The total indoor area of these luxury villas is 256 m2, total area 459m2. Levi Spirit villas were built in 2010.

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1 - VILLAS FOR SALE

2 SUMMARY LEVI SPIRIT VILLAS FOR SALE LEVI SPIRIT VILLA FACTS PRICE Levi Spirit Villas developer and co-owner GSP Group Oy is selling two Levi Spirit villas (Real Estate Company Levin Aihkitie) in Levi, Lapland, Finland. The total indoor area of these luxury villas is 256 m2, total area 459m2. Levi Spirit villas were built in If the villa is both for private use and leasing (extent not given) to other clients the price will be: , VAT 0% (22% VAT from the construction, year 2010), will be deducted from the renting out VAT 23%). For private use only the price of the villa is: WHO IS THE LEVI SPIRIT VILLA FOR? (VAT 22% from the construction, year 2010) (VAT will be paid by the owner since the purpose of the building is not to make income and therefore it is not deductable). Suits both business and private use Pure Lapland and Luxury. Suits perfectly for companie entertaining business associates and holding both internal and external meetings. Private guests and families seeking 5 star luxury and service in privacy with the best skiing and outdoor facilities in Finland nearby. People seeking personal service, VIP status. Levi Spirit Service Center takes care of everything concerning the villa. Levi Spirit villa is ready for use/your visit at all times. WHY INVEST IN LEVI SPIRIT VILLA? ECONOMICAL BENEFITS FOR LEVI SPIRIT INVESTOR Villa purely for your own use will provide the best quality leisure living in Scandinavia with well organised 24/7 service. 2 / 15

3 Villa partly rented out will provide the owner with enough income to cover yearly maintenance fees. In addition to that minimum expenses for your own use will save a significant sum of money in comparison to renting the location (see calculations below). Rental occupancy rate has been ascending and therefore expectations for the rental income for the year 2013 is more positive than earlier operation years. THE VENDOR GSP Group Oy is a company focused on regional and property development consultation and the implementation of construction services. The company is based in Espoo, Finland, and was founded in GSP has created the Levi Spirit concept and supervised the construction of Levi Spirit area. Villas in Levi Spirit are now mostly owned by private and corporate investors. The number of the Levi Spirit villas has the possibility to grow in the future. The local service operator, Levi Spirit Service Center (LSSC) is Vanajanlinna Group Oy which is one of the most well known and respected hospitality companies in Finland Table of contents SUMMARY 1 LEVI RESORT LOCATION IN FINLAND LEVI SPIRIT VILLAS GENERAL INFO SPECIAL SERVICES AVAILABLE FOR LEVI SPIRIT VILLA GUESTS LEVI AS A DESTINATION 365 days a year LEVI SPIRIT VILLA RENTAL SERVICE Levi Spirit villa rental services - Vanajanlinna Group/ Levi Spirit Service Center Owners investment profit To whom is Levi Spirit villa for? THE PRICE Purchase price calculation EXTRA INFORMATION ABOUT LEVI SPIRIT VILLAS / 15

4 1 LEVI RESORT LOCATION IN FINLAND L evi is located in Lapland, Finland, yet very close to the major cities of Northern Europe. It is less than 5 hours from all European capitals and only fifteen minutes from Kittilä airport. The flight time from Helsinki to Kittilä is only 1hour 10minutes. Flights operate all year round. RUSSIA NORWAY SWEDEN From Central Europe to Levi Spirit in 3-4 hours. 2 LEVI SPIRIT VILLAS GENERAL INFO L evi Spirit villas are located in the untouched, unspoiled arctic environment of Lapland, only 13 kilometers from the airport of Kittilä and 8 kilometers from the center of Levi skiing resort with spas, restaurants, shops, event arenas and the main slopes of Levi. These unique villas offer plenty of space, peace, quiet and privacy. Yet party and leisure services are available any time Levi Spirit Villas offer high-standard service year round. The Villas are built respecting the sensitive nature of Lapland Finland and are luxuriously furnished. Privacy, tailored services around the clock and beautiful scenery next to the River Ounasjoki quarantee a unique experience. 4 / 15

