PUEBLO DO MAR HOTEL, SPA & GOLF EXECUTIVE SUMMARY

PUEBLO DO MAR HOTEL, SPA & GOLF EXECUTIVE SUMMARY INDEX 1.0 Executive Summary 1.1 Project Summary 1.2 Proposition Summary 1.3 Returns Summary 1.4 ...
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PUEBLO DO MAR

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

INDEX

1.0 Executive Summary 1.1 Project Summary 1.2 Proposition Summary 1.3 Returns Summary 1.4 Operations Summary 2.0 Vision 2.1 Overview 2 . 2 W h a t m a k e s Ta m b a b a u n i q u e ? 2.3 What is possible? 3.0 Financial 3.1 Financial Summary 3 . 2 Ta m b a b a M a s t e r p l a n 3.3 Developer Cash Flow 3.4 Financial detail (see also Appendix 3) 3.5 Commercial Land Availability 4 . 0 Ta m b a b a C o u n t r y C l u b R e s o r t 4 . 1 Ta m b a b a V i l l a s 4 . 2 F I AT ( J o a o P e s s o a ) 4.3 Mangabeira Shopping (Joao Pessoa) 4.4 International Convention Centre 5.0 Marketing 5 . 1 Ta r g e t M a r k e t S u m m a r y 5.2 Sales Positioning 6.0 Conclusion 6.1 Execution Summary 6 . 2 Ta m b a b a C o u n t r y C l u b R e s o r t C o m m i t m e n t 7 . 0 Te a m 7.1 Introduction APPENDICES Appendix 1 Financial Summary (CEA Associates Feasibility Study) Appendix 2 Feasibility Report (CEA Associates Feasibility Study)

1.0 EXECUTIVE SUMMARY 1.1 Project Summary Tambaba Country Club Resort is a five star, 150 hectare, mixed-use condominium resort located in the state of Paraiba in north east Brazil. Tambaba CCR also has attached an additional 30 hectares of land suitable for extended development of a golf course, residential or commercial real estate, creating a site of up to 180 hectares. Tambaba has been under construction of infrastructure & facilities for 36 months and is on course for completion in 2015 The resort comprises of 856 residential land plots, with full freehold title deed & planning to each plot as well as 65 hectares of commercial land (including the additional 30 hectares) for extended development of Golf, residential and commercial activity. The residential plots have been on sale since all planning permissions and necessary construction licenses have been achieved in 2009 with residential sales achieving approx 75% of available residential land. With a 65 / 35 sales split between domestic Brazilian and international sales, the remaining 25% of residential plots are also available for sale.

A full commercial feasibility has been conducted by a leading international specialist with significant track record and success in Brazil – Colin Evans Associates, CEA Consultores Ltda of whom J Colin Evans (FRICS) has led the report. The report concludes there is a marked increase in demand for both domestic and international tourism, as well as a deficit in supply of international level 5 Star hotel and leisure accommodation within this area of Brazil. This proposition is for an investor/developer who wishes to accelerate entry into the high growth market of Brazil and generate a sustainable profitable and strong yielding asset within this market. The recommendations and findings of this report are available as Appendix 1 of this proposition.

1.2 Proposition Summary The development partnership for Tambaba Country Club Resort has 624,508m2 of zoned commercial land for sale with outlined planning within the mixed use resort of Tambaba Country Club Resort, Joao Pessoa, Paraiba, Brazil. There are two recommended options (‘Option A’ and ‘Option B’) for development of the land for sale that forms the basis for this proposition.

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

Option A

Option B

This land area with the development of:

This land area with the development of:

-  250 Key 5-star resort hotel and spa

-  250 Key 5-star resort hotel and spa

-  250 Key 5 star condo-hotel

-  250 Key 5 star condo-hotel

-  9 Hole Golf Course attached to resort hotel

-  18 Hole Golf Course attached to resort hotel

-  250 Residential Golf villa development lots

-  300 Residential Golf villa development lots

-  Luxury Apartments or Professional Sports Academy

The proposition is for acquisition of the land for sale by a commercial investor or development group with the intention to deliver Options A or B, or a variation in keeping with the mixed use design of the resort.

The land valuation price totals R$83,775,700 (1*) (£22.046,236 approx based on rate of exchange R$3.8 to £1 GBP) (1*) ($35.649,234 approx based on rate of exchange R$2.35 to $1 USD) (1*) (1*) CEA feasibility 2011 2009 LL imoveis independent valuation upon completion suggests R$570 per m2 (SERIOUS OFFERS INVITED) As part of negotiated conditions of purchase, the development partnership of Tambaba Country Club Resort will continue to complete delivery of all key infrastructure and project leisure facilities and will also offer full support to the purchaser / investor / developer for legal, development, planning, licensing, construction and re-sales of additional residential and commercial units as required via the developer’s established sales and distribution channels.

