Omega 20 Design & Build Partners Summary Document September 2013
Montenegro - The world’s fastest growing tourism market Key Highlights The Projects & Investment Opportunity The Projects are the development of a 5-star hotel, conference centre and residential resort in Budva, Montenegro (“Safiro Project”) and the development of a golf course and associated accommodation and facilities in Tivat, Montenegro (“Golf Project”). Both Projects offer an exciting opportunity to invest in Montenegro, the world’s fastest growing tourism market. The Safiro Project is for the development of a 5-star branded hotel, with luxury residential apartments and a conference centre. Key features: Approximately 140 metres of prime beach frontage and is located within a 20 minute drive of Tivat international airport The 5-star hotel will have approximately 175 en-suite rooms that all benefit from large balconies and sea views A contract has been signed with a world renowned luxury hotel operator, for the 25 year management of the hotel A memorandum of agreement has been signed with Bouygues Batiment International for the construction of the Project, ensuring delivery of the Project on time and on budget The development will benefit from the ongoing business generated from the world class conference centre that will be built on the site
The Golf Project is a master planned development of a Championship-standard golf course, club house and luxury accommodation, to be branded as the Royal Montenegro Golf and Country Club. Key features: The first golf course to be built in Montenegro – 18 holes and designed to be of Championship-standard Luxury accommodation including 220 indulgent golf villas and 220 fully appointed serviced apartments Superb array of facilities including landscaped gardens, swimming pools and a variety of entertainment spaces 786,000 sq meters of land under 90 year lease with exclusive option to purchase A 300m x 100m driving range, operating since August 2013 A development enjoying the support of the government of Montenegro and the municipality of Tivat An experienced project, development and investment management team with a a proven track record of delivering large scale and high profile developments The Investment Opportunity The opportunity to generate up to 2-3 times return on equity (assuming the loan option is taken and a sale of the facilities in 2022) An option to borrow up to 84% of your investment, reducing cash investment to 16% An investment opportunity in a trading company (closed ended limited company), in a risk managed and tax efficient environment An opportunity to share a unique blend of fixed income returns and a contingent profit share from the Safiro Project and Golf Project The minimum investment is £50,000
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Omega Design & Build Partners
Montenegro Montenegro, located south of Croatia, has a population of approximately 650,000 people with 290 kilometres of undeveloped coastline, backed by the impressive black mountains of its name. The country became independent in 2006 and has leadership with a vision to create the Monaco of the Balkans – with a focus on luxury tourism. The first major international hotel chain to commit to the country is The Aman Resort, which has opened on Sveti Stefan. Additionally, Six Senses, Four Seasons and Banyan Tree are also actively engaged on other development sites. Most visitors to Montenegro are from Russia and former Yugoslavian countries (in particular Serbia) The fastest growing tourism market in the world in 2013, according to the World Travel & Tourism Council Montenegro. Travel and tourism investment is estimated to rise by 10% per annum to reach €518m (or 49.6% of total investment) in 2023 Montenegro’s base currency is the Euro The Safiro Project will be the first 5 star resort on the beautiful Bay of Budva and we strongly believe will become a major international tourist attraction The Golf Project will be the development of a world class, luxury south facing golf coastal development in Tivat, nearby the stunning Bay of Kotor Counterparties Founded in 2000, Future Capital Partners (FCP) is one of the UK’s leading alternative investment boutiques, specialising in renewable energy, international property, healthcare and media & entertainment investing and financing. FCP is contracted by BPHS to raise capital for the Projects and the Partnership contracts FCP to carry out administrative services on their behalf. In addition, Future Design and Build Services Limited, a subsidary of FCP, will undertake to give specialist real estate advice to the Partnership. www.futurecapitalpartners.com Ascension Developments is a specialist project and development management company. Ascension has been contracted by Future Capital Partners to lead the final design, key third party contract negotiations and general progress towards achieving financial close and build of the Safiro Beach Resort. They have a strong team on the ground both in the UK and in Montenegro to manage all aspects of the Safiro Project.
Founded in 1993, DML is an international development and project management consultancy operating in emerging and established markets. DML has a multi-disciplinary professional team of commercially minded individuals with a broad range of international experience and qualifications. DML is well placed to advise clients on all aspects of the design and development process. DML’s services are at the disposal of the Partners. www.dml-group.com Local partner Boka Group, part of Boka Golf Developments d.o.o, the leasehold owners of the golf course development site,has managed a local land fund in Montenegro since 2005, and has delivered average annual returns of 22% per annum. It also has exceptional political and business connections. www.bokafund.com Bouygues Batiment International (a subsidiary of Bouygues Construction), a world-renowned construction company have signed a memorandum of agreement with IPCS for the constructionof the Safiro Project www.bouygues.com/en IrriPlan was founded in 1994 by Giles Wardle. It is a firm of multi-disciplinary qualified consulting engineers specialising in irrigation, drainage, water resources and water engineering for the golf, sports turf, landscape and horticultural markets. They devise efficient, practical, innovative solutions to meet the requirements of projects, from sourcing and storing water to irrigation design and implementation. Savills International is a leading property services company employing around 25,000 staff worldwide, with 259 offices in 27 countries. www.savills.co.uk Foresight Montenegro is an international associate of Savills (UK) Ltd and is the largest international real estate agency business and the most trusted brand in Montenegro. www.sav-montenegro.com Steve Marnoch, the founder of Golf Marnoch Limited, has over 36 experience in golf course design and construction management. www.golfmarnoch.com Studio K are a leading Montenegrin architectural and engineering company consisting of highly experienced licensed architects and engineers.
