Ayala Land Premier Properties: Anvaya Cove Seabreeze Verandas Leasing Program

SEA BREEZE VERANDAS

LEASING PROGRAM

What it is SEA BREEZE VERANDAS

LEASING PROGRAM?

· Opportunities

· Possibilities

· Convenience

· Flexibility

Opportunities

• Chance to include SBV units as part of the Anvaya Leisure

Club’s Casita room inventory.

• Get the Anvaya Cove Leisure Club’s management expertise,

experience and systems capability to market, maintain and

operate condo unit rentals at no cost to the unit owner.

Possibilities

Possibility of recovering fixed unit holding costs such as

monthly dues, RPTs, insurance and repairs and maintenance

costs.

Convenience

• Relieves unit owner of search costs (time and effort), design,

coordination, delivery, and execution worries that comes with

furnishing the unit.

• Normal wear and tear of the furniture and the operational

procedures of the leasing program will be handled by the club.

Flexibility

• Flexibility to use the leisure condo unit at anytime of the year.

• Free fifteen nights of free usage per year.

• Option to pre-terminate leasing contract (subject to conditions).

What it is not

Not a condotel concept

In a condotel program, the units are entered into a leasing pool and the

revenues earned from each unit are combined and shared equally among the

members of the condotel program.

Not a time-sharing program

In a time sharing program, multiple parties hold rights to use the property, each

sharer is allotted a period of time in which they may use the property, and units may

be on a part-ownership or lease/"right to use" basis, in which the sharer holds no

claim to ownership of the property.

Not meant as a high yielding investment

An SBV unit is a leisure home meant primarily for the use and benefit of the unit

owner(s). While the leasing program offers an opportunity to earn incremental

income, it is not meant to be a high-yielding investment undertaking .

HOW MUCH WILL THE RETURNS BE? SAMPLE SCENARIO FOR A 63 SQM. 1-BR UNIT	Option 1: I will join the leasing program	Option 2: I will not join the leasing program	Option 3: I will lease the unit on my own
No. of days the unit was rented out for one year	73	X	?
Rental rate per night	9,000	X	?
Club’s share in the revenues	50%	X	X
Net potential revenue to the unit owner	328,412	X	?
Less:
Cost of furnishing the unit over the useful life of 5 years	160,000	ü	ü
Applicable government tax (10% of revenue)	32,841	X	ü
Real Estate Tax and Insurance	30,000	ü	ü
Utilities	35,211	ü	ü
Condominium dues	45,360	ü	ü
Advertising cost, salary for maintenance personnel, and miscellaneous expenses (i.e.transportations consumables)	X	?	ü
Maintenance expenses for wear and tear per year	25,000	ü	ü
NET EFFECT	CASH OUT < UNIT HOLDING COST	CASH OUT = UNIT HOLDING COST	CASH OUT <> OR = UNIT HOLDING COST
Important note: Values shown above are approximations only and should not be taken as a statement of fact.

Eligibility Requirements

· Open to 1 and 2 bedroom unit types except penthouse units

Penthouse units, due to their size, are more ideal for long-term lease.

· 1 year advance payment of Club and Condo Corp dues

· Must purchase furniture and appliance packages

· Must have BIR-registered VAT official receipts

Enrollment in 8 steps

1. Accept Unit.

2. Secure BIR registered VAT receipts to be issued to the operating leisure club upon receipt of revenues.

3. Pay one year in Advance Condo Corp and Leisure Club dues.

4. Submit copy of BIR registered VAT receipt and Ors issued by the Condo Corp and Club.

5. Sign and submit the lease contract and authorization letter.

6. Pay 60% down payment for the Furniture Package.

7. Pay full amount of the Appliance Package.

8. Pay 40% balance for the Furniture Package after delivery and acceptance.

Re-enroll after two years.

Indicative Rental Rates

Final rates to be determined when the leasing program becomes operational.

Estimated Sea Breeze Verandas Building A Daily Rates Rates are VAT Inclusive
Unit Type	Lean Season		Peak Season		No. of Persons Allowed
Unit Type	Weekdays	Weekends	Weekdays	Weekends	Applicable	Maximum
1BR	P 8,000 - 10,000	P 9,000 – 11,000	P 9,000 – 11,000	P 10,000 – 12,000	2	6
2BR	P 11,000 - 13,000	P 12,000 – 14,000	P 12,000 – 14,000	P 13,000 – 15,000	4	8

· Rates are inclusive of breakfast.