1.3 Returns Summary The development of the acquired land is forecast as follows, based upon a 3 year development cycle followed by 10 years of operations:

Option A (9 Hole Golf)

Option B (18 Hole Golf)

-  TOTAL CAPEX - R$325.6 Million BRL

-  TOTAL CAPEX - R$231.4 Million BRL

-  IRR - 23% -  TOTAL Accumulated Profit Return including residual value - R$451 Million BRL -  Break-Even of operations is achieved - Year 4

-  IRR - 20% -  TOTAL Accumulated Profit Return including residual value - R$409 Million BRL -  Break-Even of operations is achieved - Year 6

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

Option A requires higher CAPEX than Option B as it requires more saleable residential property development; however because of this Option A generates 11% more total profit over the same period.

Praia Bela | Paraiba, Brazil

1.4 Operations Summary

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

Ownership

Sales

Tambaba Country Club Resort is incorporated as TAMBABA COUNTRY CLUB RESORT EMPREENDIMENTOS IMOBILIÁRIOS, CONSTRUTORA E INCORPORADORA LTDA - C.N.P.J. no. 10.359.505/0001-09, located at Engenho Palmeira, Município de Pitimbu, CEP 58.324- 000, Brazil.Tambaba Country Club Resort is owned under the development partnership of: Aranessa Empreendimentos Ltda and Mastel Construtoria Ltda, both incorporated in Brazil.

The domestic Brazilian interest in purchasing upon Tambaba has been high with approximately 65% of all sales being to purchasers in this market. International sales commenced in May 2010 and account for the remaining 35%, indicating a growing international interest in both Tambaba Country Club resort and in north east Brazil. Sales prices have been verified by independent valuation and comparisons and supported by domestic sales numbers.

Construction

Tambaba Country Club Resort has also won awards for (Best international Developer) OPP Awards 2010, and (Best Developer: The Americas) AIPP Awards 2011 & 2012 all of which add further marketing support and credibility for ongoing sales both internationally and domestically.

Construction project management and delivery is led by Mastel Construtoria of the development partnership. The development of Tambaba Country Club is underway and Tambaba has achieved all necessary licenses and permissions for construction of the resort. The development partnership is responsible for the delivery of the entire infrastructure and communal facilities within the current registered master-plan and is due to complete delivery in 2015. These facilities are open for the use of all residents and guests of Tambaba Country Club Resort. The development partnership will continue to offer support in planning, design, construction and delivery services to you as a purchaser of this project, ensuring consistency and successful delivery to time and budget.

Via our wholly owned businesses of Invest in Brazil and Maxima Imoveis, the development partnership will continue to offer full sales and marketing support for key saleable products within the proposition if it is required. With established product expertise, successful track record and full route-to-market networks already mature and established, we would be happy to continue sales on behalf of the purchaser once agreements are in place.

2.0 Vision 2.1 Overview Tambaba Country Club Resort in its current master plan form will be the most highly specified mixed use resort in the state of Paraiba north east Brazil upon completion in 2015. Commercial development of the recommended projects in “Options A and B” will position Tambaba Country Club Resort as one of the most comprehensive golf and spa resorts once completed and one of the more sought after destinations in Latin America.

2.2 What makes Tambaba unique? Location

Ownership

One of the most important factors to consider when developing any area is the location as this is key to future returns. Tambaba is situated in the north east region of Brazil accessible by road from 3 international airports (João Pessoa – 30 minutes, Recife – 90 minutes, Natal- 120 minutes) and is seen as a growing holiday destination not only because of its weather but because of its fabulous beaches, coastline, picturesque countryside, as well as being only 20 minutes from the vibrant and growing city of João Pessoa which is the capital city of the state of Paraiba. João Pessoa has seen huge growth over the last 3 years with new roads, hotels and restaurants being built as well as being chosen for the new 25,000 seat International Convention Centre which is expected to host many summits and concerts.

With Tambaba having freehold status and fully registered title deeds, its current sales structure and delivery allows the opportunity to develop within its commercial area’s a luxury hotel, golf and leisure complex. With the facility of being able to introduce developers to key local contacts from architectural, planning, construction and legal, all commercial developments can commence quickly compared to other projects which allows completion of such developments ahead of the 2016 Olympic Games.

