Funding Sources

A variety of funding sources are envisioned. At present there are two operating businesses which have committed a significant part of their earning streams to the support of PDH.

• Urban Bliss Hotel, Ltd. This is a four-star hotel built using the model envisioned for Bent Nail Properties. The aim is to support PDH with 50% of the net earnings of Urban Bliss.

• SIMPEL Real Estate Ltd. This is a construction company that donates 25% of its earnings to PDH.

More generally, below is a listing of possible revenue streams that can support PDH:

A. Equity (or structured debt instruments) in private or public for-profit enterprises.

B. Donations from individuals.

C. Donations from for-profit enterprises in Zambia and from elsewhere.

D. Donations from not-for-profit organizations.

E. Rental income from projects erected with support from PDH.

It is currently envisioned that the primary funding mechanism for PDH Foundation will come from businesses that pledge to donate a percentage of their net income. That will give PDH a baseline of operating capital to have a sustainable impact on missions.

The accompanying visual illustrates the relationship between PDH (the sun) and the various satellites in this solar system of various businesses that exist in part to support PDH. Of interest is that there are no physical connections among the various parts of this system. Rather the system operates in synchronicity and is held together by the idea of serving in God’s Kingdom. As a practical matter, there is an intangible connection through using interlocking boards of directors to make sure all parts are working in harmony. Following the solar system visual. We describe some of the achievements represented by SIMPEL and Urban Bliss Hotel.

The Track Record of the proposed builder: SIMPEL REAL ESTATE LTD

SIMPEL Real Estate Ltd. will be contracted to construct and develop the 40-unit housing complex with a fitness and office park in Lusaka for Bent Nail Properties. SIMPEL Real Estate Ltd. has an impressive 22 years of experience in design, development, and construction, of which 16 years were specifically only in Zambia. To support the ultimate purpose of this project, SIMPEL (which has also donated 25% of its share capital to PDH Foundation) has agreed to do this project at 30% below market rates. Here is a summary of their past work, estimated at just shy of US$20 million worth of developments, over the past 16 years, as they developed their techniques, purpose, and teams, through various entities they either worked for or started themselves. This production consists of 34 different projects. Here is a sampling of their work:

2007-2011 (Under OM ZAMBIA) - OM ZAMBIA Missionary Training College (Missionary Seminary)

This College is focused on training African missionaries and sending them out. The College does this through Discipleship Training School and Mission Development Training courses, as well as various skills acquisition courses. A 90,000 SQ foot building with ample sports fields and vegetable gardens. The project cost was US$2,200,000. The current market value for the asset is estimated at US$4,000,000. During the construction of this property more than 300 Zambian Nationals were trained in various construction skills for FREE and are empowered for the future. Some still work with SIMPEL on other new contracts.

2011-2014 (Under OMZ & PDH Foundation) - MAIA Townhouse Complex (IGA Flats for OM Zambia)

These eight 3 Bedroom Units and four 2 Bedroom Units are rented out to the public and are successfully supporting local orphan community schools, a school for the disabled, leadership development in Africa, ministries to trafficked people, and the OM missionary training college since 2016. The project cost was US$506,000 and showed a current ROI of 17.3%. The current market value for the asset is estimated at US$825,000. During the construction of this property, 120 Zambian Nationals were trained in various construction skills for FREE and are empowered for the future. Most still work with SIMPEL on other new contracts.

2013-2015 (Under PDH Developers Ltd.) - LIFE TRUST Townhouse Complex (IGA Flats for Life Trust)

These four 3 Bedroom Units are rented out to the public and have been successfully supporting local orphan community schools since 2015. The project cost was US$135,000 and showed a current ROI of 19.6%. The current market - value for the asset is estimated at US$350,000. During the construction of this property 80 Zambian Nationals were trained in various construction skills for FREE and are empowered for the future. Most still work with SIMPEL on other new contracts.

2016-2019 (Under PDH Foundation) - URBAN BLISS Boutique Hotel (IGA Project)

The construction of the hotel was completed in July of 2019; 54,000 SQ foot building with ample under cover secure parking. The project cost is US$2,200,000. The market value for the asset is appraised in excess of US$5,000,000. During the construction of this property, more than 300 Zambian Nationals were trained in various construction skills for FREE and were empowered for the future. Many of the workers who worked on this project are graduates of other SIMPEL projects.

2019-2020 (Under PDH Foundation) - LIVING HOPE Orphan Homes & Facilities (Orphanage and school on coffee farm)

The task was to construct 6 homes, two intakes (thatch roof communal area), a sporting facility and a perimeter wall with infrastructure to service the homes. A total of 12,000 SQ feet of buildings. The project’s cost totals US$500,000 and the current combined market value is estimated at US$700,000. During the construction of these properties, more than 160 Zambian Nationals were trained in various construction skills for FREE and are empowered for the future. Most still work with SIMPEL on other new contracts.

2019-2021(Under PDH Foundation) - LIEBENZELL Pastor’s Training Campus (Training Facilities with accommodation)

The task was to construct a training facility, four 2-bedroom units for student pastors, two 2- and 1-bedroom homes for lectures/ staff, six 2-bedroom homes for renting out to the general public, and the perimeter wall with all the needed infrastructure to support the campus. A total of 14,500SQ Foot of Buildings. The project’s cost totals US$470,000 and the current combined market value is estimated at US$750,000. During the construction of these properties, more than 180 Zambian Nationals were trained in various construction skills for FREE and are empowered for the future. Most still work with SIMPEL on other new contracts.

