Kersewell information memorandum hr by SIX10

Information Memorandum for the Kersewell development

Information Memorandum Introduction This Information Memorandum provides you, as a potential resort suite investor, with all the necessary information about Kersewell, the resort and its business plan. Reading it will help inform your investment decision. We hope you find it interesting and informative. We recommend you study it and other resort literature â&#x20AC;&#x201C; and also obtain independent investment advice from a suitably qualified third party â&#x20AC;&#x201C; before purchasing. For further information about the how the development of the resort and investment opportunities, please visit www.kersewellresort.com.

Contents Introduction A financially safe & proposition Your opportunity The development concept Infrastructure, activities, planning and development The time is right for Kersewell Development schedule Birdâ&#x20AC;&#x2122;s eye view What makes the resort special Development income Development costs Resort operations Exit opportunities Investment opportunities The practical points of investing through a SIPP or a SSAS Risks Your next steps Kersewell adminstration

2 3 4 4 4 5 5 6 7 8 9 9 10 11 14 15 15 15

Disclaimer: these particulars are provided as a general guide only, subject to contract and availability. They are not intended, nor do they contain, any representation of fact upon which any interested party is entitled or should rely. Consequently this literature should be treated as a general guidance and cannot be relied upon as accurately describing any of the Specified Matters described in any Order made under the Property Misdescription Act 1991. All descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct but any intending purchasers or lessees should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each time. The information provided is intended for illustration purposes only and could change, for example, in response to market demand or ground conditions. Journey times to and from the property are for guidance only and prospective purchasers or lessees should make appropriate enquiries. Financial illustrations are based on our own assumptions and are not intended to be representations of future performance. Prospective purchasers must rely on their own due diligence.

2 : Investor Information Memorandum

A financially safe & sound proposition

Kersewell firmly believes it is offering one of the most effective and secure property investment opportunities in the UK today with investors guaranteed immediate returns of up to 10% from the instant they invest. The 485 acre leisure and activities resort has been carefully researched and developed by an experienced international team with proven track records developing similar large-scale, highly profitable concepts across the globe. The entire Kersewell proposition is financially and conceptually sound and has the backing of HVS, one of the world’s leading hotel and resort agencies. The consultancy was commissioned to assess the concept’s full potential and has confirmed the site and location are perfect to exploit the fast expanding and highly profitable short break market. The operations are based on the Center Parcs model, which operates at 90% plus occupancy and generates a 50% profit margin on sales. It’s a safe propoisiton too as investors’ capital is insurance protected with a bond covering either their deposit or 30% of the purchase price. Investors can buy with the security of purchasing UK property where all transactions are conducted by UK lawyers. There are even pre-agreed developer funding and list price discounts during the initial stages of the project. The properties, when sold as commercial real estate, are SIPP and SSAS compliant. They are an ideal vehicle to ensure better pension returns for investors looking to secure their financial futures. There are many other tax benefits available too, including possible business property and inheritance tax relief. While investors have clearly identified exit routes after years two and three of the development, for the smart investor it is a long term opportunity with strong projected capital growth. A two-decade investment could easily see a 559% return on the capital that is invested today.

3 Investor Information Memorandum

Your opportunity

The development concept

Over 75 per cent of Scotland’s population (3.8m people)

Kersewell has identified a market opportunity for

resides within a 50-mile radius, less than an hour

a family-focused, value leisure resort brand. It has

by car or train. The area is well served by fast major

developed the concept with strategic architectural,

roads, three international airports and good rail links.

construction, leisure consultant companies and Scottish

Many major cities, such as Manchester, Liverpool,

government agencies.

