Savills International Development Services

Savills International Development Services Specialising in residential, mixed-use and resort communities savills.com

Contents 01 Savills 03 Development Services Savills Background & Business 04 Our Expertise 05 Development Consultancy 08 Design Development Consultancy 09 Development Consultancy Process 10 Development Management 12 Sales Consultancy 12 Marketing Strategy 13 Sales Advice and Expertise 13 02 International Residential and Resorts Group Structure 06 The Development Services Process 07 04 Case Studies Al Khobar Tower, Saudi Arabia 14 Yingde Farm, China 15 Vista Palace, Côte d Azur, France 15 Lustica Peninsula, Montenegro 16 Olympic Village, London, UK 17 Porto Montenegro, Montenegro 17 Sveti Marko Island, Montenegro 18 Aphrodite Hills Golf Resort, Cyprus 19 Quinta do Lago Golf Resort, Portugal 19

05 The Core Team 07 Savills International The Core Team 20 Africa 22 America 22 Asia Pacific 22 Europe 23 Middle East 23 UK 23 06 Professional Partners Professional Partners 21

01 savills Savills Background & Business We believe each instruction is special. No matter how large or small the project we provide the same quality of service, which is intended to exceed your aspirations of quality and delivery. Our objective on international resorts is to help you create a world-class destination that will be achievable and financially successful. Our approach is to provide uncompromising attention to detail and robust development management, taking on responsibility and driving the project to meet your aims. To achieve this, every project is managed by an experienced director who will remain with the project from inception to completion and will be available for any follow-ups. All of our team members are passionate about creating resorts that meet international criteria and can be successfully marketed. The hallmark of Savills service is our proven track record of integrating the knowledge of the market-facing consultants with the expertise of the technically minded development management team to achieve the best commercial outcomes. Our values encompass: Robust leadership and management Constant clear communication Pioneering with experience Savills is one of the world s leading property advisers, comprising outstanding individuals who have real expertise and passion for what they do. Our international perspective, strong track record with world-class clients and dedication to excellent service ensure that we lead as a property services company, on a global scale and in local markets. This powerful combination also allows us to deliver continued growth. Founded in 1851, Savills has a rich heritage. It is listed on the London Stock Exchange and has over 500 offices and associates worldwide. The company employs 23,000 people. Savills has been ranked the best Business Superbrand in the real estate sector by the Centre for Brand Analysis. Our Expertise Savills gives clients access to real estate expertise of the highest calibre, across the Americas, Europe, Russia, Asia Pacific, Africa and the Middle East. Everyone at Savills works hard to exceed clients expectations. We provide honest and professional advice with a spirit that is always fresh and productive. Our broad range of clients and our ability to recognise and respond to changing market needs has put us in a very influential position throughout the property world. Our distinctive collegiate culture and highly motivated staff ensure that we are committed to getting the very best results for our clients every time. Aside from resort development, our services cover the whole range of property needs. Along with acquisition and disposal, we offer building and project consultancy, landlord and tenant representation, rating consultation, valuations advice, capital allowance advice, strategic projects and research. 04. Savills International Development Services

We also have departments that deal with specialised areas such as new homes development, leisure and hotels, institutional property, offices, retail and planning, as well as residential development and investment. We are regarded as an innovative organisation backed up with tough negotiating skills. Savills chooses to focus on a defined set of clients, thereby offering a premium service to organisations with whom we share a common goal.

02 International Residential and Resorts Group Structure The International Development Services (IDS) team has unrivalled experience with large-scale residential, mixed-use and integrated resort master-planned communities. Understanding the Buyer We have a thorough understanding of global property demand dynamics. Our knowledge of target buyer markets, in terms of nationality, product and design preferences, purchase motivations and budget, means we can advise on all aspects of the development process, whilst taking into account how the product will be brought to the market. This will contribute to ensuring successful sales levels and consequently higher investment returns. Building a Lifestyle Taking into account end-users demands, we can advise on the type, mix and location of the residential component of the development, as well as its relation to adjoining land-uses, and how it should be orientated according to aspect and topography from a demand perspective. Corresponding to residents and guests needs, we provide consulting services throughout the development process, on supporting amenities, facilities and services, whilst also considering social infrastructure requirements such as schools, commercial premises, hospitals, community centres or sports facilities. In larger residential communities, this would also include environmental as well as social infrastructure, for example renewable energy initiatives, locally sourced labour and materials, and local environmental conservation. The development concept and community density is reflected not only in the placemaking design of the physical space, but also in the market positioning and perception of the operating brand. Savills experience in the hospitality sector enables us to consult and secure leading branded operators. 06. Savills International Development Services

