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Hotel, Cinema and Car Park Project, Krakow

Purchase 70% of Hotel, Cinema and Car Park Project
42.3M PLN Investment Opportunity in Karmelicka

Location
Krakow is Poland's second largest City – Population 750,000
Most important Tourist Destination in Poland – 8m visitors annually
One of Krakow's last remaining City Centre sites
Located on one of the busiest streets in Krakow leading to the main square
20 large international companies in Krakow: Google, IBM, General Electric, Motorola etc

Asset
4 Star Hotel (195 rooms) – management agreement Head of Terms agreed signed with one of the worlds leading hotel groups.
8 Screen Cinema (1,841 seats) - lease signed
Multi Story Car Park (484 spaces) – HOT on lease signed with a leading European Car Park Operator
Basement bar/restaurant or Leisure (1,500 sq m) available.
Ground floor retail (400 sq m) available.
Construction 22 month plus 3 months fit out
Costs going forward to completion 178.6m PLN
Letter of intent for development funding of 138m PLN has been issued by Bank

Opportunity
To acquire 70% interest in the project now, developer / investor flexible on terms of exit.
Equity investment requirement 42.3m PLN.
Owner 30% plus 5% Management fee (included in the costs), Investors 70%
Projected Investor Returns
42.3m PLN profit share on top of original 42.3m PLN investment based on future value of 240m PLN at a 7.5% yield and costs of 178.6m PLN.
26% IRR
101% ROI
Target Return in Three Years
Return of 81.5m PLN based on a 60% profit share on top of original Investment of 55m PLN based on future value of 352m PLN at a 7.5% yield and costs of 216m PLN.
35% IRR
148% ROI
Variables
All figures in PLN at the FX rate of 1 euro = 4.2 PLN
Yield is calculated based on contracted fixed rents and estimated turn over rents
EU Structural funding may be available for Hotel construction in Poland for EURO 2012