Tropical D'Santo Cristo Beach Resort

Tropical D’Santo Cristo Beach Resort

São Migel do GostosoRio Grande do Norte

Brazil

2/ The Beach Resort : a sound investment

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Tropical D’Santo Cristo Beach Resort Investors Presentation

Contents

1/ Investing in Nordeste Brazil is the new gold mine

3/ What do YOU get out of it ?


1/ Investing in Nordeste Brazil is the new gold mine

Contents

1/Investing in Nordeste Brazil is the new gold mine

- After a short flight from southern Europe, you land in Natal in South America, the perfect place to escape.- Indeed Natal is easily accessible from Europe with daily flights of 6h 45 min from Lisbon.

Natal is also at 3h 30 min flight from the most populated areas in Brazil like São Paulo and Rio de Janeiro.

-Tropical D’Santo Crist Beach Resort is located in São Miguel do Gostoso, a very charming village , 98 km away from Natal in Rio Grande do Norte.

-In this fascinating country, ancient and modern happily co-exist, and tradition mingles with cosmopolitan attitudes.

- São Miguel do Gostoso is well known for its clear waters and sandy beaches.

- Natal is one of the cities in Brazil that will host the FIFA World Cup in 2014. The current football stadium in Natal will be completely rebuilt and be part of a mega project which will feature hotels, multi-use arena, theatres and shopping.

• Sao Paulo

• Natal

Natal is very easy to access , making it a convenient holiday destination.

São Miguel do Gostoso has become a real touristic spot. The majestic 30 km coastline displays

some of the most beautiful beaches in the world

Property in Brazil currently sits on the brink of a boom period while

investment growth is inevitable in Brazil, especially in locations by the

sea and in north east Brazil


-Increasingly, you may hear that investing in overseas real estate can be a better idea than investing domestically.

Investing in real estate in Brazil is a great idea for a number of reasons :

• Sao Paulo

-Brazil is the fifth largest country in the world. Therefore there are many attractives vacant areas of land for real estate investors. Moreover, the areas Brazil encompasses include more than four thousand miles of beautiful coastline property. With a cost of living that is significantly lower than the United States or Europe, Brazil seems like the perfect place for your first overseas property investment…

-Brazil as a booming real estate market , exceeding Europeans markets.

-The Century 21 PREMIER’s team is composed of real estate brokers specialized in dealing with international investors .

‘’Brazil is classed as a new emerging property market, which puts potential growth figures at their highest at present. The cost of living in Brazil is much lower than in most European destinations and currently stands at 20% less. As a result, the cost of maintaining and managing your property is low.’’ Propertyshowrooms.com

The favorable currency exchange rates, makes property transactions

cheap for foreign investors

Brazil’s progressive policies, has brought many improvements to

Brazil, including a decrease in inflation to an all-time low at 5.7%

Brazil has freehold property ownership

Brazil living cost is 20% lower than most European countries and

therefore property maintenance costs are extremely low


Brazil’s tourism success is creating a huge demand for accommodation and shrewd property investors are

acting early, purchasing bargain properties

These properties generates good rental yields

The payment allows you to buy property off-plan when prices are

still low, with down payments that vary between 15% and 40% of the

property price

- Thereby with a booming real estate and major developments in the tourism sector, Brazil fullysatisfies savvy property investors. Indeed the residential and 2nd home market is expanding. And early investors are currently seeing excellent returns in Brazil's coast line

locations, specially in Nordeste.

-Off-plan purchase offers investors the ability to buy at the lowest possible price and achieve maximum returns on investment.

OFF PLAN RESALE0

100

200

300

400

500

600

TIME OF PURCHASE

ON COMPLETION

Source:

- One of the ways to obtain greater profit is to buy off-plan properties :

MARKET PRICE (thousand of R$)

1/Investing in Nordeste Brazil : the new gold mine

-Buy off plan means buying early. Therefore investors have the ability to purchasing the best units, with great view .

- As the development begins to be constructed, the value of the units begins to rise.

- As more units are sold, higher the price of remaining units are. Units sell faster when buyers are able to physically see them.

