INVESTMENT PROPOSAL LUXURY VILLA, APARTMENT AND HOTEL DEVELOPMENT, KAZIKLI, MILAS. April 2008

Transcription

1 INVESTMENT PROPOSAL LUXURY VILLA, APARTMENT AND HOTEL DEVELOPMENT, KAZIKLI, MILAS April

2 LUXURY VILLA, APARTMENT AND HOTEL DEVELOPMENT, KAZIKLI, MILAS This is an opportunity to acquire the Fund s interest in a luxury residential villa, apartment and hotel development project situated in the pristine coastal setting of Kazikli, in the Milas district of Turkey. Tourist development in the Bodrum Peninsula, with its enviable climate and stunning coastal scenery, has expanded in recent years as result of rising demand from both Turkish and international visitors. The area surrounding Kazikli, which is located only 34 km from Bodrum Milas International airport, has become increasingly popular, with demand for real estate growing significantly. The Kazikli site benefits from coast line to the Aegean Sea on both sides and the adjacent properties are undeveloped making it a compelling development opportunity for a unique luxury villa and hotel resort with private mooring facilities in a natural bay setting of outstanding beauty. The Kazikli project has been developed as a 50:50 joint venture with the Ado Group, a leading and well respected supplier of building materials in the region. 2

3 INVESTMENT SUMMARY Project Overview: Total Gross Area: 274,522 sqm Total Net Land Area: 197,960 sqm Construction Area: 76,000 sqm Gross Sellable residential area: 70,390 sqm Net Sellable residential area: 56,053 sqm Hotel Area: 14,703 sqm 3

4 Site Usage: Total of units. 330 Luxury Villas (some with private boat moorings) sizes 75 to 350 sqm hotel rooms with access to shared pool facilities. World class spa facility. Supporting restaurants, leisure and social facilities. Project Status: 50% share of the site, comprising 8 contiguous parcels of land, acquired from the Ado Group by the Fund s wholly owned Turkish subsidiary OSMANLI YAPI 2 in March Clear unencumbered freehold legal title acquired for the entire site. Required zoning plans obtained from the local authorities increase obtained in permitted building density from 49,000 sqm to 74,000 sqm (51% increase in buildable area). Tourism Investment Certificate received. Submission of project information to Mugla Environmental Agency complete. Certificate received confirming no further environmental permissions required. Master plan and concept design process completed by Atelier Xavier Bohl, who has an excellent reputation from his work on Port Alacati, Marina Limassol and Larnaca. Detailed architectural design and application drawings being undertaken by Xavier Bohl and local architect Cengiz Eren. Engineer Application Drawings to be completed in May

5 MASTER PLAN FINANCIAL OVERVIEW Key Financial Assumptions: Assumes no leverage Domestic sales: 50% International Sales Payment Structure: 30% down payment; 70% at the completion Targeted investment period: 36 months Construction period: 22 months Sales period: 36 months VAT: 18% Corporate Tax: 20% Sales Costs: 7% 5

6 Hotel Operation Assumptions: Assets: Spa, Restaurant, Meeting Room, Front of House and Back of House Occupancy: 50% ADR: $300 Total Room Nights Available: 360 Number of Hotel Units: 120 Exit: Hotel will be sold at the end of year 6 at 7x EBITDA i.e. $35m (operating profit of $5m) Financial Results: IRR Sensitivity Analysis: Sales Price per sqm 41.2% $2,500 $3,000 $3,500 Built $1, % 50.1% 67.3% Costs $1, % 44.0% 60.3% per sqm $1, % 38.9% 53.7% ROI Sensitivity Analysis: Sales Price per sqm 184.2% $2,500 $3,000 $3,500 Built $1, % 264.6% 391.9% Costs $1, % 203.6% 353.4% per sqm $1, % 163.1% 269.6% 6

7 Cumulative Cash Position: $40,000 $30,000 $ in thousands $20,000 $10,000 $0 ($10,000) ($20,000) ($30,000) Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 7