The area in and around João Pessoa is also growing considerably due to companies such as vehicle manufacturer Fiat who are constructing their largest factory. In addition to a new £400m glass works, a state of the art cement factory and solar panel production company, an impressive shopping complex called Mangabeira is also being built a few kilometres south of João Pessoa to cope with demand. It is anticipated that these and other industries will create in excess of 7,500 jobs over the next 5-10 years so finding somewhere to live will become extremely important. With tourism increasing by over 75% in 2012, in 2013 João Pessoa was voted the 4th best new destination on the rise in all of South America, (source Trip Advisor) therefore, it was no surprise to learn that the current international airport is already at full capacity. With local government confirming that they intend to allocate land close to the International Convention Centre to provide a new international airport, owning land and property within the area now will give a distinct advantage over those who will want to buy in at a later date.

Local Competition Within the state of Paraiba there are no other destination resorts that compare with the facilities and size of Tambaba Country Club Resort. The closest is the resort of Mussolo and although it is all inclusive with small bungalows, Mussolo has limited facilities as well as space. This would be even more apparent if either options A or B were to be completed on Tambaba’s commercial sector. With Tambaba offering 5 star facilities, there are no 5 star international brand hotels in or around the state of Paraiba and João Pessoa city.

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

2.3 What is Possible? With the suggested development of Option A or Option B Tambaba Country Club Resort will become one of the leading 5 Star destination Resorts in the north east of Brazil as well as one of the most desirable residential condominiums. With a unique blend of permanent residents, second home residents and domestic and international tourists, Tambaba will satisfy the growing demands of both the domestic and international tourist and residential markets. Over and above the 856 upscale villa residences in Tambaba the opportunity to create the following also presents itself:

International 5 Star Resort Hotel & Spa A 250 Key international feature resort hotel with high quality modern spa; fitness centre; conference facilities; banquet / catering facilities; restaurants; and beautiful pool area. Incorporating children’s facilities, and additional sporting facilities such as tennis, it will be designed with a dramatic sense of arrival into the golf course and beautiful natural surroundings of Tambaba, it will have large modern rooms, designed for business travellers, events and tourists, and attract year round visitors to its five star facilities and consistent tropical climate.

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

International 5 Star Condo Hotel A 250 Key internationally managed condo hotel attached to the Resort Hotel, beautifully designed and 75% owned by private owner/investors. It will incorporate the same facilities of the Resort Hotel for guests, and maintain consistent design and build standards with the Resort Hotel. Integrated into the stunning natural surroundings of Tambaba, the Condo Hotel will have the same large, beautifully designed and highly specified rooms as the Resort Hotel, ideal for guests, business travellers and tourists alike.

Additional Income For Condo Hotels The feasibility study commissioned by Colin Evans suggests 75% of condo rooms would be sold which will recoup initial outlay. Rooms can also be sold for fractional usage further increasing sales income.

9 or 18 Hole Golf (depending on Option A or B) A 9 or 18 Hole golf course of high quality design. Integrated into the beautiful landscape and surroundings of Tambaba Country Club Resort the golf course will also have Clubhouse, Driving Range and golf shop. The golf course would be attached to the International brand Resort Hotel, and be a popular feature with Tambaba Country Club residents and hotel guests alike. It would be one of the only operational golf courses in the north east of Brazil, making the Resort Hotel and Condo Hotel unique destinations and increasing tourist catchment and interest considerably.

Golf Villa Lots With a feature 9 or 18 hole golf course upon Tambaba Country Club resort, there will be 250 (Option A) or 300 (Option B) Golf lots available for exclusive premium location residences around the golf course itself. These lots would be 750m2, comfortably allowing an upscale bespoke villa of 400m2 (5 bedroom villa) along with private pool and landscape gardens to be built. These lots and their development would create a highly exclusive, high end residential area within the overall resort.

Additional Income For Golf Lots The feasibility study commissioned by Colin Evans only takes into account the land plots for golf villas. Villa prices once built are expected to be sold for between £500,000 to £1,000,000. To recoup or increase income, if an average sales price of £750,000 was used then: In option A with 250 villas, if half were sold then £93.75m could be generated. In option B with 300 villas, if half were sold then £112.5m could be generated. The remainder could be used for rental or fractional purposes which will provide additional yielding income.

3.0 Financial 3.1 Financial Summary

The Financial Summary outlines total CAPEX and forecast Internal Rate of Return (IRR)

HOTEL, GOLF & COMMERCIAL ASSUMPTIONS & RESULTS

INPUT

TCC Land TCC Land Basis Land as 2 2 Area - m Price - m Developer % Developer Receipts CAPEX Option A & B

Resort Hotel - Room Rate - Starting Occupancy - Stabilized Occupancy Condo Hotel

2

35,000  

R$ 200

55%

- Key Monet - m 2 - Rent - m Option A Only

Apartment Residential (Option A only) A luxury apartment complex with a maximum of 4 storeys in height and beautiful integrated design into the resort can be included into Option A. These apartments can be a mix of residential, first or second homes, timeshare (very high demand market in Brazil), fractional ownership, or private rental. These apartments would have access to all of the communal facilities of Tambaba Country Club Resort as well as being able to have paid access to the Resort Hotel facilities and Golf.