www.ascensiondevelopments.com
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Omega Design & Build Partners
Summary Document
3
-
-
-
Beach Restaurant
Beach Facilities
Golf Project
1,050,000
-
-
-
-
-
-
-
1,050,000
Apr-15
1,050,000
-
-
-
-
-
-
-
1,050,000
Apr-16
1,238,097
-
32,411
-
-
-
155,686
-
1,050,000
Apr-17
1,147,805
-
97,620
185
-
-
-
-
1,050,000
Apr-18
1,257,433
-
179,113
4,096
23,855
369
-
-
1,050,000
Apr-19
1,399,248
-
283,241
4,505
53,311
8,191
-
-
1,050,000
Apr-20
2,208,609
-
1,086,617
4,956
58,026
9,010
-
-
1,050,000
Apr-21
2,063,062
-
-
Beach Facilities
Golf Project
-
-
-
1,257,433
-
179,113
4,096
23,855
369
-
-
1,050,000
Apr-19
1,399,248
-
283,241
4,505
53,311
8,191
-
-
1,050,000
Apr-20
2,208,609
-
1,086,617
4,956
58,026
9,010
-
-
1,050,000
Apr-21
7,618,930
-
4,357,113
96,304
1,115,103
193,520
-
806,889
1,050,000
Apr-22
8,670,121
(8,300,000)
6,036,115
110,045
1,250,295
211,091
155,686
806,889
8,400,000
Total
Assumes Developer chooses to pay fixed fees for Project Orientation Services
Assumes 90% of apartments sold before the end of March 2017
4.15m invested in the Safiro Project
Assumes BPHS procures £20m of services from Omega Partnerships for the Golf Project
between €0 and €50m; 15% from €50m-€80m; 25% from €80m-€100m; 35% from €100m-€130m; and 50% from €130m - €160m
Assumes a 20.44% share of BPHS's Golf Project profits at the rate of 5% of profits
1,147,805
-
97,620
185
-
-
-
-
1,050,000
Apr-18
13,402,923
(8,300,000)
6,418,030
325,958
3,253,224
743,208
155,686
Based on a GBP 8.3m investment of which GBP 4.15 invested in Golf Project and GBP
1,238,097
-
32,411
-
-
-
155,686
-
1,050,000
Apr-17
10,288,669
-
3,804,447
306,766
3,054,913
715,726
-
2,406,817
8,400,000
Total
Assumes 5.42% share of Procyon profits
1,050,000
-
-
-
-
-
-
-
1,050,000
Apr-16
2,406,817
Apr-23 to Apr-2040*
Assumptions
-
-
Beach Restaurant
-
1,050,000
-
Conference Centre, Casino, Retail
-
(8,300,000)
-
Apartment Profits €5528 per m²
-
1,050,000
Apr-15
(8,300,000)
-
Hotel Profits
Partnership Investment
-
Project Origination Fees
Sep-13
Annual Return (£)
-
934,581
5,451
63,119
9,911
-
-
1,050,000
Apr-22
Cash Flow Projection for £8.3m Investment (Ignoring Taxation, VAT, CGT) - Sale of Hotel in 2022
(8,300,000)
-
Conference Centre, Casino, Retail
(8,300,000)
-
Apartment Profits €5528 per m²
Net Cash Flow
-
Hotel Profits
Partnership Investment
-
Project Origination Fees
Sep-13
Annual Return (£)
Cash Flow Projection for £8.3m Investment (Ignoring Taxation, VAT, CGT) - Hold for 25yrs with Sale of Hotel in 2040
Financial Illustrations - September 2013
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Omega Design & Build Partners
Individual Partners
£41.5k
£300k
Future Design & Build Services Ltd (“FDBS”)
£8m
Commercial Structure Plan
PGA standard golf course and luxury accommodation (owned by third party)
Phase one construction services
Boka Property Holding Services (Jersey) Limited (“BPHS”)
and residential apartments (100% owned by BPHS)
Irrevocable payment to secure the services of IPCS and other multiple sub-contractors
Integrated Property Contractor Services Ltd Montenegro (“IPCS”)
Real estate consultancy services
Development consultancy services
Project origination fee for development consultancy services
Construction and property services relating to the Projects
Revenue streams
Construction and property services relating to the Projects
£8.18m
Omega Design & Build Partners £8.3m
£8m
Omega 2012 Developments Ltd
For further information please contact Future Capital Partners 10 Old Burlington Street, London, W1S 3AG T: +44 (0)20 7009 6600 F: +44 (0)20 7009 6601
[email protected] futurecapitalpartners.com
The content of this promotion has not been approved by an authorised person within the meaning of the financial services and markets act 2000. Reliance on this promotion for the purposes of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. This document is exempt from the general restriction on the communication of financial promotions on the grounds that this communication is made to a certified high net worth individual, a self-certified sophisticated investor, a person having professional experience in matters relating to investments, or a high net worth body. Communication of this document to any person in the united kingdom, other than a person described above, is unauthorised and may constitute a criminal offence. Any individual who is in any doubt about the investment to which this document relates should consult an authorised person specialising in advising on investments of the kind in question. This should be read in conjunction with the initial business plan (in particular the “important information” and “risk factors and risk management” sections) and accompanying documents.
