Project

Investment Highlights  Organization name: “National Social Housing Association” Foundation (hereinafter ASBA or Foundation)  Sector: Social and affordable housing  Stage of Development: Initiation  Investment Sought: ASBA now seeks a 30 year loan of AMD 555.22 million to expand its project pipeline.

Business Overview  “NATIONAL SOCIAL HOUSING ASSOCIATION” – FOUNDATION, founded in 2010, is a non-governmental, not-for-profit organization, registered in the Republic of (“Armenia”) in the legal form of foundation in accordance with the laws of Armenia.  Revenue model: ASBA develops the real estate property (dwellings), operates it, and collects rental fees and apartment sales amounts.  The municipality is interested to promote and develop the social and affordable housing program in Ashtarak town to satisfy the housing needs of local population.  ASBA offers investors a unique investment opportunity in the area of social and affordable housing in Armenia, particularly in Ashtarak community. The concept of social and affordable housing was developed in Armenia during last years by ASBA Foundation.  ASBA has professional team and partners with Armenian local governance authorities and European prominent social housing organizations.  ASBA is an associate member of CECODHAS Housing Europe, the European Federation of Public, Cooperative and Social Housing organizations.

Governance and Management  The supreme Governing and Supervisory body of ASBA is the Board of Trustees (the “Board”). The Board members are prominent leaders and experts from Armenia and the Netherlands. The Chairman of the Board, Rudy de Jong is experienced professional in the Dutch social housing sector for 30 years.  ASBA staff includes small team of experienced employees supported by a wide net of professional consultants and experts. The Executive Director and co-founder of ASBA, Ara Nazinyan is an experienced manager with proven track record in organizational development and management, housing and infrastructure, international development and private-public partnership.  ASBA Advisory Board includes distinguished experts from Netherlands, Armenia and Switzerland, who provide advices and expert opinion on ASBA strategy, programs and projects, support expansion of ASBA network and partnership.

Market Opportunity and Target Customers  The existing housing stock in Armenia is quickly deteriorating, particularly in regional towns; there is an increasing demand for new, affordable and quality housing solutions.  ASBA has identified target customers through survey conducted in partnership with Municipality of Ashtarak.  ASBA targets upper segment of low and middle income families in Ashtarak in a proposed project.

Product Offering/Service/Solution  ASBA is planning to develop and manage residential stock by promotion of standards for well-managed, good quality, energy efficient and affordable dwellings.  Within the scope of this project ASBA is planning to build 40 new dwellings of terraced housing type and to complete the existing unfinished building provided by the municipality to produce 20 new apartments.  The total land area provided for the first project is 11,806 sq.m. Total number of planned dwellings is sixty.  Business proposal developed by ASBA Foundation is fundamentally different to other initiatives in the market. Its primary differentiators are: o Innovations for affordable housing, including low-cost construction, energy efficiency and use of renewable energy, o Customer oriented approach – consideration of needs of low and middle income families in line with the overall development of the municipality and community.

Financial Projections (as at December 31, in AMD millions) 300

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Development Overview Ashtarak is an industrial town in Armenia, approximately 20 km North-West of the capital . It is the administrative capital of province. Ashtarak with 21,600 inhabitants, is an important crossroad of routes for the Yerevan– – triangle. ASBA signed a Partnership Agreement with the Municipality of Ashtarak town which is committing to provide to ASBA the three unfinished multi-apartment buildings, a land plot of 17,000 sq.m and the required infrastructures. The buildings are located in 2.0-2.5 km from the town center. The school, kindergarten, cultural house and other service units are available at the distance of 200-300 meters. The road is asphalt paved. Many Armenian refugees from Syria decided to settle in Ashtarak. To satisfy their housing needs a new investment program has been recently adopted by the Government of Armenia. In the course of development of the property the book value of buildings will reach its maximum, AMD 693 million, in 2017. The property being developed may be pledged to the lender as collateral.

Master plan of Ashtarak project

Existing buildings

New developments (terraced housing)

Funding requirement

To cover all financing needs of the project’s preparation and construction stage ASBA is planning to secure a 30 year loan financing of AMD 555.21 million in the beginning of 2014. The loan will bear an 8% annual interest rate.

ASBA Contacts 18 M. Baghramyan ave, apt. 2, Yerevan 0019, RA Tel: +374-10-581604, E-Mail: [email protected], Web: www.asba.am