· Children 12 years old and below and are sharing a unit with parents are free of charge.

· Extra person rate is P700+/person inclusive of breakfast and beddings.

· Only a maximum of 4 extra persons are allowed per unit.

Leasing Restrictions

• No sub-leasing to third parties

• Club rules will apply

• Anvaya Leisure Club is the exclusive marketing agent

Leasing Period

• Renewable every two years

• Minimum holding period of one year

• Option to pre-terminate (subject to conditions)

• Option to re-enroll (subject to conditions)

Free Nights Usage

Owner can use unit anytime

Club should be informed two weeks in advance.

15 free usage nights per year

• Charges in excess of the free usage nights:

• General cleaning fee of P2000 for the first night

• Make-up charge of P1,000 per night for succeeding nights

• Additional charge of P1,000 per night shall apply on top of general

cleaning and/or make-up charge if unit owner is not present when availing the free nights.

Applicable only on unit owner’s own SBV unit

Club Responsibilities

I. Marketing of the units

II. Logistics coordination

III. Booking and checking in/out of occupants

IV. Cleaning and make up of units

V. Provision of amenities (toiletries, linens)

VI. Charging to Member’s account functions

VII. Charging of Damages

• Damages due to misuse or negligence of occupants booked by the Club shall be charged to

the Member or sponsored guest.

• Damages incurred while the unit owner is availing the free nights usage shall be charged to

the unit owner.

Unit Owner Responsibilities

I. Payment of Condo Corp. Dues

II. Payment of Real Property Tax and Insurance

III. Payment of Utilities

Club will pay the unit owner its proportionate share based on the days used.

IV. Maintenance for regular wear and tear of the unit

Revenue Sharing

50% - 50% Sharing

Revenue of unit =

Prevailing rental rate per night of the unit (net of applicable taxes) X number of nights it was rented.

BIR registered VAT receipts are required from unit owners upon receipt of revenues from the Club.

The Club shall hold the remittance of subsequent revenues until BIR registered receipts are issued

Enrollment Dates

SBV Building A - Starting Q4 2012

SBV Building B - Starting Q2 2013

SBV Building C - Starting Q2 2014

SBV Furnishing Package –What it gives you?

i. Furniture Package

ii. Appliance Package

iii. Well-thought-of design

iv. Convenience

v. Exclusivity

vi. Great value

vii. Relief from worries

Well-thought of design

• Ayala Land Premier has commissioned Ito Kish to design a

consistent look for all units of Sea Breeze Verandas enrolled

under the leasing program.

• Furniture were specially-designed to maximize space yet

maintain the leisure feel of the unit. E.g. Beds have pull-outs to

increase capacity of units to accommodate up to six persons

for 1-bedroom units and eight persons for 2-bedroom units,

Convenience

• No search cost (time and effort)

• One stop shop processing of orders. ALI will process orders

Exclusivity

• Furnishing package design is exclusive to SBV.

• Furnishing package will be sold to SBV leasing program

enrollees only.

Ito Kish

Has over 25 years of local and international experience in

visual merchandising, product design, interior decorating,

store operations and merchandising.

Oct. 2004 - Kish was cited by the British publication Wallpaper magazine for

successful branding in its feature on Manila designs.

Aug. 2011 - Town and Country magazine listed him as one of the 101 people you

must meet right now.

Sept. 2011 - Mega Magazine listed him as one of the 100 Filipinos in Fashion,

Beauty & Culture who have inspired, influenced and innovated.

Mar. 2012 - Kish launched his first ever furniture collection at Manila FAME and

won the Katha awards for best product design for furniture for his Gregoria chair

and the best booth design.

SBV Furniture Package – Living and Dining Area

Candles, floor carpet, tea set, and potted plant are not included in

the package. Please see annexes A and B of the full mechanics of

the SBV leasing program for the list of items included in the

furnishing package.

Great Value

SBV Furnishing Package

Indicative prices of Packages:

Unit Type	Furniture Package	Appliance Package	Total
1-Bedroom Unit	600,000	200,000	800,000
2-Bedroom Unit	870,000	275,000	1,145,000