Zafarana Beach Resort, Egypt * Investment Guide * * Frontline 5 Star development * * Prices starting from 26,500 * * Full range of facilities including pools, restaurants, nightclub and marina * * Average 10% rental guarantee available for five years * * Freehold ownership * * Renowned as the world s premier diving site * * Excellent capital appreciation * * Due diligence conducted by UK based lawyers * * A new airport is in planning 30km to the north of the development * * Private beach and coral reef *
The Development Situated on the Red Sea, Zafarana lies to the south of Cairo and the north of Hurghada. This is where IPI are developing a range of one and two bedroom apartments set in a beautiful gated five star resort. Zafarana is being constructed as Eco-friendly with power generation through waste recycling and a desalinisation plant for the water supply. Key Facts: Stunning, high-spec apartments, all with individual outdoor space and some with a prime beach-front location Salt and fresh water swimming pools A full range of on-site facilities which will include : o a marina o tour services for water and desert o private beach and coral reef activities o scuba diving school and water sports o o shops and supermarkets wellness centre / fitness centre o diving shop o botanic gardens o restaurants o tennis and squash courts o bars o mini golf o nightclub o medical and dental surgeries o 24 hour concierge o 24 hour in-house security services o reception and room services o shuttle service o o o amphitheatre in-house serviced laundry proposed off-road motor sport centre (20 km North of the resort) o limo service o LAN internet connection in all rooms; wireless internet connection in the Hotel The hotel apartments will be managed by a reputable management company to EU standards The developer has an extremely strong track record with respect to successful projects worldwide The development is being built to international standards; each stage of construction will be monitored to ensure strict compliance The development comes with a five year structural guarantee There is a golf course at the resort of Stella Di Mare which is situated 60km north of Zafarana. There is also an 18 hole Championship Course currently under construction 30km north of Zafarana. - 1 -
The Location Zafarana beach resort is located between the town of Zafarana and the Red Sea coastline in a virgin and recently discovered diving and snorkelling area. It is situated approximately two and a half hours north of Hurghada and one and a half hours south of Cairo; both of these cities have international airports with both chartered and direct flights from the United Kingdom. Both limo and bus transfers are available. Additionally, set for completion in 2010, there is an airport being planned at Ain Soukhna approximately half an hour north of the resort, which will provide excellent access for visitors and investors alike. Market Research Report by Essam Tabarak on strategis.gc.ca: In March 2004, Government of Egypt authorities announced the completion of initial planning for phase one of a new international airport in Egypt to be built in the Ain Soukhna area on the Red Sea. The $80 million airport will be located on the Ain Soukhna-Suez Road as part of a strategic plan to develop trade and tourism in the area. The single 3.5 kilometre runway airport is expected to serve one million passengers per year in addition to having the capability of handling air cargo. Egypt signed a memorandum of understanding with Norwegian authorities securing funding for airport construction; however, during the implementation phase (not yet announced) expertise from all over the world will be welcomed. The resort also provides excellent access to St Anthony s and St Paul s monasteries with tours readily available, and is becoming increasingly in the spotlight due to the exceptional and untouched diving located in this area. - 2 -
Legal A full due diligence has been conducted on the developer, development and management group by a UK based lawyer Contracts have been written by UK based lawyers and are governed under European, not Egyptian, law There are no restrictions on direct foreign ownership for this development Unlike other areas of the Red Sea Coast the Zafarana beach resort is freehold ownership The Title Deeds will be legalised by the Royal Netherlands Embassy in Cairo There is no restriction on when you can resell your apartment. The Apartments One Bedroom One hundred and fifty three 5 star boutique one bedroom apartments are located frontline of the resort, approximately twenty metres from the beach. Priced at 26,500 (subject to change), these beautifully designed apartments offer 45m2 internal living space consisting of one bedroom, one bathroom and open plan living area with integral kitchen; there is an additional 8m2 external living space. - 3 -
