o2 By ContainAccra
Investment Opportunity
Modern Luxury Two-story Shipping Container Home
"o2" Project
25%
02
Investors
$10,500
Amount Raised
OFFERING HIGHLIGHTS
10% preferred return to Investor Members (per annum.)
Additional 50% profit share, as promoted interest
Investment type: preferred equity
Medium-term investment horizon
Offering closes on Nov.30, 2023 @ midnight EST
Cancel investment up to Nov. 29, 2023 @ midnight EST
INVESTOR GUIDE
Greetings all, We are thrilled to announce this Investment opportunity to partner with ContainAccra for the development of “o2” a Modern Luxury Two-story Shipping Container Home, located in the residential neighborhood of Nungua in Accra, Ghana! This container home is the first of its kind to be constructed within the city of Accra, filling a need for a new infill housing type to meet increased demand for housing, and creating opportunity for neighborhood economic development.
Upon completion, this home will hit the market as a Short-term Rental property “o2” will be Serviced/Operated as a long-term Buy & Hold property.
Investment amount to Raise: $40,000. Maximum of 8 investors will be admitted.
Investors will receive 5 distribution payouts yearly.
(4) Quarterly payments = 10% annual Preferred return on equity investment.
(1) 50% pro-rata profit share payment, on any remaining available cash, as promoted interest.
(See below for additional breakdown on Investment Returns)
“O2” THE PROJECT VISION
ContainAccra (“The Company”) is raising equity for our latest ground up development, known as “o2. The Project site is situated in a residential neighborhood, just a short drive from Accra city center, minutes away from Universities, Shopping, Restaurants & Health Facilities. The Land has been acquired & Pre-construction site preparations are underway. Equity being raised for this offering is expected to be around $40,000 with construction beginning Last quarter of 2023.
The suburb of Nungua, is nestled between the Business Centers of Accra and Ghana’s Premier Harbour city of Tema. Its great location makes it a perfect hideout for a restful and pleasurable stay. Just a short drive from the city center, Nungua offers the conveniences necessary for a comfortable stay. This includes Provision stores, Grocery, Pharmacies, Local restaurants, and more.
“o2” (“the Project”) will be designed as a newly-built Modern accommodation, combining Two 40’ft High Cubed shipping containers capturing a total of 640-square-feet. “o2” will have an open-concept floor plan, designed with Luxury, Comfort and Functionality in mind; Including Two(2) bedrooms, Two and Half(2.5) Bathrooms, a Full Kitchen, Dining and Living room area. Additionally, we are using a combination of energy efficient features, including an Energy efficient glass package, Spray foam insulation, & Radiant roof barriers. This home will be rented at an average nightly rate of $75-100 per night, allowing complete affordability for travelers who are looking for a quiet stay, while still being accessible to all of the action!
The money raised in this offering along with other financing acquired by ContainAccra, will be used to construct the “o2” project.
“O2” TENATIVE SCHEDULE
December 2023 (Week 1-2) Phase I of Construction (Pre Site Development Utilities etc.)
December 2023 (Week 2-3) Foundation, Steel Fabrication, Framing etc.
December 2023 (Week 3-4) Phase II of Construction (Electricals Pt1, Plumbing Pt1, Walls)
January 2024 (Week 1-2) Phase III of Construction (Cabinets, Flooring, Cladding, Paint etc.)
January 2024 (Week 2-3) Phase IV of Construction (Furnishing)
Jan 2024 (Week 3-4) Commissioning, Owner Occupancy, Project Closeout
February 2024 - Approximate o2 Project Completion
“THE O2”
ABOUT THE MARKET
The nation of Ghana leads West Africa, as the Go-to tourists travel destination. Ghana is recognized worldwide as the Hub that reconnects the African diaspora with their ancestral roots. Accra, Ghana leads is the tourist destination in all of West Africa. The project site located at Nungua, which is a residential suburb in Accra, right behind Laweh Open University. There are 2 existing structures on-site, one of which is ContainAccra’s Flagship office. Land is fully acquired & No zoning or public hearings are necessary for the development to proceed.
The Project “o2” is a Two-story, 640sqft Shipping container home, which consist of an open concept plan; Level 1 offers a Full Kitchen, Half Bath, Dining & Living room area that will allow residents to enjoy the fully functional home interior. Level 2 of this homes provides -Two (2)bedroom & Two (2)bathrooms en-suite, providing a comfortable sleeping area for up to 4 guests. In addition to a common study area for residents to use as a workspace.
Nightly rental rates have been set based on a market analysis which compared similar developments in the area (5mi radius. Using conservative figures, we are expected to average $75-$99 per night. Rates will fluctuate with the seasons. The table below provides the rates of our three top competitors.
