Dunas Beach Cape Verde 50 50 Ownership

50/50 O W N E R S H I P S C H E M E

I N V E S T I N D U N A S B E A C H R E S O R T F O R O N LY ÂŁ 5 1 , 9 7 4 A N D R E C E I V E 1 8 % P. A . G R O W T H F O R 7 Y E A R S

50/50 OWNERSHIP SCHEME

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Purchase a 50% share in one of our luxurious two bed apartments and earn unrivalled returns 65% Deposit €1.25-£1.00 fixed rate on full deposit 5% Discount Guaranteed mortgage options on 30% completion balance Free incentives: Legal services & Free Hotel Excellence Furniture Available for SIPP and Cash Purchases

50% S HARE PAYMENT E XAMPLE 2 BED APARTMENT 50% SHARE LIST PRICE

= € 99,950

€99,950 x 65%

= € 64,968

€1.25 - £1.00

= £ 51,974

Fixed exchange Rate

Deposit Required

Euro Equivalent

= € 57,171*

5% Discount

= € 4,997

30% on completion

= € 29,985 (via guaranteed mortgage)

Net price after 5% discount and Ex rate TOTAL DISCOUNT % DISCOUNT

= € 87,156*

€ 12,794 12.8%

*The above calculations assume an actual spot €/£ rate of €1.10-£1.00

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50/50 OWNERSHIP SCHEME

5 0 % Ow n e rs h i p O p t i o n

R e n ta l P ro j e c t i o n s

68%

80%

95%

“Global Average”

“On-Island Average”

“Highest On-Island Occupancy”

68% Occupancy

80% Occupancy

95% Occupancy

€75 per night

€75 per night

€75 per night

Occupancy Days

248.20

292.00

346.75

Gross Annual Revenue

€18,615

€21,900

€26,006

Owner Share 50%

€9,308

€10,950

€13,003

Rental Projections 50% Net Room Rate

Owner Expenses Community Fee at 50%

€600 (50% of annual £1,200 fee)

€600 (50% of annual £1,200 fee)

€600 (50% of annual £1,200 fee)

Net Income for Owner

€8,708

€10,350

€12,403

Return on Investment

10.0%

11.9%

14.2%

(ROI)

50/50 OWNERSHIP SCHEME

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G ua r a n t e e d M o rt g ag e The Key Details The Resort Group will contractually 'guarantee' to be the lender of the completion balance in the unlikely event the client is declined a conventional mortgage application The Resort Group will agree to lend at the prevailing interest rates at the time of completion 100% of the client’s share of the net rental income generated will be used to pay off the mortgage

There are 2 guaranteed mortgage options to choose from

Option 1

M ORTGAGE C ALCULATOR (Assuming 8% interest - current prevailing bank rate)

100% of the client’s share of the net income will be used to pay off the completion mortgage until the balance has been paid Once the completion balance has been fully paid, the client will, from then on, receive their share of net rental income and will fully own their 50% share of the property

COMPLETION MORTGAGE

= €29,985

RENTAL INCOME AT 68% OCCUPANCY

= €725.66 PER MONTH (€8,708 PER YEAR )

Option 2 100% of the client’s share of the net income will be used to pay off the completion mortgage for a minimum of 6 years* If the mortgage balance has not been completely repaid in that time, 100% of the client’s share of the net income will continue to be paid until the balance has been cleared up to a maximum of 10 years After 10 years any remaining completion balance will be completely written off Once the completion balance has been fully paid or written off, the client will, from then on, receive their share of net rental income and will fully own their 50% share of the property * 100% of the client’s share of the net rental income will be paid to The Resort Group for a minimum of 6 years even if the completion balance is paid off within that time.

Assumed interest rate

= 8%

Repayment mortgage over 4 years, 1 month

= €719.35 per month

TOTAL REPAYMENT AMOUNT

= €35,247.24

TOTAL INTEREST PAYMENTS

= €5,262.24

Based on an 8% interest rate and resort occupancy of 68%, the mortgage will be paid off within 4 years, 1 month!

50/50 OWNERSHIP SCHEME

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Return on investment Scenario 1

Scenario 2

Sell 5 years after completion

Sell 7 years after completion

(Total 7.5 year investment term)

(Total 9.5 year investment term)

Gross Price at reservation Value on completion

€199,900 (i.e. €99,950 x 2) €236,876 (conservative 7% growth during 2.5 year build cycle)

Gross Price at reservation Value on completion

€199,900 (i.e. €99,950 x 2) €236,876 (conservative 7% growth during 2.5 year build cycle)

Assumed growth after completion (Conservative)

7% per annum for 5 years

Assumed growth after completion (Conservative)

7% per annum for 7 years

Sale price after 5 years

€332,231

Sale price after 7 years

€380,371

Less Net Purchase Price

€174,312 (i.e. €87,156 x 2)

Less Net Purchase Price

€174,312 (i.e. €87,156 x 2)

Total Growth

€157,919

Total Growth

€206,059

50% share of growth

€78,960

50% share of growth

€103,030

+11 months of mortgage free rental

€ 7,975 (€725 x 11 months)

+35 months of mortgage free rental

€25,375 (€725 x 35 months)

GROSS 50% REVENUE

€86,935

GROSS 50% REVENUE

€128,405

Less completion costs at 6.5%

€6,497

Less completion costs at 6.5%

€6,497

NET 50% REVENUE

€80,438

NET REVENUE

€121,908

Sterling Equivalent

£73,125 (assuming €1.10-£1.00 conversion rate)

Sterling Equivalent

£110,825 (assuming €1.10-£1.00 conversion rate)

INITIAL INVESTMENT REQUIRED

£51,974

INITIAL INVESTMENT REQUIRED

£51,974

7.5 year ROI %

140.7%

9.5 year ROI %

213.2%

Annual average ROI %

18.7%

Annual average ROI %

22.4%

50/50 OWNERSHIP SCHEME

www.sipppropertyinvestment.com