INVESTMENT PROPOSAL HOLIDAY APARTMENT DEVELOPMENT, RIVERSIDE RESORT, ALANYA Q3 2008 1
HOLIDAY APARTMENT DEVELOPMENT, RIVERSIDE RESORT, ALANYA This is an opportunity to acquire the Fund s interest in a holiday apartment development situated in the coastal resort of Alanya, in Antalya province, Turkey. The combination of enviable Mediterranean climate, sandy beaches, water sports, lively nightlife and historic heritage make Alanya a popular destination for international tourists and second home owners, in particular from Russian, Scandinavia, Germany and the Netherlands. Alanya is located 120km from Antalya international airport but accessibility to the city is expected to improve significantly following the opening later this year of the recently constructed international airport at Gazipasa located only 15km from Alanya. Riverside Resort is a gated development consisting of 215 one, two and three bedroom balconied apartments of which the Fund has financed 107 apartments, with swimming pool, indoor fitness centre and café bar. It is located in an attractive setting on the Dim River, only 200m from the Mediterranean Sea and six km from Alanya city centre. 2
INVESTMENT SUMMARY Project Overview: Total Net Land Area: 12,247 sqm Construction Area: 16,400 sqm Sellable Area: 14,024 sqm Site Usage: Total of 215 apartments in four crescent shaped buildings of which the Fund has financed 107. Mix of one, two and three bedroom apartments. Landscaped gardens, swimming pool, tennis court, café bar, children s play area and indoor fitness centre. Project Status: The Fund s investment in the project is by way of a secured loan to the developer Okyapi Insaat by the Fund s wholly owned Jersey subsidiary, Ottoman Finance Company 1 Limited, in April 2006. Construction of the apartment complex is now fully completed. Marketing conditions for the properties in 2006/7 were challenging due to high levels of supply of comparably lower quality developments in the wider Alanya market and lower pricing within Riverside Resort itself from contractors who had received units in lieu of payment for services provided to the developer during the construction phase. The Fund has now commenced marketing of the apartments at reduced pricing to stimulate demand in the Netherlands, Scandinavia and Russian markets, with pricing to be increased as the opening of Gazipasa airport approaches. 3
KEY PROJECT HIGHLIGHTS Advanced Project Status Construction fully completed and marketing commenced. Exclusive, self contained community with landscaped gardens, spacious apartments with designer kitchens including granite worktops and contemporary bathrooms, fully air conditioned. Pool with waterslide, tennis courts, fitness centre and caféʹ bar Marketability to International Buyers Positioned in an attractive coastal location with views of the Dim River and surrounding Taurus mountains and warm, sunny climate Well established resort for Scandinavian, Russian, German, English and Dutch tourists. Close proximity (15km) to Gazipasa International airport which is set to open shortly and is widely predicted to have a beneficial impact on realizable sale prices in the region, reducing transfer times from 2 hours to 20 minutes. MARKET COMPARABLES Comparable Apartment Prices PROJECT NAME REGION AREA (m²) SALES PRICE* Euro My Marine Residence Mahmutlar 346 382,676 My Marine Residence Mahmutlar 108 145,044 My Marine Residence Mahmutlar 86 97,180 COMMENTS PRICE Euro Park and walking paths, Open closed pool, Restaurant, Bar, Market, Fitness salon, Playground, Basketball and Volleyball fields 1,106 Park and walking paths, Open closed pool, Restaurant, Bar, Market, Fitness salon, Playground, Basketball and Volleyball fields 1,343 Park and walking paths, Open closed pool, Restaurant, Bar, Market, Fitness salon, Playground, Basketball and Volleyball fields 1,130 Alden Mahmutlar 115 117,990 Pool, Market 1,026 Terra Desir Mahmutlar 201 166,227 Social facilities, Pool 827 Panorama 1 Complex Dimçay 160 220,000 Pool, Built in kitchen, Tennis court, Furnished 1,375 Nimkar II Dimçay 160 220,000 Pool 1,375 Beyaz Saray 2 Dimçay 120 105,000 Pool, White goods, Air conditioner 875 Panorama Showhousse Dimçay 104 84,968 Pool, Built in kitchen 817 Tosmur Residence Tosmur 100 77,000 Spa, Air conditioner, Built in kitchen 770 River Residence Tosmur 125 96,625 Pool, White goods 773 *Vat inclusive 4
IMAGES OF RIVERSIDE RESORT 5
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