Caribbean Development Partners, LLC Strategic Resort Developers
Investor Overview
Project Opportunities: Pan-Caribbean Region Orlando, FL Bahamas
Turks & Caicos St. Croix Antigua
Mayan Riviera
St. Lucia Aruba
Curaรงao Bonaire
Costa Rica Page 1 of 30
Caribbean Development Partners – Corporate Overview Caribbean Development Partners, LLC (CDP) is a real estate development company which is focused on the resort sector in the Pan-Caribbean region. We are seeking well-capitalized investment partners to form joint venture or strategic partnership to fund the acquisition & development of one or more resort projects offering limited risk with the potential of significant financial returns over a five year period. CDP was formed by (5) highly experienced professionals from diverse sectors of the real estate industry including global resort development, Caribbean economic development, commercial brokerage and architectural planning. Our managing partner, has had a distinguished 30 year career as a Institutional Fund Manager for Fixed Income and Real Estate. This unique collaboration of creative thinkers, real estate professionals & highly-respected business executives have collectively envisioned, planned, constructed and operated multi–billion dollar real estate assets for large public Companies and institutional pension funds. During the past 3 years, members of the CDP management team have traveled throughout the Pan Caribbean region to evaluate various resort project opportunities, undertake in depth research, perform economic analysis and establish a extensive network of influential relationships with key government officials, tourism officials and business leaders. CDP has already identified a number of fully-approved resort projects which have been made available to our team through our collective network throughout the region. In light of the current credit markets in the US, we have been offered premier land assets which can be acquired at prices well below appraised value, with the potential to produce extremely attractive yields. CDP has long term relationships with global entertainment, lodging and retail brands and seek to engage in new resort developments in the Pan Caribbean region. The scope & range of CDP partner’s project development experience includes large scale resorts in Europe, Asia, Los Angeles and the $4 billion (USD) 800 acre Universal Studios in Orlando, Florida.
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Strategy - Development of World-Class Properties v Initial focus on the Southern Caribbean and Orlando v Identify significant value-added development opportunities v Analyze feasibility of an integrated, world class development including master planning v Identify capital investor(s) and appropriate resources v Provide on-the-ground expertise (entitlements, acquisition strategy, permitting, infrastructure support, project due diligence, etc.) v Develop a sustainable source of capital v Build a pan-Caribbean investment portfolio through careful execution of CDP strategy Page 3 of 30
The MissionNeed v To identify properties with significant value-added opportunities realized through creative, cost-effective integrated development v To work, in a comprehensive fashion, with landowners, governments, and other local parties to analyze projects and provide pre-development planning, positioning, and packaging v To attract sufficient capital and other resources necessary to “execute� v To aggregate investment opportunities across the region into an investment portfolio that diversifies the risk while providing for significant long-term capital appreciation
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Caribbean Tourism – Market Strengths v Proximity to most major North & South American population centers positions the Caribbean between markets. v Expanding European Travel Market with low cost fares from UK, Ireland Holland & Spain via Ryan Air, Virgin v Reliable and Affordable Airlift from international and U.S. hubs expands v Demographics of Tourists from North America, Europe & South America drive v Year round visitation v Exotic setting, Natural Beauty, sunshine with Tropical Climate with consistent weather throughout the year v Regionally diversified cultures, people, music, cuisine & products provides unique experiences established resort destinations Page 5 of 30
Caribbean Tourism – Economics v $40B economic activity (2004 total demand) v 814,550 direct jobs (5.2%) v $8.7B direct contribution to GDP (4.5%) v Orlando has a $29.82B Hospitality/Tourism Sector (2006) v Adventure travel is a $200B industry in the US v Hotel occupancy has passed 85% on the islands of Curacao, Bonaire, and St. Lucia Page 6 of 30
Economic Outlook – Strong Growth in Resort Travel The Era of Global Baby Boom Travel is beginning to unfold: v 78,000,000 adults about to turn 60 years of age v These Boomers have a robust sense of wanderlust, fueled by good health and more discretionary income v Between 2003 and 2004 alone, leisure travel among Boomers increased by 25% (AARP, 2005 Travel & Adventure Report)
from AARP 2005 Travel & Adventure Report Page 7 of 30
Economic Trends v U.S. $102B of economic activity by 2016 ($51.3B in 2006)
U.S. to urism spending projections in the Caribbean (in $U.S. billions) 2016
v 4.8% growth in total demand in for tourism For Caribbean Region
102
2007
51.3
0
20
40
60
80
100
v 3.9% annual growth forecast 20072016 (KPMG) v Investment Capital is seeking quality Resort Investment Opportunities in the region as other markets are over priced and over developed v Strength of foreign currencies are attracting foreign investment to the Pan-Caribbean region at increasing rate
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120
Regional Trends v The Caribbean is a diverse, fragmented, and geographically large region with different cultures, languages, and political sovereignty v There are few high quality, integrated resort-type developments v There is a lack of comprehensive panCaribbean development with the intent of establishing a geographically diverse investment portfolio v The Baby Boomer population and Y generation are seeking lifestyle experiences that are offered by select destinations within the region v There are still extremely attractive sites available for development located in desirable settings with stable settings Page 9 of 30
Identifying Opportunities v
Properties are in the hands of landowners without access to adequate capital or expertise necessary to develop
v
Existing resorts have been mismanaged or poorly developed by non-professional developers
v
Proper utilization and development of the resorts has been the victim of weak economic cycles
v
Many resorts have been encumbered by government policy but CDP has made established influential relationships with government leaders, tourist officials and utility/infrastructure executives Page 10 of 30
A Need for Hotels in the Caribbean “Hotel performance in the Caribbean has improved steadily since the rebound in 2003 from the downturn of 2001 – a year earlier than most markets. The growth is expected to continue over the medium term, with travel and tourism expected to rise by 3.9% per annum between 2007 and 2016 (according to the World Travel & Tourism Commission).” “The Caribbean has made progress in terms of regional stability and infrastructure, which has created an attractive destination for investment. Furthermore, the proliferation of renovations and the development of upper tier properties will continue to enhance the overall perception of the region, increase all-important airlift and boost average market rates.” – Source: Hotel Investment Outlook: Jones Lang LaSalle Hotels, 2007
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Timeshare and Vacation Club Timeshare sales will continue to grow: v 27% of timeshare buyers are looking to buy in the Caribbean (Interval International, Market Profile 2006)
Preferred International Locations to Which Interval Internationa l Members Plan to T ravel, 2007-2008 70
66.5
60
v Equal numbers of American and European investors are interested in purchasing vacation time during the next two years as those who currently own vacation time
50
44.4
40 % 30
20.4 10.2
9.9
Asia
10
Americas
20
Canada
Mexico
0 Europe
v Two-thirds of Interval International’s clients cite the Caribbean as their preferred international location (2006 U.S. Membership Profile)
24.8
Caribbean
v Escalating cost of resort real estate makes both timeshares and longer fractional ownership interests look more attractive
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Project Types: Hotel, Casino Redevelopment v Existing Hotel, Casino Acquisition, Redevelopment & Expansion w/ Timeshare development v Redevelopment and repositioning of large underperforming properties with potential to become fully integrated resorts
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Project Types: Integrated Resort Developments v World class destination resorts integrate complimentary products with “signature place making� experiences where the whole is greater than the sum of it’s parts
v Integrated resort destinations drive repeat visitation and sustainable market growth via a strategic product mix of lodging, residential and fractional components with first class amenities
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Integrated Resort Components
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Project Types: Greenfield Resort Developments v Greenfield development opportunities offering a signature development model that reinforces the brand of CDP to the investment community and delivers a unique, memorable experience for the tourist and individual buyer v CDP has identified land owners who are in need of capital and real estate development expertise to convert these underutilized assets to worldclass resorts with a project range of $300M - $1B
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Project Types: Eco & Cultural Tourism v Ecotourism is a nature based form of specialty travel defined by The International Ecotourism Society (TIES) as “responsible travel to natural areas which conserves the environment and sustains the well-being of local people.� v The World Resources Institute (1990) found that while tourism travel overall has been growing at an annual rate of 4%, nature travel is increasing at an annual rate between 10% and 30% (Reingold, 1993). v The Caribbean region offers exceptional diversity of land & sea based ecological nature parks, which attract incremental new & repeat visitation. v CPT partners are actively involved in planning $300M-$1B resort developments in Costa Rica focused on Eco Tourism.
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Project Types: Marina-Oriented Projects v Mega yacht (100+ length) industry is multi-billion dollar sector of the marina industry v Mega yacht production exceeds available marina facilities in the Caribbean (Most current mega marinas are fully occupied & located in ‘Hurricane Belt’ v The islands of Curacao, Bonaire & Aruba are south of the ‘Hurricane Belt’ and are considered the safest berths for mega yachts in the Caribbean v Mega yacht owners & cruise ships drive significant demand for lodging, retail, and residential development v CDP has identified prime waterfront sites for world-class mega yacht facilities for development Page 18 of 30
Project Types: Residential/Hotel Golf Resorts v Strategic alliances with the global leader in golf course development & management will deliver world-class golf destinations.
v This would also provide opportunities for an international client base as well as including the PGA tour programs.
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Resort Site Selection Expertise v Industry trends indicate that the Bahamas, Turks and Caicos, Aruba, Bonaire, Curacao, have the most potential for growth. v CDP’s extensive travel and research to the Caribbean region has created an ongoing source of resort projects opportunities
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Two-Tier Business Model Capital Funding Partners
Sustainable Capital
Pan-Caribbean Development Strategy and Portfolio
Carefully Selected Projects Creative Integrated Developments Professional Management
Stake holders
Strategic Partners
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Business Model Build a balanced PanCaribbean Investment Portfolio of complementary integrated resort destinations that differentiate themselves in their respective markets Locations should leverage CDP’s strategic economic development relationships and specific location investment benefits
Caribbean Development Partners Phase I Project A (Curaçao & Orlando)
Phase II Projects B, C, D, etc. (select Caribbean sites)
Phase I
Design Team Landowner
Phase II
Gov’t Approvals
CDP
Hotel Flag Project Financing
Seed Capital
Contractor
Design Team Landowner
Gov’t Approvals
CDP
Hotel Flag Project Financing
Sustain able Capital
Contractor
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A Multifaceted Development Team
Mark Towery
Robert Ward
Hugh Magee
John Somers
Thomas Degnan Page 23 of 30
A Multifaceted Development Team
Strategic Planning Brand Alliances Project Development & Implementation
Local Market Knowledge Site/Property Selection Feasibility Analysis
Robert Ward
Enterprise Management Financial Expertise Capital Development Administration Portfolio Management
Acquisition Strategy & Negotiation Valuation Property Management
John Somers
Hugh Magee
Mark Towery
Project Design & Management Market Research Site/Property Selection
Tom Degnan
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Robert Ward v Strategic Planning and Brand Alliances vCreative Visioning and Master Planning vHigh Level Concept Design vBuilding the Creative Team vAdded value Brand Alliances v Managing the Development and Implementation process v 25 years experience as a Senior Executive with Universal Studios Parks and Resorts, Head of Universal’s Planning and Development Team with extensive international experience. Member of Imagineering team at Disney
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Mark Towery v Economic Development Expertise and Local Market Knowledge v Site/Property Selection v Managing local Resources vConsultants, Lawyers, Accountants v Government Relations vZoning, Building Permits, Regulatory, Infrastructure v Feasibility Analysis v 24 years experience as Managing Director with International Strategic Consulting Firm, extensive international experience in Economic Development, Government Relations, and Strategic Analysis. Significant experience on several Caribbean islands Page 26 of 30
Hugh Magee v Real Estate Expertise v Valuation v Acquisition Strategy and Negotiations v Property Management
v 35 Years Experience v Site Selection and Marketing Development v New and Redevelopment Property Expertise v Environmentally-Sensitive Project Management
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Tom Degnan v Project Design and Management v Directing/Contributing to the Product/Facility Design Effort v Project Management of the Implementation Process v Principal of an Architectural Firm with extensive Top Tier Residential Market Experience v Marina, Lodging and Residential Conceptual Development Experience (Costa Rica‌)
v Market Research v Tracking Market Trends & Project marketing focus v Identifying and Investigating Unique Opportunities v Evaluating Competitive Products
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John Somers v Enterprise Management v Administration v Accessing Capital Markets v Project Finance
v Portfolio Management v Greater Pan-Caribbean portfolio oversight
v 34 years Investment portfolio experience • Institutional Fund Management for Fixed Income and Real Estate v VP Development, Prudential v SVP Commercial Mortgages and Real Estate, TIAA v EVP, Head of Fixed-Income and Real Estate, TIAA
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CDP Representation Legal (U.S. & International)
Accounting
Goodwin Proctor LLP
PricewaterhouseCoopers
Counselors at Law 599 Lexington Ave New York, NY 10022 T: 212.813.8800 F: 212.355.3333
Julianaplein 38 PO Box 360 Willemstad Curaรงao, Netherlands Antilles T: +599 (9) 430 0000 F: +599 (9) 465 5152
Christopher B. Price 212.813.8951 cbprice@goodwinproctor.com
Ivan de Windt RA ivan.de.windt@an.pwc.com
Tax Consultant (Caribbean) Gregory Elias, Managing Director Intertrust (Curaรงao) NV Landhuis Joonchi Curacao, Netherlands Antilles T: +599 (9) 736 6277 F: +599 (9) 736 6161
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Caribbean Development Partners, LLC 514 Lakeview Street, Orlando, Fl. 32804 For more information on marketing, please contact:
Thomas Degnan Partner NJ: 732-974-8600 NY: 212-691-6085 CELL: 732-539-8173