airport-city-curacao-master-plan by Marcus Chase

Airport City CuraŇŤao 1

2 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

aaaaaaaa Airport City Curaçao

Overview

1-3

Management Summary

4 - 10

Curaçao – Unique Selling Propositions

11 - 13

Airport City Development Concept and Master Plan

14 - 36

Land availability

37 - 41

Conclusions Airport City Development

42 - 43

Ing. Simon Kloppenburg Curaçao Airport Holding Margareth Abraham Plaza z/n Hato International Airport Curaçao +599 (9) 888 1111 skloppenburg@ca-holding.com www.ca-holding.com © Curacao Airport Holding / Nüesch Development, March 2012

Florian Diener, lic. Iur. Nüesch Development AG Quellenstrasse 1 CH – 8005 Zürich Switzerland +41 (71) 274 1540 diener.f@nuesch.ch www.nuesch.ch

aaaaaaaa Airport City Curaçao

Management Summary (1) CURACAO Being an autonomous country within the Dutch Kingdom, Curaçao is a very special island within the Caribbean. As beautiful as a Caribbean Island can be for Tourism, Curacao has so much more to offer to facilitate international trade and services: • Curacao – Logistical Hub offering trusted value added services; a government approved integrated policy and commitment by the Seaport, Airport, International trade-, ICT- and Financial Sector to become the # 1 Business Destination in the region. • Curaçao – European Qualities in a (Latin-) American market; privileged tariffs to the EU, Dutch law makes legal acts easier and safer, Dutch school system guarantees quality on all levels. • Curaçao – The Safe Gateway to and from Latin America: European standards strategically positioned between the subcontinents, reachable with short distant flights from all major airports in the Americas, as well strongly connected to the European mainland. • Curacao – Intercultural mediator; with over 125 nationalities and all recognized religions present, a well educated workforce and every local speaking up to 4 languages, Curacao understands and can facilitate intercultural business better than any other country. • Curaçao – Departure after Autonomy: since 10.10.2010 Curaçao gained its autonomy from the Netherlands, but still part of the Dutch Kingdom, profits from its tight connections (law, school system, budget control and defense); US air force based in Curaçao is an example of its proven relationship with world partners. 4 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Management Summary (2) AIRPORT CITY In order to build on these qualities Curaçao Airport Holding is embracing the Airport City concept; becoming an integral business and residential district in its own right. As the Airport City develops, it will become the center of a complex distribution and shipping network and a destination for niche industries. Sea Water Air Conditioning (SWAC) and Green Energy Production (OTEC, Solar and Wind) and Research will make Curacao International Airport the first 100% Green and self-sufficient airport in the region and even the world. Airport services, business hotels and offices, warehouses with ecological cooling systems for more high-tech, time sensitive and freight forwarding companies- in combination with developments such as Spaceport operations, Eco park, and Sporting and Entertainment facilities, Curacao International Airport will become a magnet for R&D and educational industries that will lead to impressive educational opportunities, economic growth and job creation.

Curacao International Airport – the High-Tech, Green and Innovative Knowledge Center 5 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Management Summary (3) PROPOSITION Curacao Airport Holding is the owner of the Airport. Airport Operations has been handed over to Curacao Airport Partners – owned by A-port (Zurich Airport, Camargo Correa and IDC) and Jansen de Jong, by means of a 30 year concession agreement. CAH owns approx. 450 Ha of land surrounding the Airport available for the development of the Airport City, whereof approx. 200 Ha is available for vertical development. Together with the land of CAP, the total Airport City development plan can offer over 1 million m2 of rentable space triggering investments of US$ 1.8 billions. The Airport City Master Plan lays out the intended developments and designated use of the land. Whereas CAH will act as the Land Lord, protecting the long term vision and the Island and Airports interest, it will be responsible for providing necessary infrastructure and availability of utilities and centralized services. Land can be made available for Investors, Developers and Businesses by Long Lease, subject to both general and specific Long Lease terms & conditions. Prior to the allocation under a long lease term, CAH and the potential Lessee will have to enter into a Project Development Agreement, specifying the;  Purpose of the development  Timeframe of the development  Commercial Value of the development 6 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Management Summary (4) PROPOSITION Long Lease allocation can be done for a period of 60 – 75 years Lease Fee ( ‘rent’) consist of  Yearly Interest Component 6% of land value with yearly Indexation  Pro-Rata User Component ( ‘Park Management fee’), fair share contribution for general infrastructure, facilities & services, to be justified by the ‘Users Council’.  Sales Component of 2 % of gross revenue Lessee is offered the option to pay the Interest Component in advance (buy out). To meet the investors needs, CAH is offering large scale of incentives and benefits s.a.; extended or scaled payments, discounts, (equity) participation etc.

