1. THE MARKET

Market conditions for the aspirations of Suite 07 in the luxury housing segment are at the moment highly favourable. Moreover, there are strong indications that these conditions will remain in place for some time into the future. While the Covid-19 pandemic has created serious financial problems for many people in many parts of the world, a recovery does seem likely and underway. Moreover, those in the higher end of the wealth and income spectrum have fared far better than most during the health crisis. Savings rates are at all-time highs, interest rates are historically low, and upscale buyers have a very positive outlook. This is in conjunction with very low levels of inventory in the luxury housing segment. Combined, the result is a once in a generation opportunity for value creation by those firms best positioned to provide the market with what it desires. We believe that Suite 07 is clearly the top candidate to achieve this today.

Housing is one of the fundamental requirements of people everywhere: food, clothing, and shelter are always invoked by social psychologists as the three primary “needs” of all peoples, in comparison to aspirational “wants.” These needs, of course, apply to the world’s wealthy as much as anyone else. This segment, however, is much better positioned than most to indulge its dreams and fantasies in terms of housing — to fulfil aspirational wants. Suite 07 is not nor ever will be a mass market supplier; rather, it has positioned itself squarely in the “class” sector of the housing market — a position which it intends to develop vigorously as the firm evolves and grows over the next five years (2022–2026).

There can be no doubt that the universe of wealthy clients for high-end luxury real estate has grown substantially in the recent past. For a number of economic as well as political reasons, the rise of the “1% class” of the world’s citizenry has been dramatic of late. While this trend has been observable for decades now, its pace has accelerated impressively in the past five to ten years. This trend is one that Suite 07 is perfectly positioned to exploit.

Overall, the luxury real estate market in Europe has expanded vigorously since the end of the Great Recession of 2008–2009. This region has experienced the highest growth in high-net-worth individuals compared to all other regions of the globe (HNWI — those with more than $1M in assets). For ultra-high net worth individuals, Europe again has an impressively large number of representatives in this segment, nearly 60,000 as of 2020 (UHNWI — those with more than $30M in assets). Buyers domiciled in Western Europe and Russia were the largest component of both these groups who were considering purchase of luxury property in Europe over the past five or so years. Additionally, and despite the distances involved from their home countries, an increasing number of Asian buyers are entering the European market as well as some from North America. Not only are these buyers attracted by the unmatched intangible historical value of the Euro region, but also rising economic and political tensions in these buyers’ home regions are likely to result in an expansion of potential customers for the offerings of such firms as Suite 07.

The initial target market for Suite 07 is the Nordic Region of northern Europe. These nations — Norway, Denmark, Finland, Sweden, and Iceland — with a combined total population of approximately 28 million — have traditionally had economically vibrant middle classes with low levels of both poverty and wealth at the extremes. As such, these countries have long been characterized by their relatively narrow distribution of wealth among citizens — that is, there is not a sizable difference between rich and poor as is found in most all of the other advanced economies of the world (this is confirmed by Gini coefficient data).

However, while this is certainly true, market data supports a strong and continuing demand trend in the high-end real estate market that extends not only to Europe in general but also to the Nordic Region specifically. Suite 07 at this point is targeting the niche markets of Denmark and Norway.

The combined population of these two countries is slightly greater than 11 million. The largest cities in each — Copenhagen and Oslo — together have approximately 2.4 million residents. The combined number of households in the two nations is 5.2 million (2.7 in Denmark, 2.5 in Norway; this compares, for example, to 5 million households in Sweden, 8 million in the Netherlands, and 41 million in Germany).

In Denmark 61% of citizens own their own homes, and 77% in Norway. The remainder are renters or transients (such as students). European nations are among the oldest average populations of all nations in the world; Denmark and Norway, with an average age of 42 years each, are no exception. Given the population trends of both countries, household size averages only 2.1 individuals for the two nations.

Both Denmark and Norway are above global averages, however, in terms of individual wealth. For median wealth per adult, Denmark ranks 6th in the world ($377K p/c) and Norway 15th ($276K p/c), according to 2020 data. The number of millionaires in Denmark is estimated at 307,000, and at 177,000 in Norway. Both countries are projected to see sizable increases in this demographic over the coming five years.

