STUDY FOR THE DEVELOPMENT. Maroni Hill Resort. The Project. M.L CITYHEAD LIMITED PROJECT OWNERS AND PROMOTERS

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1 MARONI HILL RESORT 1 STUDY FOR THE DEVELOPMENT OF Maroni Hill Resort The Project By M.L CITYHEAD LIMITED PROJECT OWNERS AND PROMOTERS CONTACT: - EVROS I. EVRIPIDOU Advocates and Legal Consultants mailto:info@cyprussolicitors.com February 2018

MARONI HILL RESORT 2 INVESTMENT PROPOSAL Investment Land: Maroni Hill, Larnaca South East Coast, Cyprus Area Location: Distances: On a hill Sea: 6 Km Overlooking Maroni Village Coastal Road: 6

2 MARONI HILL RESORT 2 INVESTMENT PROPOSAL Investment Land: Maroni Hill, Larnaca South East Coast, Cyprus Area Location: Distances: On a hill Sea: 6 Km Overlooking Maroni Village Coastal Road: 6 minutes Views to Mediterranean Sea. Zygi Marina: 6 minutes North of Zygi Yacht Marina Limassol: 20 minutes Holiday Housing Zone Larnaca: 35 minutes Nicosia: 30 minutes Motorway: 6 minutes Investment Land Market Value: 2, Εuro Land Area: 20,070 square meters

3 MARONI HILL RESORT 3 Description: It consists of 15 separate adjoining building plots in a privileged location on a hill overlooking the sea. Each plot with a separate title deed of ownership All the plots are owned freehold by the same owner Each individual plot has right of passage Each plot has an extent of about 1340 sq.m The option is available for the immediate development of the land through the building and sale of 15 luxury hilltop villas with swimming pools and large landscaped gardens Excellent return on the Investment: The cost of Maroni Hill land and construction turn key will be Euro 6 million and the expected profit over a two year period will be Euro 3.4 million i.e. 28.5% return on the investment per year. STUDY FOR DEVELOPMENT A. Essence of the Project The present business plan refers to the development of a total of 15 adjoining building plots (approx M2 each) in a Holiday Housing Zone on a hill overlooking the traditional Cyprus village of Maroni- Larnaca with panoramic sea views to the Mediterranean Sea (south east tourist coast of Cyprus). The development will involve the construction and sale of a total of 15 villas. B. Official Records The project estate is registered in the Records of the District Land Registry of Larnaca as shown on the Official Site Plan, List and Description of Titles as shown in Appendix A C. Description and Location of the Project The property comprises of 15 plots of land, situated within Maroni village parish, in the Larnaca District. The estate forms part of a locality, known as Kafkalla tou Teratsou and it occupies a position approximately 2 km north of the village built up area. The estates have a public

4 MARONI HILL RESORT 4 access and the sites themselves comprise of a gentle hill slope, occupying a raised location and offering excellent views towards the village and the coastal line. The sites are the result of an agrotemachia division of a much larger plot. Each individual plot has a right of way. D. Extent: Each plot has an extent of approximately 1340 sq.m. E. Legal data- Zone Planning Capabilities The estate under survey comprises of 15 adjoining plots of land, situated within a holiday housing development zone (.i.e. Π 1) of the parish. The locality has a most attractive environment and the views that it offers, as well as its proximity to the seaside are its main attractions. This estate is included in the holiday housing zone whereas public water supply, electricity etc will be provided. Holiday Housing Zone (π 1) Building Coefficient: 15% Ground Covered area 15% Total Number of floors:2 MAX Building Height : 8.3 meters The locality has become the subject of heavy interest and attractive for investors over the last few years. Its much improved access, the relatively low cost of land and the village s expansion have provided an active market. Local property values are moving upwards and this trend will continue but at a lower rate. The market for such one donum plots (1340M2) in this area is active and the demand still high. For this reason the estate remains a sound and valuable investment and it has been treated as such in this assessment. F. Main Competitive Advantages The estate enjoys the following main advantages which distinguish it from most of the other housing developments in Cyprus that is:- A privileged and unique location. It is the only estate in the south east coastal region situated on a hill with magnificent views to the surrounding countryside and the blue Mediterranean Sea The existence of 15 separate title deeds enabling if necessary the transfer of freehold ownership for each building site as early as the signing of the contract of sale This feature is almost unique for Cyprus developments. It provides absolute security of title and security of investment and enabling mortgaging at the outset if necessary