5 Levi Spirit villas are well suited for company meetings as well as for the leisure time of private guests. Levi Spirit Villas are designed for high standard corporate guests; each room has its own self-contained bathroom with shower and toilet, unlike basic skiing cottages. Villa Facts: Total indoor area 256 m2, total area 459m2. Four double/ twin bedrooms all with private bathrooms + a loft bedroom. Total number of guests is 10. Large living room with fire place, large flat screen digital TV. Dining room & fully equipped open kitchen with Finnish design table ware. Spa area including sauna, lounge with fire place & indoor or outdoor Jacuzzi. Laundry room and two restrooms on the ground floor. Double car shelter, storage room for snowmobiles and an drying room outdoor gear. Three terraces and two balconies. A unique, large non-heated kammi with open fireplace and bar. Sophisticated audio system. Possibility to watch films or presentations on wide screen directly from the sauna steam room. WLAN internet access and a wall-mounted PC in the living room. Beamer, wide screen and recording digital TV receiver in the lounge room. 5 / 15

6 Pictures inside the Levi Spirit Villa 6 / 15

7 Levi Spirit villas are equipped with a geothermal heating system, which enables economical consumption and maintenance costs. Villas have also security and access control and fire alarm systems. The villas are built with the choicest natural materials, stone, wood and glass. The top floor conceals an exceptional special feature a built-in Lappish hut. Levi Spirit villa layout. 3 SPECIAL SERVICES AVAILABLE FOR LEVI SPIRIT VILLA GUESTS L evi Spirit Service Center is open 24/7. Services (at a separate cost) include i.e.: Transportation from Kittilä airport to the villa by car or helicopter Pick up service and local transfers in Levi area during stay Guided snowmobile excursions, husky or reindeer sledge safaris Skiing, hiking, canoeing, berry picking, fishing and hunting trips Rental and delivery of skis (alpine, cross-country, telemark), snowboarding, golf, canoeing & other sports equipment Grocery deliveries to the villa 7 / 15

8 Catering and rent-a-chef - services, butlers and serving staff. Versatile wellness services, events and associated services. Organisation of events, meetings and conferences. 4 LEVI AS ADESTINATION 365 DAYS A YEAR L evi is Finland s largest year round activity resort. Levi s winter season is long. Levi has average 201 days of snow coverage a year and its ski area is open seven months a year. There are 45 pistes and the longest slope is more than 2500 meters. The 27 lifts have a capacity of persons per hour. For children there is a separate Kids Land with children s slopes and ski lifts. For cross-country skiers there are over 230 km of ski tracks. There are also more than 800 km of snowmobile routes in the area. One of the most breathtaking experiences is to see the Northern Lights in a dark winter night sky. Winter sceneries from Levi. Levi has 45 pistes in the area. 8 / 15

9 In summertime Levi has plenty of activities to offer. The world s most northern Golf course with over 50 hectares and 18 holes is located in Levi. An adventure play park, Nordic walking park and a summer sledging track are just a few samples of activities in Levi during summertime. In the fields of nature, art, culture and sports an uncountable number of all year round activities and events can be found. Characteristic of Lapland s summertime is that above the Arctic Circle the sun never sets between May 15 th and July 15 th, which means 60 days of unbroken daylight. Lapland s autumn colours ruska and fishing in crystal clear rivers and wilderness lakes is a not to be missed autumn experience Pictures of summer and autumn activities in Levi. In Levi there are also: 6 hotels and thousands of holiday apartments, in total more than beds. 40 restaurants 50 freetime activity programme providers special shops, supermarkets and other services Levi's regional influence in the ski resort business is extensive. A contributory factor has been systematic overall development in the region with particular regard to quality and services. Finland and Northern Europe are also considered to be safe areas. The natural attractions of Levi are: clean air, exoticism and a functional ski resort with snow guaranteed. According to forecasts, all significant trends concerning Lapland's tourism industry show solid growth. Permanent changes in the Central European climate will mean a significant increase in utilisation ratios for North European ski resorts. 9 / 15

