Dams and canals on periphery (outer belt area):
2598 m2 Farm buildings on urban area:
6716 m2 Total:
9.314 m2 Intangible assets of Fish farm ltd.
Landlease agreement for bottom of ponds (under the lakes).
1, Ponds on periphery: 828 hectar; 3616 m2
2, Reedbeds on periphery (in ponds): 37 hectar 6487 m2
3, Grassland, pasture on periphery: 2576 m2
4, Set-a-side area on periphery: 3 hectar 812 m2
5, TOTAL: 869 hectar 13.491 m2
Share owners of Fish farm ltd. sell their business shares (100%).
Buyer of the enterprise and real estate: For the business shares (100%) total pays 1.600 million HUF purchase price.
Fish farm ltd. Signs property-utilization agreement for 20 years under the following conditions:
Rate of annual lease charges:
1st year 50 million HUF
2nd year 50 million HUF
3rd year 100 million HUF
4th year 150 million HUF
5th year 250 million HUF
6th year 250 million HUF
7th year 250 million HUF
8th year 250 million HUF
9th year 250 million HUF
TOTAL: 1.600 million HUF
Turnover of the purchase price: 9 years, lease charge of further years: 250 million HUF/year, 15.6 % of the invested amount. Deadlines for the payment of annual lease charges: 15th day of January following the year of production in question.
Guarantee for lease charge: ·
4 years of bank guarantee by depositing 400 million HUF to deposit account ·
2 years of bank guarantee extension is accepted by us after the 4 years ·
After the construction of the fish-processing plant (anticipated in 2013) accepts to offer the bank guarantee deposit of the real estate property to pay the lease charges.
PRESENTATION OF THE PROJECT PRODUCTION of organic fish fillet and organic caviar in FRESH WATER The details of the project: This project involves the production of fish and caviar grown in fish ponds that make use of natural fish food (lower crustaceans).
The management of the ponds requires a high level of biotechnological know-how and this is in place and has been previously demonstrated its capacity for producing large quantities over the long-term. The quality of the produced fish is therefore unique in its nutritional and dietary value. When harvested, the processed product of this high-quality fish - either as fish fillet or caviar - naturally presents itself to the quality-conscious world fish market which will confirm its superior value and so allow higher profits to be realized. For the sample product - based on the tests commissioned by the Buyer and conducted in an internationally accredited food laboratory and on sensory analysis - we have a letter of intent to make the purchase of the fish fillet offered for sale. Our company has the area of fish ponds (870 hectares) required for live fish production, and the whole array of the related infrastructure. The aim of the investment is to finance the technological shift and the required revolving assets in terms of the production of live fish. As a new investment, we are planning to build a fish processing plant adjacent to the system of the ponds. This entity would be the main investment element of the project.
The total resources required for the implementation of the project:
1 600 000 000 HUF (that is 8M US$ or 5,7M EURO)
The share capital and role of the project owner in the implementation of the project:
100% share capital and implementation by the project owner.
The amount of capital expected from the investor, and his envisioned role:
The 1 600 000 000 HUF (that is 8M US$ or 5,7M EURO) is required to buy out the all business share in the Fish farm ltd.
The investor will purchase the 100 % of the business share of the Fish farm ltd.
It means that in the buy-out the investor will acquire the property assets of the company estimated to be worth of 6.1 billion HUF (that is 30 808 080 US$ or 21 785 714 EURO). The project owner (currently the majority owner) will lease the whole production area and infrastructure of the company for 20 years with strict collateral conditions (sale and lease-back transaction agreement). Lessee shall provide for Lessor a bank guarantee to cover the payment of the lease for the entire lease period (20 years).
SIGNIFICANT GEO-POLITICAL ELEMENTS OF THE INVESTMENT The project location is the second largest system of fish ponds in Hungary, the fish ponds, an 870 hectare system of ponds with the complete technology required (canals, locks, pump systems, equipment maintaining the ponds and the technology).
THE PROPERTY VALUE OF THE SYSTEM OF THE PONDS: 6.1 BIILION HUF (that is 30 808 080 US$ or 21 785 714 EURO)
1. Annual production of organic fish (start-up level): 1,000 tons
2. Annual processing of organic fish (capacity): 1,300 tons
3. Annual output of processed fish (start-up level):
- organic fish fillet 400 tons
FURTHER DEVELOMENT OVER THE DURATION OF THE PROJECT
1.) Increase annual organic fish production to 1,300 tons/year
2.) Make the organic fish reach therapeutic level 3.) Increase the level processedness