Cold mountain Resort & SPA

Investment Opportunity Where Inspired Natural Beauty Meets Upscale Living

Prepared by: CNE Business Development Ltd

www.cnebusi.com

January 16, 2018

Project idea In recent years, mountains andthe countryside are preferred des na ons with unique winter and summer resorts to a ract the interest of local and foreign visitors.

Mul theme is a characteris c feature of alterna ve tourism, replacing the mass or conven onal tourism, which includes special forms of tourism.

The major dierence relates to the concern for the natural environment and local culture.

Natural Village resorts, take the form of a natural eco-villages, enriched with speciďŹ c thema c parks and recrea on complexes, using all the natural and cultural resources of the region and exploi ng its compara ve advantages and resources of natural and cultural environment.

Residents and guests of the se lements will be able to live in harmony with nature, enjoying the natural beau es and the healthy environment and take part in a series of interes ng ac vi es, without missing comfort, warmth, social interac on and fun, essen al requirements of modern living.

The vision is realized with the development of this project idea and selec ng a unique loca on in the Carpathian mountains.

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Concept The plan is to develop an integrated thema c project at the mountains near the unique holiday resorts of the wider area of Brasov, in a land surrounded with landscapes of exquisite beauty and with stunning view of the area.

The “Cold Mountain Resort & Spa” will be the 1st project of its kind in the area, a gated and integrated health, leisure and real estate development, with high style accommoda on and leisure infrastructure, including spa, restaurant, conference room, bar, café, swimming pool and luxury villas.

“Cold Mountain Resort & Spa”, will be a charming exclusive gated resort in the heart of the Carpathian mountains, an Exclusive Integrated Thema c Project in a land situated in the highlands of the Transylvania Region in Romania.

The central philosophy is to consider the protec on of the environment and the promo on of the natural beauty and tradi onal heritage of the area as the base to revitalize regional Romania and a ract visitors.

The high-end style country villas will provide a wealth of opportuni es to enjoy the tranquility of rural living in modern and luxurious homes.

The essence of the surrounding stunning scenery will be captured throughout the design process with extensive use of natural materials .

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European and Interna onal Trends Market Studies of recent years for deployments and tourism show a substan al increase of consumer interest for relaxa on, recrea on and nature.

Integrated developments, ecological and natural villages, a ract today large investments in many countries taking advantage of the increasing trend and demand for se lements and resorts which offer relaxa on, recrea on and contact withnature.

Mountains and the countryside are preferred des na onswith unique winter and summer resorts to a ract the interest of local and foreign visitors.

The mountains in the wider area of Brasov in Romania are offered for alterna ve forms of sustainable tourism development, with the rich natural environment and the stunning mountain views.

The aim of the project design is to give a real opportunity for alterna ve tourism, focusing on popular categories of ac vi es in the countryside.

The project concerns the development of a new des na on based on the modern concept for diversifica on and specializa on of accommoda on, recrea on and tourism.

An innova ve development project, which will serve as a model for the development of rural tourism. “Cold Mountain Resort & SPA” resort, which takes the form of a natural eco-village in the mountains, enriched with recrea on complexes, using all the natural and cultural resources of the region and exploi ng its compara ve advantages and resources of natural and cultural environment.

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Approach The success of the project is based on the implementa on of the new integrated development approach, adopted successfully in many countries of the world and which refers to high quality innova ve projects characterized with the careful selec on of the loca on and the applica on of the principles of sustainabledevelopment.

Romania is offered for alterna ve forms of sustainable tourism development, with the rich natural environment, good climate, the historical and religious background, in conjunc on with the other advantages, local transport, accessibility,infrastructure.

The aim of the project design is to give a real opportunity for alterna ve tourism, focusing on popular categories of ac vi es in the countryside.

Business Aims : • • • • • •

To create ahigh-end resort in Romania To treat guests as members of the family To a ract high net worth individuals toRomania To provide aunique eco-friendly experience To use wherever possible local material, employees and producers To introduce the world to the culture and beauty of Romania

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Loca on Loca on Loca on Romania is today a full member of the European Union and will have a share in the growth and development of the EU economy. Romania a racts investors in ac vi es in which possesses compara ve advantages, thus accelera ng the transforma on of Romania into a regional centre and an exclusive tourism des na on.

Day View

The land of 32.000 sq.m. is situated in Ciocanu, Brasov wider area, a unique area very much appreciated, as a deluxe tourist area. Ciocanu is a loca on in Dambovicioara, Arges county, Muntenia, Romania.

The Ciocanu village looks like a bucket surrounded by the Bucegi Mountains to the east, Iezer-Papusa and Piatra Craiului Mountains to the west.

The village is located at the historical limit between Wallachia and Transylvania, at an al tude of 1240 m above sea level. Almost half of the commune territory lies in the “Piatra Craiului” Na onal Park.

