Songdo Canal Walk

The kilometre-long Songdo Canal Walk is a dynamically textured mixed-use destination that stitches together the business and residential neighborhoods of the A+ JV Group master planned Songdo International Business District.

This vital urban center is located along a stretch of a man-made canal running through the heart of the Songdo IBD. The project spans five consecutive blocks from the Central Park to the river. The blocks contain five-storey buildings with glass storefront retail units occupying the ground and second levels, and townhouse-style, luxury “office-tel” units—offices with residential features like a hotel—on the third, fourth and fifth floors. The project culminates in a public park.

The glass-fronted retail spaces comprise a fitness club, bookstore, general stores and high-end restaurants. The facilities are accessible from the street as well as the canal, which is protected from traffic and noise to create a tranquil pedestrian route. Planting and a decked wooden promenade line the canal, enhancing the urban texture.

The units act as stepping stones between important sites throughout the city, including the high-rise residential zone in the south, a commercial zone and hospital in the north, sports fields and public schools in the east, and Central Park in the west. A sophisticated exterior design features wood louvers and metal screens, installed onto a base wall filled with pre-cast concrete panels and floor-to-ceiling-height windows. The two materials are woven throughout entire site to create a variation of elevation.

Issuer:

A+ JV Group

Token Symbol:

APLUS

Funding Type:

Common Equity

Location:

Incheon, South Korea

Project Type:

Value Added

IRR Objective:

19%

Target Equity Multiple:

250%

Estimate Hold:

5 Years

$12,500,000 90% Funded
Invest
Sample Return Objectives
Sample Investor Cash Flow Objective
Sample Investment Amount $50,000
Total Quarterly Payments (Net of Fees) Objective $11,814
Distribution at Sale (Net of Fees) Objective $70,078
Net Earnings to Investors Objective $31,892
Internal Rate of Return (IRR) Hurdle (deal level)  10.5%
Average Cash-on-Cash to Investor Objective  7.9% (6.4% – 9.4%)*
IRR to Investor Objective  19.2% (18.1% – 21.1%)*
Sponsor Fees
Acquisition Fee (% of purchase price) 1.5%
Asset Management Fee (% of effective gross income) 1.5%
Property Management Fee (% of effective gross income) 3.5%
Supervision Fee (construction management fee) 5.0%
Refinancing Fee (% of refinanced loan amount) 1.0%

Exit Strategy

The primary objective of this investment is to purchase, reduce operating expenses, maintain occupancy, and sell the asset within the three-year estimated hold period to return investor capital.

Exit Cap Rate Assumption 7.75%
Sale Price Objective $170,516,001
Transaction Costs Objective ($5,254,800)
Return of Working Capital / Escrows $2,253,230
Net Proceeds from Sale Objective and Return of Working Capital $17,215,844
Outstanding Principal Balance Upon Sale Objective ($10,635,000)
Payment of Senior Loan Exit Fee ($106,350)
Total Proceeds at Sale Objective $60,474,494
Sources
Debt (72.4% loan-to-cost (LTC))  $100,635,000
EquityInvest Equity 43.3% total equity $12,750,000
3rd Party Equity 45.6% total equity $18,512,740
Sponsor Equity 11.1% total equity $4,500,000
Total Sources $146,812,740

Uses

Purchase Price $110,000,000
Capital Expenditures Reserve $22,965,410
Working Capital $3,000,000
Taxes / Insurance Escrow $300,431
Senior Interest Reserve $1,200,000
Lender Fees $1,383,020
Lender Costs $750,000
Legal Fees $55,000
Sponsor Acquisition (and other fees) $1,650,000
Equity Placement Fees (Equity Invest) $712,500
Other Closing Costs $1,597,500
Total Uses $146,812,740
Sponsor Experience
Year Established 2017
Number of Principals 3
Total Deals Acquired 12
Total Assets Under Management (net operating income) $4,201,000
Total Assets Under Management (units) 2,210 units

PPM
Investor Package
Issuer Overview
Issuer Track Record