Professional Sports Academy (Option A only) With access to over 12 hectare of land, a professional football or sports training academy (with or without private accommodation) can be delivered. Brazil has one of the most desirable bases and demographics for acquiring and developing sporting talent, especially professional football, in the world. Many professional and top league football clubs are expanding their academy and athletic development / rehabilitation facilities abroad (especially from mainland Europe and the UK). With comprehensive leisure and fitness facilities already in place, there is an opportunity to develop a sporting anchor in north east Brazil which currently does not exist for European clubs.

2

30,000

R$ 200

Developer IRR

14%  

R$ 61.241 

16%

20%

R$ 36,870

33%

11%

R$ 39,553

21%

28%

R$ 119,599

51%

84%

R$ 68,334

R$ 4,000 75% 13,626

R$ 250 R$ 750 R$ 30

Residential Option A

122,757

R$ 200

Golf Course & Residential Lots - Golf Course - Residential Lots

462,243

R$ 100

TOTAL PROJECT Option A Option B Only Golf & Residential Lots - Golf Course - Residential Lots TOTAL PROJECT Option B

Total Capital Expenditure R$/000

70%

- Sales price m - Room Sales to Buyers Shopping Mall

R$ 250

OUTPUT

216,743

302,000 283,000

R$ 13,667 R$ 54,668

R$ 300

245,500

585,000

R$ 4,000

R$ 100

R$ 325,597

78%

R$ 300

9% 136%

23%

R$ 93,740

R$ 18,748 R$ 74,992 R$ 231,403

Appendix 1 Financial Summary (CEA Associates Feasibility Study)

11% 29%

20%

2.5 km Fresh Water River

• Tambaba Country Club

20

856 Residential Plots

15

25

Green Area

15

20

25

30

35

30

300,000 sqm Leisure & Shopping

35 40

45

50 55

Green Area

40 45

60 65 70

rid

9 / 18 hole golf course 75 Additional 80Land for Golf Villas

Mad

lf & go a p s otel, 08 SQM h l a 5 Tot 624, 75

85

area

50

55 60

65

70

Approved project Madrid 25,492 m2

80 85

1.5 km to Atlantic Ocean

3.2 Tambaba Masterplan

4.0 TAMBABA COUNTRY CLUB RESORT

3.3 Developer Cash Flow Opton

A

B

Max accumulated negative cash flow R$

Break Even Years of Operations

R$ 140 Million

R$ 140 Million

4

6

Total accumulated return on year 10 including residual values R$ 451 Million

R$ 409 Million

IRR

23%

20%

3.4 Financial Details Appendix 2 outlines the full commercial and financial breakdowns in detail. • Developer Capital Expenditure • Projected Operating Income & Expenses • Land Sales • Land Use • Assumptions • Financial Summaries (Option A & Option B) All financial data is based upon financial feasibility from the Commercial Feasibility report of CEA Associates conducted in February 2011. 3.2 Developer Cash Flow (1*)

3.5 Commercial Land Availability TAMBABA COUNTRY CLUB PARAIBA

HOTEL, GOLF & COMMERCIAL

TABLE # 4 - LAND AVAILABILITY

TOTAL

Designated Commercial Lots

193.335

- London

23.516

- Copacabana

30.220

- Ipanema - Paris

- Madrid

- Monte Carlo Athens

39.986 45.086 25.492

5.980

- Lot 3

3.369

- Lot 4 - Lot 5 - Lot 6 Lower Commercial - Lot 1 - Lot 2 Green Area - Lot 1

Roads

Assessment Extra parcel Lot 1

N/A

29.035

- Lot 1 - Lot 2

624,508

24.392

6.399 3.031 2.674 2.939

11.012

22.811

11.799

57.750

51.712

300.000

57.750

51.712

300.000 TOTAL m2

Appendix 2 Feasibility Report (CEA Associates Feasibility Study)

