Sunset Resort Waterpark

Sunset Resort WaterparkInvestment Opportunity

Sunset Resort WaterparkConceptual Image Overview

Investment Offer SummaryThe investor purchases shares in Sunset Resort Waterpark for €2,000 per share

The investor will receive the following per share:

• A yearly dividend from the waterpark of €273 per share • Over a 3 year period, the investor will receive €820 in dividends • On year 4 the investor will receive a dividend from the sale of

the apartments, commercial areas and Waterpark which will amount to €4742 per share.

• In total the investor will receive €820 + €4,742 = €5,562

Bulgaria – EU Member State

Bulgaria is the only country in the EU with a credit rating upgrade by Moody’s since the beginning of 2010.

Bulgaria has the lowest government debt in the European Union (18.9 % of GDP) and one of the lowest budget deficits (-0.5%) as of 2012.

Substantial EU funding available following Bulgaria’s EU accession.

Business Monitor International

Customers of the Bulgarian companies are world industry leaders such as BMW, Renault, Peugeot, Ford, Audi. For example, cylinder heads for 6-cylinder V-engine Audi are produced exclusively by Montupet plant in Bulgaria.

In 2010 Bulgaria became one of the six target logistics centers if HP worldwide which provide customer services and outsourcing of IT and software operations.

Bulgaria General Information

…If you want first-class mathematicians, try looking in Bulgaria. William Fitzsimmons, Dean of Admissions and Financial Aid, Harvard College

Bulgaria, Romania and other locations in the outskirts of Europe are playing a new twist in the craze for sending technology development offshore.

Business Week

Bulgaria Academic Update

If you're looking for a bargain break, you should head to Bulgaria, but avoid Italy, according to the latest research.

1. Sunny Beach, Bulgaria2. Marmaris, Turkey3. Costa del Sol, Spain4. Costa Blanca, Spain5. Algarve, Portugal6. Paphos, Cyprus7. Crete, Greece8. Istria, Croatia9. Orlando, USA10. Corfu, Greece

WHY BULGARIA? THE WORLDS TOP 10 CHEAPEST DETSINATIONS

Source: Daily Mail July 2014

Why invest at the Bulgarian Black Sea coast?

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Value for money – Bulgaria is the cheapest destination in Europe and this attracts

tourists

High quality accommodation – most of the hotels on the Black Sea Coast have been

built within the last 5 years and so are of a good standard

Low labour costs – good value for the developer

The Bulgarian Black Sea coastline provides extremely attractive opportunity for real estate investors for the following reasons:

A safe investment - The political crisis of the northern African countries and Ukraine

have seriously damaged the image of other desired second home markets such as

Egypt, Turkey, Morocco or Ukraine. The EU membership boosts tourism and second

home investment to existing summer destination countries such as Bulgaria, Spain,

Portugal and Croatia.

Sunset Resort Phases 1 & 2Sunset Resort is a stunning five star frontline beach property located on the black sea coast in Bulgaria. It is the largest development on the Black Sea Coast and is within 10 minutes’ drive from Burgas Airport.Sunset Resort has two phases both of which are fully operational and had over 250 000 bed nights during the 2013 season. The resort is also fully booked for the 2014 season through Europe’s largest operators, TUI, ITS etc.

Not only is Sunset Resort the best development in Bulgaria having won numerous awards, it has a proven track record and the company also has a strong team in place which includes project managers, hotel managers, sales network, back office support and customer care. This ‘ready to go’ infrastructure will be an invaluable asset for the execution of Phase 3. www.experiencesunset.com

Sunset Resort Waterpark will include 2 residential buildings and a new commercial area. The development will be connected to Phase 1 and 2 via a footbridge. The waterpark & restaurants will open in June 2015 and the 2 new buildings will be completed Q4 2017. They will include 502 apartments and 1800 sq.m of commercial space.

Why build Sunset Resort Waterpark ?We at Sunset Resort have identified an opportunity to expand the resort to include a further two apartment blocks together with a Waterpark and commercial areas including shops, restaurants and reception areas. Sunset Resort Waterpark can piggy back on the success of phase one & two. The resort has been accredited with the awards below.

• We have already secured a guaranteed income of €800, 000 for the use of the waterpark from the management company

• We have a demand for more beds from Europe's largest tour operators• We believe that there is a demand for high quality apartments in Sunset Resort based on the

current resale's in Sunset Resort Phase 1 & 2• Sunset Resort is only 7 mins drive from Burgas airport giving us a competitive advantage over

our competitors who are located around 60mins from the airport• The tour operators prefer to send a high number of tourists to one large resort than split

them into several smaller resorts. Better economy of scale for the operators, less staff required to manage high volumes of people.

• Construction prices are reduced significantly from the highs of 2007 & 2008 so it’s a good time to build

• High volume of skilled labour available due to the slow down in the construction sector, so it’s a good time to hire skilled people

Project Description Buildings

35,000 sq.m plot size Sunset Resort Waterpark

BUILDINGS

10,000 sq.m of the plot will be used for the two main buildings, landscaping and footpaths. The footprint of the building will be 3800sq.m and remaining 7,200sq.m will be used for landscaping and parking

Each building will have 234 apartments and a total built up area of 20,390sq.m

Total Built Up Area for both Buildings will be 40,780 sq.m and the buildings will measure over 60 meters in height

1,800sq.m will be used for the reception area in the main buildings

Project Description WaterparkWATERPARK

25’000 sq.m of the plot will be used for the Waterpark. The waterpark will include the below:

1,145 sq.m two level restaurant comprising of 5 fast food restaurants and one al la cart restaurant on the top floor