Suite 07 will use a very conservative 1% target of potential high-end customers in the metropolitan areas of Copenhagen and Oslo for market penetration projections. This percentage yields a market of approximately 25,000 individuals and 12,500 households. Annual residential migration is estimated at 10% of this number (again a conservative estimate); this yields a total of 2,500 potentially addressable clients per year, or 1,250 households who are in the market annually for luxury housing accommodation.

If the migration percentage is reduced by half, to 5%, the addressable market is still over 1,200 people and over 600 households. (We should also note that these target audience estimates do not consider in-migration by ex-pat buyers from other nations. While the absolute numbers are likely low — perhaps 100 to 200 individual buyers annually — they nevertheless expand the universe of potential buyers that Suite 07 can serve.)

Suite 07 will strictly avoid the mass market and specifically target only this narrow sliver at the top end. Based on the data above, the firm approximates that 800 to 1,000 single-family homes and luxury apartments in the combined Danish and Norwegian marketplace constitute the addressable market for Suite 07 per year over the coming five-year period.

Furthermore, it is projected that Suite 07 can capture between 5% and 10% of this cohort annually, or approximately 50 to 100 customers. While Suite 07 does not intend to service this volume of clients initially, the total is indicative of the specific market potential for Suite 07 at both this time and the near future. It provides a large enough pool of applicants for the firm to be selective in who is given access to its offerings, as well as to generate a sufficiently high scale to validate revenue and cost projections. Moreover, as Suite 07 further enhances its image, expands its word-of-mouth reputation through social influencers, and scales its capabilities, it will be able to capture a larger share of this market. Controlled growth is definitely an objective of Suite 07 and all available market data clearly indicates that the firm’s projections are eminently achievable.

Wealthy Danes and Norwegians are aging, their family size is shrinking, and they are in search of new housing options. In conclusion, this target market is well within the range necessary to achieve Suite 07’s long-term goal of becoming the premier niche luxury housing supplier in the metropolitan Danish and Norwegian marketplace. Everyone at Suite 07 is dedicated to achieving exactly that. This business plan will explain how this goal will be accomplished.

2. CRITICAL SUCCESS FACTORS FOR COMPETITORS IN THE LUXURY HOUSING MARKET

The ability to succeed in the luxury property development and renovation market is first and foremost a function of the professional design and construction skills of incumbents; the work they perform must be of the highest quality. However, another success factor lies within an ability to access potential clients in this small niche segment of the housing market. This capability is a function of marketing skill. If a firm has growth ambitions, it must rely on more than word-of-mouth testimonials from prior satisfied clients. The ability to create a strong brand is very critical to success in the high-end luxury home market. In addition to a past record of excellence, brand building can be accomplished through exceptional advertising, promotion, and public relations skill — knowing which media, including social media, are most opportune for the targeted market and knowing how to gain positive coverage in those media. This is a specialized capability, often dependent on time-tested relationships, that few construction and renovation firms can master easily.

An equally critical component for success in this narrow luxury market is the ability of a firm to cultivate and maintain ecosystem partnerships with companies whose own brands and stylistic reputations add to the overall ambience and perception of the final product. This includes suppliers of building accoutrements and fixtures, as well as construction materials. Many of these goods are simple commodities, but the best alternatives are highly differentiated. In some cases, these are one-of-a-kind works of beauty that cannot be matched. The willingness-to-pay factor is fundamental for clients in the high-end segment, and these buyers will not tolerate substandard results. Yet while buyers of top-end luxury properties expect the best, often they are unaware or unable to make appropriate choices themselves. The curation and selection of appropriate goods for the luxury home, therefore, is more an art than a science. As such, the ability of the property development firm to supply top-end fixtures, furnishings, and materials is critical. Only few individuals have the innate ability to grasp what works best in any given building design or concept question; formulas and algorithms do not work here.

The suppliers of these components, fixtures, and construction materials, in turn, desire that their products are featured in the highest quality and most stylistic homes. They too require an association with the best in order to enhance their own image and brand. Accordingly, a builder-renovator who can create the appropriate symbiotic partnerships with this singular group of suppliers has a distinct advantage in the marketplace.

3. THE COMPETITION

Barriers to entry in Suite 07’s targeted market are relatively low. Construction firms can obtain a license to practice with relatively few problems. As such, Suite 07 would not be the only supplier of custom homes in its chosen markets. Indeed, there are likely more than 100 such competitors in Copenhagen and perhaps half as many if not more in the Oslo metropolitan area. However, the majority of these firms are one-person operators — that is, an experienced builder who utilizes a contracted crew of subordinates for the actual construction work. Most take on only one or two projects per year, and most of these builders focus only on new home construction; they do not provide architectural or home decorating services directly if at all.