624.508

4.1 TAMBABA VILLA RANGE

4.2 FIAT The Fiat-Chrysler car company, leader of the Brazilian auto market for the past 9 years is to build a new car plant complex in Pernambuco north east Brazil and will attract over 4,500 direct new jobs once completed together with 12,000 indirect jobs. The plant represents a strategic investment for the northeast as it forms part of a comprehensive program of industrialisation and economic and social development for the Region. The new plant will be installed in an area of 4.4 million square metres in the town of Goiana situated 62 km from Recife, 52 km from Joao Pessoa and only 30km from Tambaba Country Club in the area known as Zona da Mata Norte. It is a strategic point for industrial production as it is located close to two international airports and three ports. The R$3 billion plant will be composed of an engine factory, training centre, research and development centre, test track, proving ground and Supplier Park. The concentration of all these processes means Fiat will increase its capacity by 250,000 units per year and will enable increased efficiency on the assembly line. The project will also impact on the capital goods industry given the high volume of national machinery and equipment, which will represent an investment of approximately R$ 2.8 billion. With construction well under way, it is anticipated that it will take 2 years with completion planned for 2014. The investment in capacity expansion also comes amid a new automotive regime approved by the government forcing companies to invest more in production and development in Brazil and the intense competition among brands of traditional and new markets

Tambaba has also developed a close relationship with the managers of the new factory whereby they have expressed a need for housing for the senior management coming in from Italy, US and Brazil itself. There are expected to be approximately 400 senior management posts representing about 10% of the workforce all of which will be potential clients for luxury housing within a 24 hour secure condominium resort. With Tambaba being the closest luxury resort as well as being associated with the only bi lingual estate agent in the area, this will help bring further sales and rentals outside the core Brazilian market.

4.3 MANGABEIRA SHOPPING The construction of the Mangabeira Shopping Complex has already caused housing prices to rise immensely in its neighbourhood. Homes that sold on average for R$80,000, are now being priced at up to R$ 450,000. The manager of Caxia bank, Isabel Oliveira, reported that with the arrival of the building to the neighbourhood, housing prices had already doubled. And not only are the sale prices of the properties rising but the rental prices are also high, but with slower momentum.

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

Writer, Edileuza dos Santos also commented that “the neighbourhood is attracting a lot of investments and now works almost independently from the rest of the city”. She noted that there are now units for banks, branches of large and small supermarket chains, clothing stores, food sectors and professionals from various sectors of service. The work of building the Mangabeira Shopping Complex is already in the second stage and continues at a pace. The new complex will have 340 shops with investments of over USD 200 million. The prediction is that in the first year of operation, the new venture will have a turnover of approximately R$ 300 million, a building area of 81,000 square metres and will include a five-screen cinema, 210 stores and 13 satellites anchors (super stores) such as Lojas Riachuelo, Marisa, Centauro and Renner. The car park will be able to accommodate 3,350 cars and soon after the inauguration of the Mangabeira Shopping Complex, a tower will be erected containing 340 offices.

The project promises to heat up the economy of the southern zone. “The Mangabeira Shopping Complex is already generating 750 direct jobs and up to the end of December this number will reach 2,500. When ready, the generation of jobs will be 4500 vacancies. This represents an important step in our state’s economy, especially in the region where Mangabeira is located “said businessman Roberto Santiago. The complex also provides an expansion within the second stage. After five years of building with over 60 stores being included to the original design, besides the five cinemas, the project will also include a playground, a six lane bowling alley, 10 escalators and four elevators. [Source: portalcorreio.com.br]

4.4 INTERNATIONAL CONVENTION CENTRE JOAO PESSOA

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

The new 25,000 seat International Conference Centre better known as the Convention Centre Poet Ronaldo Cunha Lima was named after the poet and politician who died in 2012 and was governor of the state of Paraíba where Joao Pessoa is the capital from 1991 to 1994. Situated less than 3km from the bustling and vibrant city of Joao Pessoa, the complex that has an area of 342,000m2 has 4 distinctive exhibition/conference halls. Altogether there are 8 auditoriums with 23 rooms adapted for public events. 2 The centre itself covers an area of 48,676m with 3 car-parking areas for more than 1,000 cars. With the total build cost at R$663 million it was opened in 2013 by Fatboy Slim. The centre has already seen a number of successful conferences with many more on the horizon. With delegates from all over the world coming to Brazil, many for the first time, it was important that the centre was situated in an area that was seen as the “shop window” on Brazil with first impressions being vital. Out of all the areas of Brazil to choose from, Joao Pessoa the capital city of the state of Paraiba was chosen not just because of its outstanding natural beauty but because of the massive increase in new businesses locating to the area as well as an ever increasing tourist trade. With a shortage of housing, the local government in Joao Pessoa has already spent millions of Reais (R$) on new roads and infrastructure in and around the centre to try and cope with the demand for new housing that’s going to dominate over the coming years as the whole area grows. The current airport

servicing Joao Pessoa has also been confirmed at maximum capacity leading to local government allocating a new site for an international airport which will be only a few kilometres from the international convention centre. Developments such as Tambaba Country Club Resort close to this growth area will also benefit not only because of its exclusive 5 star luxury accommodation but also because of the new hotel developments within its commercial sector that can be built as delegates of the centre will be looking to stay close by.

