BASTION LODGE
Address 1309 Coffeen Avenue Suite 1200 Sheridan, WY 82801 Telephone +1 440 320 4739 Website www.bastion.global January//2024//Proprietary & Confidential BASTION GLOBAL Baraawe
Airport Secure Zone, Somalia Project Proposal
January//2024//Proprietary & Confidential
Disclaimer
This Business Plan/Proposal is furnished for the sole purpose of disclosing certain proprietary information complete with ideas, concepts, marketing plans and financial projections for this venture. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. We reserve the right, at our own discretion, to modify or withdraw this plan, to reject any offers regarding an investment and to terminate discussion with a recipient at any time.
This document contains forward-looking statements. You should not place undue reliance on these statements. Forward-looking statements include information concerning possible or assumed future results of operations, goals and objectives for future operations, among other things. As you read and consider the information in this document, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions.
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About Our Company
Our History
Bastion Global is a pioneering venture established with the vision of providing a haven of security and comfort to those that are serving us in making the world a more secure and comfortable place to live. Committed to excellence, our mission is to redefine accommodation standards, home away from home ensuring our residents experience unparalleled safety and a sense of community amidst the unique challenges of dynamic, austere, and conflict regions around the globe.
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Table of Contents
01 Understanding 02
Getting it done
03 Resourcing
• The Background
• The Problem
• The Solution
• The Milestones
• Site Overview
• Architectural Drawings
• Renderings
• Schedule Gantt View
• Construction & Management Team
• Capital Requirements
• Financials
• Break-even
• Operating Agreement
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01 Understanding
• The Background
• The Problem
• The Solution
• The Milestones
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Background
History of Barawe: Baraawe, is the designated capital of the South-West State of Somalia located in the lower Shabelle region of the country. It functions as the main coastal town and port in the region. Baraawe has unfortunately experienced its share of conflict and instability over the years.
Victory over Al Shabaab: Al-Shabaab, an extremist group linked to AlQaeda, had posed a significant security threat in Somalia, including in Baraawe. The town had been used as a centre and a supply route for weapons, food and the base for the lucrative charcoal business. However, with the death of Al-shabab leader Ahmed Abdu Godane, and the support from the AU troops, the area has been notably peaceful for the last 10 years. This has positioned Barawe as a new investment destination in Somalia.
The Beautiful Coast:
Despite the challenges, Baraawe is known for its stunning coastal scenery. The town is situated along the Indian Ocean, boasting pristine beaches, turquoise waters, and a diverse marine ecosystem..
The beauty of the coast provides a stark contrast to the turbulence of its history and adds to the resilience and potential for economic development.
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Problem
Non-existence of secure accommodation lodges in Barawe presents a pressing challenge for the international community operating within the region. The lack of secure and efficient accommodations that align with international safety standards impedes their efforts to carry out local capacity building and infrastructure rebuilding in the region. As a result, this challenge highlights the urgent necessity to establish a lodge that can effectively address the demand at Barawe Airport
>100miles
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Somalia
Solutions
Our solution-oriented approach aims to not only fill the void, ensuring a safer and more resilient environment for both residents and those involved in the rebuilding process but also contribute significantly to the reconstruction efforts within Barawe
Re-taking Ground
Supporting local government imperatives of re-establishing Baraawe as the capital of the Southwest State. Resettling after the 2014 is long overdue
Building Capacity
Supporting international development programs, UN agencies, International organizations and Government agencies
Seeding Commerce
Providing private entities base of operations for oil and gas exploration, Agriculture and infrastructure development.
Establishing seafood markets and operations
Community Empowerment
Fostering community engagement and empowerment initiatives within accommodation camps can significantly contribute to their overall effectiveness and sustainability.
.
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Milestones to Date
Visit in July 2023 Validated Need & Budgets
Visit in September 2023 Primo Group Granted 80k sq meters
Visits in January & February 2024 Started Site & Security Work
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Getting It Done
• Site Overview
• Architectural Drawings
• Renderings
• Schedule Gantt View
• Construction & Management Team
& Confidential 10
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02
Site Overview
Coordinates: 1°06′48″N 44°01′49″E
Country: Somalia
State: South West
Region: Lower Shabelle
Districts: Barawa District
Elevation: 0 m (0 ft)
Population: 42,800
Time zone: UTC+3
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Barawe Airport Perimeter (in blue)
Approx 820,000m2
Site Layout
Phase 1
Entire Site Context
Primo Group Perimeter (in orange)
Approx 80,000m2
Phase 1 Area
(in yellow)
Approx 9700m2
Area available for expansion phases -
Approx 70,000m2
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Site Layout
Phase 1
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Architectural Drawing
Site Layout
Phase 1 Render
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Renderings
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Walkways to the Lodges
Layout Design
Layout Design
Walkways to the Lodges
Secure Check-In
The perimeter of the camp will be fortified with secure G-walls, designed to prevent unauthorized access and protect residents from external threats. Strategically placed gates serve as controlled entry points, allowing only authorized individuals to enter and exit the camp premises.
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Secure Entry Gate Security Offices Secure Parking Area
January//2024//Proprietary & Confidential 17 Amenities Pool Area Gym BBQ Area Open Dining / Coffee Shop
Dining Facilities
Equipped with modern kitchen amenities and dining areas, these facilities offer a sense of community within the camp, where residents can come together to enjoy meals and forge connections with one another.