-The climate and lower cost of living make Brazil a destination much in demand for tourists. This implies a high rental demand . Sometimes the purchase of properties on Brazilian shores are just buy to-let investments.

There are no restrictions towards benefice distribution from Brazil to others countries. Brazil has a treaty to avoid double taxation with other countries.

Pre-release

Release

Under constr

uction

On completion

0100200300400500600700800

Market Price (thousand of R$)

Market Price (t-housand of R$)

Source:

Brazil’s tourism success is creating a huge demand for accommodation and shrewd property investors are

acting early, purchasing bargain properties .

Depending on the down-payment and speed of construction, profits

from off-plan deals can range from a staggering 40% to 100% per

annum.



Contents

Area 56 000 m²

Constructed area 21 000 m²

Propperty type Gated community/ resort

Units 66 private bungalows and 47 apartments

Commercial area 11 buildings

Construction start 2010

Construction period 30 months (3 phases)

Sizes “Area privada” from 37 m² up to 228 m²

Prices from R$ 100.000,00 up to R$ 500.000,00

Construction company - Civil Norte Pre Design e Prima Construtora


The Brazilian construction company of The Tropical D’Santo Cristo is Civil Norte Pre-Design in

partnership with Prisma Construtora

21 000m²of construted area

66 private bungalows and 47 apartments

11 buildings in the commercial

area

Prices range are from R$ 113.750,00 up to

R$ 485.980,00

The Brazilian company responsable for the construction of Tropical D’Santo Cristo is Civil Norte Pre-Design in partnership with Prisma Construtora , both located in Natal. Well known and specialised in the development of Beach Front Resort, with high standards and ability to keep timeschedule. Besides, they also share the same philosophy regarding eco friendly development and social responsability as ourselves.


There are 2 types of appartements buildings. The Park Suite has 2

bedrooms and a private area from 37m² and 157m². The Lake Suite

has 2 or 3 bedrooms with a private area between 82m² and 137m²

Both suites have a terrace, and a large veranda. All top floor

apartements have access to private roof terrace

You can choose between two types of bungalows. The duplex

bungalow has 2 masters suites and 1 regular bedroom with a private

area of 211m²

The Beach bungalows have 1 master suite and 2bedrooms

It s very close to the resort pools

Both bungalow’s types have a roof terraces, with private jacuzzi .

Perfect spot to relax and sunbath in tranquility

Bungalows Suites


• Sao Paulo

- The estimated net rental is on average of 9%.

- A rental deal is being negotiated with the hotel group in order to guarantee an annual rental yield.

- São Miguel do Gostoso has become a real touristic destination and needs to increase its capacity to welcome guest with high-quality standards. Today the town can’t support the growing demand with only 230 beds. Tropical D’Santo Cristo Beach Resort will add another 574 more beds to face the demand.

-Buying to let, either suites or bungalows, in São Miguel do Gostoso is a good investment, with excellent profit perpectives.

Rental is not obligatory, however most of the clients have already made up their mind about puting their property in rental, in order to receive an interesting return on their investment.

Lake Suites Duplex Bungalows

Indeed rental income from Brazilian properties are very interesting for

investors .

High rental yields are already achievable from properties located

in the touristic hotspots of Brazil.

It is expected that mortgage payments and bills can be covered

for the year from the rental income achieved during the peak season

months alone (December to February).

The largest investor in this project is the Norwegian Hotel & Resort Group Norlandia who will use his expertise to administrate the rental of this resort.



Contents


No matter how long you intend to keep your property, as long as you bought it off plan , it s a profitable investement.

- If a property is bought off plan and resale on completion => profit making opportunity

- If a property is bought off plan and resale few years later with no rental activity => profit making opportunity

Let’s use the figures to corroborate these facts.

There are various financial options available when considering an

investment in Brazilian property.

When investors buy off plan properties they buy at the lowest

Most of the times 20-40% of the purchase price is asked on deposit,

while the rest is payable upon completion.