2.3 What is Possible? With the suggested development of Option A or Option B Tambaba Country Club Resort will become one of the leading 5 Star destination Resorts in the north east of Brazil as well as one of the most desirable residential condominiums. With a unique blend of permanent residents, second home residents and domestic and international tourists, Tambaba will satisfy the growing demands of both the domestic and international tourist and residential markets. Over and above the 856 upscale villa residencies in Tambaba the opportunity to create the following also presents itself:

International 5 Star Resort Hotel & Spa Praia De Tabatinga | Paraiba, Brazil

5.0 MARKETING 5.1 Target Market Summary

International Market

Tambaba Country Club Resort is marketed both domestically in Brazil, and Internationally. The marketing incorporates a number of key target market individuals. These markets would also continue to be the same target markets for the residential, condo-hotel and commercial property. The partnership would extend sales as well as construction support as part of the added value we offer to you as an investor or purchaser of the commercial proposition for Options A and B.

International sales launched 9 months after the Brazilian sales in order to establish a local demand for Tambaba CCR. The international market has mostly consisted of purchasers from the UK, Italy and Northern Europe. Other target markets with which to extend to as a priority are: The Middle East, Asia, North America and Russia.

Domestic Brazilian Market Incorporating a mix of local residents as well as nationwide 2nd home seekers, domestic Brazilian sales have accounted for 65% of all current sales to date. The domestic demand for residential homes is presently at 9.1 million houses deficit. Recent comments by the Brazilian Ambassador in London suggested that almost 80% of this demand falls into the middle-class segment. With access to mortgage & construction finance available domestically, Brazil has the fastest growing mortgage market in the world for the last 2 years. Due to high rates of interest domestically, there is also an opportunity for a large investor to be able to extend exceptionally competitive and profitable finance terms via a developer finance model as an added revenue stream if you have the funds available. Brazil has also one of the fastest growing consumer economies and average disposable incomes of any other G8 nation.

Interest The investment opportunity in Brazil accounts for the significant majority of purchasers and interest, with 75% of international purchasers interested in highgrowth and sustainable returns on their investment purchases. Interest in Brazil is very high due to favourable economic growth, massive domestic demand and a stable political climate. This is contrary to many of the current property based investments in traditional established markets of Europe and North America, hit hard by recent economic challenges and with much less room to grow into due to high levels of debt in property and prices having topped out.

5.2 Sales Positioning Saleable products on Tambaba (land and property) can be sold simultaneously to both domestic and international markets. Each has its own positioning based on the profile of each market segment.

A 250 Key international feature resort hotel with high quality modern spa; fitness centre; conference facilities; banquet / catering facilities; restaurants; and beautiful pool area. Incorporating children’s facilities, and additional sporting facilities such as tennis, it will be designed with a dramatic sense of arrival into the golf course and beautiful natural surroundings of Tambaba, it will have large modern rooms, designed for business travellers, events and tourists, and attract year round visitors to its five star facilities and consistent tropical climate.

HOTEL, SPA & GOLF

International 5 Star Condo Hotel A 250 Key internationally managed condo-hotel attached to the Resort Hotel, beautifully designed and 75% owned by private owner/investors. It will incorporate the same facilities of the Resort Hotel for guests, and maintain consistent design and build standards with the Resort Hotel. Integrated into the stunning natural surroundings of Tambaba, the Condo Hotel will have the same large, beautifully designed and highly specified rooms as the Resort Hotel, ideal for guests, business travellers and tourists alike.

9 or 18 Hole Golf (depending on Option A or B) A 9 or 18 Hole golf course of high quality design. Integrated into the beautiful landscape and surroundings of Tambaba Country Club Resort the golf course will also have Clubhouse, Driving Range and golf-shop. The golf course would be attached to the International brand Resort Hotel, and be a popular feature with Tambaba Country Club residents and hotel guests alike. It would be one of the only operational golf courses in the north east of Brazil, making the Resort Hotel and Condo Hotel unique destinations and increasing tourist

EXECUTIVE SUMMARY

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

Domestic Positioning Residential property – It is positioned as predominantly a lifestyle purchase. Tambaba CCR is positioned as a better quality of life within a resort that has more comprehensive facilities, and in one of the best locations in the region. It is a destination resort purchase to live in, or to holiday to as a second home. There is also a domestic segment to have purchases as an investment property with long term or short term rental incomes. Touristic property – Positioned as both investment and lifestyle. Tambaba’s location and superior facilities mean it will catch greater market share than the competition as an exclusive destination resort. There is a significant demand for tourist accommodation within the region. The domestic tourism demand is growing in Brazil in line with their wealth, with approx 90% of tourists being Brazilian, and the majority of tourists from the larger cities of the south or interior of Brazil. Investment based products on condo hotel, managed apartment/villa rental pool, timeshare/fractional purchases are becoming increasingly popular, especially within unique destination resorts.