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Dinning and Kitchen
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Security Features
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Bunker
Secure Blast G-Wall
Utilities / Built for Growth
The camp will be equipped with reliable infrastructure, including a well-maintained bio-degradable system for wastewater management and a water tank for storing clean, potable water. The camp operates on an environment friendly solar system
& Confidential 20
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and Water
Septic Tank
Tank
VIP Units
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Standard Units
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Staff Accommodations
Staff accommodations within the camp are meticulously designed to provide a comfortable and secure living environment for the dedicated personnel who oversee its operations.
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Construction & Management Team
The Construction and Management Team plays a pivotal role in the development and operation of accommodation lodges and camps, overseeing the construction process and ensuring efficient management of the facilities. Comprised of experienced professionals from various disciplines including civil engineering, project management, logistics, and administration, this team works collaboratively to bring the vision of the lodge to fruition.
José A. Candelario
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Wilfredo Burgos
Managing Member, Primo Group Africa & Middle East Operations
Managing Member, Bastion Global
US Operations & Investor Liaison
Hon. Mohamed
Abukar Islow Duale
Somali Managing Partner, Primo Group
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Resourcing
• Capital Requirements
• Financials
• Break-even
• Operating Agreement
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03
Capital Requirements
Current actual outlays incurred ~100k for project setup and design.
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Capex Summary Sum of Rates ($) 1. Acquisition, Site Survey, Design, & Travel $60,707 2. Site works $30,000 3. Construction works $1,125,600 4. Utilities $282,000 5. Construction/Installation $189,500 6. Construction Support $65,000 7. Furniture & Equipment $189,028 8. Security Equipment $40,130 9. Freight & Destination $127,269 Grand Total $2,109,233 Operating Cash $400,000 Total Investment Required $2,509,233 USD$
Proforma Financials1
1. Financials represent accommodation revenue only, does not include additional operating departments, Security Services, Transport Services, Catering, Events, or Coffee Shop
2. Revenue per available room (RevPAR) is calculated by multiplying the site's average daily room rate by its occupancy rate
3. Phase 2 Scenario represents an immediate expansion (Q4 2024) doubling the number of available guest rooms, improving operating costs absorption
4. Profit split percentage is directional and is based on operations cost containment, sales/revenue attainment, and other factors January//2024//Proprietary & Confidential
Year 1 Year 2 Year 2 April May June Q3 Q4 FY FY FY Rooms Avail 5 5 15 30 30 30 30 60 Room Nights 150 155 450 920 920 523 913 1825 Occupancy 100% 100% 67% 70% 80% 60% 90% 90% RevPAR2 $ 400.00 $ 400.00 $ 266.67 $ 280.00 $ 320.00 $ 238.89 $ 238.89 $ 238.89 Operating Revenues $ 55,200 $ 57,040 $ 110,400 $ 720,084 $ 829,472 $ 1,772,196 $ 3,693,800 $ 7,387,600 Operating Expenses $
$
$ (134,229) $ (402,687) $ (402,687) $ (1,166,841) $ (1,610,748) $ (2,093,972)1 EBIT $ (52,029) $ (50,189) $ (23,829) $ 317,397 $ 426,785 $ 605,355 $ 2,083,052 $ 5,293,628 Profit Split Percentage4 Bastion Barawe 75% 75% 75% 75% 75% 75% 50% 50% Primo Group 25% 25% 25% 25% 25% 25% 50% 50%
(107,229)
(107,229)
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Year 1 (last 3 QTRs) Phase 2 Scenario1 USD$
Investment & Return Scenarios
Assessment for “60 Rooms Scenario” likelihood before end of FY 2024 is:
High levels of interest among multiple agencies and organizations.
We anticipate 100% occupancy likely within 4 months of operational go-live.
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30 Rooms1 60 Rooms2 Initial Investment $ 200,000 $ 400,000 $ 200,000 $400,000 Additional Investment3 - - $ 64,000 $ 127,000 % of Total Shares 8% 16% 8% 16% Project Cash Flow Year 1 $ 36,188 $ 72,375 $ 36,188 $ 72,375 Year 2 $ 83,015 $ 166,031 $ 210,966 $ 421,932 Year 3 $ 83,015 $ 166,031 $ 210,966 $ 421,932 Year 4 $ 83,015 $ 166,031 $ 210,966 $ 421,932 Year 5 $ 83,015 $ 166,031 $ 210,966 $ 421,932 Total Projected Cash flows $ 368,250 $ 736,499 $ 880,051 $ 1,760,103 NPV (Discount Rate @12%) $ 57,442 $ 114,883 $ 340,668 $ 681,337 IRR 22% 47% Payback Period (years) <3 Years 2 years 1. 30 Rooms Scenario corresponds to Year 1 and Year 2 from previous page. Year 2 assumptions are held constant for Years 3-5 2. 60 Rooms Scenario corresponds to Year 1 and Phase 2 Scenario Year 2 from previous page. Phase 2 Year 2 assumptions are held constant for Years 3-5 3. The estimated build costs to double available rooms is ~$800k. The additional investment depicted maintains total share percentage after new capex
HIGH
USD$
Address 1309 Coffeen Avenue, Sheridan, WY 82801 Telephone +1 440 320 4739 Website www.bastion.global Thank You January//2024//Proprietary & Confidential 30