Additionally, many operate in price ranges below the luxury home values of 6M DKK (c. $1 million) and up that Suite 07 targets. In summary, the luxury home building industry in the Nordic nations is fragmented and there are no dominant firms.

In the home restoration space, there are far fewer incumbents, and most are led by architects, few of which maintain in-house construction and remodel capabilities. These tasks are typically outsourced, and none of which we are aware provide interior design and decoration functions or post-sale benefits as an integral part of their portfolio of services. Representative example firms are Norm Architects and Vision Arkitekter in Denmark, and Design og Estetikk and LOGG Arkitekter AS in Oslo. These companies have fine reputations for their projects and have done admirable work. The large number of historic buildings, in Copenhagen especially, can keep these firms relatively busy. But again, it is a fragmented industry with no dominant incumbents.

Our conclusion is that not one of the potential competitors to Suite 07 can compare with the breadth or quality of services that the firm will offer. Suite 07 brings a superior new business model to the market that is tailored to the very specific needs of a tightly defined group of buyers; it turns the prosaic process of home building and restoration into an art form. The unique capabilities of the principals of Suite 07 ensures that its offerings are highly differentiated from all other competitors in the market. This is reinforced through the concierge amenities that will accrue to all Suite 07 clients — a benefit that no other competitor can offer. Given the limited scale of the market in both Copenhagen and Oslo, and the fragmented structure of competition, Suite 07 should be more than able to achieve its conservative growth targets without triggering retaliatory measures by competitors or encouraging new entrants.

1. COMPANY PRINCIPALS

Suite 07 was established in Copenhagen in late 2016 by Ms. Cora Lucaz (today age 39) and Mr. Kristian Groth (age 46). Ms. Lucaz is the creative director and conceptual architectural designer; she served as the leader on the firm’s first three highly successful renovation projects. Cora, a Norwegian citizen, moved from Oslo in 2007 to study at Denmark’s School of Media and Journalism in Copenhagen. She subsequently worked as an executive with local television and online media firms in that city.

Suite 07’s other co-founder is Mr. Kristian Groth, a Danish citizen. He was an investor in the firm for its first three projects and joined full-time as CEO in January 2020. He is a seasoned entrepreneur with more than 20 years of hands-on experience, having founded and managed a successful degree-granting executive educational institution in Denmark and later a professional networking organization with branches throughout the Nordic Region, among other businesses.

Cora, as artistic director of Suite 07, has responsibility for all aesthetic aspects of the firm. This includes property selection and renovation oversight, such as choice of suppliers, construction and fixtures materials, and interior design and design partners. Cora personally oversees the architectural and interior design of all of Suite 07’s projects. Additionally, in 2021 she began Cora Lucaz Design, her own atelier for the production of lighting for the commercial market. This firm is based in Milan, IT. Ms. Lucaz will recruit and supervise the training and development of several apprentices, who will eventually assist her in design and other tasks associated with Suite 07.

Kristian is responsible for the business management responsibilities of Suite 07. These include financial oversight, investor relations, property sales and leasing, and management of the concierge services provided to all clients of the firm, both home buyers and renters. In all of these activities, Mr. Groth will be advised by the Investment Committee of Suite 07. This group consists of a small circle of highly skilled financial professionals with extensive past experience in real estate finance. The Committee will evaluate all projects undertaken by Suite 07 prior to their green-lighting and implementation.

Together, these two principals offer a unique combination of skills and qualities that will enable Suite 07 to create highly differentiated, profitable, and bespoke turn-key projects for the luxury housing market in the Nordic Region. As the firm expands, other talented staff will be added to the roster as needed. Ms. Lucaz and Mr. Groth, however, will continue to provide the day-to-day leadership and vision necessary to achieve Suite 07’s ambitious goals.

2. VISION, MISSION, AND GOALS

The vision of Suite 07 is to transform the luxury home restoration process into an art form that creates lasting value for both current and future occupants. Quality will never be compromised under any circumstances, and only the finest craftsmanship and construction components and materials will be utilized. Both interior and exterior property design will reflect a refined taste that suits the desires of occupants as well as the physical environment in which the property resides; close attention to sustainability will be a feature in all projects. Suite 07 will become recognized as the premier supplier to the high-end segment of its target market. It will deliver to its clients “an eccentric form of luxury” available through no other firm.