3D Aerial View - 4 -
Site Plan - 5 -
Floor Plans - 6 -
Apartment Positions Ground Floor - 7 -
First Floor - 8 -
Second Floor - 9 -
Furniture Packs Whilst the furniture pack is an optional extra, should you wish the management group to rent-out your apartment, it is compulsory. This pack must be purchased and paid in full upon purchase of your apartment. The furniture packs are guaranteed during rental. This means that items that need to be replaced through damage, wear or failure will be by the management company. Living room and Kitchen 1 sideboard 3 ceiling lamps 1 colour television 1 two seater sofa-bed 1 single seater sofa 2 paintings Curtains 1 corner table 1 mirror 1 floor lamp Bedroom and Bathroom 2 single beds Bed sheets and cover 1 mirror with light 1 beside cabinet 1 ceiling lamp Curtains 1 TL ceiling lamp 1 fridge 1 cooker 1 toaster 1 microwave 1 coffee maker 1 table and cover Cutlery and dinner plate set 2 persons 1 pan set 1 glass set 1 flat iron 1 set of toiletries 1 mirror Set of towels 2 persons 1 ceiling lamp 2 table lamps Outside 1 outside lamp 1 terrace table and 2 terrace chairs The price of the one bedroom furniture pack is 3,500 (subject to change). Price List Price 26,500 Furniture Pack 3,500 Escrow Agent, Deed and Translation 1,050 Maintenance Fee (per month estimated) 50-10 -
Breakdown of payments and procedure A) Where the Dutch escrow agent is used, a professional fee of 1,050, which consists of : Due diligence approval of the developer Due diligence approval of the Egyptian Land Ownership/Government planning approvals Due diligence of all plans and construction methods as per industry standards Due diligence of the management company Setting up of escrow accounts Raising of Contracts Monitoring escrow accounts in Holland with the developer s lawyers as per the photographic evidence and structural reports Official property certificate in Egyptian and English Official deeds which will be legalised by the Royal Netherlands Embassy in Cairo. B) Where Anthony Seddon & Co Solicitors is used, a professional fee to the escrow agent of 500 ( 200 escrow agent handling fee and 300 Deed and Translation) plus Anthony Seddon & Co costs, which consists of : Due diligence approval of the developer Due diligence approval of the Egyptian Land Ownership/Government planning approvals Due diligence of all plans and construction methods as per industry standards Due diligence of the management company Raising of Contracts. C) A reservation fee of 1,500 to allocate the property and take it off the market. The Property price minus the reservation fee, together with the furniture pack price, is to be paid in ten working days into the escrow account. The Dutch escrow agent will then release the monies in stage payments, per block, as follows : 1) 10% start construction 2) 10% start foundation 3) 20% start concrete construction 4) 15% start construction wall and roof 5) 15% start plastering 6) 10% start finishing works 7) 10% start building facilities 8) 10% after inspection and delivery D) The buyer receives an official property certificate in Egyptian and English E) Official deeds will be legalised by the Royal Netherlands Embassy in Cairo F) Final inspection and delivery inclusive of all facilities G) Five year construction warranty starts Please note : as part of the due diligence and project management, we will be monitoring the stages above with visual and written confirmations which will be provided by a third party Dutch based quantity surveying firm. - 11 -
Projections Case study : 26,500 Five Star Boutique One Bedroom Apartment EXAMPLE COST Description Cost Cost of apartment 26,500 Furniture pack 3,500 Escrow agent, Deed and Translation 1,050 Total cost 31,050 EXAMPLE PROFIT : After 12 months (i.e. at scheduled completion) Description Value/Costs New Property Value * 39,275 Cost 31,050 Net Profit 8,225 EXAMPLE PROFIT : After six years Description Value/Costs New Property Value * 56,500 Rental Income (five years) ** 10,600 Cost 31,050 Net Profit 36,050 * calculated on a conservative predicted growth of 35% in the first year and 100% over six years ** calculated on a conservative rental return of 8%. Prices in a similar resort in El Gouna rose by an average of 50% per year in the past two years www.buyassociation.co.uk. These are a rough guide of the predicted growth and although IPI believes that this is likely to be a realistic estimate, we can not guarantee this. - 12 -