Government Incentives Most project are allegeable for a Tax Holiday which means Exemption from import duties and VAT on imported goods intended for the operation of the business, a reduced profit tax rate of at least 2%, exemption from property tax for ten years, exemption from usage tax, exemption from income tax for dividends paid within two years after the fiscal year in which the profits are achieved. All subject to approval of the Curacao Government on a project by project basis. 7 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Management Summary (5) DISIGNATED LAND USE

3 5

8 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Management Summary (5) DISIGNATED LAND USE 1 Central Buildings, Parking Central 2 Logistic West, Freezone 3 Airport Services (CAP) 4 Business Park 5 Space related development, Space Base (CAP) 6 Ecopark and outside Ecopark elements 7 Hillside development

9 © Curacao Airport Holding / Nüesch Development, March 2012

View on Airport City Curaçao

10 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Curacao – Unique Selling Propositions

1 Curaçao – the Hub between the Americas

• Safe gateway to and from Latin America: High potential to be a logistic center (air and sea) for South and Central America • Small body airplanes reach Curaçao from both subcontinents allowing cost effective direct connections. • Dutch school system generates higher qualified students, valuable for a growing economy in Curaçao.

11 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Curacao – Unique Selling Propositions

2 Curaçao – with European Qualities

• Goods with added value in Curaçao can be imported into the EU on privileged tariffs. This makes Curaçao interesting for the final step in production of various products. • Curaçao with its Dutch history applies EU law. The Supreme Court is in Den Haag. The “Roman law” reduces complexity and cost of doing contracts while reducing risks. This is unique in the Americas. • Dutch school system generates higher qualified Students valuable for a growing economy in Curaçao.

12 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Curacao – Unique Selling Propositions

3 Curaçao – the Departure after Autonomy

• 10.10. 2010 Curaçao got its autonomy from the Netherlands • Keeping Dutch (European) law, the Dutch school system, Dutch control on governmental budgets, protected by Nato and US air force • Building on existing history of tourism and financial services • Gaining from a motivated population to prove their new “independence” 13 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao Airport City Development Concept and Master Plan

14 © Curacao Airport Holding / Nüesch Development, March 2012

Gas Station

Free Zone

Terminal 2+3 with Airside Hotel Cable car

Outlet Mall Logistic Park

Parking

Business Park Hillside ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

High-tech & Sea Water R&D Central 2+3 Green Park

Central 1

Sporting & Event Student Campus Facilities University

Green Park

Hotel 5-star

FBO & Maintenance Hangars

Roosvelt alley

Plant Lab

Eco Park SWAC Park

Hotel 3-star

Waste-toenergy plant

OTECar k

Fishfarm

Space Experience

Office Park

SpacePort

Movie Theatre

Space Park

aaaaaaaa Airport City Curaçao

Airport City Development Concept and Master Plan Key Ideas for Airport City • Extension of Airport with specialized airport services (hangars for private jets, maintenance, airside hotel, etc.) • Offices and Showrooms for international companies to approach the South and Central American markets • Shopping for international shoppers (air traveler, cruise ships, tourism) • International logistic with free zone + hotels + universities basic infra structure for

