BH-TEC Belo Horizonte Technology Park

Ronaldo Tadêu Pena CEO

BH-TEC:

 • • • •

BH-TEC is the result of a partnership among:

• State Government of Minas Gerais; City of Belo Horizonte; Federal University of Minas Gerais (UFMG); Federation of Industries of MG (FIEMG); MG Brazilian Service of Support for Micro and Small Enterprises (SEBRAE-MG).

 • • •

BH-TEC is a non-profit, private institution aimed at research and high tech activities, designed to house:

Companies dedicated to the research and development of new technologies in their products and processes; Public and private Research & Development Centers; Areas for Shopping and Services.

Partners Institutional Arrangement Support:

BH-TEC:

 It is being implanted in a 556.000 sq meter (137 acres) area: • 185.000 sq meter (45 acres) for construction; • 371.000 sq meter (92 acres) is a permanent urban green zone; 

The area is a property of the Federal University of Minas Gerais (UFMG).



The Park is allowed to use the area for 30 years (07/01/2041). Afterwards, the University returns as the landholder, receiving rental payment that will go into its budget.

Governance model

General Assembly Board (13 members) – Art. 21:

4 members from UFMG 2 members from the State 2 members of the City Council 1 member from FIEMG 1 member from SEBRAE 3 members representing the Sponsors

Technical-Scientific Council (7 members + Director-President), Art. 29:

3 members from UFMG 1 member from the State 1 member of the City Council 2 members from the industry sector (SEBRAE e FIEMG)

Executive Office Fiscal Council (3 members elected by the General Assembly), Art. 36.

Industry sectors focused

 Life Sciences (biotechnology, human and animal health, pharmaceuticals);  Information and Communication Technologies (ICTs);  New materials and process technologies;  Renewable Energies;  Environmental Technologies;  Entertainment and culture.

UFMG in numbers

       The Federal University of Minas Gerais is the main research institution in the metropolitan area; 3,000 faculty members (80% Ph.D); 75 undergraduate programs; 58 doctorate programs and 68 master programs; 30.000 undergraduate students (5,000 in engineering); 7.000 graduate students: • 4,000 M.A./M.Sc. Students (1,300 master thesis/year) • 3,000 Ph.D. students (700 Ph.D. dissertations/year) Leader institution in number of biotech patents in Brazil

(Updated: 17/06/11 UFMG site)

Brazil Minas Gerais - MG Belo Horizonte

Tancredo Neves International Airport 40’

Location

Mineirão Stadium UFMG Downtown 20’ Pampulha Lake

BH-TEC

Rua Prof. José Viera de Mendonça

Master Plan

R&D Zone: 46,000 m 2 Institutional Zone: 26,200 m 2 Green area: 350,000 m² Shopping and Services: 27,000 m 2

Aerial photo taken in December 2006.

Source: PBH

Source: BH-TEC

Institutional Building

Source: BH-TEC

Institutional Building

Source: BH-TEC

Institutional Building

Tenant companies of the first Institutional building:

Tenant companies of the first Institutional Zone building:

Industrial Automation

I-Vision S/A Neocontrol Ltda.

Biotech

Labtest S/A Ecovec S/A Labfar PI

Eletronic

ATI Ltda.

Omnimed Ltda.

Environmental Area

WayCarbon Ltda.

Aeronautical

Embraer

BH-TEC

Business Development

IEBT Ltda.

ICT

Takenet S/A Sambatech S/A Zunnit Technologies Ltda.

Enacom Ltda.

Siteware Ltda.

Tenant companies of the first Institutional Zone building:

2 nd Institutional Building of BH-TEC - preliminary design

Edifícios Institucionais do BH-TEC - Fases de desenvolvimento

BH-TEC Development



Institutional Zone (area: 26,200 m

2

)

•

First institutional building (in a 4,600 m 2

 15 companies  April/2012 – official launch

area):

•   

FIOCRUZ in Minas Gerais (in a 12,000 m 2 area)

Rene Rachou Research Center (FIOCRUZ Branch in Minas Gerais) Center for the Development of Health Technologies of Minas Gerais (CDTS-MG) will house biotechnology platforms, vivariums, biopharmaceutical enterprises and academic spin-offs; US$ 42 million (total investments). •

Second institutional building in the remaining 9,600 m 2 area

Second Institutional Building

•

Preliminary architectural design (arq. Robert McCauley, UJMN office Philadelphia, USA);

•

March/2012: Approval of the preliminary project;

•

March- April/2012: additional studies to estimate the budget for construction.

•

Next phase of construction will depend on the results of a study for the land concession, coordinated by the Development Bank of Minas Gerais (BDMG).

The conclusion of the first stage of BH-TEC is marked by the startup of the first building in the Institutional Zone Overview of BH-TEC implementation 2005

BH-TEC Set up

2006

Beginning of infrastructure works by the Municipality

2008

Started construction of the first institutional building

Feb/2011

Release of 15 selected companies (out of 25)

Nov/ 2011

Kick off for the bid modeling of the Concession Zone

Apr/ 2012

Startup of the first building in the Institutional Zone

Jun/2012

Release of the public bid document

2014

Startup of 1 st building in the Concession Zone  Signing of the agreement among UFMG, Minas Gerais State Government and City Government First building construction with investments of US$ 19 Million by the State Government

Concession Zone Institutional Zone

Public Bid for construction, operation and maintenance of the BH TEC 22

Phase II modeling for the Concession Zone estimates investments up to US$ 300 MM in a BOT approach Overview of BH-TEC Phase II Concession 2011

Concession modeling Kickoff

Jun/ 2012

Public bid

Oct/2012

Bid document signature

2013

Start the construction of the 1 st building in the Concession Zone

2041

End of concession • Public Bid for construction, operation and maintenance of the second phase

Concession Zone Institutional Zone

of BH-TEC.

• Potential 266.000 m 2 of constructed area • Investments (CAPEX) up to US$ 300 million • IRR range between 12% to 16%, • Concession Term: 30 years

Main aspects of the concession

• Stage development implementation subject to occupancy and demand • Contract with flexibility to mitigate demand risks • Opportunity to built-to-suit buildings for anchor companies 23

The Economic Model of BH-TEC Concession - tangible drivers

Tangible Drivers of Economic Value

Management Costs UFMG fee BH-TEC fee (+) (+) (+) Marketing and Branding (+) GDP Growth/ Diversification University (UFMG) Entrepreneurship Environment Rental Demand 2 Costs 1 Revenue

Cash In Cash Out BH-TEC Concession Rental Facilities

Offices Rental contracts Stores Rental contracts Facilities services 3

Cash In

Capital Efficiency Rental rate

(x)

Offices Available area Rental rate

(x)

Stores Available area

(x)

Commission / fee # services provided Stage Development CAPEX Demand drives the Implementation Low Working Capital

Economic Indicators Non-controllable factors

Time Schedule for the 2

nd

. Fase

Staff

Ronaldo Tadêu Pena

C.E.O

[email protected]

Mariana de Oliveira Santos -

Executive Advisor

Vicente de Paula Azevedo Jr. -

Administrative Manager

Eduardo F. Roscoe -

Engineering Advisor

Nanci Lacerda -

Executive Secretary

Janaine Farrane Cardoso -

Technical Advisor

Guilherme de Castro Leite -

Data Network Analyst

Rua Prof. José Vieira de Mendonça, 770 – Engenho Nogueira Belo Horizonte / MG - Brazil Tel.: 55 31 3409-7391 | Fax: 55 31 3409-7392 www.bhtec.org.br