International Positioning Residential Property – Tambaba products are primarily positioned as investment products in residential property on the project. Because they can point to rapid capital growth forecasts, strong occupancy levels in the area the key demand has been for land especially. This is due to the high growth and resale market demand domestically in particular, as well as increasing international appeal given market development highlighting north east Brazil as a region undergoing a significant property boom to gain closer parity with the more mature markets in the south of Brazil such as Rio de Janeiro and Sao Paulo.

If international finance was to be made available via a developer finance package then bigger ticket property sales such as Villas and high end apartments would be very appealing as products sold into the international investor because of high occupancy and Tambaba’s market position as one of the leading projects in the region. Add to this high occupancy levels and accelerating rental rates, fixed property upon Tambaba would be very appealing primarily to investors looking for yield investments which can service the finance debts and still generate profit. International finance would also make more accessible the secondary market for lifestyle purchasers. Touristic Property – Positioned again as both lifestyle and investment, the access of superior facilities of a managed condo hotel within Tambaba as outlined in options A or B, as well as the wider leisure facilities of Tambaba will prove an area of significant interest to international investors. With Brazil demonstrating some of the fastest growing hotel occupancy and nightly room rates in the world, along with the onset of events such as the 2016 Olympic Games and the already established mature demand domestically for tourism, tourist driven investment products (e.g. condo hotel) would be of significant appeal. Investment in particular in managed properties that can generate strong yielding returns would also be of considerable interest given the growth in popularity of international investment in Brazil right now.

6.0 Conclusion 6.1 Execution Summary

6.2 Tambaba Country Club Resort’s Commitment

The purchase of the land within this proposition for Option A or B would be processed with speed. It would allow, the formal securing of an international operator to be negotiated and agreed prior to development of either option. This in turn will facilitate the design elements of the Hotel, Spa, Condo Hotel, Golf Course, Apartments and Golf Villa plots (and potential subsequent properties) in line with Hotel operator standards in design and construction.

The development partnership of Tambaba Country Club Resort has a minimum fixed commitment of ten years to the project, due to interest generating finance book domestically. They are committed to the delivery of the core resort infrastructure and wider facilities outside of the scope of Options A & B under contract, regardless of the sale of the commercial proposition. This means the developers are committed financially to the long term success of this project.

Upon final designs being approved and licensed, the development partnership for Tambaba Country Club Resort can, if required, commence pre-sales of all saleable property (condo hotel rooms, apartments, golf villa plots, commercial units, etc) in order to assist you in generating quick sales revenue.

The development partnership will also make available their full expertise locally in the acquiring of necessary licensing, design and constructions services as appropriate to facilitate the purchaser. With already established construction and materials suppliers, Tambaba Country Club Resort can support you to ensure your delivery of the project meets the necessary deliverables.

Construction of either Option A or Option B could commence in 2014 and ensure completion of the construction lifecycle can be achieved by early to mid 2016 to coincide with the opening of Tambaba Country Club Resort. This would ensure all commercial aspects of the project are open prior to the 2016 Olympic Games.

Praia De Coqueirinho | Paraiba, Brazil

The current development and sales partnership also offer to extend sales and distribution services to support the purchaser generate income quickly from the sales of saleable aspects of either Option A or Option B, or any alternative product for that matter. They will also help you define the appropriate pricing, payments, product design, strategy etc based upon their own direct experience of selling in both Brazil and Internationally. With national and international distribution networks already established, Tambaba Country Club Resort can offer sales support services to you providing you the benefit of their skills, networks and expertise.

HOTEL, SPA & GOLF EXECUTIVE SUMMARY

7.0 TEAM 7.1 Introduction Tambaba Country Club Resort is wholly owned by Aranessa Empreendimoentos Ltda. And Mastel Construtoria Ltda. Both incorporated in Brazil. The other key party within the leadership, sales and strategic direction of Tambaba Country Club Resort is Invest in Brazil Limited of the UK and Maxima Imoveis of Brazil. Between these four organisations, Tambaba Country Club Resort is led and delivered, representing the development partnership of the resort.

