INTRODUCTION EXPERT OPINION UNIQUE OPPORTUNITY. property options

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2 page one INTRODUCTION Welcome and thank you for your interest in this exciting property investment opportunity. Property Options are a real estate company based in Marbella southern Spain and we are looking to secure twenty four front line golf apartments to fulfil the significant demand for our Fractional Ownership product. I would like to share with you some very interesting facts and figures which were presented at the first ever European Fractional Interest Symposium which I attended recently. Held in Windsor, UK, on November 11 and 12, 2004, and hosted by Ragatz Associates, The Registry Collection and RCI Europe, the symposium attracted 135 delegates representing every sector of the hospitality industry from many regions including Europe, the Middle East, Africa and the United States. UNIQUE OPPORTUNITY EXPECTED RETURN 32% MINIMUM INVESTMENT INVESTMENT PERIOD 50,000 EURO MAX TWO YEARS BANK GUARANTEES FROM A MAJOR SPANISH BANK ARE IN PLACE TO SAFEGUARD YOUR INVESTMENT We were all there to discuss the huge potential of this niche market and this first European Fractional Interest Symposium served up a feast of irresistible facts and figures from the United States fractional interest (FI) and Private Residence Club (PRC) market, this presentation was to a very influential audience with the capacity to change the face of the holiday ownership industry in Europe. The World Trade Organization study on tourism for the year 2020 cites Europe as having over 700 million international travellers, which will be almost three times more than the United States, so talking pure volume; Europe is the place you want to be. EXPERT OPINION Co-host, Dick Ragatz, presented some very persuasive figures to support the potential of Fractional Ownership and Private Residence Clubs, pointing out that the fractional ownership market enjoyed a much better image than timeshare. Dr Ragatz said: The concept has received a lot of attention from United States developers, consumers and public media. The perception is very positive, especially in the media where it seems to have whetted their appetite for a cutting-edge product; customers perceive it primarily as real estate as it tends to hold its value, with a high level of service overlay separating it from timeshare. Last year in the United States sale volumes in this market increased by 38 per cent and is the perfect complement for hotel and timeshare operations, as is clear by the entry of major brand names such as Hyatt, Four Seasons, Intrawest and Marriott. page one

3 page two KEY LEARNING VOICES OF EXPERIENCE Many major players in the United States Fractional Ownership and Private Residence Club markets spoke at the symposium, candidly sharing their experience. Michael Burns of Private Residence Resorts, a successful independent developer with two flagship resorts in Idaho, Les Saisons in Sun Valley, a winter ski resort which is equally popular in summer, and Hearthstone, a mountain resort, claimed flexibility was paramount. Intrawest s Michael Coyle reported profit margins of between 17 and 23 percent, he said: We have aggressive plans to be in Europe, and Spain in particular. Intrawest currently have 20 different resort villages throughout the United States, Canada, Switzerland and recently in Les Arcs, France. A bedroom in Il Borgo di Colleoli, due to be launched this summer Leading Private Residence Club marketer Destination Club Partners launched its first venture in Seven years later, working with a developer, it opened the first urban resort club, the 80 unit Phillips Club in Manhattan, one of the most flexible Private Residence Club models, selling at $2,000 per square foot with units ranging from 450 to 2,100 square feet. The company s Steve Dering said: Our model uses floating weeks and offers shorter stays which we felt people in New York would want. Greg Doman of Fairmont Heritage explained that the Fairmont Heritage Place brand has been chosen for its fractional product because we thought club was overused. He said: We felt an upscale company and five-star fractional product would help to strengthen our brand and complement our assets, we wanted to capitalize on demographic trends and the demand for second homes. With plans to expand into Europe and the Middle East, Fairmont conducted a focus group survey for its Acapulco Diamante fractional property for which phase one is sold, with project build scheduled for completion in THE EUROPEAN PERSPECTIVE Il Borgo di Colleoli, an upmarket Italian property between Florence and Pisa in Tuscany, will be one of the first European fractional resorts when it launches this summer. The company s Brian Martin outlined the difference between developing the fractional product in the United States and in Europe. He said: Because land is at a premium in many European destinations, apartments tend to be smaller and even multi-site, as ours is, building restrictions in Tuscany meant our properties had to be conversions. page two

4 page three WHY SPAIN? WHY SPAIN People have been buying holiday homes abroad for many years and Spain is the single largest European country to benefit from these purchases and this trend is set to continue. Although some refuse to even acknowledge timeshare for various reasons, it has been around for many years with somewhere in the region of 4.5 million owners of this product in Europe alone. Several major companies such as Marriott, Ritz-Carlton, Hilton, Hyatt and Intrawest to name but a few have invested heavily in this sector and have seen their efforts suitably rewarded. Property Options are a Marbella based real estate company with a vast level of experience not only in the sales and marketing of conventional real estate but also the holiday/timeshare industry. We have been conducting research over the last three years, which has mainly consisted of talking to actual, as well as potential owners of both timeshare and conventional real estate, the results have been so positive that we are now introducing a major marketing campaign promoting fractional ownership of freehold property. Jan & Mike Reynolds, owners of two fractions 12 weeks in Marbella, through Property Options Jan & Mike Reynolds, owners of two, six week fractions purchased through Property Options THE WHY PRODUCT SPAIN All fractional properties come fully furnished to a high standard I have identified several projects which fit perfectly into the fractional ownership programme and will look to roll these out in different phases over the coming months. The first is a fantastic development located in Sucina which is a mere 10 minutes from Murcia s San Javier airport, only 45 minutes from Alicante s International airport and only 15 minutes from the new proposed Corvera International airport. The project offers excellent golfing facilities as the units are front line to the 18-hole Jack Nicklaus designed championship golf course. We realise not everyone plays golf, however a very interesting statistic is 70% of people who purchase frontline golf properties do not actually play the game. There are many other benefits of owning this type of property, not least of all having the peace of mind that nothing is going to be constructed in front of you. page three