10 5 LEVI SPIRIT VILLA RENTAL SERVICE I f the owner of the villa does not want to keep the villa for private use, it can be registered in the Levi Spirit villas rental service. Levi Spirit villas are rented out by Vanajanlinna Group together with Levi Spirit Service Center. The utilization rate in Levi Spirit Villas renting has increased significantly since the merger with LSSC and Vanajanlinna Group`s visibility and market position. 5.1 Levi Spirit villa rental services - Vanajanlinna Group/ Levi Spirit Service Center The working model: LSSC is responsible for cleaning and washing bedlinen. LSSC carries out an annual spring cleaning. LSSC staff orders all the maintenance needed for villas from the local real estate maintenance partner. The operating partner directly invoices the villa owner for the maintenance costs. WLAN, electricity, water, emergency numbers, snow clearing, sweeping etc. are invoiced directly from real estate company Aihkitie Ltd. LSSC organizes the incidental services according to customer needs. i.a. catering, transportations, husky safaris, snowmobile safaris, skiing accessory rental etc. Vanajanlinna Group / LSSC offers owner benefits for those owners who have made a rental agreement. The owner and his entourage can use these benefits according to the ownership pricelist. Vanajanlinna Group / LSSC is responsible for accommodation administration and functioning and the following accommodation costs by: o marketing the villas, taking care of bookings and charging for the rental fee from customers. o keeping the villas in prime condition, cleaning and changing bedlinen during the guests stay. o supervising the villas during the rental period and making sure that the villa is used appropriately. o offering services needed by villa customers, such as reception, information and programme services. o corresponding insurances concerning accommodation functions. Bookings which are made through LSSC service center will be shared equally between villas. 10 / 15

11 LSSC carefully manages villas and the owner s private property. LSSC compensates for direct damages caused by rental functions agreed within house rent law/property rent laws. The villa owner has to maintain the villa and its property and take care of maintenance required. The owner also has to ensure that villa fulfills the rental requirements at all times. 5.2 Owners investment profit Levi Spirit Service Center rents villas for private and corporate customers. The utilization rates and prices vary according to season. Demand, number of guests, length of stay etc.: all affect the offer. There is no fixed pricelist for daily accommodation, yet recommended season rates are found below. LSSC defines rental prices based on demand and other factors. LSSC / Vanajanlinna Group is responsible for paying travel agent fees and other commissions. The only so called marketing obligation for the owner is to let the villa for Vanajanlinna Groups use for marketing and PR activities 10 days per year without charge. Vanajanlinna Group / LSSC takes care of all the other marketing activities and expenses generated by these activities. Vanajanlinna Group / LSSC accounts accumulative rental profit four times a year for the owner. Vanajanlinna Group / LSSC operate by fixed costs, not commission based. OWNERS INCOME PER RENTAL DAY SEASON PRICE TIME PERIOD A1 A2 B 680 Christmas and New Year season 450 High season i.e. spring holiday weeks 310 Other winter season excluding above mentioned times C 160 Low season (summer & autumn periods) Levi Spirit`s price periods, villa owners rental profit and accounting during the season 2011/2012, VAT 0% 5.3 To whom is Levi Spirit villa for? Levi Spirit villas return on investment without own use is relatively modest at the moment. Having business and/or private usage needs will make the investment profitable when comparing rents paid in owning or non-owning mode. Other benefits using villa as an owner are for example: Familiar staff at your service every time you spend time in the Levi Spirit villa, 24/7 Constant, familiar place to relax privately or negotiate with business partners Exotic, clear and peaceful nature, but also champagne and party life nearby in Levi village if needed 11 / 15