Two Bedroom Currently, there are 108 two bedroom apartments released in the Zafarana beach resort. These are located at the entrance of the resort and consist of two different designs. Garden Apartments priced at 44,950 (subject to change), these beautifully designed apartments offer an average of 77m2 internal space, consisting of two bedrooms, one bathroom, a kitchen and an open-plan living area; an average of 16m2 terrace space and 80m2 garden. Middle Apartments priced at 39,950 (subject to change), these beautifully designed apartments on the first floor offer an average of 77m2 internal space, consisting of two bedrooms, one bathroom, a kitchen and an open-plan living area and an average of 16m2 balcony. - 13 -
Site Plan - 14 -
Floor Plans (subject to change) Garden Apartments typical layout - 15 -
Middle Floor typical layout - 16 -
Apartment Positions Ground Floor - 17 -
Middle Floor - 18 -
Furniture Packs Whilst the furniture pack is an optional extra, should you wish the management group to rent-out your apartment, it is compulsory. This pack must be purchased and paid in full upon purchase of your apartment. The furniture packs are guaranteed for five years. This means that items that need to be replaced through damage, wear or failure will be by the management company. Living room and Kitchen 1 sideboard 3 ceiling lamps 1 colour television 1 three seater sofa-bed 1 single seater sofa 2 paintings Curtains 1 corner table 1 mirror 1 floor lamp Bedroom and Bathroom 1 double and 2 single beds Bed sheets and cover 2 mirrors with lights 2 beside cabinets 1 ceiling lamp Curtains 1 TL ceiling lamp 1 fridge 1 cooker 1 toaster 1 microwave 1 coffee maker 1 table and cover Cutlery and dinner plate set 6 persons 1 pan set 1 glass set 1 flat iron 2 sets of toiletries 1 mirror Set of 6 towels 2 ceiling lamps 4 table lamps Outside 1 outside lamp 1 terrace table and 4 terrace chairs The price of the two bedroom furniture packs are: Garden : 7,450 } Middle : 6,950 } subject to change Please note, the differential in furniture pack prices is due to extra furnishings being supplied in the garden apartments. - 19 -
Price List Ground Floor Apartment Price 44,950 Furniture Pack 7,450 Escrow Agent, Deed and Translation 1,050 Rental Guarantee: Year 1 : 6% 2,697 Year 2 : 8% 3,596 Year 3 : 10% 4,495 Year 4 : 12% 5,394 Year 5 : 14% 6,293 Middle Floor Apartment Price 39,950 Furniture Pack 6,950 Escrow Agent, Deed and Translation 1,050 Rental Guarantee: Year 1 : 6% 2,397 Year 2 : 8% 3,196 Year 3 : 10% 3,995 Year 4 : 12% 4,794 Year 5 : 14% 5,593-20 -
Breakdown of payments and procedure A) Where the Dutch escrow agent is used, a professional fee of 1,050, which consists of : Due diligence approval of the developer Due diligence approval of the Egyptian Land Ownership/Government planning approvals Due diligence of all plans and construction methods as per industry standards Due diligence of the management company Setting up of escrow accounts Raising of Contracts Monitoring escrow accounts in Holland with the developer s lawyers as per the photographic evidence and structural reports Official property certificate in Egyptian and English Official deeds which will be legalised by the Royal Netherlands Embassy in Cairo B) Where Anthony Seddon & Co Solicitors is used, a professional fee to the escrow agent of 500 ( 200 escrow agent handling fee and 300 Deed and Translation) plus Anthony Seddon & Co costs, which consists of : Due diligence approval of the developer Due diligence approval of the Egyptian Land Ownership/Government planning approvals Due diligence of all plans and construction methods as per industry standards Due diligence of the management company Raising of Contracts. C) A reservation fee of 1,500 to allocate the property and take it off the market. The Property price minus the reservation fee, together with the furniture pack price, is to be paid in ten working days into the escrow account. The Dutch escrow agent will then release the monies in stage payments, per block, as follows : 1) 10% start construction 2) 10% start foundation 3) 20% start concrete construction 4) 15% start construction wall and roof 5) 15% start plastering 6) 10% start finishing works 7) 10% start building facilities 8) 10% after inspection and delivery D) The buyer receives an official property certificate in Egyptian and English E) Official deeds will be legalised by the Royal Netherlands Embassy in Cairo F) Final inspection and delivery inclusive of all facilities G) Five year construction warranty starts Please note : as part of the due diligence and project management, we will be monitoring the stages above with visual and written confirmations which will be provided by a third party Dutch based quantity surveying firm. - 21 -
