A Thrilling Investment Opportunity

Transcription

1 A Thrilling Investment Opportunity Luxurious Apartments at the Radisson Resort & Spa on the Autodromo do Algarve International Racetrack, Portugal Sales by Promoted by Managed by

2 Index An Exciting Opportunity 03 The Investment 05 Autodromo Internacional do Algarve 07 The Circuit 09 The Interiors 10 The Property 11 Terms & Conditions 13 Purchasing And Ownership Structures 15 The Algarve 17 Existing And Future Developments in Portimão 19 International Sport In Portimão 21 Frequently Asked Questions 23 International Development Team 27 Dr. Manuel Pinho, Minister of the Economy and Innovation 29 Disclaimer 31 Financial Projections Floor Plans & Features Insert Insert

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4 An Exciting Opportunity We are thrilled to bring you one of the most exciting investment opportunities available in the market. Situated in the Algarve International Motor Racing and Technology Park Complex, Radisson SAS Resort, Portimão offers the ultimate combination of luxury and excitement, Radisson SAS Resort, Portimao is promoted by Harte Property & Investment, an experienced international property group. Become an envied owner in the only apartment facilities on the International race track. Managed & marketed by Rezidor under the Radisson SAS brand, there are only 160 apartments in the resort. This exciting product comes with a guaranteed return on your investment. 03

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6 The Investment The apartments overlook the most modern and significant motor racing and technology park complex in Europe! Launched with the World Superbike Championship in November 2008, the Autodromo Internacional do Algarve represents a 250 million investment with further investment planned. The combination of an excellent climate, world-class location on the popular Algarve and superb facilities provide an ideal environment for business and tourism, giving the best guarantee of capital appreciation for your investment. Deloitte feasibility study projects that the track will generate an additional one million visitors to the Algarve per annum. The analysis supports the business case, identifying the individual, corporate, national and international target markets. The business focus will be on the lucrative MICE segment (Meetings, Incentives, Conferencing and Exhibitions). The complex has already signed commercial deals with A1GP, GALP, TMN National Mobile Telecommunications, EDP, Portuguese Institute of Sport, Portuguese Tourism Board, Samsung, Siemens, Unilever, Red Bull and Radisson amongst others. 60,000m2 technology park. Contracts have been signed for 40,000m2 by A1GP and a leading GP2 Series Racing Team (Mar 09). The track is fully booked for Securing Formula 1 would lead to accelerated capital appreciation and an increased return on investment. Projected 7-year investment term generates an IRR of 20%. 7% net rental guarantee for 3 years on all Residences. Residence owners benefit from Radisson Resorts & Hotels expertise in maximizing rental, while they maintain, manage and rent your Radisson Resort property. 05

7 Road Acess to Portimao Autodromo International do Algarve Grandstand Off Road Track VIP Tower Go Kart Track Technology Park Medical Centre Sports Academy Radisson SAS Hotel Radisson Resort & Spa Apartment Buildings

8 Autodromo Internacional do Algarve Radisson Resort is one of the most unique real estate opportunities in the International marketplace today. This multi-functional business complex will host a broad range of national and international commercial, sports and leisure events. The complex comprises: 5km FIA approved Formula 1 motor race circuit. Spectator capacity for 100,000 and 10,000 VIP guests. 1.5km International standard Karting circuit. International standard off-road test and leisure facility. 60,000m2 Technology park / Innovation Centre. Sports Academy including full gymnasium, swimming pools, treatment rooms, squash courts and multi-purpose playing facilities. Retail park including motor dealerships. Conferencing facilities. Luxury Radisson 194-bed Hotel operated by Rezidor SAS Group. Leisure area including indoor and outdoor pools, state of the art spa and wellness centre, tennis courts, children's play areas, activity trails, golf driving range and access to golf courses. 160 luxury apartments. 07

