INDUSTRIAL WAREHOUSES IN CELAYA - GUANAJUATO

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Blue Agave Capital is a different investment company. We take a hands-on approach by selecting landowners and local builders to develop successful joint ventures from the design phases to the ultimate sales.

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STRONG PARTNERS

EXPERIENCE

STRONG PARTNERS Blue Agave selects strong partners among landowners and builders who maintain a financial interest in the project from its inception to its final sale.

EXPERIENCE Blue Agave and its partners feature a lengthy experience in commercial real estate and finance with several million square feet of development

PARTICIPATION

INNOVATIVE MINDS

PARTICIPATION We maintain a direct interest in our greenfield projects with local financial partners and developers.

INNOVATIVE MINDS We select projects in which our US acquired experience can separate our partnerships from the local markets

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Project Design

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Project Supervision

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Financial Feasibility

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Architectural Planning

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Development

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Financing

Permitting Contracting General Construction

Project Management

Strategy Market Research Marketing

Sales

Investment Capital Investors Relations Reporting

General Management

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SUMMARY The project is located in the heart of the Bajio in Western Industrial District of Celaya with easy access to the newly built inner loop and both the free highway 45 and its toll road counterpart 45D The project features a modular concept that allows for the final design of 16 units that can accommodate users seeking multiples of 400 and 500 square meters. With construction started in 2016, the first units are slated for delivery in the summer of 2017 and sales through July 2018. The units are very conservatively priced at below comparables to ensure sales to end-users as well as long term investors

LOCATION Celaya is the heart of the Bajío, the geographic and cultural region of the center of Mexico that covers the states of Guanajuato, Querétaro, Aguascalientes and San Luis Potosí. Its excellent geographic location has helped develop an important industrial corridor that features important national and multinational industries and their suppliers. 80% of the Mexican market and 70% of the industrial establishment is within 3 hours of Celaya Celaya sits at the intersection of major highways as well as the crossing of the KCSM and Ferromex railroads in Mexico. This ensures easy access to the Guanajuato Inland Port and the major automotive plants located in the Bajio.

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IN THE HEART OF THE BAJIO The project is located in the Western Industrial District of Celaya with easy access to the newly built inner loop and both the free highway 45 and its toll road counterpart 45D

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OVERVIEW The project features a modular concept that allows for the final design of 16 units that can accommodate users seeking multiples of 400 and 500 square meters.

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CALENDAR Design Early 2016 Acquisition Land July 2016 Begin Construction September 2016 Erection First Buildings February 2017 First Delivery July 2017 End Selling Phase July 2018

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AMENITIES State of the Art construction Easy access Gated and walled condominium Private security 24 Hours monitoring Shared forklifts

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CLIENTS End users and investors. The units are very conservatively priced at below the comparables to ensure sales to end-users as well as long term investors interested in the rental income.

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BODEGA ONE

BODEGA TWO

SIDE

BODEGA TEN

CONCRETE POUR

INSIDE CONCRETE

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CONSTRUCTION SCHEDULE - DELIVERY BODEGA

Q2-2017

Q3-2017

Q4-2017

Q1-2018

TOTAL

380 METERS

2

2

2

3

9

480 METERS

1

2

2

2

7

380 METERS

760

760

760

1,140

3,420

480 METERS

480

960

960

960

3,360

1,240

1,720

1,720

2,100

6,780

TOTAL .

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DEVELOPMENT AND SALES SCHEDULE BODEGA

Q3-2017

Q4-2017

Q1-2018

Q2-2018

TOTAL

380 METERS

2

2

2

3

9

480 METERS

1

2

2

2

7

380 METERS

760

760

760

1,140

3,420

480 METERS

480

960

960

960

3,360

1,240

1,720

1,720

2,100

6,780

TOTAL .

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SALES PROJECTIONS – NO VAT BODEGA

Q3-2017

Q4-2017

Q1-2018

Q2-2018

TOTAL

380 METERS

2

2

2

3

9

480 METERS

1

2

2

2

7

TOTAL METERS

1,240

1,720

1,720

2,100

6,780

PESOS/METER

6,000

6,600

7,200

8,000

AVERAGE 7,076

TOTAL PESOS

7,440,000

11,352,000

12,384,000

16,800,000

47,976,000

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STRENGTHS

COMPARABLES

1. 2. 3. 4. 5.

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Original and creative architecture High quality materials Smaller bodegas are in high demand Designed and built internally Close to completion

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Comparable projects in the area are in short supply and sell at above 10,000 Pesos in Queretaro and 8,000 in Guanajuato Strong demand in the rental market

OPPORTUNITIES

RETURN

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1. 2.

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The ability to expand with similar projects throughout the Bajio Opportunity to develop logistics park dedicated to the rental market and generate longer term income

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Superior return High demand ensures a shorter ROI period of time Unleveraged project – 100% Equity

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GUANAJUATO Inventory: 3,251,071 Square Meters Vacancy: 231,529 Square Meters Vacancy Rate: 7.1% Average Month Rent: US 4.35 – 87 Pesos Sales Price: + 8,000 Pesos/Sq. Meter

QUERETARO Inventory: 3,229,099 Square Meters Vacancy: 315,842 Square Meters Vacancy Rate: 9.8% Average Month Rent: US 4.12 – 82 Pesos Sales Prices: +10,000 Pesos/Sq. Meter

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ECONOMIC GROWTH Querétaro and Guanajuato were the number one and two locations in terms of economic growth, at 7.7% and 6.4% in 2016

10 YEARS

2016

INDUSTRIAL GROWTH They are in second and third place with 9.7% and 9.2% in terms of industrial growth nationally

2015

2014

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4

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By 2020, the auto parts production in Mexico will reach 100 billion dollars as the fourth producer globally, behind China, the United States and Japan, and surpassing countries like South Korea and Germany. Mexico is nowadays the seventh largest car producer in the market and the second exporter to the United States. In 2015, the country manufactured 3.4 million units of light vehicles, 39.9% more than Brazil. Automotive OEM’s are investing more than 30 billion dollars in Mexico, which will add 1.7 million light vehicles to its production capacity.

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By the year 2020, the Mexican automotive industry is expected to produce nearly five million light vehicles for 13 brands in more than 30 production facilities. In recent years, the country has shifted from its maquiladora-style manufacturing to becoming a powerhouse in the global automotive industry, creating opportunities for both local and international suppliers and service providers support the industry’s rapid development. With Nissan, Mazda, Honda, and the upcoming Toyota campus, Guanajuato is at the epicenter of this industrial transformation.