Projections Case study : 39,950 Five Star Two Bedroom Middle Floor Apartment EXAMPLE COST Description Cost Cost of apartment 39,950 Furniture pack 6,950 Escrow agent, Deed and Translation 1,050 Total cost 47,950 EXAMPLE PROFIT : After 12 months (i.e. at scheduled completion) Description Value/Costs New Property Value * 60,883 Cost 47,950 Net Profit 12,933 EXAMPLE PROFIT : After six years Description Value/Costs New Property Value * 79,900 Rental Income (five years) ** 19,975 Cost 47,950 Net Profit 51,925 * calculated on a conservative predicted growth of 35% in the first year and 100% over six years ** calculated on a guaranteed rental return as per the contract Prices in a similar resort in El Gouna rose by an average of 50% per year in the past two years www.buyassociation.co.uk. These are a rough guide of the predicted growth and although IPI believes that this is likely to be a realistic estimate, we can not guarantee this. - 22 -
Picture Gallery Swimming pool under construction at rear of resort Boulevard under construction - 23 -
Artist s Impression of Hotel Artist s Impression of Two Bed Apartments - 24 -
Resort Entrance Two-bed apartments, night view - 25 -
Developer The Zafarana Beach Resort is being developed by IPI, based in the Netherlands and the Egyptian based construction company El Mohannad. International Property Investors bv The Netherlands, 12 August 2006 Company profile of IPI Internationale Makelaardij bv And IPI International Property Investors bv: Type of Company: Share Capital: Offices: Future Offices: B.V. is a joint stock company according to Dutch law and established in 2004 en 2006 The whole of the issued share capital is owned by the holding company Notwerk bv Mr. Jürgen Oddens is full owner and responsible for Notwerk bv Herenweg 181 1934 BA EGMOND aan den HOEF The Netherlands Opening of IPI offices in Maarn, The Netherlands and IPI office on the site of the Zafarana Beach Resort Dec. 2006 Track Record: 1. Mr. Jürgen Oddens was during 1998 and 2003 responsible for Benelux sales & marketing of the Golf and Sports resort Mosa Trajectum in Murcia, Spain 2. IPI has done few developments and restoration and sales of typical old German so called Fachwerk houses in eastern Germany. Approximately 25 units 3. IPI started in 2004 with the sales & marketing in Europe and assisted in development of the first phase in the Al Alamein Gardens Resort north coast, Alexandria region, Egypt. Approx. 100 units apartments and small facilities 4. In March 2005 IPI bought development of 32 apartments in Gümüslück Bodrum area in Turkey. Famous Dutch television program on RTL4 made a broadcast of six times about this project and sold all units. Delivery almost completed 5. During 2005 IPI was involved in small projects around Alanya area in Turkey 6. At the end of 2005 IPI started the negotiations with El Mohannad Real Estate to buy the Al Haya Resort. In February 2006 IPI and El Mohannad signed an agreement for the Zafarana Beach Resort at the Red Sea area. IPI and the members of El Mohannad have established an Egyptian joint venture for more developments along the Red Sea area. Second development will be an extension of the Zafarana Beach Resort with approximately 120.000 m2. The joint venture will also be responsible for the maintenance, services and rental of this resort and the future resorts - 26 -
El Mohannad Real Estate El Mohannad Real Estate is a S.A.E. Company according to Egyptian law with a working capital of minimum EGP 10,000,000, and was established in 1981. Offices are based in Cairo and Suez. The company has a strong background in architect design and development of holiday resorts and high class residential houses in the Red Sea area, as well as the Mediterranean Coast. At the Mediterranean Coast in Alexandria, the resorts under construction will have in total more the 1,000 units, apartments, villas and hotel suites; specially built for the European holiday market. In Cairo El Mohannad Real Estate built a state of the art luxury residency tower. Turn key projects were finished in Al Allam Area (Suez), Al Tayareen Resort and Sand Beach Resort (Suez). The latest development is in one of the best locations in Egypt in terms of weather, Red Sea Mountains, diving and snorkelling facilities: Zafarana Beach Resort. The first phase building started in 2006 and will be completed in June 2008 with more than 600 apartments, villas and hotel suites. The development will include all high class facilities. In the next few years the company will develop, in a joint venture with IPI Property Investors, a chain of resorts in the Red Sea coast area for a total of 2,500 units in the top luxury class. This future planning is now in full preparation, starting with land acquisition and official permissions. An 18-hole golf-course is included in the plans for short to medium time, a unique development in Egypt under supervision of a well known shaper. The companies goal is to achieve a chain of the best luxury resorts in Egypt, well known in the tourist industry and giving a very high return on investment for individual investors. - 27 -