• High tech related activities like: space base, space park, space museum, space research, eco park, eco research, waste-to-energy, seawater cooling, fish farming and agriculture

16 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Airport City Development Concept and Master Plan High tech cooling with seawater:

green and cheap • Significantly cheaper cooling with sea water than with electricity for the whole Airport City (competitiveness) • Sea related Research • Eco Park (educational and touristic) • Agri- and Aquaculture, using the clean water from deep sea • Waste-to-Energy Plant to minimize footprint and produce electricity 17 © Curacao Airport Holding / Nüesch Development, March 2012

aaaaaaaa Airport City Curaçao

Airport City Development Concept and Master Plan Eco Park, driven by cold seawater cooling

18 © Curacao Airport Holding / Nüesch Development, March 2012

Eco Research Laboratories and Fish Farm

19 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

aaaaaaaa Airport City Curaçao

Airport City Development Concept and Master Plan

Airport Services

• Air side Hotel for hub travelers • Hangars for private jets of neighbor countries • Airplane Maintenance • Airline services • Ready to use Business Park • Show rooms • Light industry • Outlet Mall and tax free window shopping with shipping service

20 © Curacao Airport Holding / Nüesch Development, March 2012

Terminal Area Departure Zone and Central building

21 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

View from Airport Hotel (airside) on Runway

22 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

Roosevelt Alley with Business Parc and High Tech Companies

23 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

Outlet Mall with taxfree solution

24 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

Interior of Outlet Mall

25 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

aaaaaaaa Airport City Curaçao

Airport City Development Concept and Master Plan

Hospitality and Universities • Business hotel (3-star), Boardinghouses for long stays and finally a 5-star hotel over viewing the airport • University for the Caribbean and the north part of South America focusing on high-tech, green and innovative Knowledge (driven by the space and eco activities) • Private Education for the regional young people of mid to high class families • Event place, utilized by Baseball Academy and sporting facilities for local and international youth and professionals 26 © Curacao Airport Holding / Nüesch Development, March 2012

5 Star Hotel with direct cablecar link to Terminal

27 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

University Building with Auditorium and meeting Area

28 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

Student Campus

29 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

Eventspace

30 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

aaaaaaaa Airport City Curaçao

Airport City Development Concept and Master Plan

Industrial Logistic and Free zone • Free zone warehouses (air and sea)

• Warehouses with competitive cooling systems by SWAC (sea water air conditioning) • Showrooms (Sales & Exhibition) and spare parts logistics (Call & Service centers) for international companies (e.g. China, Brazil) servicing South and Central American markets • Light industry assembly for Europe and the Americas

Typical Warehouses with offices and showrooms (also cooled)

Higher standard Warehouse / Showrooms

33 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

aaaaaaaa Airport City Curaçao

Airport City Development Concept and Master Plan

Private space travel and related services • Spaceport for personal and commercial spaceflight operations • Space related Technical Service Companies • High-tech Research and Manufacturing companies

• Entertainment Space Park for space travelers and tourists • Space Museum & Education

Space Base Hangar

35 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

Space Museum and Movie Theater

36 ÂŠ Curacao Airport Holding / NĂźesch Development, March 2012

aaaaaaaa Airport City Curaçao Land Availability

aaaaaaaa Airport City Curaçao Land Availability Airport City Curaçao - Areas, Sizes

Building Freezone Development Freezone Development Freezone Development Freezone Development Logistic Logistic Logistic Logistic Logistic Logistic

West Development West Development West Development West Development West, Outlet West, Automotive Center

Hillside development Hillside development Hillside development Hillside development Hillside development Central Development Central Development Central Development Central Development Central Development, Parking

