AD CONSTRUCTION LTD

JULY 2007

INTRODUCTION

This project summary is a comprehensive and concise document of the development of a premium residential real estate project in the Accra Metropolis. The main purpose of this document is to assist management of AD Construction Ltd in planning for the project and also to raise construction finance from Private Equity Funds, Asset Management Institutions, Financial Institutions and other Investing interests.

Overview of the Company

AD Construction Ltd which was incorporated in January 2004 has gained valuable experience and has established itself in a niche market of the real estate industry in Ghana. The primary vision of the company is to become a market leader in developing and maintaining prime property in exclusive locations. We intend to achieve this vision by:

· Focusing only on prime and exclusive locations;

· Creating exceptional investment with a strong basis and growth potential;

· Enhancing our brand through active management and improvement; and

· Maximizing investment returns through optimal and low risk financing.

Project Objectives

Our primary objective as a company is to maximize returns on all our investments and thereby ensure that all our investment partners enjoy sustainable and dependable returns. We are seeking for this project, a joint venture partner and construction finance of Twenty Million dollars ($20,000,000.00) at an attractive interest rate for a period of five years. The funds once secured would be used to finance the construction of two hundred units of residential condominium apartments at a premium location in the heart of the city of Accra.

Investment Strategy

Our long-term policy is to seek high yielding properties, plots and/or land and spread our risk by balancing the portfolio using class and geographical location. Our investment approach is to concentrate on the fundamentals of each individual asset. We also ensure that all individual assets and projects in total return above 25% after interest and taxes. This is to ensure that our stakeholder interests are maximized at all times.

A key criterion used for such assessments is a property's enduring attraction to home buyers, because of its suitability, location and efficiency. Our strength lies in our knowledge of regional and local market needs which enables us to take advantage of - and create - opportunities throughout Ghana.

Marketing and Sales Strategy

Our primary target market will be real estate Investors and non-resident Ghanaians who desire to invest in real estate or own residential property in Ghana. We will focus on Ghanaians resident in Canada, USA and UK. Research indicates that there are over 40,000 Ghanaians living in Toronto, over 200,000 in New York and over 300,000 in London. There is also a growing number of resident non-Ghanaians who have access to enormous capital and credit facilities.

Overview of Management

AD Construction Ltd is currently supported by a management team with substantial industry experience coupled with a keen understanding of local issues, financing strategies and marketing strategies. The company also employs the services of leading professionals to create a focused tactical direction. This leaves the Board to focus on strategic decisions and ensure a sound future for the company.

Our Board members and management team is currently made up of the following:

Board of Directors

Mrs. Karen Tranoh. ..............................Banker, Board Chairperson

Mr. Alex Dautey. ....................................Executive Partner & Board Member

Mr. Larry Apaloo. .................................Legal Practitioner, Board Member/Secretary

Mr. William des Bordes……………..Chartered Accountant, Board Member

Management Team

Alex Dautey . ...........................................Executive Partner & CEO

William des Bordes……………………V.P. of Finance

Debbie Captan. .......................................Administration

Minta, Ossom & Associates. ..............Chartered Accountants and Auditors

Agbenoto.& Associates ...................Corporate Lawyer

Exit Strategy

We expect that construction of the apartments will be completed within 1 year after commencement and our sales projections show that all two hundred units would be sold out over a period 3 years. To ensure that all sales proceeds are collected on a timely basis, potential buyers who may require mortgages would have to be pre-approved by a Mortgage Bank (Ghana Home Loans) before an offer of sale would be made by AD Construction Ltd. Per our cash-flow projections, all loans contracted for the construction and any interest accrued thereon would be fully paid up by the end of the 4^th year. Further sensitivity analyses indicate also that in the worst case scenario, all such monies would be paid up by the end of the 5^th year.

THE PROJECT

Overview of the Project

This project captioned “THE DIPLOMAT” is to be located at West Ridge (one of the most exclusive locations in Accra). We intend to develop and offer for sale 200 units of 3 bedroom premium condominiums on a 2 acre land. The condominiums will be finished with the choicest of materials and will indeed be the most talked about building when completed. The condominiums will also be equipped with ultra modern gadgets and appliances and would rival high class developments the world over.

Gross Profit Projection

We would build and sell 200 units of Luxury Condominium Apartments over a period of 3 years for total sales revenue of Fifty Million dollars ($50,000,000.00). We estimate an average sales price of Two hundred and Fifty Thousand dollars ($250,000.00) which we anticipate will rise substantially when actual construction begins.

We have also estimated a total of Twenty Million dollars ($20,000,000.00) to complete the project, thus we estimate an average cost of One hundred Thousand dollars ($100,000.00) per apartment. A detailed costing per apartment has been attached as Appendix II. The table below is a summary of the gross profit projections for the entire project.

Description	Number	Unit Amount ($)	Total Amount ($)
Revenue	200 Units	250,000.00	50,000,000.00
Cost per Condo	200 Units	100,000,00	20,000,000.00
Gross Profit	200 Units	150,000.00	30,000,000.00
Gross Profit Percent		60%

A detailed Statement of Income and Expenses has been attached as Appendix I.

Action Plan

We have developed a 7 point action plan which we have already put into effect. This action plan is intended to propel AD Construction Ltd to realize this vision in an efficient and cost effective manner.

No	Action Point	Status/ Comments
1	Acquire land in prime area	Done
2	Develop detailed plans and build models	In progress
3	Obtain Permits from relevant regulators	In progress
4	Pre-sell 60 condos and source for construction funding	In progress
5	Commence Construction and continue selling	Yet to commence
6	Complete construction in 1 year and selling in 3 years	Yet to commence
7	Commence repayment of Loan after year 1 for 4 years	Yet to commence

APENDIX - I

AD CONSTRUCTION LTD.
PROJECTED STATEMENT OF INCOME AND EXPENSES
RIDGE - "THE DIPLOMAT" PROJECT
REVENUE	AMOUNT($)
Sale of Houses	50,000,000
TOTAL REVENUE	50,000,000
Less: Cost of Project	20,000,000
Gross Profit	30,000,000
EXPENSES
Salaries and Commissions	2,000,000
Rent	120,000
Bank Charges	140,000
Office and General Expenses	510,000
Advertising & Promotions	1,200,000
Telephone	180,000
Insurance	250,000
Interest on Loan	-
Automotive Expense	500,000
Professional Fees (Construction, Accounting & Legal)	520,000
Depreciation	-
Miscellaneous	800,000
Travel Expenses	300,000
TOTAL EXPENSES	6,520,000
NET INCOME BEFORE INTEREST AND TAXES	23,480,000

APENDIX - II