Savills experience in the hospitality sector enables us to consult and secure leading branded operators. The Development Process and Our Services Maximising Returns All of these factors must be considered in order to maximise the efficiency and value return from the project. The more desirable the on-site lifestyle is perceived to be, the higher the value of the residential real estate, and subsequently the return on investment. Therefore, our advice is focused on drawing in buyers and guests to invest in well-planned, intelligently designed and socially responsible communities, thereby ensuring the long-term commercial viability of the entire development.

03 Development Services Development Consultancy The IDS team is based in London and has extensive experience of development management, marketing and selling all types of international residential property, from chalets in Switzerland, a pied-a-terre in Paris to villas in the Caribbean. Members of the team speak a range of languages including French, Spanish, Portuguese, Italian, Russian, Croatian and German. The team works closely with both the Savills worldwide offices and its network of 16 associate agents around the world. Our services are structured to assist clients across the following areas: Market Research Knowledge of global residential demand characteristics In-depth local market research, specific to the project concept and positioning Analysis including demand and supply dynamics (product, pricing, buyer markets, buying motivation) and a review of the local market development context (economic and tourism profile) with impact on the residential market and proposed projects Project Feasibility Analysis Site assessment and analysis, including advice on land assembly and acquisition Concept and marketing positioning Development options viability (unit mix, size, target market, phasing, absorption and pricing) Indicative development appraisals (DCFs, IRR and NPV Analysis) and Red Book Valuations Project performance target Development business plan, deal structuring, consultancy on joint venture and exit strategies Development Investment Consultancy Preparation of project investment briefs Approach to potential equity investors and lenders Project debt advisory (structuring, arranging, refinancing of existing loans) Project equity raise, co-investors, capital/asset management joint ventures Entity-level financing and investments 08. Savills International Development Services

Design Development Consultancy Preparation of Project Design Briefs Assembly of core project and design team (master architect, cost consultant, construction manager, engineers) Identification and alignment of project parameters with target markets Inform the efficiency and profitability of the scheme design through master planning, land use, product mix, product sizing, pricing, phasing and delivery recommendations Ensure a socially responsible and environmentally conscious development ethos Development Management and Consultancy Co-ordination of project team, acting as client representative Concept value engineering and value management Sustainable development solutions Budgeting and control Quality monitoring and progress reports to client Value and risk management Secure planning approval and managing of PR process Co-ordination and management of Strategic Environmental Assessments (SEA) and Environmental Impact Assessments (EIA) Hotels and Facility/Resort Managers Sourcing of hotel operators Negotiations with hotel operators Management contract negotiation Advice on resort and facilities management The whole process is driven by innovative, top quality research tailored to your individual needs Commissioning and handover Performance audit of existing resorts

