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GLOBE PROPERTIES

PRESENTS

MONDRIAN RESIDENCES

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PROPOSAL OVERVIEW

Opportunity

Financials & Overview

Tourism In

Florida

Globe Properties

VR Solution

Current Real Estate

Market

Mondrian Residenc

es

Vacation Rentals

A unique opportunity exists at the Mondrian Residences due to: • The increase in Florida tourism •The increase in demand for vacation rental’s•Real-Estate pricing•Zoning and Branding of the Mondrian Residences•Globe Properties vacation rental management program

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Part 1

Part 4 Part 3

Part 2

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Tourism Overview

• Tourism makes up the largest sector of Florida’s economy

• Florida was the top US destination state in 2011.

• Tourism impacts Florida with over 57 Billion dollars.

• 83 millions tourists come through Florida annually at an equal rate quarterly.

Sources: Wikipedia.com, media.visitflorida.org

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Vacation Rental Demand

Source: The LeisureLink Demand Index™

• Overall Vacation Lodging demand grew more than 200% in the two years February 2008-2010

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Problem & Solutions

• Industry Problems:• Unit owners would purchase their search rank and therefore the market wasn’t

performance driven. This lead to:– Lack of communication between guests and landlords– False advertising– Illegal rental operations– Overall customer dissatisfaction and distrust.

• The Solution:• As Google revolutionized the search industry. New websites are revolutionizing

the vacation rental industry as they help overcome all the problems by having– Your search position based on performance, this is judged by:

• Cleanliness• Communication• Honesty• Reviews• Overall customer experience

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• Buying your search position is dying and its for the better.• Align yourself with Globe Properties as it is ranked highly with the

performance based sites.

Vacation Rental Revolution

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South Beach, Miami, Florida, USA

• Map and short descriptionSouth Beach

Florida,Miami

South Beach is a 24-block long neighborhood in the barrier island city of Miami Beach that stretches from South Pointe Drive north to 24th Street, the Atlantic Ocean west to the Venetian Islands.

Mondrian

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Miami Real Estate Overview

• The Miami - Fort Lauderdale - Miami Beach residential real estate accounts for 53 percent of the international buyers in South Florida*1

• Foreign buyers are spending an average of $318 million – primarily in cash – every month purchasing residential real estate in South Florida*1

• International buyers from Latin America, Canada, Western Europe, and many other regions purchased more than $3.8 billion in residential real estate in the Miami - Fort Lauderdale *1

• The Miami Dade - Fort Lauderdale - Miami Beach markets represents 30 percent of the estimated $12.7 billion that foreign buyers spent on Florida real estate, according to the report *2

• U.S. real estate market surged by $16 billion in 2011, representing a 24% increase over 2010. The U.S. continues to retain the strongest international real estate interest among buyers*2

• While the U.S. has always seen strong foreign interest, the increased inventory and lowered prices have caused an increase in purchasing activity. Foreign buyers are also taking advantage of favorable exchange rates*2

Source *1 condovultures.com *2 National Association of Realtors

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South Beach Real Estate Overview

• Pending home sales has increased nearly 15% from one year ago *1

• May 2011 The total volume of pending sale listings increased in the month of May nearly 29% over the previous year*1

• Miami real estate experts point to the dramatic increase in international buyers over the previous year for such promising gains. South Florida’s real estate market remains one of the strongest in the country*1

• Developers created 37 projects with nearly 5,600 units in the South Beach neighborhood during the South Florida real estate boom beginning in 2003*2

• As of Dec. 31, 2010, developers had sold 77 percent of the South Beach inventory created between 2003 and 2010*2

Source *1 National Association of Realtors *2 condovultures.com

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•The Mondrian Sales increased velocity in 2011 occurred as the average transaction price slipped to about $500 per square foot from an average of $669 per square foot in 2010 and $1,132 per square foot in 2009, according to an analysis of Miami-Dade County records. •Following the first quarter of 2011 sales, the Mondrian South Beach project has sold more than 41 percent of the 335-unit inventory for nearly $92.6 million, according to Miami-Dade County records.

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Globe Properties Objective

• To under promise and over deliver while providing transparent services that allow Mondrian unit owners to capitalize on the vacation rental and tourism boom

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Opportunity Defined

• Enroll your Mondrian Residences unit into Globe Properties Vacation Rental program. Let us do the work so you can yield high monthly returns, worry free

• Globe properties offers owners comprehensive management tools, so owners will:– Have a finger on the pulse of their investment

• Real time up to date record of each visitors check in• Complete control of your unit from a distance• Receive Comprehensive monthly reports• Monitor your bookings and occupancy

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Costs & Structure

• $650 setup fee• Gross rental income will be split according to

monthly performance:– Gross Monthly Income < $4000 Globe Comm = 12%– Gross Monthly Income > $4000 Globe Comm = 24%

• No commitments/No contracts• No limitation on your personal use• Full visibility to all transactions

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Globe E-mail Proxy Solution

The e-mail proxy ensures that access to the unit is securely recorded and it informs the owner in real time.How it works:• Globe Properties accepts the guests bookings from online sources• Globe Properties issues the hotel instructions on the guests access and room cleaning via the e-mail proxy• The hotel is authorized only to accept requests and grant access from a email proxy account• When Globe properties e-mails the proxy it will automatically forward the e-mail to the hotel while

informing the unit owner while maintaining an email record. *Only the owner has access to the e-mail, so records can never be modified or deleted