Leeds and Newcastle, are less than three hours by car adding another 12 million more people to the resort’s catchment area. Tourism is essential to Scotland’s future. Total revenues of £4.2 billion makes it larger than its oil, fishing and whisky industries combined. The country hosts 16 million overnight trips per year, with 80% from the UK. Most overseas visitors are from the USA, France and Germany, who are all very familiar with the resort proposition. The Scottish tourist market is growing fast and saw a healthy 9% increase in hotel occupancy in 2009/2010. Spending in the visitor economy is expected to increase 2.9% per annum between now and 2020 with short breaks essential to the future success of tourism in Scotland. Kersewell believes the increasing demand for short stay UK vacations is driven by long-term consumer trends that are unlikely to change for the next two decades. Consumers are increasingly cost and cash conscious - and are reacting against the time, costs and security issues associated with foreign holidays and flying. Consumers are changing work and lifestyle patterns with flexible working practices encouraging a greater uptake of three or four day leisure breaks rather than a one or two week “annual foreign holiday”. Consumers of all age groups have a desire to continue to learn and educate themselves about their activities and improve their abilities and understanding. The residential activity holiday resort is a proven opportunity in England and France with competitor operators currently achieving profitable growth with annual occupancies as high as 97%.

4 : Investor Information Memorandum

Infrastructure, activities and planning The development is a 485 acre site in southern Scotland’s Clyde Valley, located between the country’s capital, Edinburgh, and its largest city, Glasgow. This provides Kersewell with the key accessibility, demographics and topography criteria necessary to successfully establish a profitable resort. The resort will offer a wide range of free and pay-asyou-play indoor and outdoor activities for children and adults of all ages and abilities. Expert tuition, lessons and courses will be integral to the resort proposition. Guests will enjoy a range of leading high street brands and the resort’s own restaurants - while food, drink, retail, housekeeping and spa services can be delivered to their accommodation. The site has outline planning permission from South Lanarkshire council for 750 resort suites, a 250 bed hotel together with indoor and outdoor activities, including a golf course, clubhouse, food, beverage, retail and lifestyle, spa and swimming facilities. Detailed planning approval is due to start in Autumn 2011 and should be granted once Kersewell has presented final designs. This assumption is based on feedback Kersewell has had from the planning authorities, advice from Scottish Development International, progress on the studies undertaken - and the plans to build resort suites to high (4 or 5) codes for sustainable homes (CSH) gradings.

The time is right for Kersewell The economic climate and the exchange rate are

This trend is likely to continue, especially as people

encouraging people to holiday in the UK rather than

prefer the ease and convenience of driving to a resort

go abroad. They want more value, less travel. Kersewell

less than three hours away compared to the time

believes the UK is now exiting the worst recession in living

consuming inconvenience and stress of airport travel with

memory that has led to a slump in property prices.

its associated negative carbon footprint implications.

As a result, we are currently at the bottom of the value

Developing the short leisure breaks in Scotland is a key

cycle, which means real estate can only increase in value.

objective of Scottish tourist authorities in their bid to

The recession has supressed real estate development in the

increase tourism revenue generated in the country by

UK so new build property has been scarce. Developers such

50% over the next five or six year. Visit Britain is already

as Kersewell, who have invested wisely, can afford

anticipating a rosy future for Scotland’s tourist industry

to release in-demand product that will appreciate well in

and is predicting spending in the ‘Visitor Economy’

an under supplied market.

will increase by 2.9% per annum between now and 2020. Occupancy will be supported by the eclectic choice

Demand is growing all the time. UK residents making

of major tourist and visitor attractions in the

holiday trips overseas dropped by 15% in 2009 while

vicinity of the resort - which is simply unrivalled by any

Scotland saw a 9% increase in hotel night stays.

resort in the UK.

Development schedule The site will be a phased development to achieve effective

Outside will be tennis, football, basketball, action

construction and operational economies of scale. Although

adventure challenges and facilities for activities such as

timescales have been outlined, the building programme

camping, orienteering and mountain biking. A boathouse

will be in line with sales – with sufficient activities and

by the loch will include additional food and drink facilities

facilities to meet guest requirements.

and indoor and outdoor entertainment areas.

Phase 1 (March 2012 to December 2013)

Phases 2 and 3 (2015 and 2016)

The golf course, loch and surrounding infrastructure and

Once the core resort has opened in 2014, a further 350

accommodation will establish the resort’s visual appeal.

resort suites will be added with extra central buildings

The reception area, administering all the central booking

offering extended indoor activities and restaurant facilities.

and information requirements, is the first port of call for

The phases are split between the Spring of 2015 and

guests. This is near the first central building, which has

Spring of 2016.

swimming pools, the spa, indoor activities and restaurants.