Warehouses Warehouses combined w. office Showrooms Cooled Warehouses Free Zone total Warehouses Warehouses combined w. office Showrooms Cooled Warehouses Outlet Mall Gas Station & Services Logistic West total Baseball Aacademy & Eventplace Hotel (4-5 star) University Studenthomes Green Park development & conservation Hillside total Central Building 1 Central Building 2 Central Building 3 Cable Car to Hill Central total Airport Parking - 1000 PP Parking total

area m2 8,000 8,000 5,000 8,000 420,000 8,000 8,000 5,000 8,000 90,000 9,000 497,000 120,000 22,000 5,000 1,600 380,000 757,000 7,000 7,000 7,000 2,000 27,000 9,000 9,000

# buildings site m2 18 12 7 5 15 13 7 5 1 1 1 1 15 10 1 1 1 1 1 1

144,000 96,000 35,000 40,000 315,000 120,000 104,000 35,000 40,000 90,000 9,000 398,000 120,000 22,000 75,000 16,000 380,000 613,000 7,000 7,000 7,000 2,000 23,000 9,000 9,000

© Curacao Airport Holding / Nüesch Development, March 2012 All numbers and figures are indicative and for triggering discussion purposes only; for more information and details, contact Curacao Airport Holding

aaaaaaaa Airport City Curaçao Land Availability

aaaaaaaa Airport City Curaçao Land Availability Phases Facts and Figures years Tenant mix Airport Services Central Buildings Offices and Showrooms Hotels Shopping & Outlet Logistics Warehousing etc University Student Homes Space Port Space Expidition Space related Ecopark development Baseball Academy & Event Space Sea Water AC Waste to Energy Fish Farming Parking Total

Start-up 2012-2015

Phase I 2015-2017

Phase II 2018-2020

Phase III 2021-2025

29,520 12,750 12,500 5,950 3,188 9,600

44,352 32,513 19,670 11,900 40,500 30,000 24,000 3,984

15,938 0 120,000 0 0 80,000 24,000 3,984

0 0 120,000 0 0 80,000 24,000 3,984

10,200

6,375

60,000

60,200

314,122

294,559

m2 89,810 45,263 272,170 17,850 43,688 199,600 72,000 11,952 19,800 10,200 16,575 3,400 850 850 4,250 180,200 22,000 1,010,457

19,800 10,200 3,400 850 850 4,250

101,808

60,000 22,000 299,969

aaaaaaaa Airport City Curaçao

Conclusions Airport City Development • Airport City Curaçao is geographically well positioned as the safe Gateway to and from Latin America • The European Qualities in a (Latin-) American market offer privileged tariffs to the EU; Dutch law makes legal acts easier and safer to do business on the island • The Green positioning and services gives a competitive advantage for the whole Airport City Development • Airport services, business hotels and offices, warehouses with ecological cooling systems for more high-tech, time sensitive and freight forwarding companies- in combination with developments such as Spaceport operations, Eco park, and Sporting and Entertainment facilities, Curacao International Airport will become a magnet for R&D and educational industries that will lead to impressive educational opportunities, economic growth and job creation. • Tremendous investment opportunities

aaaaaaaa Airport City Curaçao

Conclusions Airport City Development • CAH owns approx. 450 Ha of land surrounding the Airport available for the development of the Airport City, whereof approx. 200 Ha is available for vertical development. • The total Airport City development plan can offer over 1 million m2 of rentable space triggering investments of over US$ 1.8 billions. • The Airport City Master Plan lays out the intended developments and designated use of the land. Whereas CAH will act as the Land Lord, protecting the long term vision and the Island and airports interest, it will be responsible for providing necessary infrastructure and availability of utilities and centralized services. Land can be made available for Investors, Developers and Businesses by Long Lease, subject to both general and specific Long Lease terms & conditions. • Long Lease allocation can be done for a period of 60 – 75 years. Lease Fee (‘rent’) consist of a Yearly Interest Component, a Pro-Rata User Component and a Sales Component. Lessee is offered the option to pay the Interest Component in advance (buy out). • Great incentives can be offered to facilitate successful investment and implementation of project opportunities. 43 © Curacao Airport Holding / Nüesch Development, March 2012