12 6 THE PRICE If the villa is both private use and leasing (extent not given) to other client price will be: , VAT 0% (22% VAT of the construction, year 2010), will be deducted from the renting out VAT 24%). For private use only the price of the villa is: 6.1 Purchase price calculation (VAT 22% from the construction, year 2010) (VAT will be paid by the owner since the purpose of the building is not to make income and therefore it is not deductable). In Finland, the VAT from construction costs are deductible, if you use the property as a (rental) business. If the villa is for private use only, the VAT from the construction costs is not deductible. The tax authorities have made the following calculation for the selling of the villas. Villa purchased at: VAT paid: % % % % % % % % % % At the time of construction, the VAT was 22 % 12 / 15

13 Option A: Purchase the cabin into private use PRICE EUR VAT * (2013: 22% * 60%) * VAT at the time of the construction was 22 % Transfer tax ** ** Transfer tax 4 % Total price Option B: Purchase the villa, but lease it also to others By renting the Villa, when not in own use, the owner can cover the fixed management fee. PRICE EUR VAT - (No VAT, as the villa will be used for rental purposes) Transfer tax ** ** Transfer tax 4 % Total price If the Villa is used for rental purposes, when the owner wants to use the Villa, they must also pay rent (due to tax-reasons). The rent however is low and is determined just to cover the cleaning and bed linen costs. The prices for private use (2012): (Includes cleaning and bed linen) Season Price/1. day (incl. VAT 10%) Price 2. day -> Refund to the owner Villa's Management charge 4,50 /m 2 /month + VAT. VAT 23 % TOTAL COST FOR THE OWNER / day (appx.) A ,4 13,6 A ,5 46,5 B ,3 68,7 C ,8 103,2 7 EXTRA INFORMATION ABOUT LEVI SPIRIT VILLAS Find more information about Levi Spirit villas: watch 360 -videos inside the Levi Spirit villa: o 13 / 15

14 o o o attached articles & other info o o o &format=en&regiunea=lappland+-+lappi&sortby=22 APPENDIX 1 Levi Spirit villas best suits for those private individuals and companies who have many uses of their own for the Levi Spirit villa. Due to the small fees for their own use, the savings comparison to renting the unit are extensive. Here is a calculation for comparison for own villa vs. renting out Levi Spirit as a non-owning customer: PRICE COMPARISON BETWEEN VILLA OWNER AND A RENTAL USER: YEAR 2013 NON- OWNER`S RENTAL PRICE AS A PRIVATE PERSON AS A CORPORATE 4 WEEKS (when 2 weeks in season A1, 2 weeks in season A2) (1950 x 14 days) + (1700 x 14 days) = (incl. VAT 10 %) x 0,9 = (VAT 10% deductible) 8 WEEKS (when 4 weeks season A1, 4 weeks in season B) (1950 x 28 days) + (990 x 28 days) = (incl. VAT 10 %) x 0,9 = (VAT 10% deductible) OWNER S PRICE OF USAGE AS A PRIVATE PERSON AS A CORPORATE (170 x 14 days) + (150 x 14 days) (170 x 28 days) + (140 x 28 days) = 4480 (incl. VAT 10 % when = 4340 (incl. VAT 10 % when rented, VAT 23% for own refund*) rented, VAT 23% for own refund*) 4480 x 0,9 = 4032 (VAT 10 % deductible) 4340 x 0,9 = 3906 (VAT 10 % deductible) * refund VAT 23% 14 / 15

15 APPENDIX 2 Rental Revenue calculations Revenue calculation Model: Villa XXL, 256m2 (total area 459m2) Price: time period weeks list price/day maximum utilisation ratio 100% estimated utilisation ratio % rental revenue 01 May - 31 Oct Nov - 7 Nov Nov - 10 Nov 0, Nov - 14 Dec Dec - 11 Jan Jan - 09 Mar Mar - 31 Mar Apr - 30 Apr ,55 weeks utilisation ratio 18, Operation costs Maintenance charge 4,5 /m2/month 256 m kk /year Revenue Revenue % if own capital 100% 3,9 % 15 / 15