5 Investor Information Memorandum

Birdâ&#x20AC;&#x2122;s eye view

6 : Investor Information Memorandum

What makes the resort special? Behind every brilliant view and stunning feature, there is a sensible and sound business reason for what Kersewell is doing. St Andrews

Du Dunblane

minutes drive away) and Glasgow (45 minutes) within easy

S tirling Stirling Dunfermiline D Dun u fermiline ermilin

W Paisl a sle ey Paisley

EDINBURGH E EDINB BURGH URGH RG G M8 A71

reach of the southern end of the Clyde Valley. It enjoys good quality motorways (the M74 nine miles to the south west

Dumbarton

Location The resort is perfectly located with Edinburgh (less than 30

M90

of the site links Kersewell to England and Wales via the M6)

Liv Living ving n ston Livingston

W E ARE HERE

A70 A702

M77

major roads, train, air and ferry links and is readily accessible to millions. Numerous major visitor and tourist attractions are less than an hour’s drive from the resort.

Lanark Lan an Kilmarnock lmarnock A74(M)

Resort Suites

Denotes 50 mile catchment radius.

Code 5 sustainable homes graded suites feature super insulated panels and heat recovery systems to ensure low heating, energy and maintenance costs. They will stay in better condition than lower specification builds. Our substantial investment in sustainable energy sources ensures they will be comparatively cheaper to run as energy prices continue to soar. In a decade’s time, the difference between a self sustaining unit and one run from the national grid could effect the yield of an individual suite by as much as 3%. Golf and lochs An 18-hole golf course to match Scotland’s best designed by two times major champion Sandy Lyle (left) and golf architect Scott Macpherson enhances the resort’s landscaping and aesthetic appeal, adds to the value of your property and contributes to the atmosphere of a busy yet relaxing resort. The loch are brilliant playground in itheir own right. Both improve long term property values. Although designed by world class architects in their fields, the units have still been sold based upon a recession driven yield. Therefore you can see there is a huge margin for potential capital growth as the market improves. The Environment The resort is a car free zone - and for good reason. Kersewell’s commitment to the environment is total. Not just because it is protecting the planet but for good business reasons. The lower the heating, energy and maintenance costs the more it has to further invest in the resort. What’s more, by future proofing the resort suites now, Kersewell is enhancing the long-term value and potential for capital appreciation of your properties.

7 Investor Information Memorandum

Development income The development is a self-funding model, generating funds from individual investors. Kersewell expects a large proportion of development funding to come from selling resort suite accommodation to individual and small institutional investors. They will earn rental income from the accommodation revenue. The freehold resort suite titles are suitable for self-invested pension plans or as small self-administered schemes. The core fundraising product will be complemented by a) an investment fund, which will own a group of resort suites, b) a bond issue and c) normal property sales. The phased construction will generate the necessary revenues and cashflow to fund the later stages of development. Full details as appropriate will be made in the near future. Once operational, resort suite investors will share equally with the resort operator the accommodation revenue less the service charge. Kersewell is intending to open the resort in 2014. This will coincide with huge publicity for Scotland, which is hosting the Commonwealth Games in Glasgow and the Ryder Cup at Gleneagles. Kersewell will immediately engage satisfied visitors to drive sales to owner occupiers. Once the final resort suites and central facilities have been completed the operator will also drive occupancy rates and visitor satisfaction ratings to achieve the operational targets.