This type of investment brings the added benefit if the property is

being rented out. Therefore the investor/owner earn

an income, at the same the value of the property is still appreciating,

while someone else is pays the mortgage

Meanwhile it is providing an holiday home for personal

enjoyment.

Buy-to-Let investments are catching on fast in Brazil as investors now

consider them to be a sound investment decision.




When investors buy off plan properties they benefit first of very

good prices, and then of flexible financial structures . Most of the

times 20-40% of the purchase price is asked in deposit, while the rest is

payable upon completion.




while someone else is pays the mortgage…

Meanwhile it is providing an off-peak holiday home for personal

enjoyment.


consider them to be a sound investment decision.

Option 1 : The property is bought off plan. No rental activities. => profit earned for the suite

Considering the three scenarii, we can expect a capital appreciation plus IGPM According to Market :

Purchase Year 1 Year 2 Year 3 Year 4 Year 5Estimated

Gross ROI after 6 years (%)

R$ 100.000 R$ 13.440 R$ 15.246 R$ 17.295 R$ 23.269 R$ 26.979 48 %

R$ 200.000 R$ 26.880 R$ 30.493 R$ 34.591 R$ 46.539 R$ 53.957 48 %

R$ 500.000 R$ 67.200 R$ 76.232 R$ 86.477 R$ 116.347 R$ 134.893 48 %

Worst scenario

Base scenario



R$ 100.000 R$ 13.440 R$ 15.246 R$ 17.295 R$ 23.269 R$ 26.979 96 %

R$ 200.000 R$ 26.880 R$ 30.493 R$ 34.591 R$ 46.539 R$ 53.957 96%

R$ 500.000 R$ 67.200 R$ 76.232 R$ 86.477 R$ 116.347 R$ 134.893 96%


.



R$ 100.000 R$ 13.440 R$ 15.246 R$ 17.295 R$ 23.269 R$ 26.979 134 %

R$ 200.000 R$ 26.880 R$ 30.493 R$ 34.591 R$ 46.539 R$ 53.957 134 %

R$ 500.000 R$ 67.200 R$ 76.232 R$ 86.477 R$ 116.347 R$ 134.893 134 %

Good scenario

Considering our good scnario, we can expect to reach a gross ROI after 6 years of 134 %

With a R$ 100.000 investment, the total gross return rental and value increase after 6 years is R$ 148,209 with a rental yield of 6,90 %

With a R$ 500.000 investment, the total gross return rental and value increase after 6 years is R$ 1.168.051, with a rental yield of 34,5 %






while someone else is pays the mortgage…

Meanwhile it is providing an off-peak holiday home for personal

enjoyment.


consider them to be a sound investment decision


Buying off plan units in the Tropical D’Santo Cristo Beach Resort :

- Over the past five years, Brazil property has seen prices increase of some 20%. In fact last year, in some areas of north east Brazil, returns of 20 % were not uncommon.

- Due to a solid and promising economic environement, Brazil is amongst the fastest growing and most sought-after worldwide property locations.

- Returns on investment from Brazilian real estate are currently amongst the highest in the world.

- Brazil is believed by some economists to be amongst the leaders of the future, along with Russia, India and China.

It is wisely advised to have a feet in Brazil these days

Predictions by leading financiers, like Goldman Sachs, are ranking Brazil

amongst the top 5 world economies by the year 2050.

With a tropical climate, world-famous, beautiful beaches and a

year-round tourist season, Brazil is set to benefit purchasers with buy-to-let investment strategies as well as those looking for above average

returns on their overseas holiday properties

For foreign investors property purchase as an investment vehicle

has become a popular option amongst those aiming to capitalise

on the excellent growth potential of property in Brazil. Like we said

before this type of investment can consist of an off-plan purchase for

sale prior to project completion. Alternatively, a buy-to-let situation can provide reliable rental income

from the property, along with substantial capital

appreciation.Property price returns of 20% per annum in some locations.

Peter TuchDirector New Projects and Development

Rua Amauri, 23001448-000. Itaim Bibi. São Paulo

Tel. +55 11 3511 [email protected]

Tropical D'Santo Cristo Beach Resort

Real Estate

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