Piatra Craului is an emerging Alpinist centre for climbers. Brasov and Predeal which are in close range are famous ski resorts and the Bran Dracula Castle is also within the area making this an interes ng place for vaca on villas for developers.

The loca on of the land is excep onal, in terms of its shape, gentle slope, and wonderful view. The land has amphitheatrical shape which offers a fantas c view of the Piatra Craului mountain from any posi on within. The land is clear with trees found on in its edges and is adjacent to a natural forest.

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Night View

Master Plan and Development Program

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Master Plan and Development Program Drawings have been prepared by the project Architect and have been approved by the Local Government conver ng the land from extravilan to intravilan and the status of the land from agricultural to residen al.

The Zonal Urbanism Plans and accompanying local regula ons “PUZ� is prepared and approved by the municipality.

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Architectural Plans Restaurant

Villa type 1

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SPA

Hotel, Restaurant, Coey Shop

Villa type 2

Guest house

Project Development Healthy living in anatural environment with stunning scenery and many opportuni es for summer and winter sports.

The objec ve is to develop the “Cold Mountain Resort & Spa” project, an exclusive development consis ng of a hotel complex with a number of bungalows all situated on the hill with a stunning view of the a rac ve landscape of the surrounding area and with the following construc on guidelines: •

Beau ful homes designed to reflect the tradi onal style of the region and yet being modern, high styled and innova ve use natural materials where possible

•

an up market development with quality in all levels

•

include spa, leisure and sport facili es blend the project with local tradi on, culture and the environment

•

disable people friendly

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Main Objec ves Target 1

• • •

Ensure security and prosperity. The accommoda on includes all the comforts, the use of natural materials and healthy diet.

Provision of facili es for people with disabili es in the accommoda on and infrastructure .

Organisa on of educa onal events on the themes of sustainable living and interac on with nature, sport and health.

Target 2

• • • • •

Green Development

Employ renewable energy sources for ligh ng and equipment needs.

Garbage collec on system with separa on of recyclable materials.

Informa on and awareness of residents and visitors on cleanliness and environment issues.

Placement of suitable containers in public spaces for the collec on of waste with labelling informa on and instruc ons.

Program management and protec on of water resources and water consump on.

Target 3

•

Quality of life and welfare

Culture and Heritage

Provide informa on to visitors and organise programs to explore the local culture and heritage.

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Target 4

• • • •

Protec on of the natural environment, biodiversity and the ecosystem.

Infrastructure connec on with the natural environment of the se lement and the surrounding region.

Conserva on of the natural environment and ecological zones and limi ng the build-up area.

Create addi onal green spaces, thema c gardens and organic farm.

Target 5

• •

Food supply

Cooperation with local producers.

Organic production in the farm.

Offering organic menus in the restaurant and other leisure areas.

Target 7

•

Transport

Restrict the use of cars inside the site.

Promote alternate means of transporta on (bikes, trails, horses, electric vehicles).

Target 6

• • •

Natural Environment

Benefit to the local community

The development of the project will have a posi ve impact on the local community and the region with the crea on of employment opportuni es and the promo on of local products and services.

Thema c Sec ons Residential The sec on consists of a number of rural houses and villas designed to ďŹ t to the Romanian village architectural line and built with natural materials.

Wellness Centre and .

SPA Wellness Centre with SPA and Sports facili es

Hotel Hotel with a number of rooms, restaurant, cafeteria, conference room and recrea onal areas.

“Cold Mountain Resort & Spa" will provide a range of accommoda on facili es in a beau ful and peaceful rural se ng.

Within such an environment and through the harmonious coexistence of man with nature, rural life, folk customs, daily ac vi es, and the authen c tastes of tradi onal cuisine can be enjoyed in harmony with genuine hospitality and friendliness of the neighboring village people.

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Ac vi es and Hobbies Residents and guests are seeking relaxa on in a calm environment in an effort to escape from urban everyday life.

Residents and guests of the resort will have the opportunity to par cipate in a series of ac vi es offered both within the village and the surrounding area which is ideal for the following ac vi es: •

Exploring nature and natural areas of interest in the region

•

Exploring culture and heritage in the region

•

Organize outdoor leisure events

•

Acquaintance with the habits of everyday life of the inhabitants of the region

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Mountaineering

Skiing & Snowboarding

Horse Riding

Mountain Climbing

Snow Tubing

Snowmobiling

Snow Cycling

Paragliding

Rafting

Key Phases and Milestones Key phases and milestones in the development process Phase of the project