5 page four RESORT FEATURES ADDITIONAL FEATURES OF THIS FANTASTIC RESORT INCLUDE: Social centre with restaurants, cafeterias and pubs Travel agency, excursion service and car hire Fitness centre, spas, swimming pool complex with both indoor and outdoor pools Commercial units, banks and cash points Gymnasium, tennis courts and sports lessons Supermarkets with home delivery Interior design and home improvements Laundry facilities Babysitting service Gardening service Sophisticated security system operating 24 hours a day, with closed circuit video cameras and controlled access to the resort guaranteeing peace of mind at all times HEALTH CARE The resort can also provide an additional service to cope with specific health requirements, from adapting apartments for greater comfort to providing a telephone helpline. An optional health service at the resort s own medical centre and products in the pharmaceutical and health service stores are also available. Many of the resort s facilities are situated in the town centre by the lake page four

6 page five SPECIFICATIONS All the apartments at the Golf Resort have been designed to respect the architectural style of the historical country estate with original materials to match. Quality control for construction and materials is overseen by a separate division responsible for supervising every step in the construction process, ensuring that the most demanding quality standards are complied with at all times. Façade finished with waterproof finished mortar. Interior floors finished with first class ceramic floor tiles by Porcelanosa or similar. Bathroom equipped with first class vitroporcelain fittings by Porcelanosa. Washbasin unit in master bathroom. Interior of property painted with top quality matt finish. Double glazed windows in PVC. Air conditioning in lounge and dining room, pre-installed in bedrooms. Heating: by radiators and gas-boiler. Entrance door in Iroco or similar. Interior doors and wardrobes veneered in beech. Complete built-in wardrobes. Instalment of shared parabolic TV-antenna and telephone lines in bedrooms, kitchen and lounge. Kitchen furnished and equipped with hob, oven and extractor. One-handle taps by Porcelanosa or similar. Roof finished in Arabic style ceramic tiles, wrought iron balconies and window box. A floor plan example The feel of the resort with its vast open spaces, wide avenues, bordered by plant life and lower beds and low-density housing are not unlike Florida or California, but with all the atmosphere and flavour of the Spanish Mediterranean. Everything down to urban planning is carefully planned and implemented page five

7 page six PRICING Having identified this superb development, Property Options now needs to secure the twenty four units by the 25th February 2005 before there is a price increase and it is released on the open market. To follow is a breakdown per unit, and then the amount required to secure the block before 25th February BREAKDOWN PER UNIT Aprt. Floor M2 Bed Bath 562A Penthouse B Penthouse C Penthouse A Second B Second C Second D Second E Second F Second G Second A First B First C First D First E First F First G First A Ground B Ground C Ground D Ground E Ground F Ground G Ground page six

8 page seven PAYMENT AMOUNT TO SECURE THE BLOCK BY 25TH FEBRUARY ,291, Euro will be the only payment required by the original investors! YOUR RETURN The return on the initial investment of 1,291, will be 32% over a maximum period of two years i.e. (413, Euro). HOW Through our extensive marketing campaign via two of the largest companies within the holiday ownership industry Advertising within numerous quality publications Our use of substantial databases Exclusive agreements with various financial institutions Networking with the majority of real estate companies in southern Spain Partnership agreements with Estate agents and other companies in Europe Referrals EXPECTATION Whilst our projection has stated the investment period to be a maximum of two years, we anticipate the actual period to realise your return will be between months. page seven

9 page eight EXIT PLAN Whilst we are certain of the success of fractional ownership, how are we 100% sure of the 32% return on the initial investment? Simply because we know the additional demand for purchasing good value freehold property outright, which will easily take care of any shortfall in Fractional sales. We are securing these properties at a pre-construction price even before they are released on the open market. The developer will also make regular price increases as the project reaches various stages of completion, normally 3%-5% every 3-4 months or sooner if sales are going well. Therefore, the developer only has to have 3-4 price increases before our units become less expensive than the ones they are selling direct which normally takes between months. The ultimate benefit we have however is the location; we are securing one of the best front line golf blocks on the whole development which will always command a price even when there are other units available. SECURITY Your investment is 100% secure as the project is covered by a bank guarantee from one of the major banks in Spain. Agreements will be drafted by a top firm of English speaking Spanish lawyers to ensure your total peace of mind and to confirm the percentage of your investment. REQUIRED INVESTMENT Whilst we are looking for 1,291, Euro to secure these units, we are offering investors the opportunity to join with as little as 50,000 Euro. The return on your investment will be directly proportionate to the amount invested in the project e.g.: Investment Return 50, , , , , , , , , , page eight Maximise returns on property by purchasing off-plan

10 page nine WHAT NOW? All that is left now is for you to contact us and confirm the level of investment you are interested in. The shares are available on a first come first served basis and we expect demand to be very high indeed. Ken Spencer Director Gerry O Loughlin Director Tel: Tel: Fax: Mob: ken@property-options.com gerry@property-options.com Property Options S.L. Marina Marbella 7D Avenida Severo Ochoa 28 Marina Marbella Marbella Spain We look forward to welcoming you on board. Regards Ken Spencer Director Gerry O Loughlin Director Property Options Marbella Office page nine