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10 The Circuit The project is destined to be a very significant driver of international commercial and leisure business in the Algarve. Extending to 300 hectares (750 acres), it is estimated to attract an additional one million visitors per year to the Algarve. The Portuguese government strongly supports the Autodromo Internacional do Algarve and has awarded the project a PIN (Projecto Interesse Nacional). The PIN signifies the project is of significant national importance. The Circuit enjoys a unique design thanks to the natural terrain of the area - curves and straights follow each other at an exciting rhythm with accentuated declines. VIP Tower - 48 luxury suites plus exterior area with capacity for 21 people. Boxes - 32 suites plus exterior area, with capacity for 16 people. Grandstand - 72 suites plus exterior area, with capacity for 10 people. Speed Box packages include F1 driving experience with full training, off road driving with full training, go-karting, super car driving and track days for bikes and cars. Confirmed events include: A1 GP - April GT International Open Le Mans Series August FIA GT World Championship September GP2 Series Final September World Super Bike Championship November World Events & 8 National Events scheduled per year - In addition the track is an official Formula 1 test track for 2009 and regularly hosts teams for testing 9

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12 The Property A choice of two options are available to purchasers in acquiring their Residence - a purchase for inclusion in the Radisson-operated rental program or alternatively a purchase for unlimited personal and business use, not included in the Radisson-operated rental program. All purchasers benefit from owning a unique investment property finished to a 5-star specification. In addition to personal usage and access to luxury hotel facilities, the property is expected to generate an impressive financial return. Benefits Radisson Resorts & Hotels will manage and rent the residences using their worldwide business channels and expertise to maximize your rental, giving you: Access to International advertising and marketing exposure. Hotel standard service for residence users. Association with an internationally recognized brand. Relationships with all the major holiday companies. The enormous experience of hotel and resort management from one of the world s leading, full-service global hotel companies, which operates, manages and franchises more than 395 hotels and resorts in 65 countries. Owners in the Radisson-operated rental-program will have access to their Residence for 2 weeks per annum 1 week from October to April and 1 week from May to September each year. Additional or extended usage rights are available subject to conditions. Specification Residences will be fully furnished to the same impressive standard as the luxury Radisson Hotel. Excellent quality specification, including air conditioning. All apartments have substantial balconies with impressive scenic views. Ample parking with 160 underground parking spaces & additional surface spaces. Access to permanent storage. 11

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14 Terms & Conditions Guaranteed rental income of 7% for 3 years. The hotel operating company will provide a 7% guaranteed rent for 3 years on all Residences. Projections suggest the average rental yield for Residences under management will be in excess of 5% per annum. Freehold purchase. Contracts are available in Portuguese and English. A mortgage pack is available offering purchaser s 80% loan to value. Payment terms: 6,000 to reserve your Residence. Balancing payment to make up 20% on signing promissory contracts. The remaining balance on signing the deed of sale, which happens on delivery of the finished apartment. Apartment Type Bedrooms Number of Apartments Ground Floor Area First Floor Area Second Floor Area T c. 76m 2 c. 72m 2 c. 72m 2 T1C 1 9 c. 87m 2 c. 83m 2 c. 83m 2 T c. 101m 2 c. 96m 2 c. 96m 2 T c. 125m 2 c. 120m 2 c. 120m 2 T3 Duplex m 2 13

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16 Purchasing and Ownership Structures Purchase Process Reservation agreement signed and 6,000 paid to reserve a Residence. Mortgage finance application & processing fees, circa 1,600. Promissory agreement signed and full deposit paid. Fiscal number obtained from the local tax office, completed by your legal representative, % IMT tax based on the purchase price of the property. Final deeds expenses, circa 0.8%. Legal fee, circa 1.5%. A full legal facility has been arranged with a leading firm of solicitors in the Algarve. Notary fee, 500 Land registration fee, 250 Structure Property Owner Grants a 20 year Management Agreement to the Operating Company. Has 2 weeks free usage annually. Hotel Operating Company Owned by Barry Harte Holdings Limited (Harte Property & Investment). Grants a 20 year Management Agreement to Radisson Hotels to manage the hotel and apartments. Hotel operating company guarantees property owners a 7% rental income for 3 years. Harte Property & Investment will monitor and manage the performance of the Radisson Resort. Radisson will manage and market the apartments to maximize income for owners. 15