3 Bed Executive Occupancy

£219,000 914.93 sq ft Annual

Service

Net

50%

Income

Charge

Income

Yield

70%

£28,856

£1,200

£27,656

£13,828

6.3%

80%

£32,978

£1,200

£31,788

£15,889

7.3%

90%

£37,100

£1,200

£35,900

£17,950

8.2%

94%

£38,749

£1,200

£37,549

£18,774

8.6%

Projections on an investment of £219,000 in a 3 bedroom executive resort suite show the income you should receive. In year one Kersewell will guarantee a minimum return of 6.0% as the occupancy builds. Kersewell forecasts occupancy levels of 80% in year two, which could generate a return of 7.3%. By 2018 it is forecast that the occupancy rates will be at 90%, which could generate a return of 8.2% at this price. As an indicator of current occupancy trends, the resort’s nearest similar competitor resort in the UK reports results as high as 94% per annum across several sites.

8 : Investor Information Memorandum

Development costs Kersewell has fully costed the total construction of the resort with the assistance of its strategic development partners, including architects Holder Mathias and lead build partner Miller Construction. The first phase will include the central build, over 400 resort suites, lochs and the golf course. The second and third phases add another 300 resort suites and additional central buildings. Kersewell has added a 5% contingency to the construction costs throughout the build programme. Professional fees and marketing costs include the operational start up. Kersewell believes the total £172.3m development and marketing costs have sufficient funds to manage any unexpected build costs or shortfalls in income.

Resort operations The brand concept is primarily a short stay vacation holiday resort with high quality accommodation. Operational income will be generated from resort suite rental, high street branded and own brand food and beverage outlets, pay-asyou-play activities, spa treatments, cycle hire, lessons, courses and local membership schemes. The three key performance indicators driving the operational success are the occupancy rate, the average daily rate (what guests pay for their accommodation per night) and the resort profitability after operational costs and resort suite rents. The financial forecasts, based on stable occupancy at 90% from 2018, indicate strong profitability to ensure investor returns. The management team, consisting of leisure professionals who have launched and run high profile global resorts, will constantly seek to maximise operational results to enhance your income and grow the value of your investment.

Kersewell Resort

2014

2015

2016

2017

2018

Resort Suites

426

566

750

Occupancy

80.0%

85.0%

90.0%

Av Daily Rate £

146.00

Accommodation Rev £M

18.2

24.6

32.0

34.0

36.0

Other Revenue £M

13.7

18.2

24.1

25.6

27.1

Profit before Fixed Costs

10.7

16.8

23.3

25.3

26.8

Profit after Resort Suite Rent £M

(4.0)

(0.1)

3.1

4.3

4.9

35,572

37,761

39,950

6.0%

7.4%

7.9%

8.3%

Revenue per Resort Suite exc VAT £ Yield % Investment

9 Investor Information Memorandum

Exit opportunities Resort suite investors have clear exit opportunities. Investors with a freehold title can sell the “business” on the strength of the rental yield. They can sell it to similar investors to themselves, ‘lifestyle’ purchasers and corporate commercial investors. The UK leisure resort sector Kersewell is entering enjoys sustained growth and investment. Publically available information for Center Parcs’ four sites in England and Seasons Holidays shows the attractiveness of the Kersewell style of activities and leisure resort. Bluestone resort has recently been built in southern Wales as others recognise the investment opportunity and enter the market. Increasingly in the UK, guests are looking to guarantee access to the resort amenities when they want. This “lifestyle” market is often for people living within 20/30 miles of the resort but who want the resort membership and access to the golf, spa and childrens entertainment. With Edinburgh and Glasgow virtually on the resort’s doorstep, there is a massive potential market. Purchasers may want to buy a specific week in the year or even all year round access. Many resorts, such as Glenmor at Gleneagles, offer this opportunity. And Kersewell will too, by establishing this market it anticipates building the capital value and ease of access for investors. Corporate commercial investors might include the resort operator, another resort group or a leisure investment fund. As an example, Center Parcs acquired the Oasis resort in Cumbria and renamed it Whinfell Forest in 2002 when it expanded its estate. In the event of a corporate sale, this would likely to include all the real estate elements, which could result in considerable profits for investors. Once the resort is operational and established, Kersewell anticipates a considerable uptake of ‘lifestyle’ purchases

