LARUN GOLF & YACHT RESORT

Project description

Contents

Introduction Development concept Development timeline Demand forecast Current project status

Introduction The proposed development concept, known as Larun Golf & Yacht Resort, is located in Croatia on the Western coast of the Istrian Peninsula The resort has the distinct opportunity to become the one of first integrated resort in Croatia, comprising the following four main components: A 5-star hotel with extensive spa and wellness meeting facilities Residential villas An 18 - hole championship golf course Berths with a promenade including restaurants and entertainment facilities

Strategic location

The site is located in Croatia, on the western coast of Istrian Peninsula. The strategic location of Larun allows easy access by road ((“Istrian Y” motorway), air (Pula International Airport) and water (International ports in Pula and Rijeka): • by road: within short driving distance from the main Central European cities, within approximately 600 km from Munich, Milan and Vienna, and an estimated population of 120 million people in the direct catchment area, • by water, with the International ports in Pula and Rijeka (e.g. Venice is just at 2 and a half hour distance), • by air: Pula International Air port is the nearest airport (located at just 30 minutes drive) and 7 other airports within 2 and half hour driving distance.

Strategic location

About Istria and Golf location As the westernmost County of the Republic of Croatia, Istria borders Slovenia and has a maritime border with Italy. The peninsula is considered the largest green oasis of the Northern Adriatic and one of the most popular destinations for foreign visitors to Croatia. The spectacular shoreline has numerous bays, islands, pebble and rocky beaches. Summer sea temperatures in Istria range from 23-27 Celsius. The coast and the island are covered with pinewoods and easily recognizable green macchia. With a green countryside of vine and olive groves, mediaeval villages and a multitude of charming ports towns, Istria has at times been called the “land of truffles, wine and song.” Istria has a mild, Mediterranean climate (warm and dry summers, mild and pleasant winters) with plenty of clear days throughout the summer with a daily average of 10 hours of sun. The cuisine of Istria represents a special Croatian style of cooking, a blend of inland and coastal, with recipes rich in excellent fish and seafood. The excellent Istrian wines include Malvasia of Buje, Cabernet of Porec, Sauvignon and Merlot, as well as Teran of Motovun. Golf is located near Tar, Poreč and Novigrad. It is situated on a small hilltop with a great view to the sea starting from Vrsar up to Umag. The climate is favourable, as well as the fertile land, and numerous vineyards and olive grows. Tar - Vabriga is a small municipality with all the particularities of a small Istrian village. Regarding its location and the view, Tar – Vabriga area is very attractive for construction. Many villa owners are foreign citizens so many villas’ complexes are built in that area. It is 8 km away from Poreč, 6 km from Novigrad. The nearest airport for small planes is 21 km away in Vrsar, and the international Pula airport is approx. 60 km away. The highway is 5 km away from Tar - Vabriga.

Aerial view of the site •Peaceful and natural environment •Sea views from every point of the site •Good exposition to sun •Several km of unspoiled beach •Good accessibility

LARUN

LARUN –

the golf destination

Golf Larun Accompanying Report Introduction The Larun area, foreseen for the construction of a golf course, is characterized by two particular and important peculiarities: the presence of vast areas under olive groves and the presence of an archaeological site original from roman times. According to the experts of the FAO, in this fertile promontory are cultivated the olives from which is produced the Europe’s best olive oil. The olive groves are extended over approximately 180.000 sqm prevalently in the northern part of the same promontory. Differently, the archaeological area is spread prevalently over the south-western and the north-western coastal area. The area is subject to excavations since long ago, but only recently the archaeologists realized that it is about a huge residential and productive settlement of great historical and cultural importance. The total area seems to extend over approximately 15.000 sqm. Both peculiarities have to be preserved, including the natural environment, miraculously preserved till today.

The project The above mentioned elements surely influence the general formulation of the project, which has to take into account the maximum extent of the construction area, defined by the Zoning plan. The project has to show that this kind of high quality tourism could be harmonized with the preservation of the existing archaeological heritage and with the protection of the natural environment.

The golf course The general formulation of the project founds its origin in the positioning of the area foreseen for the construction of the Club House; it’s kind of gravity area of the whole extension, located in its final part western to the ancient roman penetration road, the decumanus, probably a remain of the ancient centuriation and just outside the olive groves. On the western area, which is practically a meadow, is foreseen the Driving Range and nearby the Pitching Green and the Putting Green. All the fairways shown in the attached outline have to be more precisely defined from the project point of view by means of detailed analysis in the field. The first nine holes are spread northern of the largest olive grove; in particular the hole number 1 is located in between the eastern olive grove and the western one, having just few trees; the other holes do not touch the olive groves, except for the hole number nine that cuts it diagonally. That hole shall become the symbol of the entire golf course; the most spectacular one from the scenic point of view, immersed in between the olive trees and turned towards the sea. From a total of about 4.700 olive trees, only 320 shall have to be removed to make space for the hole number nine; some of these shall be transplanted within the same olive grove to replace the missing trees, and the others shall be transplanted within the southern residential area as garden decorations. The hole 10 starts towards south and the fairway is all spread within the southern area, to return with the hole 18 till near the Club House. The nine holes of the Practice Course and of the Academy are always starting from the Club House, to go towards east, over the eastern olive grove, and southern of the Driving Range. The foreseen lakes along the course are positioned in such way to be used for rainwater harvesting and storage, as to be able to improve the sweet water availability for irrigation;