Phase 1

Phase 2

Phase 3

Vision development Project conceptualiza on

Feasibility assessment Permi ng

Ac vi es Involved

Design Business Plan Financing Marke ng / Promo on Infrastructure

Common Facili es – Hotel & Club Vila Construc on Resort management

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Main Advantages that a ract Investors to come in Romania The Romanian market and the geographic position • One of the largest markets in Central and Eastern Europe (2nd, over 21 million people) • Access to the European market (500 million consumers) • A rac ve loca on – located at the intersec on between the EU, the Balkans and the CIS (Commonwealth of Independent States), Romania is crossed by three important panEuropean corridors: Corridor 4, which connects the east and west of Europe; corridor 9, which connects the north and south of the con nent and Corridor 7, which facilitates naviga on in Europe • The port of Constanta on the Black Sea is actually the access door to the European market by the Southeast. It lies at the intersec on between the European East-West trade routes but also Europe-North Africa-Middle East-Asia and about 300 km from the Bosphorus. This port can accommodate large capacity vessels (165,000 dwt) for all types of cargo and deal 85 million tones per year

Resources • Compe ve salaries • A highly skilled labor force, with very good knowledge of foreign languages (mainly English, but also French, Italian, Spanish and German), formed in technology, IT, engineering, etc..)

• Rich natural resources, including : surface water and groundwater, fer le agricultural land, oil and gas • A large and varied tourism poten al

Political Benefits • EU Member State • Factor of stability in the region - a NATO member state • Ensuring stability in South East Europe

Social Benefits • Agreements between the Government and the representa ve unions • Absence of major trade union movements • Labor market and labor rela ons regulated by the Labor Code © CNE Business Development Ltd., 2017

Romania at a Glance Loca on Popula on Area Capital Official languages Currency Legal system EU accession

¢ ¢

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ªCentral Europe (Southeastern)

ª19,334,000 – Oct 2016 ª238,391 km2 ª Bucharest ª Romanian ªLeu ªBased on European models Cons tu on 1991 ª1 January 2007

Romania historic regions

Main Advantages that a ract Investors to come in Romania International Relations • Bilateral agreements on the promo on and reciprocal protec on of investments • Bilateral diploma c rela ons with 177 countries of the 191 UN member states and also the Holy See, the Sovereign Military Order of Malta and the Pales nian Na onal Authority • Member of the United Na ons and other interna onal organiza ons: OSCE, Council of Europe, Interna onal Organiza on of Francophonie • Trea es of free trade with the EU, EFTA, CEFTA • Member of the World Trade Organiza on (WTO) since January 1995

Economic Benefits • • • • • • •

• • • •

Air and Mari me Infrastructure developed and full moderniza on (16 airports and 10 seaports and river) Road Infrastructure in con nuous moderniza on (commitment in the direc on of the development of highway infrastructure to the standards of the EU) Mobile phone networks, well developed GSM system, with a coverage of more than 90% of the land area Industrial Infrastructure highly developed, including the oil and petrochemical industry More than 40 industrial parks Branches and representa ve offices of interna onal banks Romania has a taxa on on the lowest corporate rates in Europe – 16% on accoun ng income. Dividends paid to a Romania company are subject to a withholding tax of 16% from 1 July 2010. Dividends distributed to a foreign company or to a non-resident individual is also subject to a withholding 16%, unless the provisions of the tax treaty to avoid double taxa on or the parent-subsidiary direc ve for a reduced rate.

Tax on reinvested profit 0 Access to State aid schemes and European funds Increased interest from foreign investors - the second des na on of the ISD flux in the region (source: 2010 AT Kearney Foreign Direct Investment Confidence Index) Fiscal policy (corporate rate of 16%)

Legislative benefits • Legal regula ons similar to those of the EU • Fiscal policy regulated by the Fiscal Code

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Real Estate Market Residential Market An accelera on in residen al ac vity was registered in 2016, with increases in new supply and sales, while average prices grew by 3- 10% across the main ci es. Authori es con nued to add a significant influence to the market through the “First House” program and changes in legisla on.

Residen al development benefi ed last year from a good market environment, including growing salaries (+12%), low interest rates (ROBOR 3month < 1%) and increasing demand. Developers showed an ac ve approach in expanding and star ng new projects across the markets that are provided with op mal levels of purchasing power. New supply has started a growing trend in the late years, increasing by 3% in 2014, 4% in 2015 and accelera ng to +11% in 2016. A number of 52,206 residen al units were delivered at na onal level throughout 2016 according with the official sta s cs. New supply increased in most areas, but especially in north-west (+40.4%), south-east (+19.8%), west (+16.9%) and north-east (+16.5%) of Romania. Decreases were registered in Bucharest-Ilfov area (-9.6%) and south-western Romania (-2.4%).

Urban area accounted for 53% of the new units delivered last year. Almost the en re new supply was private-financed (98%), with the state involvement being represented by only 1,228 units developed with public financing.