from owners not principally motivated by investment factors. These purchasers are looking at fractional or vacational options rather than a whole purchase and will either be cash buyers or funding through raising funds against their primary homes. Market research into this sector shows buying motivations include the proximity of the resort to the home, a desire to invest in prime locations and a wish to enjoy a luxury serviced second home without the costs of an outright purchase. Kersewell believes there will be substantial growth in UK fractional and vacational purchases, mirroring the success of the fractional industry in north America and the Caribbean where over 330 developments were generating total sales of $1.5b per annum at the end of the last decade. Europe is catching up with the USA, with approximately 100 fractional deeded products located across the continent. This ‘lifestyle’ demand should drive up the value of resort suites over the coming years. This is good news for SIPP and SSAS investors buying now. The combined total return or value of a fractional and vacational purchase is likely to provide a considerable price uplift for resort suites, leading to large profits when the exit coincides with the increased demand for lifestyle products. According to leading international real estate industry specialists like Northcourse and Ragatz, the aggregate prices of the units are usually valued at 150-200% of the initial single base price of a unit. For vacational units it can be as great as 300%. The quality of the build specification, location and competition all influence the range in value. The Kersewell proposition - matching high quality accommodation, food and drink, golf, numerous other activities and a commitment to education - more than satisfies all these requirements. It is expected the uplift will veer towards the top end of the spectrum.

10 : Investor Information Memorandum

Investment opportunities The resort suites are either two, three or four bedroom

Two bedroom suites start from £194,000, three bedroom

and have different specifications. Executive, Premium,

from £219,000 and four bedroom from £269,000. The

which has about 10% extra space than Executive for

prices are calculated with the assistance of independent

added comfort, and Luxury, the same size as Premium but

valuation advisors using normal commercial property

completed to a higher specification with locations that

calculations based on the target rental income due over

maximise the views.

the first ten years of the resort.

The hotel will have one bedroom suites that offer all the

Kersewell has developed five investment opportunities for

same facilities in a central location, although they won’t

you. This IM focuses on the SIPP and SSAS investments

have the outdoor space of the other accommodation.

but also mentions the others to give a complete picture of the opportunity.

11 Investor Information Memorandum

Table showing sale of 2 Bedroom Executive resort suite, £194,000 Staged payments paid by developer loan, final payment at completion Mortgage to 50% of fund value When

Action

Now

Reserve suite

within 8 weeks

Due £

Paid £

Refundable deposit

2,500

Exchange contracts

30% due

58,200

Deposit Insurance

2% optional

1,164

Legal conveyancing

estimate

675

Reservation fee returned

(2,500)

not yet known

Foundations completed

25% due

48,500

not yet known

Roof completed

20% due

38,800

not yet known

Fixtures completed

15% due

29,100

not yet known

Completion

10% due

19,400

At completion

Interest on money due

estimate

3,000

Legal conveyancing

estimate

675

Stamp duty

Paid direct by investor

(139,475)

139,475

199,514

Total Paid to Kersewell Investor's pension

Inc Pension relief at source

134,847

Mortgage Stamp duty & admin fee

64,667 Paid direct by investor

Total Paid to Kersewell

199,514

Table showing sale of 2 Bedroom Executive resort suite, £194,000 Payment in full at exchange When

Action

Now

Reserve suite

within 8 weeks

Exchange contracts

100% due

194,000

Deposit Insurance

2% option

1,164

Legal conveyancing

Due £

2,500

estimate

425

Reservation fee returned

(2,500)

Foundations completed

Nil

Roof completed

Nil

Fixtures completed

Nil

Completion

Nil

estimate

(17,500)

estimate

425

Paid direct by investor

At completion

6% pa interest on full

At completion

Legal conveyancing

At completion

Stamp Duty

Paid £

payment

At completion

17,075

(17,075)

178,514

Total Paid to Kersewell Investor

178,514

Mortgage Stamp duty & admin fee

0 Paid direct by investor

Total Paid to Kersewell Sales discounts may be available at certain times to reward those who pay in full. Note that all figures shown are illustrative and dependent on individual circumstances.