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18 The Algarve The Algarve enjoys 300 days of sunshine annually, and is a hugely popular tourist destination. This is not surprising when you consider all of the attractions the area has to offer: 200km of coastline with sandy beaches, private coves and modern marinas. Cosmopolitan towns with a huge variety of entertainment, shopping and nightlife. 34 world class golf courses in the Algarve region. Wide variety of activities such as fishing, aquatic sports, sailing & horse riding nearby. International cuisine. Host to major international events. Interesting history and friendly culture. Portimão, Lagos, Vilamoura, Albufeira and other popular destinations are geographically close, conveniently catering for all tastes. Many major European capitals less than 3 hours away. Excellent infrastructure with a direct motorway link from Faro airport to the Autodromo and hotel complex. Regular low cost and luxury flights to nearby Faro airport (40 minutes). Large scale investment in the area 17

19 N266 N124 R124 IC1 N120 Bensafrim IC4 N120 A22 N125 Palmares Golf R125 Ribeira de Odiaxere Ribeira do Farelo Figueira Álamos Penina Montes de Alvor Alto Golf Golf do Morgado N125 Aldeira do Carrasco R125 Portimão Porto de Lagos IC4 A22 Ribeira de Arade Parchal Ferragudo N124 N125 Estombar Gramacho Vale da Pinta N124-1 R125 N124-1 Estação de Silves Lagoa Cruz Silves Silves Golf N125 N269 R125 Porches Poco Barreto Oceânico Faldo Course Malhao Monte Raposo Oceânico O Connor Jnr. Course N125 IC4 A22 N269 R125 N125 Airport A2 IP E0 R125 N125 Luz N125 Lagos Santa Maria Boavista Ponta da Piedade Vale de Milho Carvoeiro Armacão de Pera Herdade dos Salgados Golf Quinta da Saudade Vale de Parra Gale Vale de Santa Maria N395 Albufeira Portugal

20 Existing and Future Developments in Portimão Ongoing improvement of beachfront facilities New Ferragudo Marina (2011) Cruise ship harbour (2010) Aquarium (2009) Planetarium (2009) Autodromo International Algarve (2008 / 2009) New airport (2015) New sports complex (2009) Golf courses Alto Golf, Penina, Morgado do Reguengo, Alamos Sasha Beach, beach club, pool & restaurant 19

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22 International Sport in Portimão A1GP World Motorsport World Super Bike Championship Le Mans Series P1 World Powerboat Championships Breitling Mediterranean Cup Yacht Race International Beach Soccer Tournaments European Volleyball League Big Game International Fishing Contest Kite Surf World Tour International Show jumping European Windsurfing Championships 21

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24 Frequently Asked Questions What are the payment terms? 6,000 to reserve your Residence, 20% on signing Promissory contracts and the balance on signing the deed of sale. Who do I make a reservation payment to? Propco Investimentos Turisticos Imobiliarios LDA, Aldeamento da Bemposta Lote 66 Apartado Portimao, Portugal. Will Residence owners have access to Radisson Hotel facilities? Yes, you will have access to all of the superb Hotel facilities. What if I want to use my property for more than 2 weeks? It will be possible to stay at the Radisson Residences at other times subject to the terms of purchaser s rental agreements. Will there be any noise pollution from the race track facility? The complex has been designed to eliminate noise from the race track through the use of the natural rolling terrain, ensuring that track noise is completely minimized. Are the Residences fully furnished? Yes, all Residences will be fully furnished by the Interior Design team to the same standard as the Radisson hotel. Will the buildings have lifts? Yes. Are there enough parking spaces for all Residences? There are 160 underground parking spaces & ample surface spaces. 23

25 Frequently Asked Questions Can I rent my property through other rental companies? Your Residence will be managed and rented out by a top International Hotel and Resort Management Organization whose strong business relationships and Sales and Marketing abilities will maximize your returns. Under Portuguese law, only one organization can be involved in the exploration of each touristic development. What are the advantages of having my property managed by a Hotel group? There are many advantages to having your Residence managed by Radisson. These include; having access to International Advertising and Marketing exposure, Hotel standard service for Residence users, Internationally recognized Brand, relationships with all the major holiday companies and huge experience of hotel and resort management. Can you provide an Independent Lawyer to act for me? A suitable firm will be recommended to act for purchasers. Are the Properties freehold? Yes, the properties are freehold. Is there a guaranteed rental income? A 7% guaranteed rental income is available for the first 3 years on all Residences. The Rezidor (Radisson) hotel group has signed a 20 year management agreement to manage the Residences for purchasers. Rezidor's projections suggest the average rental yield for Residences under its management will be in excess of 5% per annum.