03 Development Services As part of the development process we test the appropriateness of the proposed commercial uses to accompany the residential uses ie. a traditional hotel operation versus a serviced apartment scheme, as well as the types of retail/ leisure uses that should accompany such a development. We would look to identify the likely demand, and from which class of operators they originate. Development Consultancy Process The first step when assessing a site and beginning the consultancy service is to produce a comprehensive consultancy report, covering: Site review Market review The next element is the analysis of the national and regional market conditions and recent local market transactions (although potentially limited in number). This stage is crucial in establishing the current demand profile for new build schemes, focusing on pricing thresholds and understanding market performance and competition coming through the pipeline going forward. With the combination of our international research team and our local partners knowledge of key schemes and transactional evidence, we are able to bring a truly global approach to our market review, thereby reducing risk and adding value. Target market analysis Once we have established the range of values that are achievable and the pricing dynamics in the area, we are able to analyse the socio-economic profile of the target purchasers for the scheme, including: International purchaser profile It is important to establish from the outset where external investment is coming from and what type and specification of product these purchasers desire The specific pricing thresholds of residential sales for particular nationalities identified Preferred sizes, specification and amenities associated with the residential element of the scheme Conducting a detailed review of the surrounding area, including a comprehensive review of the locality and adjacent land uses. This will also include research into the style, standards, sizes and specifications of the existing and forecast residential stock. We are able to bring a truly global approach to our market review, thereby reducing risk and adding value. 10. Savills International Development Services

Development strategy Timescale: 2 3 weeks Using the results of the analysis, we work closely with masterplanners and architects. This provides a set of clear guidelines for the optimal unit sizing, mix, specification and pricing of the residential element of the scheme, in turn informing the product development. Financial viability analysis Finally, but crucially, we prepare an expert appraisal (either indicative or RICS Red Book valuation) of the value of the project and the site, in accordance with the recommendations given in our report. This will generate a Gross Development Value being the aggregate of the sales and capitalised income/sales of the commercial elements of the scheme, as well as a residual valuation to determine the land value of the site assuming the recommended scheme. On the basis of the consultancy report, it is important to work daily with all of the retained project team to produce a development strategy including programme timing, recommendations for additional expert advice and analysis of the likely funding requirements. On behalf of the client we would prepare the design brief for the architects, recommend the most suitable project team members (architects, engineers, quantity surveyors) and manage the tender process. We work closely with appointed quantity surveyors, architects, engineers and construction managers in order to make this a fully accurate reflection of the development opportunity.

03 Development Services Development Management A development manager role is effectively as a surrogate client providing an interface between the client and the project manager, acting within the confines of client instructions. Savills has unparalleled experience of undertaking development management roles on resort schemes and believes that this service would successfully drive the project, particularly through the critical early stages of decision making and ensuring financial viability. This role encompasses all phases and aspects of the development cycle from identifying a development opportunity, site selection, technical and financial modelling/appraisals, through to planning, project team selection, design and construction, as well as leasing, sales and marketing. Our focus on every project is value enhancement, risk mitigation and delivery of the highest-quality development product. Accordingly, the development management role that Savills provides encompasses technical consultancy services (such as due diligence, technical appraisals, feasibility studies and development monitoring) to all other internal-development-related disciplines and the myriad of external advisors who are an integral part of the development process. The strength of Savills development management derives from the depth and breadth of advice we are able to offer our clients as a complete packaged service. We achieve this by bringing extensive development-related skills, knowledge and expertise to each and every project. 12. Savills International Development Services

Marketing Strategy Mounting and developing lead generation through data bases, PR, advertising, the web, exhibitions, signage and any sources that we see suitable. Sales absorption rates depend on the supply of quality leads generated by the marketing. Lead-to-sale conversion rates tend to vary from 2% and 5% and the gestation period from 2 6 months according to the location, type and price of the property being sold. Likewise the cost-per-lead and cost-per-sale. The methods include: Identification of the optimal route to the market Marketing strategy focussing on target markets, timing marketing materials and PR Marketing budget control and estimation Website design advice and web marketing strategy Brand building Road show advice and exposition design Sales Advice and Expertise Following on from the generation of leads we endeavour to obtain the best sales values that the market presents. Our methods include: Use of a PLT (Price, Location and Time) matrix pricing approach which incorporates financial models to calculate income and phasing for larger scale developments Brochure design and advice to ensure bespoke proposals to the correct market Creation of sales models and contracts Designing and running of sales offices Selecting expert personnel to run and act as salespeople in the on-site office Valuations Savills International provides formal valuations and consultancy reports for properties across the globe on behalf of a wide range of clients and purposes. Our team of qualified RICS Registered Valuers works directly with a network of over 500 Savills offices and Associate offices around the world to provide the most up to date valuation advice in almost any market globally. We have Savills offices in most countries in Europe, Asia and the Americas and regularly carry out valuations in destinations as diverse as Central and Western Europe, Montenegro, Croatia, The Caribbean, UAE, Cuba, and Mexico to name a few. The International Valuation team can provide formal and informal valuation advice for a diverse range of purposes, including: Loan Security Valuations in support of the provision of debt finance or mortgage facilities, usually provided for banks and other lending institutions. Expert Witness/Matrimonial Formal valuation advice, as third party independent valuers, in matrimonial proceedings or other disputes relating to a shared asset value. Development Valuations These can be either formal (Red Book) valuations or informal development appraisals, aimed at calculating the Gross Development Value as well as a residual land valuation of the development in question. Savills has unparalleled experience of undertaking development management roles. Valuation is a diverse skill and can be undertaken in relation to residential properties such as villas, apartments, farmhouses and chalets as well as larger-scale mixed-use developments, golf courses, hotels & resorts. To discuss any overseas valuation requirements you may have or to obtain a fee proposal, please contact Savills International Valuation team.

