flex 11,200.00

Preservative Electrical Cable

Kerosene 20.00 5,000.00 100,000.00 DB Box 69,000.00

Roofing Cap 10.00 20,000.00 200,000.00 Meter Box 80,000.00

Roofing Nails 10.00 15,000.00 150,000.00 10A Breakers 25,000.00

Binding Wire 2.00 20,000.00 40,000.00 15A Breakers 30,000.00

Plumbing Toilets 2.00 425,000.0 850,000.00 13,460 30A Breakers 35,000.00

0 ,000.0
0

Bathtubs 2.00 550,000.0 3,000,000.00 60A Breakers 50,000.00

0

Hand Basins 2.00 95,000.00 400,000.00 Lightning Arrester 30,000.00

Kitchen Basins 2.00 350,000.0 1,700,000.00 Earth Rod 15,000.00

0

Double Taps 6.00 85,000.00 510,000.00 10mm Earth Wire 10,000.00

Polypore Pipes 1.00 3,000,000. 3,000,000.00 16mm Live Wire 16,000.00

And Fittings 00

9
 Geyser 150l 2.00 1,250,000. 2,500,000.00 16mm Neutral Wire 16,000.00
00

Waste Pipes And 1.00 1,500,000. 1,500,000.00 16mm Earth Wire 16,000.00
Fittings 00

Electricity Light3 18.00 35,000.00 630,000.00 8,402, General Workers 4 1,762,000.00

000.00 Month Contact

LiGht Swit#hes 18.00 15,000.00 270,000.00 Builderr m/2 28,500.00

Doeble SoCcets 18.00 35,000.00 420,000.00 Window 3, 00.00

Putty

1.5mm Twin)flex 300.00 11,200.00 3,360,000.00 Interior Paint 20l 350,000.00

Cable

DB Box 2.00 69,000.00 138,000.00 Exterior Paint 20l 450,000.00

Meter Box 2.00 80,000.00 160,000.00 6mm Live Wire 5,500.00

10A Breaker 2.00 25,000.00 50,000.00 6mm Neutral Wire 5,500.00

15A Breaker 4.00 30,000.00 120,000.00 6mm Earth Wire 5,500.00

30A Breaker 4.00 35,000.00 140,000.00 Geyser Switch 35,000.00

60A Breaker 4.00 50,000.00 200,000.00 Inspection Cover 20,000.00

Earth Spike

Lightning 2.00 30,000.00 60,000.00 Neutral Bar 9,000.00

Arrester

Earth Rod 1.00 15,000.00 15,000.00 1”X8” Softwood 30,000.00

10mm Earth Wire 10.00 10,000.00 100,000.00 Tiles 70,000.00

16mm Live Wire 50.00 16,000.00 800,000.00 Tile Cement 35,000.00

16mm Neutral 50.00 16,000.00 800,000.00 Tile Grout 25,000.00

Wire

16mm Earth Wire 50.00 16,000.00 800,000.00

6mm Live Wire 14.00 5,500.00 77,000.00

6mm Neutral Wire 14.00 5,500.00 77,000.00

6mm Earth Wire 14.00 5,500.00 77,000.00

Inspection Cover 1.00 20,000.00 20,000.00

Earth Spike

Neutral Bar 2.00 9,000.00 18,000.00

Geyser Switch 2.00 35,000.00 70,000.00

Paint Interior 10.00 350,000.00 3,500,000.00 5,300,000

.00

Exterior 4.00 450,000.00 1,800,000.00

Finishing Doors 10.00 175,000.00 1,750,000.00 20,030,24

0.00

Glass 16.00 180,000.00 2,880,000.00

Putty 90.00 3,000.00 270,000.00

2”X6” Softwood 25.00 40,000.00 1,000,000.00

1”X8” Softwood 134.00 30,000.00 4,020,000.00

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 Tiles 128.52 70,000.00 8,996,400.00

Tile Fix 25.70 35,000.00 899,640.00

Tile Grout 8.57 25,000.00 214,200.00

Labour General Workers 6.00 1,762,000.00 10,572,000.00 14,234,82

0.00

Builders 128.52 28,500.00 3,662,820.00

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