Invest in Brazil

Aranessa Empreendimentos

Mastel Construtoria

Invest in Brazil are a multi-award winning property sales and development business. Operating as the International strategy, sales and marketing organisation responsible for bringing Tambaba into the international community, Invest in Brazil are experienced in creating and selling award winning product in Brazil. Directly part of the leadership and development team of Tambaba, Invest in Brazil have 6 years track record in acquisitions and sales specifically in Brazil, as well as helping define the product and development strategy, go-tomarket model and ensuring that projects stand up to the test of the international investment community.

Aranessa is the joint venture partner for Tambaba Country Club Resort, assisting with the land sourcing, planning, feasibility and commercial structure of the project. Aranessa is a highly experienced leader in project sourcing, trouble shooting and development planning for Brazilian investment projects. Experienced in planning, licensing, sourcing and recoveries throughout the north east of Brazil, Aranessa ensure that the due diligence for their projects remain airtight and commercially viable.

Mastel is the construction partner for construction and delivery of Tambaba Country Club Resort. A highly experienced construction group with exceptional local knowledge and connections, Mastel is the joint venture partner for the project. Mastel has a history of successful development and is the construction partner with Aranessa responsible for delivery of the project and for sales in Brazil.

Paul Clarke – Managing Director

Sean is the Director of Aranessa. A Brazilian company, Aranessa is responsible for the planning, permissions operations and licences acquisition for Brazilian investment projects. Sean is the listed Administrator for Tambaba Country Club resort. He has permanent residency status in Brazil and lived full time in Brazil from 2005-2009. Sean has been in partnership with Invest in Brazil since 2008 and is an expert projects trouble-shooter in Brazil. He is also Invest in Brazil’s key partner for new project sourcing, analysis, feasibility and acquisitions within Brazil.

Paul Clarke has been leading UK and international property companies since 1997. Invest In Brazil Limited was created in 2004 out of Select International Properties (originally created in 2001). Prior to working in The Brazilian property market, Paul was leading sales on international projects such as Polaris World (Murcia, Spain), Eralia’s portfolio (Spanish developer) and Sunny Beach & Bansko projects (Sofia, Bulgaria). Throughout this period Paul led the sales of over £100m of residential property. Paul is an expert in international property investment and development. Over the 6 years Paul has been working in Brazil he has created significant contacts within residential, commercial, planning, construction and engineering, government, legal and financial. Invest in Brazil is now positioned as one of the UK’s leading entry partner for UK/European investors to enter the Brazilian market. Invest in Brazil Ltd operates as the UK sales and marketing function of Tambaba Country Club Resort.

Sean Trafford - Director

With a mixed Brazilian and European leadership team, the leaders of Mastel come with 18 years experience in resort, villa and condominium construction and development, as well as construction materials import / export for major projects across the US, Middle East and Brazil. An expert in construction, materials and highly passionate on design, quality and functionality, the leadership team of Mastel was also responsible for supplying the marble to Trump for Trump Plaza, Trump Castle and The Taj Mahal in Atlantic City in the US.

Furio Massimo Fiaschi – Managing Director Massimo is the Managing Director of Mastel, the construction partner for Tambaba. A permanent resident in Brazil for 9 years, he has exceptional local knowledge and connections. Mastel was created in 2005 responsible for the Oasis Do Mar development and is a 50% shareholder in Tambaba CCR. Prior to Mastel, Massimo was MD for Fibra in Italy for 18 years responsible for villa and condominium construction and development as well as construction materials import / export for major construction projects across the US, Middle East and Brazil. Massimo was responsible for supplying the marble to Trump for Trump Plaza, Trump Castle and The Taj Mahal in Atlantic City in the US. An expert in construction materials and construction project management, Massimo is highly passionate on design, quality and functionality. Massimo is also a senior director of Maxima Imoveis, responsible for the Brazilian market sales and marketing of Tambaba CCR. Invest in Brazil’s key partner for new project sourcing, analysis, feasibility and acquisition within Brazil.

Maxima Imoveis Furio Massimo Fiaschi – Managing Director Maxima Imoveis is a progressive real estate agent company registered with the CRECI board. Its offices are in the city of Joao Pessoa the capital of Paraiba. The company was formed in 2007 with European and Brazilian partners to maximise on the flourishing real estate market of north east Brazil and to support the partners other ventures of the commercialisation and construction of condominiums. Maxima Imoveis currently has 47 members of staff with its own marketing department, administration team, accountancy and 38 sales staff all registered and trained by CRECI. Maxima also have key partners throughout Brazil from Sao Paulo to Brasilia who market their products. Another asset is the multi lingual services that can be offered. They can converse in English, Portuguese, Italian, Spanish, French and Afrikaans. This allows investors from a large international base to seek assistance with their investments.

Invest In Brazil 11 Alfred Street Darlaston West Midlands WS10 8TL 0121 526 2766 07973 360414 [email protected] www.investinbrazil.co.uk