200 sq.m office building for administration

3,008 sq.m for the main building in the waterpark which will house the 19 slides

The waterpark will have 8 pools (including 6 combined pools) & 2 landing pools

The Splashers section(2-7 year old) will have 7 slides

The tots area will have 5 slides + 5 animations (15-30cm dept)Completion Dates: Waterpark and two levelrestaurants– June 2015Apartments and reception areas– Q4 2017

Project Location Overview

Sunset Resort Phase 1 & 2

Phase 3Sunset Resort

Waterpark

Project Location Front view

Sunset Resort Waterpark

Project Location Rear view

Conceptual Image of Water Park entrance

Conceptual Image of Sunset Resort Waterpark

Conceptual Image of Sunset Resort Waterpark

Footbridge connecting Sunset Resort Phase 1 & 2 to the Waterpark

NUMBER OF UNITS building 1 building 2 totalstudio 176 176 352apartments 58 58 116total 234 234 468

‘Conceptual Image of the Main Buildings’

‘Conceptual Image of the Main Buildings’

‘Conceptual Image of the Main Buildings’

Total Cost to complete waterparkSUNSET RESORT WATERPARK

area of the site sq.m 25,000swimming pools number 8slides, starting from the tower number 19slides, in the pools number 12

cost of the slides euro no VAT 1,500,000cost of the swimming pools euro no VAT 500,000cost of the chairs and umbrellas euro no VAT 130,000cost of the entrance building and the restaurant euro no VAT 220,000cost of the tower euro no VAT 500,000cost of the infrastructure euro no VAT 350,000cost of the external infrastructure euro no VAT 200,000total cost of the building works euro no VAT 3,400,000architecture and documents euro no VAT 100,000additional costs euro no VAT 50,000total cost of the waterpark euro no VAT 3,550,000

Note: Construction of the Water Park will commence in Q3 2014 and the completion date is set for Summer 2015. The developer is fully commited to the project.

ANNUAL INCOME FROM THE WATERPARK Amount of "bed nights" in Sunset Resort number 160,000Price per bed night for the waterpark euro no VAT 5Income from Sunset Resort tourists euro no VAT 800,000Expected number of external visitors number 100,000Average price per external visitor euro no VAT 12Income from external visitors euro no VAT 1,200,000Income per visitor from additional services euro no VAT 6Income from additional services euro no VAT 1,560,000total income from the waterpark euro no VAT 3,560,000Cost per visitor for the additional services euro no VAT 2Cost of the additional services euro no VAT 520,000Cost of Electricity euro no VAT 150,000Cost of Water and surage euro no VAT 150,000Staff cost euro no VAT 250,000total cost for running the waterpark euro no VAT 1,070,000gross profit euro no VAT 2,490,000corporation tax euro no VAT 249,000net profit per year euro no VAT 2,241,000net profit per year per share euro no VAT 273

Annual Income from the Waterpark

The investor receives a yearly dividend of €273 per share

Cost of the buildings 20,606,200

Income from the sale of the residential units 48,576,000

Gross profit from the sale of the residential building 27,969,800

Net profit from the sale of the residential building 25,172,820

Cost of the waterpark 3,550,000

Selling price of the waterpark, based on a 8 year return from the profit 17,928,000

Gross profit from the sale of the waterpark 14,378,000

Net profit from the sale of the waterpark 12,940,200

Net profit from running the waterpark for 3 years 6,723,000

Cost of the reception building 855,000

Income from the sale of the reception building 1,710,000

Gross profit from the sale of the reception building 855,000

Net profit from the sale of the residential building 769,500

Total net profit for the shareholders in "SUNSET AQUAPARK" 45,605,520

Total net profit for 10% shares in "SUNSET AQUAPARK" 4,560,552Total net profit per 1 share in "SUNSET AQUAPARK" 5,562

Calculations: Profit per share €5,562

External Knowledge Links

http://www.investbg.government.bg/en/pages/general-presentation-and-brochures-212.html

Very informative and well organized website describing in detail thebusiness climate and the investment opportunities in Bulgaria, providingindebt analysis, presentations, newsletters and comprehensive investmentinformation

http://www.mi.government.bg/en/themes/broshuri-na-angliiski-ezik-857-308.html

Government brochures promoting the Bulgarian tourism

http://wttc.org/site_media/uploads/downloads/bulgaria2014.pdf

Travel and tourism report on Bulgaria provided by the WTTC

Disclaimer

This presentation and its appendices (hereinafter referred to as the “Presentation”) have been prepared by theSunset Resort Water Park Investment exclusively for information purposes. This Presentation is confidential andmay not be reproduced or redistributed, in whole or in part, to any other person. The Presentation is solelyprepared for information purposes and does not constitute an offer or a solicitation of an offer to sell, buy,subscribe for, or otherwise trade, any securities. The Presentation and its contents may be changed and revised atany time based on available information. Sunset Resort Water Park Investment is not responsible for anyinvestment decisions taken based on the content of this presentation. This Presentation contains informationobtained from third parties and Sunset Resort Phase 3 & Sunset Resort Water Park Investment is not responsiblefor any mistakes, errors or interpretations based on the data herein. No representation or warranty (expressed orimplied) is made as to, and no reliance should be placed on, any information, including projections, estimates,targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions ormisstatements contained herein, and, accordingly, none of Sunset Resort Water Park Investment’s employees orany of Sunset Resort Water Park Investment’s parent or subsidiary undertakings or any such person’s officers oremployees accepts any liability whatsoever arising directly or indirectly from the use of this document. Byattending or receiving this Presentation you acknowledge that you will be solely responsible for your ownassessment of the market and the market position potentially described herein, and that you will conduct your ownanalysis and be solely responsible for forming your own view of the potential future performance.