Questions and Answers 1 What makes Zafarana such a fantastic investment opportunity? The Zafarana Beach Resort provides a fantastic investment opportunity for many reasons. Located frontline on the Red Sea Coast, the positioning is simply stunning, allowing those using the resort excellent access to a vast array of activities both on and under the magnificent waters of the Red Sea. The resort is being developed by a Dutch developer with a proven track record and a full due diligence has been conducted by UK based lawyers to ensure the safety of the investment for the UK public. Added to this are the facilities of the resort, the infrastructure for airports and tourist areas, managed security and a guaranteed income from the Banker s Rental Guarantee we feel the package offers a remarkable and affordable investment opportunity. But the main investment incentive would undoubtedly be the entry level. If you compare this with other similar investments around Europe and indeed in Egypt, the prices are highly competitive, if not vastly superior. This enables clients to invest at the ground level and maximise their future profits. 2 When is the development likely to be finished? The whole resort will be fully operational by summer 2008. 3 What is the star rating for the development? This is a 5 star development built to International Standards, as opposed to the much lower Egyptian standards. 4 What airlines fly here? To Cairo (180km from resort): KLM, Air France, Czech Airlines, Lufthansa and Alitalia all run direct flights To Hurghada (220km from resort): British Airways and Excel Airways both run direct flights. Additionally, there is a new airport being planned at Ain Soukhna, 60km from Zafarana which is expected to be completed by 2010. This will provide another access route to the resort making it more easily accessible by various routes than any other resort. 5 Who is managing the resort? Service/maintenance/rental company is joint venture between IPI International Property Investors BV (developer) and El Mohanad (constructor). 6 How much is the maintenance charge? For the first five years it is approximately 50 per month for the one bedroom apartments; the maintenance charge for the two bedroom apartments is included when the rental guarantee option is taken, otherwise it is payable. This maintenance fee includes the maintenance of communal areas; the servicing of the apartment and insurance on the apartment from damage by guests etc. 7 Is there a rental guarantee? Will I be able to use the property? There is a bank backed rental guarantee on the two bedroom apartments which averages 10% over five years. It is broken down as follows: Year 1: 6%, Year 2: 8%, Year 3: 10%, Year 4: 12% and Year 5: 14%. There is no rental guarantee on the one bedroom apartments and these will work on a pooled rental system where all investors will receive a rental income based on occupancy levels. We expect higher returns. - 28 -
8 What facilities are planned for the resort? A Wellness Centre with steam baths, salt and freshwater swimming pools with slides (with suitable areas for small children), tennis courts, squash courts, mini golf course, private beach and coral reef, marina, scuba diving school, boulevards, botanic gardens, shops, supermarkets, restaurants, fast food restaurants, bars, dive shop, water sports, 24hr security, in-house serviced laundry, proposed off-road motor sport centre, LAN internet connection in all rooms, wireless internet connection in the Hotel, medical centre and a dental surgery will all be included in the resort. 9 What is the ownership structure of the property, leasehold or freehold? The ownership structure of the apartments is freehold. Unlike other areas of Egypt such as Sharm El Sheikh, freehold ownership by foreigners is allowed in Zafarana. 