5 MARONI HILL RESORT 5 G. Method of Development of Investment Land Number of units / villas: 15 The applicable building density is 15% and building coverage 15% Therefore: Coverage (i.e. 15% of 20,070 of net area 3,010 M2 Plus covered verandas(i.e. 20% of 3.450) 602 M2 Total buildable area M2 Number of units 15 Each unit: Covered inside built area: 200 M2 Covered verandas: 40 M2 Total built area: 240 M2 Fifteen units to be built each on an approximate area of land of 1340 M2 H. Financials of Development :- Cost, Sales Income, Profit a) Cost Market value of investment land ( acquisition cost) 2.520,000 Cost of construction of total covered areas 15 villas 3.420,000 x 228,000 as per below breakdown i.e. Cost of construction of inside covered areas 1050x200 M2 each 210,000 Cost of construction of covered verandas 450 x40 M2= 18,000 Architects, engineers 4% on the cost of 136,800 construction 3.420,000 Total cost 6.076,800 b) Sales income of 15 Mountain Villas each of a size of M2 built areas on plot of land extent of 1400 M2 at 2,650 per M2 = 636,000 X15= Total income 9.540,000 c) Profit Sales income from 15 villas 9.540,000 Total cost 6.076,800 Profit 3.464,200 Therefore the net profit amounts to 3.464,200

6 MARONI HILL RESORT 6 I. Project Parameters /Assumptions The parameters and assumptions on which the present business plan is based are outlined and defined below that is: a) Mountain Villas i.e. 15 villas of M2 covered built areas on plot of land area of 1400 M2 (including 40 sq.meters covered verandas etc) b) Cost of construction will amount to 1050 per square meter including landscaping. c) Swimming pools are extra (quotation at the request of the purchaser depending on the size and specifications of the particular pool). d) Architects and Consultant Engineer s fees including supervision, 4% on the cost of construction. e) Sales of 15 Mountain Villas each of a size of M2 covered built areas on plot of land extent of area 1400 M2 at 2,650 per M2 = 636,000 X15= Total income 9.540,000 f) As per prices above the sale price or average per villa will amount to 636,000 g) Estate Agents commission / promotional and sales expenses would be added to the sale price. An estate agent can add to the sale price between 3% and 8% commission at his discretion depending on his ability to sell. h) Estimated period for preparation of architectural plans and submission to the Planning Department between one month and three months i) Estimated period for obtaining the planning permit - 3 months period is legally prescribed. j) Estimated period for obtaining the building permit one month after the planning permit. k) The total of 15 villas will be constructed, delivered and sold within a period of 24 months l) Estimated period of construction from the time of obtaining relevant permits six months to eight months. m) The value of the land is 168,000 per building plot. I.e. for 15 plots a total of 168,000 X 15 = 2.520,000. As the developers will be using other existing premises, infrastructure, resources and staff for the development, construction and sale of the villas no overhead or other expenses were calculated for the purposes of this business plan. No provision of Directors fees or other salaries or expenses has been made. The directors will be drawing against their expenses or otherwise (Directors Account) and upon completion and sale of the project the profits will be distributed to the shareholders. It is proposed that a limited liability company be incorporated as the vehicle for the development of the project. J. CONCLUSIONS It is to be concluded that the present business plan and the figures contained herein, based on the project s parameters and assumptions as defined above all of which are supported by market available data, confirm the viability and profitability of the project. Further, from the findings of the business plan, it is clear that adequate inflow of funds from the sales income will exist to cover the cost of land and the cost of construction

7 MARONI HILL RESORT 7 and other expenses. Nevertheless, (setting aside the fact that of the project will be selffinancing through sales on the plans-off plan ), based solely on the above assumptions the total funds to be invested would amount to 6.076,800 which over a period of two years will fetch a profit of Euro 3,464,200 i.e. 57,01% return on the investment i.e. 28,50% return on the investment per year List and Description of Titles ADDENTUM ONE Τhe immovable property is situated at Kafkalia, Maroni, Larnaca District under Sheet/ Plan LV/14 and registered at the LAND Registry Records as below: Registration Sheet Plan Plot number Number LV LV LV LV LV LV LV LV LV LV LV LV LV LV LV

8 MARONI HILL RESORT 8

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