Business model
The project consists of the development of the infrastructures of a land of approximately 13 hectares and the construction of modern, ecological and intelligent high-rise office buildings for companies dedicated to research, innovation and development.
In addition, housing, coworking spaces, universities, shops and all complementary services will be built to make the ISD the ideal place to live and work. These spaces will be available for rent and sale.
The Business Plan of the project is based on the construction of 24 modern and ecological high-rise buildings designed by renowned architects for the different uses mentioned.
Income from rental and sale
Approximately 20% percent of each building will be for sale and 80% for rent, generating long-term monthly income.
We have calculated the flows considering a rental occupancy rate of 70% (40 % the first year, an increase of 20% the second year and an increase of 10% the third year) and an initial rental price of 23 $/m² with an annual increase of 4%.
The sale of 20% of the useful area of each building is calculated at a price of $2,500/m²
Token sales income
Innovation Smart District will raise capital through a revolutionary and secure way through the Tokenization of assets using blockchain technology. The developers agree to reinvest 40% of the sales of each ISD Token in the project, without considering the Seed Capital.
Income derived from participation in Startups
revenues are not included in this model but there will be numerous options to create Joint Ventures with companies that establish themselves in the Innovation Smart District. Your returns will be part of the ISD project returns.
Bank financing
Bank financing has been assumed to cover 80% of the construction costs of the buildings and infrastructures. These loans have been calculated for a 30-year term with 8% interest and a three-year grace period on principal payment.
Land value
A multinational real estate services company with presence in more than 100 countries, has assessed the land for the Innovation Smart District at $115,879,591 , what is equivalent to a valuation of 0.115879591 for each ISD Token.
This value is for the land as it is, without considering the ISD project and everything that will be developed from now on.
ISD BOOK VALUE
Considering the parameters and times explained in the Business Plan, the book value of the company over the years is as follows:
You can download the Business Model here.