The mission of Suite 07 is to develop and deliver high-end luxury turn-key housing projects to clients in an on-time and on-budget manner. This will result in supremely delighted clients and above average returns for investors.

The goal of Suite 07 is to achieve a reputation as the most admired provider of high-end luxury housing renovation projects in the geographic markets in which it competes. The firm will initially focus on select locations in the Nordic Region and will plan to expand the number of projects under management to five or more per year within five years (by 2026); this includes single-family as well as multi-family projects. Suite 07 will then expand its services to other European metropolitan areas, and later North America beginning with the lucrative California and South Florida markets.

3. RECORD OF PAST ACHIEVEMENTS

Suite 07 has developed and sold three projects (“cases”) to date. All were successfully completed, with occupants expressing extreme satisfaction with their new dwellings and Suite 07’s owners enjoying outstanding financial returns. A description of each project is shown in Appendix I; photos of the projects can be viewed on Suite 07’s website: www.suite-07.com.

4. SWOT ANALYSIS FOR SUITE 07

While there are risks inherent in Suite 07’s business plan, a fair and balanced evaluation of the SWOT analysis reveals that the firm’s opportunities and strengths far outweigh all other factors.

1. PROPERTY TYPES

2. SUITE 07’s COMPETITIVE ADVANTAGE

Suite 07 has several competitive advantages that will allow it to achieve its goals and objectives. While the renovation of historic buildings results in a physical good, to a large degree the success of a firm engaged in this business depends on the brand it creates. We believe that Suite 07 has the capability to develop the leading brand in its chosen market domain. This attribute will provide the firm with access to the limited set of appropriate clients that are targeted for its offerings. Moreover, Suite 07 will also serve its investors by assuring them that they are placing their trust in the best possible alternative for their financial choice in this asset class.

As was noted above, a key to Suite 07’s strength is its relationships with its ecosystem partners and suppliers. In the relatively small world of luxury home fixture and furnishing companies, mere transactional dealings between clients are insufficient for long-term success; greater person-to-person intimacy is required. Over the years Suite 07 has created not only professional but also personal relationships with some of Europe’s leading firms within the building materials, craftmanship, and interior decoration segments. In addition, the firm has developed a strong relationship with international media which is of substantial benefit to our other strategic partners. Examples of the brands that respect Suite 07 and regularly work with it on projects are Gaggenau, Tai Ping, Baxter, Boffi, Living Divani, Michael Anastassiades, and B&B Italia. Suite 07 has also established relations with leading brokers and agents in the market; these intermediaries are often critical in ensuring that a firm can source just what it requires at precisely the time it is required. All these relations enable Suite 07 to contract at very favourable prices and terms.

Moreover, these strategic ecosystem partners also visibly enhance the Suite 07 brand. They value joint projects with Suite 07 because they realize that the firm truly understands what they do and acts as more than just a property developer, but also as a bespoke design studio itself. Suite 07 fully reinforces the standards and project environment with which they want to associate their products and services.

The result is that Suite 07 has a strong competitive advantage in its chosen market domain that competitors cannot match. This advantage stems from the idiosyncratic capabilities and skills of its principals, especially Ms. Cora Lucaz. She has spearheaded the creation of the Suite 07 brand and her continuing presence constantly strengthens it. The relocation of the firm’s headquarters to Milan will work to make this bond even more durable. The deep experience of Mr. Kristian Groth as a successful entrepreneur provides Suite 07 with business insight and intuitive decision making that cannot be replicated by “textbook” learning. Together, the leadership team of the firm ensures a formidable bulwark against failure.

3. TURN-KEY ONLY PROPERTY DEVELOPMENT FOR LET OR SALE

A fundamental concept behind the Suite 07 approach to business is to sell or let the vast majority, if not all, of its projects on a turn-key basis. This means that all interior goods — furniture, lamps, textiles, art, accessories, everything — are included with the sale or rental. In previous projects it became apparent that target market clients would not even consider a purchase that did not include a turn-key basis. The firm’s principals came to realize that prospective buyers of their properties were far more influenced by their emotional response to the offering than any “rational” financial analysis that they might undertake. Modern economic theory has validated this phenomenon with the admission that “behavioural economics” was the driver of much of people’s decision-making. As this observation sunk in, it became the foundation of the Suite 07 vision, and the key difference between it and all other property developers. Accordingly, the firm’s leadership team has decided to work only on a turn-key basis because it is in this way that Suite 07 can differentiate itself in its markets. This approach leverages the unique talents and skills of Suite 07 and as such will become the firm’s signature.

