The Orchid Opportunity

November 2024

Please note that the information contained herein is proprietary and confidential in nature and is not meant to be used or
reproduced by any third-party without FAAB Invest’s express written consent.

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Fractional Real Estate

“Fractional Real Estate Investment allows multiple investors to collectively

own shares in a property. Each investor holds a fraction of the total property
ownership”

This structure allows;

Ø Multiple like minded investors come together, pool their money and buy a property.
Ø The Ownership is divided into shares or fractions, so each investor owns a percentage of the property
Ø As an owner, you can still earn income from rent, and when the property’s value increases, you also
benefit from the capital appreciation

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 FOP Structure

Investors
Escrow manages entire
Fund Flow

Regular rental
FOP returns distributed
to investors
Asset Manager Escrow Agent
and Administrates
entire process

SPV
Rental Payment

Hold Asset
Tenant Ownership

Asset

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What is FarmFraX

FarmFraX aims to streamline the acquisition and development of high-potential

agricultural farmland through fractional ownership.

Investors on the platform will gain from consistent rental income and capital gains
from farmland sales.

The platform's goal is to make the process of acquiring high-value agricultural land
seamless and hassle-free for investors.

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Why Farmland

Growth Potential
Farmland properties have significant growth potential as they are underutilized and
undervalued compared to already saturated urban real estate markets.

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Why Farmland

Infrastructure Development
Increased purchasing power in rural regions is driving investments in infrastructure
like irrigation, roads, and transportation, boosting farmland value.

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Why Farmland

Economic Opportunities
The rise of agro-industrial and food processing hubs near agricultural belts is creating
economic opportunities, increasing demand for nearby farmland and residential spaces.

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Why Farmland

Long-Term Value Increase

Farmland, with its lower initial investment, offers strong potential for long-term value
appreciation as the demand for farmland and food security continues to rise.

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FarmFraX vs CRE vs RRE

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FarmFraX vs Traditional Agro-realty

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FarmFraX Drive Factors

Secure Capital Strategic Land Flexible Exit

Growth Selection Strategies
Investors benefit from rental FAAB Invest employs FarmFraX provides
income and capital rigorous due diligence and investors with defined exit
appreciation of agricultural land selection processes to options, allowing for pre-
land, providing both stable minimize risks and mature withdrawal or exit
income & exceptional gains maximize potential returns by capitalizing on sale of
over time. developed farmland

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FarmFraX Drive Factors

Non- Market Streamlined Transparent

Linked Ownership Documentation
Our mobile app provides
With returns not linked to
comprehensive information and
the market and inherent The fractional ownership documentation about the asset,
inflation-hedging model simplifies the process empowering investors to make
characteristics, farmland for investors to own shares informed decisions. It include
investments act as a reliable in farmland, enhancing soil test results, irrigation plans,
safeguard against inflation. portfolio diversification topographical surveys, valuation
without the complexities of reports, and financial & legal
traditional ownership. briefs.

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FarmFraX Property Funnel

In FAAB, Farmland properties are enlisted through a structured process:

Farmland Sourcing

Legal Clearance

Feasibility Study

Project Preparation

Management Approval

Listing

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FarmFraX Property Funnel

Farmland Sourcing

Fertile agricultural land is selected and secured, ensuring access to vital

infrastructure, including roads, electricity, and water, while evaluating
factors such as elevation, water proximity, and historical usage.

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FarmFraX Property Funnel

Legal Clearance

A comprehensive legal review is conducted by leading legal firms,

ensuring that title documents, valuation reports, and necessary
government approvals are in place to secure the investment.

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FarmFraX Property Funnel

Rational Feasibility Study

An in-depth feasibility study covers soil quality testing, water table

analysis, topographical assessments, and meteorological evaluations
to ensure optimal suitability for agriculture

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FarmFraX Property Funnel

Project Preparation

Planning involves selecting suitable tenants, defining development

objectives, financial modeling, and preparing a detailed project
roadmap for efficient execution and management.

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FarmFraX Property Funnel

Management Approval

The project undergoes a thorough review by the management team to

ensure alignment with organizational goals before final approval..

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FarmFraX Property Funnel

Listing

Once due diligence and approvals are complete, the property is listed on
the FAAB Invest platform, offering a unique opportunity for fractional
ownership.