12 : Investor Information Memorandum

178,514

Purchase of a freehold resort suite title within a SIPP or a SSAS, either as a whole or an eighth

share (fractional)

Purchase of one or more shares in a fund that will own multiple resort suites

If you have £5,000 or more, you can invest in a fund that You can purchase a “going concern” with an operating

will own the title to a group of resort suites. Rental yields

leaseback agreement. The rules for the SIPP and SSAS

are the same as the other SIPP and SSAS investments, with

investments exclude personal use of your investment. You

a sharing of accommodation revenue allocated to fund

will have a VAT registered SIPP or SSAS, pay an immediate

investors on a pro-rata basis. Kersewell’s aim is that this

£2,500 reservation fee (which is refunded to you minus stamp

will provide similar percentage returns on your investment

duty, legal costs and administrative charges, to secure the

to the purchase of a whole suite within a SIPP or SSAS. A

specific resort suite and the balance of the deposit (protected

separate Fund Information Memorandum is available upon

by a bond) on exchange of contracts within two months. The

request.

deposit will contribute towards building the resort suite and the initial development.

Purchase of a 4 year bond with a guaranteed 7.0% annual return

Further payments are due at key construction stages (completion of foundations, roof, fixtures and completion).

If you have £5,000 or more but you want a guaranteed

You have the option of deferring payment until completion

income yield independent of the success of the resort,

by taking out a loan with Kersewell. The interest on this loan

you can invest in a development bond that will pay an

is added to your final settlement figure, which is due upon

annual return of 7.0% and will be redeemed after four

completion of your resort suite. From this point, Kersewell will

years. A separate Bond Information Memorandum is

pay you a guaranteed 6.0% annual return until the end of

available upon request.

the first operational year of the resort.

Purchase of a freehold resort suite title, either as

The operator will share the accommodation revenue (net of VAT and a small annual maintenance charge) equally with you.

a whole or an eighth share (fractional), for the

owner’s own lifestyle use

To ensure the return in the first year of operation, the rent is guaranteed at a minimum of 6.0%.

If you enjoy the ‘resort’ lifestyle, you can purchase a resort suite for your own use and automatically become

If you value the rental opportunity and possible capital

a member of the resort. This is a normal property sale

return but want to invest a smaller amount than a whole

with certain resort rules to maintain the style and look

suite, the larger units are available as fractions of an

with a service charge for delivery of essential services and

eighth, which still provides the security of part of a freehold

maintenance. When not in use, the operating company

title and the ability to resell on exit. Each fraction will share

will seek to rent it out on your behalf (sharing the rental

half of the accommodation revenue from six weeks in the

income with you). As indicated in the section above

year. The total investment is due on exchange.

on exit opportunities, Kersewell believes that “lifestyle” purchasers will increasingly target the resort once they have stayed and want guaranteed access to the resort whenever they want.

Purchase of a week’s own use of the resort suite for five years

Once the resort is open and you’ve experienced the resort, you might want to purchase a five-year vacational share of a certain week for your own use, which includes membership of a global exchange programme. Your price is all inclusive and guarantees the resort suite and time chosen. There is not a freehold title to this purchase. This option provides a high margin exit option for current investors.

13 Investor Information Memorandum

The practical points of investing through a SIPP or SSAS Kersewell is delighted that you share its vision and want

At this stage Kersewell will have exchanged a contract to

to invest in a resort suite. You will need to contact your

sell you the freehold of the site with the appropriate resort

Independent Financial Advisor (IFA) or sales agent. If you

suite and the operating company will have signed an

don’t have one, Kersewell can recommend an IFA who has

agreement to lease it back to you on completion for nearly

been trained on the opportunity and can help assess if it

175 years, which is the maximum allowed in Scotland. You

is appropriate for you. The IFA will guide you through the

will have a standard security over your site and this lease

investment and assist you with any pension matters.

requires the operator to insure, repair and maintain your suite and the surrounding area at our expense. There is

When you pay the £2,500 reservation fee, the suite is held

also a deed of conditions that will ensure the continuity

in your name for two months to allow your IFA to contact

of the look and feel of the resort which helps protect your

the resort’s SIPP and SSAS trustees or your own provider to

investment.