8 KEY SELLING POINTS Advanced Project Status Master plan and concept design work is completed. Zoning applications are fully completed. Environmental clearance obtained. Strong Sales Proposition Positioned in a spectacular pristine coastal location with superb views of the Aegean Sea and surrounding mountains and benefiting from stunning sunsets. Excellent Mediterranean climate with low humidity. Availability of private boat moorings key attraction to high end purchasers. Close proximity to Bodrum Milas International airport and proposed world class golf course, Vita Park. 2 km from Kazikli village restaurants offering bayside dining. Support, Market Know How Key local officials and contacts supporting the project. Ado Group s strong influence and reputation in the region and network of key contacts beneficial in securing required approvals promptly. 8

9 MARKET COMPARABLES Comparable Land Sale Prices LOCATION AREA (m²) SALES PRICE USD* COMMENTS PRICE (USD/m²) KIYIKISLACIK 113,000 17,691,729 50% hotel, 35% villa zoning. peninsula 157 KIYIKISLACIK 2,200, ,000,000 Sea front location. zoning plans are ready 70 KIYIKISLACIK 2,274, ,700,000 15% density, max floor: 2 50 KAZIKLI 25,000 1,250,000 15% density, max floor: 2 50 KIYIKISLACIK 114,000 13,500,000 Residential zoning, 30% density, unique location, peninsula. 118 KIYIKISLACIK 890,525 62,336,750 Situated on Mandalya bay 70 Comparable Villa and Apartment Prices PROJECT NAME TYPE REGION AREA (m²) SALES PRICE* USD Port Alaçatı I Attached house Alaçatı ,990 Port Alaçatı I Attached house Alaçatı ,000 Port Alaçatı II Villa/Channel House Alaçatı ,500 Port Alaçatı II Attached house Alaçatı ,300 Port Alaçatı II Apartment Alaçatı ,000 Port Göcek Villa/Channel House Göcek ,200 PRICE COMMENTS (USD/m²) Sea view, without indoor finishing, social area, 100% of units sold 4,857 Sea view, without indoor finishing, social area, 100% of units sold 4,000 Sea view, without indoor finishing, social area, 30% of units sold 2,500 Sea view, without indoor finishing, social area, 30% of units sold 2,300 Sea view, without indoor finishing, social area, 30% of units sold 2,200 Sea view, without indoor finishing, social area, 305 of units sold 6,200 * VAT inclusive. 9

10 SAMPLE DESIGN PERSPECTIVES FOR KAZIKLI PROJECT 10

11 11

12 12

13 Kazikli Mugla Project Name Kazikli Mugla Ownership 50% Start of Construction October 08 Construction Period (months) 22.0 Delay in Construction (months) 0.0 Sales Start November 08 Sales Period (months) 36.0 Delay in Sales (months) 0.0 Construction Area 75,871.2 Sellable Area 70,390.2 Costs / sqm 1,200.0 Total Construction Costs $91,045.4 Sales / sqm $2,900.0 Sales $204,131.6 Domestic Sales 50% Land Investment $22,348.2 End of Construction August 10 End of Sales Period November 11 Kazikli Mugla USD '000 Total Local Sales $102,066 International Sales Deposits 30% $30,620 International Final Payment 70% $71,446 Hotel Revenue $59,179 Total Construction Costs ($91,045) Net Proceeds Before Taxes $172,265 VAT Paid 18.0% $16,388 VAT Received 18.0% ($36,744) Accumulated VAT Net VAT Payable ($20,356) Real Estate Registration Tax 1.5% ($1,531) Stamp Tax 0.75% ($1,531) Sales Costs 7.0% ($7,145) Net Revenue before Land Costs $141,703 Land Cost Allocation ($22,348) Profit Before Tax $119,354 Accrued Corporate Tax 20.0% ($23,887) Net Profit $95,467 Cash Flow to Investor Investment ($11,174) Net Revenue before Land Costs $70,851 Corporate Tax ($11,943) Debt (Paydown) / Draw $0 Net Cash Flow Before Carry $47,734 Carry ($8,807) Net Cash Flow $38,927 Cumulative Cash Flow Net Cash to Investor $38,927 Maximum Cash Requirement $21,132 IRR 41.2%