10 Are there mortgages available for the purchase of apartments in the development? Currently there are very limited mortgage opportunities available in Egypt for foreigners concerning the purchase of investment property as with all emerging markets. Mortgages can be sourced within Egypt; however, the property must be completed and registered, approximately an 18 month period from present. Currently interest rates in Egypt are fairly high; however, with the increase in demand for these products the rates will certainly fall. Of course, as mortgages become more prevalent and easier to obtain, investment in Egypt will increase and prices will increase rapidly so now provides the most opportunistic time to invest. Given the low entry level of this investment it is relatively easy to secure funding in the UK for these properties, through either an unsecured loan or, better still, an equity redraw. 11 What is an ESCROW account? An escrow account is an account operated by a third party similar to a lawyer s account. This basically ensures that the developer does not have access to your money until various stages of construction are completed. This is put in place as a security measure for the protection of clients. 12 Furniture pack guaranteed for five years. Does this mean if anything needs fixing/replacing, it will be done? That is correct. This is so that all apartments are available to the management group for letting at all times and to minimize downtime. 13 Is flooring included or is it part of the furniture pack? Yes it is included in the purchase price. 14 I ve heard that Egyptian law can be somewhat baffling. Is this true and what has been done to ensure our protection? A full due diligence has been conducted by UK based lawyers and the contracts have been written by them. The contract is governed under European law as the developer is Dutch so as to avoid any potential problems dealing through the Egyptian legal system. This has been done to ensure the clients protection. - 29 -
15 This maybe an odd question, why is the price so low? The price is low for a number of reasons: a. This is a ground level development meaning that you are in a way helping to fund the development itself. This is the reason behind the payment structure which reduces the developer s borrowing costs as they are able to use the escrow account as interest deductible collateral. b. This is an area under early stages of development and you are buying in at the bottom level enabling you to take full advantage of the capital growth in the future. This is the time when investors make the maximum capital gains out of their property portfolios by buying before the crowd rather than following trends. c. The developer s long term profit plan incorporates the management of the resort from where they will derive the majority of their income hence less reliance on making large profits merely through the sale of the development. 16 Which bank is backing a rental guarantee? Are there any conditions? ABN Amro is backing the rental guarantee. The conditions are that you must purchase the furniture pack and are limited to six weeks access yourself. The rental guarantee is also only available with the two bedroom apartments. 17 What happens after the five years? What is the likelihood of a rental renewal? After five years you will have the option of renewing the rental agreement or keeping the apartment for your own personal use, or alternatively selling the property. The rental agreement will certainly be renewable at this time as by this stage the interest in this particular area and the property prices will have risen and the management of the resort is part of the developer s long term profit plan. 18 Are the rental returns net or gross? What do they equate to in terms of sterling amounts? (over the five years according to the different percentages {net amount}) The rental returns are gross dependant on personal circumstances. For the two bedroom apartments this equates to 50% of the purchase price over the five year period. Obviously the exact amount in pounds will vary with the EUR/GBP rate over the next five years. 19 The brochure mentions capital appreciation of 35% (conservative figure) what is this figure based on? Prices for a two bedroom apartment on the Red Sea coast in a five star resort with a full list of facilities in other areas are between 50-100% higher in Egypt currently. El Gouna has seen 100% growth over the last two years as has Sharm El Sheik. Hurghada has seen 60%-70% over this same time period. Given the entry level of this development we feel that 35% is a realistic target given the pricing of other developments, the natural growth rate in Egypt (10% currently) and past examples of newly developed resorts. - 30 -