ABOUT THE DEVELOPER
ContainAccra has been exploring ways to use inventive land strategies coupled with thoughtful design to develop affordable homeownership in Ghana. We focus on opportunities in urban neighborhoods that, due to upward economic pressures, are no longer accessible to large parts of the population. This fills a void for Affordable Starter homes & Profitable Short-term Rental homes.
It is safe to say we are trailblazing this industry in Ghana in regards to Residential shipping container homes.
The project team includes:
Developer- Cornelius Quaye - ContainAccra LLC
Architect/ Engineer- Zerlin Marcos – PROYECTA DESIGH, C.A
GC / Construction MGT- Samra Yo Industrial LTD/ CAB & Co.
Property Management- ContainAccra / Deluxe Dwellings Property MGT
ABOUT THE OFFERING
The Company is engaged in an offering (the “Offering”) to raise money to build and operate “o2” a Two-story Modern Luxury shipping Container Home, as a short-term rental property, in Accra, Ghana, West Africa. The funds raised will be used for Complete Development Operations, Legal and Professional fees.
We aim to raise a maximum of approx. $40,000, but we will move forward with the Project and use investor funds if we are able to raise at least $30,500 (the “Target Amount”). If we have not raised at least the Target Amount by Nov. 30th, 2023, EST (the “Target Date”), we will terminate the Offering and return 100% of their money to anyone who has subscribed.
The minimum you can invest in the Offering is $5,000. We will admit at maximum of 8 investors for this build. Investments above $5,000 may be made in $500 increments (e.g., $5,500 or $6,000, but not $7,136). An investor may cancel his or her commitment up until 11:59 pm on Nov. 29, 2023 (i.e., two days before the Target Date). If we have raised at least the Target Amount we might decide to accept the funds and admit investors to the Company before the Target Date; in that case we will notify you and give you the right to cancel.
After we accept the funds and admit investors to the Company, whether on the Target Date or before, we will continue the Offering until we have raised the maximum amount.
ABOUT INVESTOR RETURN
Under the LLC Agreement, all distributions will be made in the following order of priority, after bank loans, if any, have been repaid:
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First, the Available Cash shall be distributed to the Investor Members until they have received a non-compounding Preferred Return of 10% for the current year.
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Second, the balance of the Available Cash, if any, shall be distributed to the Investor Members until they have received any shortfall in the Preferred Return for any prior year.
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Third, the balance of the Available Cash, if any, shall be distributed:
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50 % to the Investor Members; and 50 % to Sponsor as a promoted interest
*EXAMPLE: Each investment of $5,000 will receive an accumulated 10% preferred return each year. In addition, to receiving the pro-rata share of 50% of any available cash as promoted interest.
Take Note: Investor members take priority in terms of all Cash distributions. The Sponsor/Company does not receive any compensation until Investor’s preferred return is paid in full.
(see attached spreadsheet for financial projections)
ABOUT THE FINANCES
Total acquisition and development costs of approximately $51,000 will be financed with Owner Financing, Sponsor equity and equity raised through this offering. A sum of $41,000 in equity is being raised, the developer will contribute $10,000 in Land/Building materials and defer any Developer fee on this project. $5,500 is needed in pre-development costs.
The financing assumptions to purchase and develop the project are as follows:
Project Costs
Sources
(Please see attached documents for Projected Hard Costs & Rental Proforma)
KEY DEAL POINTS
Sustainable development. Unique Build with Energy efficient features.
Architecturally unique. One of its kind home, exquisitely designed to fit its urban location.
Short-term rentals. Capitalizing on the increasing high demand destination rentals.
Convenient Residential Neighborhood. Secure, peaceful and close to many amenities.
Close to City Center. short drive to Main attractions & Bustling City center- OSU Oxford Street.
Project is in progress. Land acquired & Site Pre-Construction is underway.
*RISK DISCLAIMER*
Funding any investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.
In making an investment decision, Investors must rely on their own examination of the Companies and the terms of this offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of this offering, nor does it pass upon the accuracy or completeness of any offering document or literature related to this offering.
There are numerous risks to consider when making an investment such as this one and financial projections are just that - projections. Returns are not guaranteed. Conditions that may affect your investment include unforeseen construction costs, changes in market conditions, and potential disasters that are not covered by insurance. You can access a more expansive list of potential risk by request.
COVID19 Disclosure. (2020)
To date COVID-19 has had a significant negative impact on the economy overall with regards to increased unemployment, reduced consumer and travel spending, and challenges to hospitality businesses such as hotels and restaurants. The rural redevelopment plan of the Company has not been hindered by COVID-19 but in fact has been reaffirmed by long-term expected changes in market demand. Because of the unprecedented nature of this 100-year event, the Company discloses here both positive and negative potentialities that may result.