2020-2021(Under PDH Foundation) - LIFE TRUST Townhouse Complex Phase 2 (IGA Flats for Life Trust)

These eight 2-Bedroom Units are rented out to the public and have been successfully supporting local orphan community schools since 2015. The project cost was US$250,000 and showing a current ROI of 18.5%. The current market value for the asset is estimated at US$450,000. During the construction of this property 200 Zambian Nationals were trained in various construction skills for FREE and are empowered for the future. Most still work with SIMPEL on other new contracts.

About The Urban Bliss Investment

In 2015 we embarked on our most ambitious project to date: Urban Bliss Hotel & Conference Centre (“UBH”). www.urbanblisshotel.com. It is a perfect illustration project for Business as Mission. We raised approximately US$2.2 million from 30 private investors from 7 countries (South Africa, Australia, Zambia, USA, Canada, Germany, and Singapore). We completed building the hotel & conference facility in four years. The then-President of Zambia, Dr. Edgar Lungu, opened its doors for business on the 5th of July 2019. UBH currently employs 66 persons, all Zambians, including the General Manager of the hotel. It has now been successfully operating for four years. UBH is enjoying an official rating of Four Stars, granted by the Zambian Tourism Agency.

The financing was completed through the issue of 20,000 units each consisting of 1 bond + 1 share of stock, plus a construction loan of approximately US$500,000 that was needed to complete the project. The bonds have a face value of US$110 each, paying a cumulative 7.5% interest per annum. The bonds plus the loan provided the entire capital for the project. The major goal is to pay, on an ongoing basis, (1) 50% of the earnings to support the missionary objectives of PDH Foundation and (2) pay the other 50% of earnings to the investors. The current state of the investment is that, in addition to gradually retiring the construction loan and bond obligations, it is generating a return to the investors in two ways: (a) In 2022 it paid interest on the bonds @ 7.5% per annum, and (b) the companion shares appreciated in value to the point where the current (12/31/2022) book value of the shares is estimated at something slightly above US$100 per share. So today, an initial investment of US$110, in addition to paying annual interest, is worth approximately US$210. Moreover, as occupancy rates continue to climb, we anticipate the profitability to be leveraged a great deal more.

At the conclusion of 2022, the profitability of UBH was sufficient to pay all bond interest, retire 1/7 of the construction loan plus accrued interest, and retire about 11% of the bonds. And all of this was accomplished despite the deleterious effects of Covid 19 in 2020 and 2021. On the current path, it is anticipated that the bonds will be fully retired in about 5-7 years (so that each investor will have recovered all cash paid as an initial investment plus interest during the life of the bond), the construction loan will be fully repaid in six more years, and from that point forward all earnings will go to increase the book value of each share of stock thus continuing to accumulate capital gains.

If all goes well, it is anticipated that ultimately UBH will enter into a share buy-back program to enable those investors who want to conclude their investment to be able to do so. All the while the goal is to pay 50% of the earnings of UBH to PDH Foundation. For all intents and purposes, Urban Bliss Hotel has far exceeded the original expectation at the time the project was initiated. All in all, if these results have been realized with an occupancy rate slightly above 50%, imagine how much more noteworthy the results would be if the occupancy rate continue to rise to the area of 70% or more on a sustained basis. The reason, of course, is that the fixed expenses are fixed, and revenue from every additional % in occupancy will drop virtually undiminished to the bottom line.

What Urban Bliss has meant for various stakeholders

The people of Zambia

A. The opportunity to see and experience the Bible message in action throughout the construction phase and in the way business is conducted;

B. The opportunity to be disciplined;

C. The opportunity to restore a sense of dignity;

D. The opportunity to have jobs in the building trades;

E. The opportunity to support families through steady employment;

F. The opportunity to acquire skills that can be leveraged for other building projects;

G. The opportunity to start new local businesses by Zambians.

The construction laborers and hotel staff

A. The opportunity to live a Christ-centered life for self and family for all involved;

B. The opportunity to obey the Great Commission in Matthew 28, in word and action;

C. The opportunity to demonstrate and extend the concept of self-sustaining missions throughout Zambia;

D. The opportunity to earn a livelihood as part and parcel of obeying the Great Commission;

E. The opportunity to deepen their commitment to living a Christ-centered life.

The investors

A. The opportunity to be a part of a missionary venture in the full sense of the word (contribute, pray, encourage, serve on the board, advance ideas, among other things);

B. The opportunity to supercharge the overall effort of all stakeholders in their effort to obey the Great Commission;

C. The opportunity to have a voice in the conduct of the business of UBH (an active board of directors consisting of 100% of UBH shareholders.);

D. Finally, from a strictly material point of view, the opportunity to earn a superior monetary return on investment;

E. The opportunity to set an example that other businesses can emulate.

Urban Bliss Hotel as it stands today represents Phase I of the project. As occupancy rates begin to approach saturation, we anticipate expanding the project into Phase II, by adding eighty sleeping rooms. The Phase I construction provided infrastructure to support all of Phase II so that Phase II will consist mainly of adding sleeping rooms.