set up your SIPP or SSAS. Your SIPP or SSAS will need to be VAT registered to enable you Kersewell will give you a 14 day “cooling off” period should

to benefit from the sale being accounted for as a ‘transaction

you wish to change your mind for whatever reason.

of a going concern’ (TOGC). Kersewell will charge but not

If you already have funds in a SIPP or SSAS our nominated

collect the VAT on the sale. However, if you are not registered,

SIPP provider will open a new account for you and transfer

Kersewell will have to charge and collect the VAT.

the money free of charge. This should take a matter of days. If you do not exchange contracts within two months

As Kersewell finishes your resort suite it will notify you that

Kersewell reserves the right to withhold the reservation fee

the build is close to completion and confirm when the final

and resell the site.

investment is required. You may also want to engage a mortgage provider as you are allowed to borrow upto 50%

Kersewell has also explained the opportunity and

of the value of a SIPP or SSAS, which reduces the cash that

processes to an independent panel of three Scottish law

you have to put in. After completion, the resort operator

firms who are willing to act for you for a pre-negotiated

will co-ordinate all the service, maintenance and repairs.

fee. They will complete the necessary searches and due

As soon as the resort is open, the resort operator will look

diligence that you would do for any house purchase.

forward to welcoming guests to stay in your investment and sharing their accommodation revenues with you.

Within two months, you will exchange contracts and pay a 30% deposit to Kersewell via your lawyer. You have the

Kersewell will continue to update you on the progress

option of buying a bond that will protect your deposit in

of both the resort and your investment. As the resort is

the unlikely event that the developer is unable to build your

in Scotland, you can always visit and see for yourself. If

investment. This is provided by a third party insurer. The

you have any queries a dedicated sales support team is

reservation fee will be used to pay any outstanding fees with

available to answer your questions.

the balance returned to you.

14 : Investor Information Memorandum

Risks As with any investment opportunity, Kersewell has

undergone training and awareness programmes

assessed all the relevant risk factors involved in this project

to ensure they have specific extensive knowledge about

and has designed its business model to limit investor

the resort, the products and the developerâ&#x20AC;&#x2122;s market. They

exposure.

all share Kersewellâ&#x20AC;&#x2122;s commitment to professionalism and transparency and have signed a code of conduct and

Kersewell will minimise expenses until detailed planning

terms and conditions. They are committed to putting your

permission is obtained, match construction of the resort

interests first at all times.

suites and central buildings to the rate of sale of resort suites, ensure all strategic partners are robust and

As well as liaising with your IFA or sales agent, Kersewell

financially sound and its management is not reliant upon

has a dedicated customer service team that you can

one individual.

contact to discuss any aspect of your investment.

Your next steps

Kersewell will also be sending you regular e-mail and

Thank you for taking the time to read this Information

via www.kersewellresort.com.

newsletter updates and you can follow its progress

Memorandum and the other documentation and brochures. And, of course, you can always come and visit the site and Your Kersewell accredited IFA or sales agent will guide you

see the progress for yourself. One of the many beauties

step-by-step through the purchasing process. They have

of this investment, unlike other similar overseas projects, is

been approved by Kersewell to sell its products and have

the fact itâ&#x20AC;&#x2122;s literally on your front doorstep.

KERSEWELL administration Kersewell Estate Ltd, company number 76941, is based in Jersey at 3rd floor, Windward House, La Route de la Liberation, St Helier, JE2 3BQ. It owns the land and will own the central facilities and common parts. Its wholly owned subsidiary, Kersewell Developments, company number 76935 at the same address, is the developer and will construct and sell the resort suites to investors.

15 Investor Information Memorandum

Kersewell Resort Limited, 1 Berkeley Street, London W1J 8DJ T: 0845 519 8153 info@kersewellresort.com. www.kersewellresort.com Kersewell Developments Limited, 3rd floor, Windward House la Route de la Liberation, St Helier, Jersey JE2 3BQ www.kersewellresort.com