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Mobile Application Features

Ø Browse curated offerings

Ø Track portfolio performance

Ø Monitor development activities

Ø Access Documents
o Soil Test and Water Prospects Reports

o Development Objective Plan

o Valuation Report

o Legal Opinion

o Tenancy Related Docs

o SPV Related Docs

o Investment Related Docs

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Investor’s Exit Options

Premature Withdrawal
Investors have the option to withdraw their investment after one year lock-
in. However, FarmFraX is structured as a long-term investment to achieve
projected returns. Investors can sell their shares privately or through our
resale network, utilizing annual valuations as a pricing guide.

Project Exit
FAAB Invest, as an asset manager, will seek prospective bids for the
property/SPV on behalf of shareholders. Investors have full rights to
participate in all decisions, including the timing and price of the asset
sale. Profits from the sale will be distributed to shareholders following the
dissolution of the SPV.

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The Orchid Opportunity
November 2024

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The Orchid Opportunity

About Project

The Orchid project presents a 10.02 acre land parcel at Karlapura village,
Mysuru district, Karnataka. Located just 3 km from State Highway 86
and elevated 765 meters above sea level.

The farm will be transformed for optimized agriculture with automated

irrigation, fertigation and nutrient delivery systems. A mini weather
station will be installed to monitor micro-climate conditions, and a chain
link solar fence to secure the periphery. To further enhance the farmland,
coconut trees will be planted in a grid pattern, with teak trees along the
borders.

*calculated at 12% p.a. appreciation; between 2019 to 2023 agriculture lands in India have appreciated avg.15% p.a.

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The Orchid Opportunity - Location Highlights

5 40
SH 86 Mysuru

15 30
NH 766 Nanjangud
Town

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The Orchid Opportunity - Location Highlights

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The Orchid Opportunity – Asset Attributes

The farmland is rich with red loam soil having a neutral pH of 7.1. The soil is well-drained and porous in
nature. It is excellent for agriculture as it promotes soil aeration, resulting in stronger roots and healthier
crops. A wide variety of crops thrive in red soil, ranging from food staples like cereals, millets, pulses, oil
seeds to cash crops cotton, tobacco, sugarcane as well as vegetables and fruit crops.

As per Central Ground Water Authority, the groundwater scenario of the location is ‘safe’.The
groundwater quality is good for agricultural operations with a pH of 7.7 and a moderate TDS.

The farmland is located in a moderate climatic region and is an ideal location for year-round agricultural
productivity. The region receives 750 mm to 1250 mm rainfall annually. Historical data for the period 2000-
2023 shows summers are warm and sunny, with average highs reaching 34°C, with moderate humidity
around 55%. The monsoon season has slightly cooler temperatures, averaging 25°C, with higher humidity
around 85%. Winters are mild and relatively dry, with average lows of 15°C.

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The Orchid Opportunity – Project Financials

Farm Development +
Infrastructure Setup (Assets) ₹42,43,575
Plantation Cost (long term) ₹4,24,358

Due diligence & Compliance +

SPV Compliance ₹3,51,788

Due Diligence Cost ₹4,22,145
Purchase Price +
Land Cost ₹2,38,50,000
Stamp Duty ₹15,86,025
Legal Fee ₹2,81,430
Brokerage ₹5,62,860 Service Fee ₹7,77,820

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The Orchid Opportunity – Financial Brief

Notes
• Operating expense (OpEx) includes Asset mgmt
fee, property tax & compliance cost such as audit,
filing charges
• Assumes capital appreciation of 12%
• Income Tax rate may vary as per individual's slab
rate and residency
• Capital gains tax is not accounted in the above
computation since farmland is not capital asset

Disclaimer
The figures contained here are projections and rely on certain assumptions. This document is for information purposes only and should not be considered as advice. No returns are guaranteed or assured to the investors. We advise investors not to place undue reliance on these figures and projections
while making their investment decision. All investments are subject to risk.
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The Orchid Opportunity – Sensitivities

At a 12% capital appreciation the investment returns 18.0% IRR and 2.07x multiple of capital