26 Frequently Asked Questions What happens at the end of 3 year guaranteed rent period? Owners will have one of two options at the end of this period. They can avail of a pooled rent sharing structure. The rents will be pooled and divided equally after Radisson Management charges. Alternatively, Harte Property & Investment will look to structure a further guaranteed rental agreement for an agreed period. How can I be sure that my property is being managed to the highest standard? Harte Property & Investment have a specific Hotel division that manages its hotel portfolio. There are currently ten hotels under management, 2 in Ireland, 4 in London and 4 in the U S. The hotel brands in the Harte portfolio include, Sheraton, Ramada and Stein Hotel. Harte also has a very close working relationship with Interstate Hotels in the USA, who operate a total of 270 hotels. What happens if Radisson fails to perform as hotel managers? The management agreement for the hotel and apartments allow for Radisson to be exited should their performance not be up to the required standard. Can I re -sell my property at anytime? Yes, you can sell your property whenever you wish. In what currency are payments made? Euro. Will contract documents be available in English? Yes, however the official contract language is Portuguese. Can I get Finance in Portugal? Yes. A mortgage package has already been agreed with at least two leading banks in Portugal. 25

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28 International Development Team Promoter Harte Property & Investment, is the resort developer for the project. As a business, Harte Property & Investment delivers a comprehensive and innovative portfolio of property development and investment opportunities to business partners, investors and joint venture partners across a range of project types and sectors. Hotel Operator Radisson Hotels & Resorts, is one of the world s leading, full-service global hotel companies. It operates, manages and franchises more than 395 hotels and resorts in 65 countries. Radisson is focused on being the hotel of choice for today s independent-minded frequent business and leisure travelers who want more control over their hotel experience. Developer Parkalgar, is the Portuguese company which owns the Autodromo Internacional do Algarve and will be managing it. Paulo Pinheiro, CEO, is the visionary and motor sports fanatic driving the project. Project Management The Mace Group, is one of the world s most accomplished consultancy and construction firms, with a reputation for finding the best solutions to complex property and real estate challenges. Architects Intergaup, are the architects providing creativity, quality and the best spatial design, with over 20 years of professional experience on a huge range of leisure, commercial and residential projects. Construction Hagen, is an international standard construction company with an excellent reputation in Portugal. Financial Advisor Westboro, has advised the developers in their capacity as financial consultants and will participate in the sale and distribution of the apartment product. Westboro is a market leader in Ireland in advising entrepreneurial and growth orientated businesses. As business advisors the focus is on working closely with the client and delivering a professional multi-disciplined service. 27

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30 the Algarve s largest, most important investment When this project is completed in late October, I m certain the number of visitors to our country will increase. Whereas we recorded a record level of visitors in 2008, this number is certain to increase in future as a result of this new asset. The project will have a significant impact on the local economy and therefore also on the national economy. Dr. Manuel Pinho, Minister of the Economy and Innovation 29