LARUN – the golf destination

The construction area The extent of the costruction area is positioned in the central-eastern part of the total area. The general plan foresees a maximum possible accommodation of up to 1.200 beds. The project distributes those beds into three separate areas: a hotel area at the northern border of the construction area, adjacent to the Club House, which potentially could reach about 300 beds; a large residential area within the central part of the extent; a smaller residential area northern of the penetration axis. In between the area allocated for hotel and the residential area there’ll be an area dedicated to sports facilities.

The archaeological park The whole western area shall be comprised within the intervention and, owing to the fact that this is one of the Adriatic’s largest roman sites, there could be developed an Archaeological park with facilities dedicated for the representation of the findings, but also of the ancient olive oil and amphorae’s production. This could also be extended to the sea and by means of an equipped diving centre on site; There’ll be possible to bring enthusiasts to visit the adjacent tanks of the Kupanja fish farm; Seems that the submersed structure covers a surface of 2.500 sqm, which differentiate it as the largest one known.

Sea bathing The extreme western cape is dedicated for sea bathing; the existing Mediterranean macchia grove along the coast shall be cleaned and planted, to create shady areas for the relaxation of tourists.

Road connections The road access occurs via existing gravel roads which are connected to the coastal road between Poreč and Tar, to create two penetration access points into the area corresponding with the ancient roman road, which could be emphasised and revalorised. From here, it’ll be possible to access the parking of the residential area, the parking of the hotel, to be used by the Club House as well, and finally the service area of the Club House. At this point, the asphalt road finishes, continuing just as a biking and walking path. It proceeds following the existing direction, allowing to reach the sea bathing area and to join the existing biking paths going south towards Červar and Poreč, and north towards St. Marina and Vabriga. A road extension shall continue from the southern main road access, prevalently over existing roads, that’ll lead until the parking of the Archaeological park.

Conclusions Those, seeming to be, almost insurmountable requirement, with this project shall make the intervention an international attraction for the golf tourism and not only, with its own personality in comparison with other similar projects in Istria.

Teritory of the project Golf Larun

Physical plan of the municipality Tar-Vabriga / under realization

Ownership

Property of Histria Fecunda d.o.o.

HISTRIA FECUNDA HISTRIA FECUNDA/OPĆINA TAR-VABRIGA HISTRIA FECUNDA/RH RH

Current state

Current state

Current state

Current state

Land ownership Ownership Public ownership Private ownership

Total

Size (sqm)

Zoning

Cca 110.000 Cca 30.000

GOLF COURSE LARUN – LODGING

Cca 140.000

Municipality TAR/VABRIGA Public ownership Private ownership

Total

Cca 1.070.000 Cca 190.000

Cca 1.260.000

Total land area

AREA

GOLF COURSE AREA

cca 1.300.000

The residential-tourist construction area is not included within the Zoning plan (UPU) of the Golf course Larun.

Development Concept

Development Concept Five-star deluxe boutique hotel with approx. 150 rooms, with several units built as suites detached from the main building, multiple restaurants and function/banquet rooms Exclusive high end luxury villas on spacious land plots; A 3.000 sqm spa and wellness center operated by an established international spa operator focusing on the new wave of health and beauty treatments and therapies like thalassotherapy or ayurvedic treatments; Berths with a promenade including restaurants and entertainment facilities.

Vision To become the leading high end boutique resort of the Adriatic: a place to retreat, dine and enjoy active relaxation and providing a growing capital appreciation opportunity to its residents

Golf design FAHRENLEITNER

GOLF PROJECT

3 D – Golf Larun

Residential estates Brief description: • apartments (parking bay, common pools, common garden) • villas (garage, large pool, large garden)

Hotel

Brief description: • 5 star luxury hotel managed by an international operator • 120 guest rooms • 30 serviced golf apartments • Extensive indoor and outdoor spa and wellness facilities (3,000 sqm) • Multiple restaurants and bars • Meeting facilities and conference rooms

Golf Course

Brief description: • Signature golf course (Fahrenlaitner) • 18 holes • 2 Driving range • Putting green area • Clubhouse with restaurant, bar and other supporting facilities

Berths

Brief description: • • • •

Berths (in water) Maritime border crossing Gas, utilities and laundry services Charter services & brokerage

