INVESTOR BRIEF March 5 th Hotel Saariselkä & Sport Resort Investor brief March 5 th 2013

Transcription

1 1 Hotel Saariselkä & Sport Resort Investor brief March 5 th 2013

2 1. INTRODUCTION Location Landowning Town plan Development objectives for the area The Master Plan for the trails at Saariselkä The development objectives for the municipality of Inari and the passage to the Arctic Sea The outlook and statistics on tourism SALES PROCESS PROVISIONS OF THE INVESTOR BRIEF

3 1. INTRODUCTION 1.1. Location The hotel development project is located at Saariselkä tourist resort in Northern Lapland in the municipality of Inari. The tourist resort is a close-knit population center next to the Urho Kekkonen national park surrounded by fjelds. The hotel development project and the sport resort is planned to be located on the Southern hillside of the best known fjeld of the Saariselkä region, Kaunispää, standing 438 meters tall (Architect s blueprint, appendix 1.1, 1.2 and 1.3). Address: Saariseläntie, SAARISELKÄ. 3 The location of the hotel development project from aerial view.

4 The infrastructure of the region, including the roads, streets and outdoor recreational trails, is complete Landowning The landowners of the Southern hillside of Kaunispää are the municipality of Inari and Metsähallitus. The hotel development project and the slopes are owned by the municipality of Inari Town plan Current town plan The current town plan has been enforced on June 12 th 2008 (appendix 2). The hotel development project does not require alteration to the town plan, but needs an exception to the town plan from the municipality of Inari. If the permitted building volume of m 2 is increased, this needs to be permitted by the Centre for Economic Development, Transport and the Environment.

5 New town plan Currently the municipality of Inari is revising the zoning plan of the hillside of Kaunispää. A new town plan permitting accommodation, service and parking construction is being drawn up for the Saariselkä hillside. A new slope with a lift to the top of Kaunispää is to be built amongst the accommodation. Attached there are report on town plan regulations by ARRAK Arkkitehdit Ltd. Proposal for the revision of the zoning plan by JKMM Ltd and proposition for the town plan of Saariselkä hillside (appendix 3 and 4). The following permitted building volumes that will be zoned in different city blocks in accordance to the appendices (3 and 4) are for sale: 1. Commercial and hotel construction (KL-1, 2 and 3) 2. Buildings serving tourism (RM-1, 2 and 3) 3. Vocational home construction (RA-1) According to the zoning schedule, the new town plan is probated at the latest Development objectives for the area According to the new zoning plan (August 29 th 2012), permitted building volume of m 2 will be positioned on the 160 hectare area on the hillside. Construction will be centralized on the hillsides of Kaunispää and Iisakkipää, in the close proximity of the Urho Kekkonen national park. The main objective is to create an area where tense nature experiences can be had at, or in the close proximity to, the lodging. The lodging combines the modern environmental requirements to the ease of leaving and returning in accordance to the ski-in/ski-out principle. 5 The new Sport Resort will host Ski Saariselkä Ltd s facilities, owned by the municipality of Inari, for ski rental, in addition to facilities for ticket sale, Ski Shop, equipment service, after ski restaurant and a bowling hall. Children s outdoor park, Werneri Park, will be implemented in the service center also. The intention of Ski Saariselkä Ltd is to rent the premises of the Sport resort from the investor with a lease of 10 years.

6 1.5. The Master Plan for the trails at Saariselkä 2012 The municipality of Inari has drafted a Master Plan for the trails at Saariselkä as a part of the zoning plan. There are many trails to choose from during the winter or in the summer. Saariselkä is best known for its trails for cross-country skiing. The network offers a large variety of trails of different difficulty and length to suit different user groups. Part of the trails can be used for walking, hiking and biking during other seasons than winter. According to the Master Plan, new routes around Saariselkä will be established. Special attention is paid to circular routes to and from central areas for accommodation. The routes serve potential new user groups that are not accustomed to utilizing longer routes. The new circular routes, around the accommodation, serve especially well customers from abroad. Attached there are plans for the central routes drafted by Pöyry Ltd (appendices 5) The development objectives for the municipality of Inari and the passage to the Arctic Sea The passage to the Arctic Sea is the European Union s most import link to the North. It connects Finland and the Baltic Sea to the deep-water harbors, oil and gas production facilities and the Northern Sea Route at the Arctic Sea. The new sea route shortens the distance between Central Europe and Asia by 40%. The Northern Sea Route is an integral part in utilizing the natural resources of the Barents Region (appendices 6). 6 Utilizing the natural resources of the Barents Region through the Northern Sea Route requires sufficient land and air traffic communications through Inari. The municipality of Inari is promoting projects that increase the number of places of employment, tourists and commuters in the region.

7 1.7. The outlook and statistics on tourism The amount of tourism in Northern Lapland and Saariselkä is increasing. Registered overnightings in the Saariselkä region increased by 10 % in The number of overnightings by domestic tourists increased by 3 %, and overnightings by foreign tourists by 20 %. There has been a significant increase in the amount of traffic via the Ivalo airport, 12 % in 2011 and 16 % in The number of overnightings are expected to increase by overnightings by The utilization level of the hotels has been 43 %. Due to the seasonal nature of the tourism in the region, the increase in the number of tourists cannot be met with the current hotel capacity. This means that the hotel capacity in Saariselkä needs to be increased. The hotel development project on the Southern hillside of Kaunispää covers approximately overnightings of the increased need in hotel capacity (270 hotel rooms/utilization level 43 %). 2. SALES PROCESS The construction project is sold to the highest bid (EUR/permitted building volume in m 2 ). The buyer will additionally pay the joining fees to the water and electricity companies. The extent of the planned project: - permitted building volume m 2 ( hotel rooms) - II-V floors - the basement may be utilized to various uses (including spa)

8 - parking construction with 150 parking spaces - parking deck with 100 parking spaces - 68 parking spaces in the basement of the hotel - aboveground parking lot with 110 parking spaces Indicative bid needs to include the following: the details of the buyer contract price terms of payment Due Diligence period and claims against seller other possible conditions which affect the final offer The indicative bid needs to include sufficient information in order for the seller to conduct appraisal of the bid. 3. PROVISIONS OF THE INVESTOR BRIEF This indicative investor brief includes confidential information. The recipient of the investor brief agrees to the following provisions: The investor brief is composed by KIEMA Management Ltd. The investor brief is distributed to potential buyers. 8 The information on the investor brief has been acquired from the municipality of Inari (later referred to as the Seller), public sources and the development plan of the region composed by KIEMA Management Ltd. The Seller reserved the right to hold negotiations with multiple potential buyers simultaneously. The Seller reserves the right to changes in any of the conditions of the sale regardless of the form in which the information has been presented in the investor brief or any of its appendices. The Seller is not under an obligation to accept any of the bids. This investor brief and its appendices are to be held confidential. The information may not be used to evaluate any other projects.

9 All contacts relating to the project and/or the investor brief and its appendices should be addressed to the following individuals: Bid: Tourism statistics: The municipality of Inari / Mayor Reijo Timperi Address: Piiskuntie 2, FI IVALO Phone: reijo.timperi@inari.fi Economic Development Company InLike Ltd / CEO Janne Seurujärvi Address: Sairaalatie 3b, FI IVALO Phone: janne.saurujarvi@inlike.fi Additional information: KIEMA Management Ltd / CEO Jari Kiema Address: Mannerheiminkatu 20, FI PORVOO Phone: , jari.kiema@kiema.fi KIEMA Management Ltd Project and construction development 9 Jari Kiema, CEO Appendices 1-5