Projects
1st Focus
SAH's focus is two possible developments in the State of Sao Paulo, Brazil.
- It calls for 880 houses at an average expected price (including land, infrastructure and amenities) of $43,636 for an estimated total revenue of $38.4 million and a projected net pre-tax profit of approximately $9 million.
- This projected profit is net of all contracted fees to the marketing company, engineering and the value added taxes having been paid.
- Our Brazilian partners have identified this project as the land became available after it was approved for housing and permitted. It is expected to 'sell out' before construction begins.
- A joint program to construct 5 houses outside the city of Sao Paulo in Brazil as a demonstration of the house so designed using the construction technologies and sustainable features for clean water, waste treatment and lighting improvements.
Projected Schedule
SAH has signed a cooperative agreement with a development company to achieve an annual construction of 50,000 popular houses in Brazil using both conventional construction and the construction Process, and has an agreement with an experienced construction company for use of the Moladi System to build those homes with on-site management, per project budgeting with fixed fees per project, and training support for the local work teams. Phase I includes the first two projects in Brazil (SA Homes - Brazil): one for 880 homes (as described above) to be built in Sao Paulo for the workers at a local auto plant, and the construction of the demonstration houses. Once initial funding is received, project equity funding can be provided to the individual SPVs and homes can start construction within four (4) months. We expect positive cash flow that will allow the equity in the project to be returned to SAH within ten (10) months for use in another project. Most projects will be completed in approximately 18 months. The Latin American market will continue to grow, and we anticipate expanding in Phase II into other regional subsidiaries that will support projects in markets such as Peru, Chile and Guatemala. These other Latin American subsidiaries will be formed as regional project centers are identified. Expansion into Global markets will occur as investment opportunities arise.
Affordable Housing Mission
The mission of South American Homes Holdings, LLC ("SAH") is to add technology and a small investment of capital into an existing market process for building homes for the poor simultaneously in multiple communities. SAH provides a private commercial response for the growing need to offer rapid construction of quality popular housing (low income housing) for expanding communities in South America (primarily Brazil and Peru) and affordable workforce housing for corporate clients on demand worldwide. SAH's mandate is to create, where feasible, environmentally efficient single family communities where water influent and effluent is treated better than local source. There is an emphasis on public safety and security, slum resistant community designs, and energy conservation and lighting management based on state-of-the-art technologies. Realistically, market demand for low-income level housing is "insatiable" for decades to come even with a focused effort by national and local governments to provide the necessary financial and infrastructure support. The Brazilian housing deficit, alone, is presently seven (7) million houses and steadily growing. There are very few economically feasible companies, if any, in the markets SAH is focusing on that concentrate solely in this market due to their inability to make competitive profit margins (greater at times than 25%) relative to other types of high demand commercial and residential construction.