4. THE SUITE 07 LAB

The competitive advantage of Suite 07 is further enhanced by its novel “Suite 07 Lab.” The Lab is a creative advisory board and “think tank” that brings together on a periodic basis a group of experienced influencers, investors, and industry experts who will meet and discuss issues of pertinence to the firm’s development, vision, and its specific projects. As the occasion warrants, key Suite 07 partners and clients will also be invited to attend, to lend their own specialized knowledge and perspective to critical issues and events.

Participants currently enrolled in the Suite 07 Lab include:

• Mr. Carsten Bech, director, Institut for Fremtidsforskning (Copenhagen Business School)
• Mr. Anton Bilton, real estate investor and founder of Sabine’s Club (Ibiza)
• Mr. Mikkel Bulow-Lehnsby, co-founder of real estate developer NREP (Denmark)
• Mr. Luca Finardi, CEO Mandarin Oriental (Italy)
• Ms. Ruth Hald, business psychologist (Copenhagen)
• Mr. Søren Johansen, attorney and Managing Director, Altor Equity (Denmark)
• Mr. Peter Kreiner, CEO of world-renowned Noma restaurant (Copenhagen)
• Mr. David Overby, Chairman of Solstra, private equity advisory firm (London)
• Ms. Pia Søltoft, professor of philosophy (Copenhagen)

(In addition, Ms. Lucaz and Mr. Groth serve as ex-officio members of the Suite 07 Lab.)

Other equally prominent members will be announced. Not only does the Suite 07 Lab provide beneficial guidance, but it also allows the firm to further grow its professional and social network and thus quickly expand current contacts into new markets. This will contribute to the firm’s competitive advantage relative to its rivals in the industry.

5. SPECIAL ACCESS PROGRAM

Suite 07 intends to fulfil its mandate as a socially responsible partner in its communities by offering a select number of its apartment units to individuals at below market prices. Recipients will be selected for the program through a transparent process overseen by the Investment Committee. Criteria for consideration will be determined by the IC but will include factors that ensure an eclectic mix of residents in Suite 07 projects; these factors will include individuals drawn from the arts, social welfare organizations, the media, and academia among other professions. Through the recruitment and retention of such individuals as tenants in Suite 07 projects, the overall ambience and distinctive character of the buildings will be visibly enhanced and will also contribute to the firm’s reputation as a socially responsible member of its communities.

1. SUITE 07 FINANCIAL STRUCTURE AND PROCESS

Suite 07 will incorporate as a registered Limited Partnership company (LP) in the relevant jurisdiction of its projects; Suite 07 will serve as the General Partner. It is anticipated that Denmark and/or Norway will be the initial geographies. Company principals will identify the first project, likely a multi-family renovation structure in Copenhagen. Due diligence will be conducted, including an assessment of costs for renovation; a project budget will then be determined. This will then be presented to the Suite 07 Investment Committee (IC) for review, revisions as needed, and approval.

Simultaneously, company principals and/or agents will solicit capital from private sources, who will become Limited Partners. Suite 07 will retain a minority partner with a suitable prior record in capital market networks to oversee capital acquisition; this individual will serve as chair of the IC. When secured, capital from the Limited Partners will be deposited into the entity; these Limited Partners receive shares in proportion to their cash contribution. All Limited Partners will be closely vetted to ensure they share the same vision for Suite 07 as does its founders. The firm intends that its property development activities reflect the unique character of the stated vision and mission — that is, financial returns will be superior to market but they will not override the dominant goal of building and sustaining the company brand. Investors who do not share this approach will not be solicited to participate.

The Suite 07 IC then approves and purchases the target property in the name of the LP. Suite 07 undertakes renovation, develops a marketing program for unit leasing, and begins solicitation of tenants as work progresses. Select real estate agents will manage unit leasing.

When the property reaches a threshold of approximately 80% leased units, the IC will negotiate the sale of the property to a long-term investor, such as a pension fund. The Limited Partners will receive a cash reward equal to their initial investment plus a prior agreed-upon incentive fee; any remaining funds will be distributed to Partners on a pro-rata basis and the entity will then be liquidated. New property development projects will emulate the model described above.