20 Fact sheets also mention 100% growth please elaborate on what this means. We are predicting a growth of 100% over a five year period, again this is very conservative given similar developments have undergone this sort of growth within 2-3 years as mentioned above. 21 Are there any taxes to be paid? Of course if you are directing your income into the UK you may be subject to income tax in the UK as with any other investment. There is a 2.5% stamp duly to be paid when you come to sell your property. Dependent in which country you intend to receive your rental income will depend on the amount of tax you may have to pay. 22 Can these units be easily re-sold? If yes what is the target market? Agents? The resort is being built, incorporating it s own private reef, to cater to the diving enthusiast. Your resale market is extremely varied, including retirees moving to the Red Sea due to weather and low living costs, investors looking to benefit from high levels of growth, people looking to purchase holiday homes for part time use etc. The developer has first right of refusal on sale, meaning you set a price and then offer it to the developer. If the developer does not wish to purchase your apartment for your set price then you are free to sell by any means. Tourism in Egypt in the first four months of this year was 3.07 million; up 5% on the same period last year and with continuing growth in Egyptian tourism as the premier medium haul destination for Europeans your target market will only increase further. There are currently many agents in the UK that deal with Egyptian property as well as Egyptian companies and the developer will also handle resales if you wish to market throughout Europe. 23 Payments: The brochure mentions one lump sum and escrow will release payments? Why can t we appoint our lawyer to review at each stage? What safeguards will be in place to prevent the developer s lawyer from releasing payments without appropriate checks? With the money sitting in the escrow account the developer is able to use the funds as collateral to reduce the interest payable on loans to build the development. This is one of the principal reasons for the low price of the apartments. The payments cannot be made to the developer until signed off by a third party quantity surveyor. The escrow agent cannot release payments to developer without being signed off by both parties. The escrow account is also governed under international law and the breach of which you speak would land the lawyer in jail and the money would be recouped through the lawyer s insurance policy that all lawyers have as they are personally liable for acts of fraud etc. Furthermore, construction on the resort has already started. According to the payment schedule, the escrow account will release 10% on start of construction. This is 10% of the development, not 10% of your individual apartment as obviously it is not possible to build a penthouse apartment when the ground floor apartment has not started construction as it is yet to be purchased. - 31 -
24 Why can t we release payments in small chunks according to progress? As above but furthermore with such a low purchase price, amounts would be negligible such as 3,500 here and 4,000 there. This creates a logistical nightmare for the developer and will raise the costs. The way that property investment is normally structured whilst it looks appealing to investors actually adds to the cost of purchase and therefore reduces the investment s profitability. 25 How many buildings/developments will be on this resort? There are 153 one bedroom apartments, 348 two bedroom apartments and 50 villas. These are all constructed by the one developer. 26 The brochure mentions private beach and private reef are they private to this development alone? Yes. 27 What kind of security is offered? (Is the resort gated, security guards, CCTV etc?) This is a gated complex with manned 24h security. 28 Can site visits be arranged? Yes these can be arranged. Please note that if the developer provides transportation to Zafarana, the costings will be as follows (please note these are subject to change): Hurghada Zafarana return : 85 Cairo Zafarana return : 55 29 Are the rooms air-conditioned? The entire development is protected by Thermo Shield (www.thermoshield.com), which is an insulation product developed by NASA. The whole of the Hotel complex is fully air-conditioned; however there are not air-conditioning units in the two bedroom apartments as this are seen as superfluous to the thermoshield system. * Disclaimer * Although great care has been taken in the production of this brochure it is for information purposes only and is not contractually binding. To Reserve a Property Call: 01454 777686 UK International Callers: 0044 1454 777686-32 -