04 Case Studies Al Khobar Tower, Saudi Arabia Location Client Description Role Al Khobar, Saudi Arabia Al Khobar Group To create a land-mark mixed-use building, with 200 serviced apartments, retail space and major international hotel opportunity. Development Consultancy and Development Management 14. Savills International Development Services

Yingde Farm, Guangdong Province, China Location Client Description Role Yingde Farm, Guangdong Province, China Guangdong Rising Assets Feasibility Study on 700ha site. A market tested masterplan allowing for a mixture of Tourist land uses and also elements of residential, commercial and industrial uses. The masterplan will include renewable energy generation technologies. Master-planning, Urban Design Vista Palace, Côte d Azur, France Location Client Description Role Vista Palace, Côte d Azur, France Vista Palace Developments Refurbishment/development of 10,000 m² 5* hotel and related services and 12,000m² for Residence de Tourisme Development Consultancy and sales & marketing

04 Case Studies Lustica Peninsula, Montenegro Location Client Description Role Lustica Peninsula, Montenegro Orascom Detailed Master plan including three areas of development over two phases. Phase 1: Golf Course, 1 hotel, downtown area; and area to south-west of military site. Phase 2: Development of area marked as mine on the master plan Development Consultancy 16. Savills International Development Services

Olympic Village, London Location Client Description Role London Lend Lease 70-ha mixed-use development site, providing 15 million sq ft of accommodation for residential, retail, commercial and ancillary uses Sole residential development advisors Porto Montenegro, Montenegro Location Client Description Role Montenegro Adriatic Marinas Apartments, 800-berth mega-yacht marina, 5* hotel Development Consultancy, marketing & sales consultancy

04 Case Studies Aphrodite Hills Golf Resort Location Client Description Role Paphos, Cyprus Lanitis Group 500-acre residential golf resort with 6,000 residential units, five championship golf courses, four hotels and extensive leisure, retail and commercial facilities Residential advisory and sales & marketing 18. Savills International Development Services

Sveti Marko Island, Montenegro Location Client Description Role Montenegro Metropol Development Luxury private villas, 6* Banyan Tree hotel & spa Development management, development consultancy, marketing & sales consultancy, exclusive global sales Quinta do Lago Golf Resort Location Client Description Role Algarve, Portugal Andre Jordan 1,700-acre luxury residential golf resort with 1,200 residential units, five championship golf courses, three five-star hotels and extensive leisure, retail and commercial facilities Residential consultancy and sales & marketing