2. PRO-FORMA FOR A REPRESENTATIVE LARGE MULTI-FAMILY RENTAL APARTMENT COMPLEX

• 20% equity investment by LLC partners = 25,300,000 DKK
• 80% LTV = 101,200,000 DKK at 3.14% fixed rate for 30 years (360 monthly payments)
• Principal + Interest = 434,000 DKK p/month × 12 months = 5,208,000 DKK p/a
• Rental income p/unit 100,000 DKK × 8 units = 800,000 DKK × 12 months = 9,600,000 DKK
• Costs (maintenance, insurance, tax, utility, concierge service, etc.) = 15% of rental revenue = 1,440,000 DKK
• Net Operating Income (NOI): 9.60M DKK – 1.440M DKK = 8,160,000 DKK p/a

• Capitalization Rate: 8.16M DKK / 164.500M DKK = 5.0%
• Debt Service Coverage Ratio (DSCR): 8.16M DKK / 5.208M DKK = 1.57
• Property Value (NOI/Cap Rate): 8.16M DKK / 5.0% = 163.2M DKK Year 2 valuation

• ROE for LLC Partners: 40.8%

  ($1.00 = 6.395 DKK; 1 DKK = $0.156 – October 2021)

DETAILED FINANCIAL PROJECTIONS FOR A TYPICAL MULTI-FAMILY RENTAL PROPERTY

The above data represents a financial analysis of a multi-family residential complex currently under review by Suite 07 for acquisition. It is located in an excellent district in metropolitan Copenhagen, and the calculations are estimates based on an analysis of current 2021 economic values in the region for high-end multi-family rental properties. As such, it is representative of the investments that Suite 07 intends to undertake to achieve its goals.

3. PRO-FORMA FOR A REPRESENTATIVE LARGE CONDOMINIUM COMPLEX

• 20% equity investment by LLC partners = 25,300,000 DKK
• 80% LTV = 101,200,000 DKK at 3.14% fixed rate for 30 years (360 monthly payments)
• Principal + Interest = 434,000 DKK p/month × 12 months = 5,208,000 DKK p/a

• Average unit sales price: 80,000 DKK p/sqm × 250 sqm = 20,000,000 DKK
• Total sales revenue: 8 units × 20M DKK = 160,000,000 DKK
• Estimated promotion, sales, misc. expense: 16,000,000 DKK
• Gross return to LLC partners: 17.5M DKK

• ROE: 69%

  ($1.00 = 6.395 DKK; 1 DKK = $0.156 – October 2021)

1. PROPERTY ACQUISITION

Suite 07 management will commence a search for suitable properties that meet criteria described in prior components of this business plan; simultaneously, the Suite 07 Investment Committee will begin its capital acquisition process for the first LP project, seeking approximately 200M DKK. In general, the firm will target only premium locations and buildings in designated metropolitan areas, depending on which Target Group is in focus (see the example above). In keeping with Suite 07’s stated vision, only properties that are of historic character and charm are targeted for acquisition; these are properties with specific architectural qualities and potential. Suite 07 works closely with real estate brokers, agents, and a wide network of other sources to obtain such properties at the most advantageous prices. This network also ensures that the firm is first in line to obtain the true gems that come up for sale only on rare occasions.

Suite 07 will begin execution of this business plan by locating potential projects in the Copenhagen K sector for Target Group I rental prospects (see Appendix II for details on this cohort). Specifically, this encompasses the Frederiksstaden sector of the city. The firm seeks entire apartment buildings as well as single-resident villas, but only if they meet company standards; this implies a building constructed prior to 1991, not listed and not subject to city rental regulations. Given that market data suggests Target Group I buyers are currently under-represented in Denmark, Suite 07 believes there is potential for only one larger property of this type in Copenhagen at this time. (It should be noted that firm management will not prioritize renovations of single-family houses in Copenhagen at this time.)

For Target Group II renters, Suite 07 seeks unique commercial buildings in the entire Copenhagen area where logistics and appropriate commercial surroundings are already in place. The Norwegian market is also under consideration, specifically in certain areas in Oslo Vest which the firm has explored in detail over the prior two years. Suite 07 seeks single apartments, entire apartment buildings, and townhouses that meet the firm’s strict building style and design criteria; strong relationships have been built with property agents in this market and the firm is assured a first-look on appropriate projects. At this point, both Target Group I and II renters are under consideration, depending on property specifics.

