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Golf Tourist Development, Portugal

INVESTMENT PROPOSITION: An opportunity to invest in a newly formed real estate company, whose objective is to develop a first line golf tourist development in Lisbon area.

The SV has already purchased 100% of a site on which construction of 10 villas and 40 flats is expected to start in the summer 2009 and sales to start in March 2010. The golf course is in operation and was designed by Robert Trent Jones Jr.

INVESTMENT MONIES REQUIRED: 6M Euros to purchase 50% of the shares of the SpV through its ownership structure. 4M Euros working capital
TOTAL INVESTMENT: 10M Euros

Investment Snapshot:
•GDV: €75 million
•Total Cost €55 million
•Profit: €20 million
•IRR: 30%
•Profit on Cost: 35%

PROJECTED RETURNS:
•The projected overall post tax development profit from the project is 19.4m Euros, over a 2.5 year period.
•Investor profit split 50%
•Investor profit share: 9.7m
•Investor ROI: 62% (EXCLUDES WORKING CAPITAL)
• 7% Interest payment on the 4m working capital (to be repaid 2.5 years).

PROJECT STATUS:
•Outline planning approval for whole Project obtained.

•Master Plan approved

•Detailed licenses expected to be obtained May 2009.

•Building contract to be placed with reputable construction company for fixed amount to avoid further liabilities

•100% Construction finance agreed in principle with Santander Bank

•Gross profit: 19.4m Euros

SALE OF THE PROJECT: - 32 Million Euros