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32 Disclaimer All information provided in this presentation is given on behalf of Harte Property & Investment. It is provided without responsibility or any warranty as to its accuracy or completeness on the part of Harte s employees, agents, solicitors, and other advisors and their respective directors, partners and employees. The information is believed to be correct, reflecting the actual (not constructive) knowledge of the project. Furthermore, there is no guarantee or warranty as to future performance and/or profitability of any business carried on at The Property. Without prejudice to the generality of the above, the accuracy of the information provided herein is not guaranteed and does not obviate the need for any interested party to carry out all necessary due diligence and also to carry out all appropriate searches, enquiries, surveys and inspections as they consider appropriate. In accordance with the Misrepresentation Act 1967 and the Property Misdescriptions Act Harte Property & Investment hereby give notice that: I. This presentation does not form party of any offer or contract, and must not be relied upon in whole or in part as statements or representations of fact; II. No director or partner in any person in the employment of Harte Property & Investment has any authority to make or give any representation or warranty whatever in relation to the Property; III. Floor areas, measurement or distances given are approximate. Unless otherwise stated, all prices, rents, income, outgoings and other figures quoted are exclusive of VAT; IV. Any description given of the Property cannot be taken to imply it is in good repair, has all necessary consents, is free of contamination, or that the services and facilities are in working order. Interested parties are advised to carry out their own surveys and investigations as required. 31

33 Financial Projections Apt Type Purchase Price Purchase Costs 9% Total Purchase Cost 20% Investor 80% Finance Equity Requirement T1 289, ,010 57, , Year Asset Value Projected Growth Rate % Rental Income as % of Purchase Price Rental Income Interest on Loan Pre-tax cash flow Capital** Appreciation 1 317,900 10% 7.00% 20,230 6,936 13,294 2, ,795 5% 7.00% 20,230 6,936 13,294 18, ,485 5% 7.00% 20,230 6,936 13,294 35, ,009 5% 7.00% 20,230 10,404 9,826 52, ,409 5% 7.00% 20,230 10,404 9,826 71, ,594 6% 7.00% 20,230 10,404 9,826 94, ,170 6% 7.00% 20,230 10,404 9, , ,220 6% 7.50% 21,675 10,404 11, , ,833 6% 7.50% 21,675 10,404 11, , ,103 6% 7.50% 21,675 10,404 11, ,093 Interest rate estimate for years % Interest rate estimate for years ,5% Rental income subject to tax at source 15% ** 25% Capital gains tax applies. Rental income guarantee of 7% for first 3 years. Growth rates are indicative only and are not guaranteed. The above projections are prepared on a conservative basis and do not reflect the positive impact of Formula 1 or further planned developments.

34 Financial Projections The initial capital appreciation is based on the valuation and projections provided by the mortgage provider. Thereafter capital appreciation has been estimated at a conservative 5% per annum. Based on projections, a 7 year investment term would generate an IRR of 20%. Securing Formula 1 will accelerate capital appreciation. Minimum 3-5 year plan for best return on investment. Excellent re-sale opportunity. Projected Capital Appreciation. 600, , , , , , , ,000 0 Year

35 Apartment Type T1 Features Price List T1. 1 Bedroom Ground Floor c 76sqm 289,000. Living & Dining First Floor c 72sqm 294,000. Kitchen second Floor c 72sqm 299,000. WC. Hall. Terrace All apartments are fully equipped & finished to a state of the art standard throughout.

36 Apartment Type T1C Features Price List T1C. 1 Bedroom Ground Floor c 87sqm 327,000. Living & Dining First Floor c 83sqm 332,000. Kitchen second Floor c 83sqm 337,000. WC. Hall. Terrace All apartments are fully equipped & finished to a state of the art standard throughout.

37 Apartment Type T2 Features Price List T2. 2 Bedrooms Ground Floor c101sqm 389,000. Living & Dining First Floor c 96sqm 394,000. Kitchen second Floor c 96sqm 399,000. WC. Hall. Terrace All apartments are fully equipped & finished to a state of the art standard throughout.

38 Apartment Type T3 Features Price List T3. 3 Bedrooms Ground Floor c125sqm 489,000. Living & Dining First Floor c120sqm 494,000. Kitchen second Floor c120sqm 499,000. WC. Hall. Terrace All apartments are fully equipped & finished to a state of the art standard throughout.

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40 For Certified more agent information: Portugal landline: Algarve Distinctive +353 (0) Homes Mediação Imobiliária Lda web: C1/ 22 Vila Sol - Sitio do Semino Algarve Distinctive VILAMOURA Homes Mediação Tel: Imobiliária Lda C1/ Fax: 22 Vila +351 Sol - Sitio 289 do 328 Semino 711 web: VILAMOURA Tel: AMI 7765 Fax: