EL GUANACAST E BLANCO Costa Rica. Disclosure THE INFORMATION CONTAINED IN THIS DOCUMENT IS PROVIDED...
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Transcript of EL GUANACAST E BLANCO Costa Rica. Disclosure THE INFORMATION CONTAINED IN THIS DOCUMENT IS PROVIDED...
ELGUANACASTE BLANCO
Costa Rica
Disclosure THE INFORMATION CONTAINED IN THIS DOCUMENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY, IS NOT
COMPREHENSIVE, DOES NOT CONTAIN IMPORTANT DISCLOSURES AND RISK FACTORS ASSOCIATED WITH AN INVESTMENT IN COSTA RICA OR OTHERWISE WITH EL GUANACASTE BLANCO, AND IS SUBJECT TO CHANGE WITHOUT NOTICE.
NO INFORMATION CONTAINED IN ANY PART OF THIS DOCUMENT IS AN OFFER TO BUY OR SELL, OR A SOLICITATION OF AN OFFER TO BUY OR SELL AN INVESTMENT. IF ANY OFFER TO INVEST IS MADE, IT SHALL BE PURSUANT TO A DEFINITIVE PRIVATE PLACEMENT MEMORANDUM PREPARED BY OR ON BEHALF OF EL GUANACASTE BLANCO WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED HEREIN AND WHICH SHALL SUPERSEDE THIS INFORMATION IN ITS ENTIRETY.
ANY DECISION TO INVEST IN EL GUANACASTE BLANCO SHOULD BE MADE AFTER REVIEWING THE DEFINITIVE PRIVATE PLACEMENT MEMORANDUM AND RELATED DOCUMENTS, CONDUCTING SUCH INVESTIGATIONS AS THE INVESTOR DEEMS NECESSARY, AND CONSULTING THE INVESTOR’S OWN INVESTMENT, LEGAL, ACCOUNTING, AND TAX ADVISORS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF SUCH AN INVESTMENT.
ALTHOUGH THE ASSUMPTIONS UNDERLYING THE CONTENT HEREIN ARE NOT UNREASONABLE UNDER CURRENTLY EXISTING CIRCUMSTANCES AND CONDITIONS RELATING TO THE TARGETED INDUSTRY AND INTENDED PROJECTS, THEY ARE ONLY ASSUMPTIONS AND SHOULD NOT BE INDEPENDENTLY RELIED UPON WHEN CONSIDERING AN INVESTMENT WITH THE FUND. SUCH ASSUMPTIONS MAY NOT ULTIMATELY TURN OUT TO BE ACCURATE AND ARE IN NO CASE GUARANTEES OF PERFORMANCE. THEIR ACCURACY MAY BE AFFECTED BY A NUMBER OF FACTORS, SUCH AS ECONOMIC AND POLITICAL CONDITIONS, CONSUMER PREFERENCES, WEATHER, AND NATIONAL HEALTH OR OTHER CRISES. AS EACH OF THE PROJECTS IS UNIQUE IN NATURE THERE IS NO HISTORICAL PERFORMANCE BASED ON WHICH TO VALIDATE THE ASSUMPTIONS RELATING THERETO.
IN ADDITION TO OTHER FACTORS THAT MAY AFFECT THE PROJECTS, THEREBY PRODUCING RESULTS THAT ARE DIFFERENT THAN THE ASSUMPTIONS, THE TIMING FOR ESTABLISHMENT EL GUANACASTE BLANCO AND ITS BUSINESSES, AND THE TIMING FOR DEVELOPMENT AND PROGRESS OF THE PROJECT MAY SIGNIFICANTLY AFFECT PROJECT COSTS PRODUCING A MATERIAL DIFFERENCE IN THE OVERALL PERFORMANCE OF EL GUANACASTE BLANCO.
Costa Rica• Size: 20,000 square miles (about the size of West
Virginia) with 6% of the world’s total biodiversity.
• Illustrious views from ocean and tropical rain forests, sandy beaches, corral reefs, to cloud forests with active volcanoes
• Population: 4 Million
• 25% of Costa Rica’s national territory is already “protected” to preserve the Country’s greatest asset – ecotourism
• Oldest and most stable democratic governments in Latin America.
• The Worlds new playground for all lifestyles
• Fast emerging as the premier resort and residential destination
• Attractive foreign investment opportunities for growing “Global Citizens”
Costa Rica
Guanacaste,Costa Rica
Guanacaste is referred to as the “Gold Coast”of Latin America. With the Four Seasons opening
4 years ago to the recent opening of the RIU, theseestablished brands are here with more coming.
Costa Rica
Costa Rica
Peninsula Papagayo, one of the most successful luxury resort brand in Central America today, has opened Phase I of Marina Papagayo.
This is Costa Rica’s first luxury port.
Papagayo’s oceanfront Marina Village will exude the spirit of Costa Rica within a cozy European ambiance similar to Portofino, Italy.
Located on 2,300 acres, the Peninsula Papagayo includes the 153 room-Four Seasons Resort Costa Rica at Peninsula Papagayo, a private 6,788-yard Arnold Palmer signature golf course, the first of three resort courses, a 30,000 square-foot Golf Clubhouse and private members-only lounge and the newly-opened Prieta Beach Club & Spa - an open-air recreation, spa and dining complex with unmatched views of the setting sun.
Costa Rica
Opened November, 2009
Located at Playa Matapalo, Guanacaste, in the north-west of Costa Rica.
Located just south of the Gold Coast Fund Assets
5 Star Resort with 701 Rooms
90% Occupancy
Their value proposition: A place where one can enjoy the possibilities offered by the privileged surroundings - relaxation and water activities on the beautiful beaches; diving or fishing in the waters of the Pacific; and eco-tourism in the volcanic areas and natural sanctuaries.
100 Resorts in 17 countries
Why Is Costa Rica Stable In Current Markets
Costa Rica’s real estate market is funded by private capital and foreign buyers. Whereas the market in the United States is critically dependent on high leverage financing products, institutional financing and the job market, all of which have been recently decimated.
During the first six months of 2008, despite slowing US economic growth, as well as rising global food, fuel and airline prices, international arrivals to Costa Rica increased 12% over the same period last year. This statistic follows a ten year compound average growth rate in arrivals of over 9%.
With the expected explosion of retiring baby boomers, demand for property in Costa Rica , a world “Blue Zone”, is poised for long-term growth driven by lifestyle, climate and health care.
Other popular markets like Mexico are less attractive due to high prices, taxes and crime.
Increase in taxes, general cost of living and health care cost in traditional retirement markets like California, Arizona and Florida make Costa Rica the standout choice in a growing movement towards being a global citizen
Industry Reports On Costa Rica
Financial Times of London named Costa Rica the second most attractive location in Central America and the Caribbean for Foreign Direct Investment (FDI) – August, 2009
Costa Rica rank #1 Happiest place in the World – July, 2009
Costa Rica rank #1 in Retirement benefits – Latin World, 2009
Costa Rica ranked 8th most stable country in the world, March, 2009
Wall Street Legend Kaufman eyes investment in Costa Rica, April, 2009
As noted by Jones Lang LaSalle Market Watch, May, 2008: “Costa Rica has emerged as an investment hotspot, boasting a burgeoning upscale and luxury development pipeline. Costa Rica still provides much fertile ground for real estate investors and developers to expand their search for profitable growth”
As quoted by Cornell University Study in 2007 “Our exploration focuses on Costa Rica, which is by any measure an attractive destination that is growing in popularity”
Note: all reports can be made available upon request
Costa Rica: Lifestyle & Adventure
Oldest and most stable democratic governments in Latin America and has one of the highest literacy rates in the world (95%).
Costa Rica has one of the highest standards of living in Latin America.
It also has one of the longest life-expectancy rates on earth.
Costa Rica is one of the five parts of the world -- "Blue Zones" -- where people live measurably longer lives.
Costa Rica is home to more Americans (per capita) than any other country outside of the U.S.
A delightful, near perfect tropical climate, low violent-crime rate, stable democratic government and a plethora of outdoor activities to partake in year round, Americans seem to have no trouble adopting Costa Rica as their new home.
Costa Rican health care is not only affordable, but widely available to retirees from other countries
No taxes on retirement income.
Costa Rica: Infrastructure & Investment
Liberia International Airport Opened in 2002
More and more tourists are flying into Guanacaste instead of San Jose due to the airports proximity to all major beaches and resorts as well as National Parks
Delta, Continental, American Airlines, Northwest, United, US Airways with non stops from Los Angeles, New York, Miami, Dallas, Atlanta
Q4, 2008, Houston Airport Systems Development Company was awarded the government contract to expand the airport and will invest $27M. Construction has started.
New San Jose interstate and Guanacaste power plant
0
200
400
600
800
2003 2004 2005 2006 2007 2008 2009 2010 2011
610% Growth
Passenger Growth
El Guanacaste Blanco Site Map
El Guanacaste Blanco Site Map
El Guanacaste Blanco
El Guanacaste Blanco Floor Plan
El Guanacaste Blanco Floor Plan
El Guanacaste Blanco
El Guanacaste Blanco Floor Plan
El Guanacaste Blanco Property
El Guanacaste Blanco Financials 47 Units
44 Two Bedroom units at 1,313 square feet (122.10 m2) 3 Three Bedroom units at 1,618 square feet (150.50 m2)
Projected total revenue of $ 12,150,000
Projected total cost of $ 6,460,640 Construction costs: $ 5,590,078 Operating costs: $ 870,562
Projected Net Income of $ 5,689,360
El Guanacaste Blanco Sales
Sales Projections Sq Ft Year 1 Year 2 Year 3 Year 4 TotalTwo Bedroom 1,313 4 12 14 14 44 Three Bedroom 1,618 0 0 2 1 3
Total Sales 4 12 16 15 47
Sq Ft Sold
Contracted Revenue Price/Unit
Two Bedroom 1st Flr. (8 units) 195,000 195,000 390,000 390,000 585,000 1,560,000 2nd Flr. (8 units) 225,000 0 225,000 675,000 900,000 1,800,000 3rd Flr. (8 units) 250,000 500,000 500,000 500,000 500,000 2,000,000 4th Flr. (8 units) 275,000 0 1,100,000 550,000 550,000 2,200,000
Oceanview 5th Flr. (6 units) 295,000 295,000 590,000 590,000 885,000 1,770,000
6th Flr. (6 units) 295,000 0 295,000 885,000 0 1,770,000
Three Bedroom (3 units) 350,000 0 0 700,000 350,000 1,050,000
Total Revenue 990,000 3,100,000 4,290,000 3,770,000 12,150,000
El Guanacaste Blanco Costs
Construction Year 1 Year 2 Year 3 Year4 Total
Two Bedroom Construction (1313sq.ft) $70/ft2 20 units 24 units 44 units
1,838,200 2,205,840 4,044,040
Three Bedroom Construction (1618sq.ft) $70/ft2 3 units 0 3 units 339,780 0 339,780
4,383,820
Roads & Related Infrastructure 125,000 125,000 Electrical Infrastructure 200,000 200,000 Pools 200,000 200,000 Water & Tanks 20,000 20,000 Water Treatment Plant 80,000 80,000 Design/Engineering/Permits 45,000 45,000 90,000 Misc. Landscaping & Fencing 20,000 20,000 20,000 10,000 70,000 Project Management 3% 77,532 77,532 0.00 0.00 155,064Direct Construction Total 2,945,512 2,348,372 20,000 10,000 5,323,884
Contingency 5% 123,399 107,418.60 16,000 15,500 266,194.20
Total Construction 3,068,9112,455,790.6
0 56,000 35,500 5,590,078.20
Operating Expenses Marketing 15,000 15,000 15,000 15,000 60,000 Legal 0.5% 15,345 12,279 199 128 27,950Operating Expenses 3.0% 92,067 73,674 1,196 765 167,702Development Fee 5.0% 153,446 122,790 1,994 1,275 279,503Sales Commission 6.0% 184,135 147,347 2,393 1,530 335,405
Total Operating Expenses 459,992 371,090 20,782 18,698 870,562
El Guanacaste Blanco Summary
Sales Projections Sq Ft Year 1 Year 2 Year 3 Year 4 Total
Two Bedroom 1,313 4 12 14 14 44
Three Bedroom 1,618 0 0 2 1 3
Total Sales 4 12 16 15 47
Sq Ft Sold 5,252 sq.ft 15,756 sq.ft 21,518 sq.ft 20,000 sq.ft 62,526 sq.ft
Total Revenue 990,000 3,100,000 4,290,000 3,770,000 12,150,000
Total Construction 3,068,911 2,455,790.60 39,877 25,500 5,590,078
Total Operating Expenses 459,992.24 371,089.695 20,782 18,698 870,562
Total Expenses 3,528,903 2,826,880.30 60,659 44,198 6,460,640
EBITDA(revenue- expenses) -2,538,903 +273,120 +4,229,341 +3,725,802 5,689,360
Cumulative Cash Flow -2,538,903 -2,265,783 +1,963,558 +5,689,360