05 The Core Team Charles Weston Baker, Savills International Residential and Resorts Managing Director, has more than 25 years experience in the international property world and has been with Savills for 14 years. Prior to joining Savills, he gained extensive experience in the construction and resort industry with Bovis Abroad/ P&O. Charles heads the International Residential team, spearheaded by the individuals introduced below. Their roles are to assist throughout the development process, taking vision to reality. The advice available extends from the professional team selection through to the co-ordination of all participants to ensure that the research and viability, masterplan, specification, design and construction are appropriate to achieve the required quality for a destination resort that will be marketed to a truly international clientele. Sean Monie has more than 20 years experience in the construction industry. He specialises in providing project management, project monitoring and technical due diligence advice to blue chip institutional funds, investors and corporate end user clients. He has a full understanding and appreciation of the various issues surrounding all facets of development process. Daniel von Barloewen joined Savills in 2007, having previously worked in Russia, Germany, France & Switzerland. An Associate Director, Daniel manages the International Resort Consultancy Department. He has a Masters in Property Valuation & Law from CASS University, and is a Member of the Chartered Management Institute. He specialises in development management, development investment analysis, development consultancy and marketing consultancy. Richard Walker is an Associate Director of Urban Design in our London Office. He leads the development of Masterplan projects from concept to delivery plan, and advises clients on the approach to designing schemes and selecting architects. Richard s 15 years of experience in Landscape Architecture and Masterplanning with public and private sector companies makes him well placed to produce a viable masterplan to suit a client s brief. David Parker has worked at Savills since 2007 and is a qualified RICS Chartered Surveyor and Registered Valuer. An Associate in the International Resort Consultancy department, David previously worked in the residential sales and Central London valuation teams. He now provides a range of services to international developers, including development management, development consultancy, design review and Red Book valuations. Riyan Itani joined the Savills Cambridge office in 2004, having graduated with a Masters degree (MPhil) in Land Economy at Cambridge University. As an Associate within the International Consultancy team, he specialises in strategic land review, development appraisal, development consultancy and valuations. David Harper works closely with the International Resort Consultancy Team on integrated resort schemes. A Chartered Surveyor and Managing Director of Leisure Property Services, he was previously Head of Valuation & International Brokerage for CB Richard Ellis Hotels. He is the author of the only comprehensive book on the hotel transactional market Valuation of Hotels for Investors, as well as being employed by the RICS to provide hotel valuation advice. David has been involved with a huge array of mixed use developments in over 90 countries, providing feasibility studies, structuring debt & equity positioning, finding hotel operators and selling the operational hotel. 20. Savills International Development Services

06 Professional Partners A non-exhaustive list of the international Hotel Operators with whom we have long-standing relationships includes: As a result of the quality and scale of the projects on which we are involved, we frequently work alongside a number of other global firms, all leaders in their fields. A non-exhaustive list of such firms includes: Arup Halcrow Bovis Lend Lease Mace Davis Langdon Gleeds Harper Downi Gardiner & Theobald EC Harris HVS Global Hospitality Services TRI Hospitality Consulting PKF International Woods Bagot WAT&G EDSA Foster + Partners ReardonSmith Architect PRP Architects RMJM HOK Hirsch Bedner & Associates (HBA) Interior Design Consultants Hyatt International Fairmont Raffles Hotels International Jumeirah Mandarin Oriental Banyan Tree Six Senses Hilton Starwood Hotels & Resorts Marriott Taj Hotels Intercontinental Rezidor Accor Kempinski Sol Melia Movenpick Examples of work carried out in certain locations: Barbados Switzerland France Monaco Spain Dubai Cuba Portugal Mallorca Italy Antigua USA Croatia Montenegro

07 Savills Global Presence Over 500 offices and associates worldwide Americas Africas UK England Ireland Scotland Wales 22. Savills International Development Services Asia Pacific Australia China Hong Kong India Japan Macau Malaysia New Zealand Singapore South Korea Taiwan Thailand Vietnam Europe Austria Belgium Croatia France Germany Gibraltar Greece Italy Luxembourg Monaco Montenegro Netherlands

Europe Asia Pacific Norway Poland Portugal Russia Serbia Spain Sweden Switzerland Middle East & Africa Angola Botswana Oman South Africa Swaziland Zambia Americas Canada Caribbean Mexico USA

Our objective is to combine our expertise in order to maximise value, reduce development risk and create and international destination savills.com