Suite 07 will only be involved in a single renovation or development project in one city at a time. This is to minimize risk in cost and time. As Suite 07 gains greater experience in the renovation of multi-family structures it will then expand its portfolio of projects. At this point the firm will limit the amount invested to a maximum of 400M DKK ($62 million) allocated to a maximum of two properties. This will ensure that the strategic focus and high quality that characterizes the Suite 07 brand is maintained and strengthened.

2. BRAND BUILDING & COMMUNICATION

A key element of Suite 07’s action plan to implement its long-term strategy is the ongoing reinforcement of the firm’s brand. This will involve, for example, a deepening of Suite 07’s Instagram profile which has proven to be a favoured platform for home decoration enthusiasts. The Suite 07 Instagram site features Ms. Cora Lucaz and her growing influence in the upscale home design and decoration marketplace. Her profile will be further enhanced through exposure in relevant print media, design houses, and with other business partners as well as respected influencers. A model for this approach can be found with Martha Stewart, Rihanna, or Diane Von Furstenberg. All of these women have achieved international renown through strategic marketing, which has demonstrably enhanced their ability to extend their influence in product and service arenas beyond their initial fields of practice.

To achieve this goal, Suite 07 will engage with an international PR and communications agency responsible for marketing Suite 07 as a top-tier brand associated with only the best possible media partners. This exposure, however, will not be attained through direct advertising; the firm will build its brand through more subtle means. Suite 07 does not now or ever in the future contemplate becoming a mass market firm. It will strictly limit its size to ensure its exclusivity and sense of uniqueness with purchasers of its offerings. Suite 07 has a clear strategy for development of its brand in new geographic venues; this strategy will be continuously refined on the basis of the experiences encountered.

3. GEOGRAPHIC EXPANSION

The Suite 07 business plan contemplates that over the coming five-year period, the firm will have completed and sold two properties in Oslo to Target Group I and II buyers, and one in Copenhagen. Suite 07 will simultaneously expand its geographic footprint through a search for appropriate properties in other large metropolitan areas in Europe, such as Stockholm, Berlin, or Milan and where target groups of Suite 07 clients appear to be available.

In 2021 Suite 07 relocated its main office to Milan to further strengthen its position in the international design industry. This move will further develop key contacts with partners to support the brand that is being created around Ms. Cora Lucaz. In the future Suite 07 will also undertake investments and obtain projects outside Europe, principally in California where market data suggests a tight fit between the firm’s vision and mission and the desires of large numbers of target group clients currently residing in that venue.

After 2026 the ambition is to move Suite 07 headquarters to San Francisco or south Florida where a larger pool of potential projects for the firm’s target groups resides. Suite 07 will always be a smaller niche property development firm with as few permanent staff as possible and using the best possible partners on a freelance or project basis. Suite 07 will not pursue growth targets that draw it away from its areas of competence or that in any way might compromise the company brand of exclusivity and singularity. Ms. Lucaz and Mr. Groth will remain as the leadership team throughout this period, and beyond.

CASE I: “The Swan” (2016–2017)

The initial Suite 07 project was an aged and run-down villa in an upscale Copenhagen suburb. The home was 265 square metres plus 146 square metres of basement, comprised of separate apartments. The interior of the property was totally gutted and renovated into a single-family dwelling. The garden, garden house, terraces, walls, and garage were also redesigned, and the outer walls completely refurbished.

After one year construction was completed. Ms. Lucaz then turned her attention to a complete make-over of all interior spaces, including furniture, fixtures, floor coverings, paint, and wall art. The exterior portions of the property were also upgraded, including gardens and outbuildings. The home was put on the market and sold, as a turn-key private sale, after just one viewing, at a record price per square meter for the area. The new owner expressed extreme joy and happiness with his family’s new dwelling.

CASE II: “The Garden House” (2017)

Suite 07’s second project was renovation of a small apartment and garden in an historical structure located near the Royal Palace in Copenhagen. When Suite 07 purchased the property, it came with ready-made plans for a renovation. However, Cora completely reworked the design and transformed the interior 100%, including the addition of more space.

Once the renovation was completed, Suite 07 contracted with a digital design firm to create a 3D rendering of the property, an innovative marketing technique at that time. A broker was given exclusive sales rights and the home sold privately after its first showing, with no public advertising and at full price, as a second in-town home for a rural Danish resident. This sale also set a record for the highest square metre price in Denmark.