Capital appreciation 12% 13% 14% 15% 16% 17%

IRR 18.0% 18.9% 19.8% 20.8% 21.7% 22.6%

RoI 107.4% 115.0% 122.9% 131.1% 139.5% 148.3%

MoIC 2.07x 2.15x 2.23x 2.31x 2.40x 2.48x

Total Disbursements (in Cr) ₹ 6.74 ₹ 6.99 ₹ 7.24 ₹ 7.51 ₹ 7.78 ₹ 8.07

Profit (in Cr) ₹ 3.49 ₹ 3.74 ₹ 3.99 ₹ 4.26 ₹ 4.53 ₹ 4.82

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The Orchid Opportunity – Development Objective

The 10-acre farm will be enhanced with a comprehensive

development plan for optimized agricultural operations.
Automatic drip irrigation and fertigation system, complete
with filtration assembly, will be implemented, and a 5
01 lakh liter farm pond, ensuring efficient water and nutrient
delivery while conserving resources. Two borewells will
supplement water requirements while rainwater
harvesting systems will help replenish groundwater
resources.

Additionally, a mini weather station equipped with IoT

sensors will monitor microclimate parameters, providing
data for informed decision-making. Perimeter security will
02 be established through chain link solar fencing, and a
dedicated storage room will house electrical control
systems. The farm will be planted with coconut saplings in
a grid pattern with a spacing of 45 feet. Teak saplings will
be established along the borders to enhance property
aesthetics.

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The Orchid Opportunity – Tenant Details

Established in 2017, Flosbela Garden Private Limited is an

agriculture produce company based out of Mysuru,
Karnataka, with expertise in horticulture and floriculture.

The company produces a wide variety of flowers & residue

free vegetables and markets to over 350+ wholesalers,
stockists and export aggregators across Karnataka, Kerala,
and Tamil Nadu.

The Company also undertakes turnkey projects in precision

farming, hydroponics, and aeroponics for large enterprises,
government organizations.

Lease Period Start Lock in Lease Period End

1st Feb 25 5 Year 31st Jan 30

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The Orchid Opportunity – Valuation Report & Legal Opinion

(Detailed Report is available in the FAAB Mobile App)

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Exit Strategies

Outright Sale As-is Joint Venture with Layout Developers

Transferring full ownership of the land Leverage the advantages of converting agricultural land
from the seller to the buyer. into residential layouts by partnering with developers.

01 02 03 04

Selling as Farm Plots Developing Agri-Tourism Destination

Offering smaller portions of farmland Generate proceeds from selling a fraction of the land and
ownership at a premium price. allocate the funds to constructing resorts and farmstays

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The Lotus (Previous Opportunity)

About Project

Deal Size : 2,88,00,000

Location : Bhogganapura Village
Land Size : 8.65 Acre
No. of Investors : 86
Min Ticket Size : 1,50,000
Fully Subscribed on : 2nd September, 2024

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 The Lotus (Previous Opportunity)

Appreciation as 15% ↑
of Today (In 6 Months)

Deal Size :2,88,00,000 No. of Investors :86

Location :Bhogganapura Village Min Ticket Size :1,50,000
Land Size :8.65 Acre Fully Subscribed on :2nd September, 2024
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Disclaimer
This is an "information only" document and is not, and under no circumstances is to be construed as, an offer to sell or a solicitation of
an offer to buy any securities, or as an offer to provide any portfolio management services, investment advisory services or any
securities market related services.

This document has not been registered with or approved by any supervisory or regulatory authority.

Nothing contained herein may be relied upon as a guarantee, promise, assurance, or a representation as to the future. No assurance can
be given that the objective or strategy or vision or mission regarding the services offered by us will be achieved or that the participants
will receive return of their principal deployed or not incur losses, including loss of principal deployed. The recipient is cautioned not to
put undue reliance on any of the assumptions, scenarios, projections, representative data, expected yields or other information
contained herein.

The recipients should also note that there can be no assurance that any of the prospective opportunities described in this document will
be consummated or any other arrangement with any other person will fructify, or in either case continue even if consummated or
fructified.

Past performance is not indicative of future results and there can be no assurance that the arrangement described herein will achieve its
goals. Certain information contained herein constitutes "forward looking statements" which can be identified by the use of forward-
looking terminology such as "may", "will", "should", "expect", "anticipate", "target", "project", "estimate", "intend", "continue" or
'believe" or the negatives thereof, or other variations thereon. Because of various risks and uncertainties, actual events or results or
actual performance may differ materially from the events, results or performance reflected or contemplated in such forward-looking
statements. As a result, investors should not rely on such forward-looking statements.
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