Development timeline

Development Timeline 2011

2012

Planning

2013

2014

2015

2016

2017

2018

2019

2020

2021

Construction

Hotel Operating Income - Hotel

Planning Construction

Resident. Estate

Sales

Planning

Construction

Golf Operating Income - Golf

Planning

Berths

Construction

Operating Income – Berths

2022

2023

Demand forecast

Resort benchmarks

Selection criteria: • Location (Mediterranean) • 4-5 star hotels (international brand) • Golf course on site or in proximity • Spa and wellness and conference center availability • Real estate exclusive high end luxury villas on spacious land plots • Berths

Resort benchmarks • Hotels: 150 rooms; published room rates EUR 120-250; spa around

3,000

sqm; conference facilities for 300-500 delegates • Hotel performance: average occupancy rates between 60-65%; average achieved room rates estimated between 60-65% of the rack rate • Real estate: price range EUR 2,500-5,000 per sqm according to type of Resort benchmarks property (villa, apartment, etc), quality of facilities offered (size of garden, pool, view), branding and location • Main target markets: Great Britain, Italy, Austria, Germany and Domestic. Others emerging: Scandinavian, Russia, Poland, Slovenia

Demand forecast - Main assumptions Based on: • Proposed concept and positioning • Market analysis and international benchmark • Expected development of tourism demand in Istria

We have established the following assumptions: • The hotel operation will stabilize in the fifth year • The Istrian golf development strategy will be realized (12 courses by 2020)

Hotel performance

Hotel performance

Average room rates (excluding VAT and breakfast) Year

2016

2017

2018

2019

2020

EUR

250

250

263

276

289

Demand forecast – Residential units Main target markets – class A second home buyers from: • Primary markets: Germany, Great Britain, Italy, Austria/Switzerland, Scandic countries and Russia • Secondary markets: Domestic and CEE, BeNeLux and France

Selling methods: sales offices in the target countries, agreement with real estate agencies, complimentary units to international celebrities, organization of large events on site, M. Chanaan network, Hotel network

Demand forecast – Golf Memberships Type of membership

Membership fee (EUR)

Resident golf title (Golf Larun property owner)

60.000

Annual subscriptions

2,500

Golf rounds

Current project status

Current project status • Market & financial feasibility study and Business Plan to be prepared by M. Chanaan co. • Development costs confirmed by M. Chanaan co. • Financing of the development provided • Selected Golf course architects – URBANISTICA co. (Masterplan development), Fahrenlaitner (Golf design) - planning documents and Current project status drawings received • Resort master plan finalized • Initial concept design and schematic design under preparation • Berths schematic design completed • Urban Zoning Plan (UPU) under preparation • Building permits to be finalized within 3-6 months after submission of the UPU by the local authorities

Overview of works performed Infrastructure • Electricity: middle-tension and low-tension supply network constructed • Roads: preliminary construction works on the access roads as well as modernization and asphalting of the road deck (3km). Relocation of the existing roads in line with the design documentation • Water Supply network: preliminaries, earthworks and assembly work on the reconstruction and development of the pipeline and water supply network and construction of the water reservoir • Surveying: layout survey for design requirements, preparation of geodetic studies for purpose of correction of actual surface areas, route staking out for roads • Geotechnical reports: exploratory, laboratory, geophysical, engineering geologic and geotechnical works is in course • Archaeological sites: reconnaissance under expert supervision of the Archaeological museum of Istria from Pula and project of conservation of archaeological findings under preparation

Partners in project:

M. CHANAAN d.o.o. Business Management Consulting OIB: 64240260474 Istarskog razvoda 7 52440 Poreč - HR Tel:+385.052.433.370 Tel./fax:+385.052.453.569 e-mail: [email protected]

Urbanistica d.o.o. Zagreb

&

A.B.C.D. d.o.o. Poreč

KAPPO* STUDIO ZA KRAJOBRAZNU ARHITEKTURU, PROSTORNO PLANIRANJE, OKOLIŠ d.o.o.

AAVA

AAVA savjetovanje d.o.o. Sveučilište u Zagrebu GEOTEHNIČKI FAKULTET Geodil d.o.o. ZOU ________________ Zajednički odvjetnički ured/Attorneys-atLaw Office Goran Veljović, Siniša Borštner, Jasna Stupavsky-Stella, Nadan Perić, Denis Jelenković,Merima Ibrahimović, Jelena-Kristina Cindrić Bačac, Andrej Stanič, Ivana Bilić Komparić i Saša Cvečić Dipl. Ing. DIETHARD FAHRENLEITNER Technisches Büro Landschaftsökologie – Landschaftsgestaltung – Raumplanung MITTERNDORFERWEG 14 • A – 6380 ST. JOHANN TELEFON + FAX: ++43(0)5352/65417 MOBIL: ++43(0)664/2006729 E-MAIL: [email protected] WWW.GOLFPLATZPLANUNG.AT