CASE III: “The Italian” (2020)

Suite 07’s third project was the transformation of a large home originally built in 1908 that had since fallen on hard times. It was a two-apartment dwelling when acquired, with much of the 553 sqm being unused. Moreover, it was in a neighbourhood undergoing gentrification. Ms. Lucaz immediately spotted the innate potential, however, and undertook a total redesign and refurbishment of the property. After only six months, the home was brought back as a four-floor single-family residence with a completely modernized infrastructure and amenities. The new interior design, including all furnishings, was stunning, as were the redesigned gardens, garage, hedges, terraces, and outer walls.

The final result was featured in the Danish luxury housing media as well as in international publications and websites including Architectural Digest and Elle Decoration; these contacts were made possible through Ms. Lucaz’s growing network of influentials in the industry. While this property took slightly longer to sell given its transitional location, it ultimately was sold turn-key at a very favourable price by the acclaimed luxury brokerage Sotheby’s International. The Italian was one of the first properties ever sold by this firm in Denmark.

TARGET GROUPS FOR APARTMENT RENTALS AND SINGLE-FAMILY HOMES

SUITE 07 PRIVATE CONCIERGE PRIVILEGES

Target Group I and II Individuals and families who rent a unit in a Suite 07 property will automatically be enrolled in the “Private Concierge Privileges” program (see Appendix II for descriptions of these two groups). Fees for membership are included in the monthly rental and are mandatory. A single fee per rental unit will apply, regardless of the size of the rental unit or of the renting household. The monthly amount is TBD and will be based on each specific Suite 07 property and its size and location. The Private Concierge Privileges program itself, however, will be uniform across all Suite 07 rental properties.

The program will be managed by a dedicated staff of specially trained Suite 07 personnel, and oversight will be administered personally by Mr. Kristian Groth as Program Director. Each Suite 07 rental building will have its own budget for financing the program, dependent on the number of members residing in the building. It is expected that total annual Private Concierge Privileges revenue from each building will be greater than total costs, with the surplus accruing to Suite 07 for funding enhancements to the program as well as other company-wide improvements such as the Suite 07 Lab described in Part V of this business plan.

The purpose of the Private Concierge Privileges (PCP) program is to increase the quality of life of Suite 07 property residents and to inspire participants on matters of lifestyle relevant to the current times. As well, benefits of the PCP program are designed to lessen the day-to-day demands of members when they are in residence at their home, and thus allow them to engage in a more leisurely pace and a more fulfilling enjoyment of life.

The PCP program has three primary dimensions: Sensing, Engagement, and Service. Each dimension is distinct and addresses a specific need or desire of Suite 07 members.

The sensing dimension consists of experiences within a member’s own Suite 07 home, with an emphasis on the member’s culinary involvement with food and beverage requirements. Each household will be provided with a bespoke array of benefits created in conjunction with the specific needs of the household. These could include consultations with award-winning chefs and sommeliers on menu selections and might also include appropriate health care personnel to advise on best practices for healthy dietary choices. In addition, PCP members will be given exclusive access to relevant products in these categories provided by Suite 07 partners. All of these program benefits will be provided in-house to members within their own residence.

The engagement dimension is designed to expand the level of knowledge and concern of Suite 07 PCP members with the world around them, both physical and intellectual. This will be accomplished by invitation to exclusive presentations and programs that cover a wide array of topics — including the arts, current events, science and technology issues, and sports and recreation discussions. Suite 07 PCP administration will arrange these presentations, and member households will be given an opportunity to nominate topics or presenters. All of these programs will take place in Suite 07 properties and attendance will be strictly limited to members only; in some cases, exclusive field trips for members will be arranged to facilitate a topical issue. Some Suite 07 buildings will reserve a dedicated physical space for these PCP presentations; this space will also be available for private member usage, determined on a case-by-case evaluation.

The third dimension in the Suite 07 PCP program is service. This benefit is comprised of housekeeping services such as home cleaning and maintenance. It can also include other services such as home delivery of food and beverages, or repair and maintenance of members’ household goods such as clothing, home décor, and other personal items. The service benefit can also be extended to other needs, such as engagement of a taxi or automobile rental. These service benefits will be delivered through specific arrangements between PCP management and members. Suite 07 will allocate a trained full-time Hospitality Manager to each property with a dedicated office in the building.