Bucharest-Ilfov registered 10,022 units completed last year, returning to the volume seen in 2014 a er a 9.6% decrease from the 2015 record. The largest ac vity was found at periphery, with southern (IMGG, Metalurgiei area) and western (Rosu) edges con nuing to expand rapidly with lowprice blocks of apartments. Development increased also in the semi-central and northern areas of the city, fueled by good results in sales and demand for medium-class projects provided with good accessibility and ameni es.

Residen al prices followed an upward evolu on with growing rates of 3-10% across the main markets. Asking prices increased by an average of 10% in 2016, further to the 6.6% growth of 2015, according to imobiliare.ro index, the largest real-estate lis ngs portal in Romania. Prices of mediumrange new apartments, located semi-central, vary from top values of 950-1,050 Euro / built sq m in Bucharest and Cluj-Napoca to 875-925 Euro / built sq m in Timisoara and 750- 800 Euro / built sq m in Brasov.

Source: ACTIV property report 2017

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Real Estate Market Where is the Real Estate Market The real estate market is closely responding to the condi ons in the real economy. The renewed interest in BPO, SSC and IT services has become a major driver of demand for office spaces in the major ci es of Romania. High headline figures for consumer demand have translated into strong demand for both the retail and industrial sector.

However, as we move forward, these two sectors are recording two very different development trends.

The retail market is focusing on small-scale developments, aimed mainly at smaller ci es or rounding up the client mix of the exis ng scheme. We believe this development is compa ble with the cyclical slowdown of consumer spending and should safeguard investments made in this sector. At the same me, several factors warrant a con nued expansion of the industrial sector. Even though consumer spending will slow down from the current growth rates, the shi towards e-commerce will result in addi onal demand for warehousing capabili es. Furthermore, the prospect of new infrastructure deliveries

Retail Sales vs. Net Wages 20.0%

15.0%

10.0%

5.0%

0.0%

-5.0% Retail Sales

Net Wages

Source: Colliers interna onal - 2017 analysis

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Key Investment & Financial Highlights Summarized Data Opportunity/ Project/ Industry/ Sector

Development of an integrated thema c Resort & SPA – real estate

Opportunity loca on (address/ City/ Country)

Ciocanu - Romania

Project components

32,000m² Residen al Land area - 30 Vilas, Hotel, Café, Swimming Pool, Tennis Courts, Health Club, Mul func on Room

Project name and size (in million euro)

“Cold Mountain Resort & SPA” - € 8.5 mil

Capital structure

€ 0.8 mil land cost – € 2.4 mil addi onal equity

Current project status (study/appraisal phase, ini a on, opera onal)

Architectural plans completed Planning permits approved

Possible op ons or seek JV partnership

A. Joint Venture (JV) Partnership on 75-25 basis for Build and Operate B. Sale of Project – 100%

Special condi ons for the JV partnership

Contribu on of the project owner: Land at appraised market value at € 0.8 mil

Next steps

Discussing all op ons

Key Project Facts ❖ First project of its kind in the area, a gated and integrated health, leisure and real estate development, with high style accommoda on and leisure infrastructure, including spa, restaurant, conference room, bar, café, swimming pool and luxury villas. ❖ The loca on of the land is excep onal, in terms of its shape, gentle slope, and wonderful view. The land has amphitheatrical shape which offers a fantas c view of the Piatra Craului mountain from any posi on within. The land is clear with trees found on in its edges and is adjacent to a natural forest. ❖ EU funding for Rural Development and other related programs should always be considered as an op on.

© CNE Business Development Ltd., 2017

Contact Informa on Chrysses Nicolaides Coordinator CNE Business Development Ltd

Mob: +357 99 476 837 E-mail: c.nicolaides@cytanet.com.cy Web: www.cnebusi.com

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There is no representa on, warranty or other assurance that any of the projec ons in the Teaser will be realized. The recipient should conduct its own inves ga on and analysis of the business, data and property described herein. Any statement contained in this Teaser that refers to a par cular company or en ty or its related par es, es mated or an cipated future results or future ac vi es are forward-looking statements which reflect current analysis of exis ng trends, informa on and plans. Forward-looking statements are subject to a number of risks and uncertain es that could cause actual results to differ materially and could adversely affect the outcome and financial effects of the plans and events described herein. As a result, the recipient is cau oned not to place undue reliance on such forward-looking statements. This Teaser and its contents are confiden al and may not be further distributed, published or reproduced, in whole or in part, by any medium or in any form for any purpose, without the express wri en consent of CNE Business Dev. ltd. In furnishing this Teaser, CNE Business Dev. ltd and its client/s undertake no obliga on to provide the recipient with access to any addi onal informa on or to update this Teaser or to correct any inaccuracies therein which may become apparent.

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