E-Mail Proxy

Online Sources

HotelUnit Owner

GlobeManagement

Booking Requests

Booking Confirmation

Hotel Instruction

Full Access

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Unit Offering

City View No Balcony Per Sqft PriceCheapest 319: 3rd Floor 569 Sqft $401 $227,920Most Exp 1603: 16th Floor 523 Sqft $660 $375,760Bay View No Balcony Per Sqft Price

Cheapest 506: 5th floor 535 Sq ft $539 $288,150

Most Exp 1606: 16th Floor 535 Sq ft $539 $390,000Bay View with Balcony Per Sqft Price

Cheapest 622: 6th floor 540 Sq ft $641 $346,000

Most Exp 1612: 16th floor 540 Sq ft $830 $448,000One Bedroom Bay View with Balcony Per Sqft Price

Cheapest 714: 7th floor 756 Sq ft $599 $453,000

Most Exp 1610: 16th floor 760 Sq ft $718 $543,000Two Bedroom Bay View with Balcony Per Sqft Price

Cheapest 616: 6th floor 1190 Sqft $655 $780,000

Most Exp 1526: 15th floor 1190 Sqft $706 $840,000

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Projections Disclaimer

• The projections or other forward-looking statements regarding future events or the future financial performance of the Company are based on historical performance as well as data received from STR Global (We wish to caution you that these statements are only predictions and that actual events or results may differ materially)

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Miami Beach Hotel Data

2011 Tract : Miami Beach - Upper Upscale Class

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Occupancy Rate % 72 80 84 82 73 73 79 74 62 70 70 64

Avr Rate USD 240 263 272 246 205 170 180 169 166 201 216 271

2011 Tract : Miami Beach - Upscale Class

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Occupancy Rate % 73 80 85 84 74 74 83 77 68 72 77 69

Avr Rate USD 158 175 179 157 139 114 127 120 115 141 139 163

• STR Global categorizes The Mondrian Hotel as an upper upscale resort• Globe Properties projections are based on the upscale hotel data

Source: STRGlobal.com

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Studio Projections City View Studio Projections

Monthly Guests 7 7 8 3 4 5 5 5 3 3 4 7

Month January February*1 March*1 April*1 May June July August September October November December

Rate 158.0 120.0 204.0 125.00 138.65 114.22 127.26 119.79 114.82 141.39 139.18 163.17

Occupancy 72% 100% 86% 85% 74% 74% 83% 77% 68% 72% 77% 69%

Gross Income $3,413 $3,600 $5,263 $3,188 $3,083 $2,538 $3,171 $2,780 $2,355 $3,070 $3,217 $3,379

Globe Comm*2 $410 $432 $1,263 $383 $370 $305 $380 $334 $283 $368 $386 $406

Cleaning Fees*3 $420 $420 $480 $180 $240 $300 $300 $300 $180 $180 $240 $420

Fixed Costs*4 $1,235 $1,235 $1,235 $1,235 $1,235 $1,235 $1,235 $1,235 $1,235 $1,235 $1,235 $1,235

TOTAL Net Income $1,348 $1,513 $2,285 $1,390 $1,238 $699 $1,255 $912 $657 $1,286 $1,356 $1,319

Gross Annual Income $39,057.28 Cash On Cash 7% Unit Cost $228,000

Annual Net Income $15,258.34 Traditional Rental, Cash On Cash 5%

Traditional Rental @ 2300 $10,480

*1 Actual figures based on 2012 Bookings

*2 Variable Globe Commission (12% if Income is below $4000 or 24% if Income is more than $4000)

*3 Cleaning Fees are based on guest check-ins @ $60 a cleaning

*4 Fixed Costs are defined on the following page

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Studio Costs Outlined

Monthly Fixed Costs

Long Term Monthly Maintenance Reserve $50

Florida Lights & Power $49

Association Dues $25

Monthly Taxes @ 1.8% Annually $342

Liability Insurance $125

Share Cost Includes: Maintenance, Hurricane & Flood Insurance $644

Total Fixed Costs $1,235

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1 Bed Projections 1 Bedroom

Monthly Guests 7 7 8 3 4 5 5 5 3 3 4 7

Month January February March April May June July August September October November December

Rate 258.0 220.0 304.0 225.0 238.6 214.2 227.3 219.8 214.8 241.4 239.2 263.2

Occupancy 72% 100% 86% 85% 74% 74% 83% 77% 68% 72% 77% 69%

Gross Income $5,573 $6,600 $7,843 $5,738 $5,307 $4,760 $5,662 $5,102 $4,406 $5,241 $5,528 $5,451

Globe Comm*1 $1,337 $1,584 $1,882 $1,377 $1,274 $571 $1,359 $1,224 $529 $1,258 $1,327 $1,308

Cleaning Fees*2 $840 $840 $960 $360 $480 $600 $600 $600 $360 $360 $480 $840

Fixed Costs*3 $3,161 $3,161 $3,161 $3,161 $3,161 $3,161 $3,161 $3,161 $3,161 $3,161 $3,161 $3,161TOTAL Net Income $235 $1,015 $1,840 $840 $393 $428 $543 $116 $356 $462 $561 $142

Gross Annual Income $67,210.42 Cash On Cash 5% Down Payment $146,700

Annual Net Income $6,930.33 Traditional Rental, Cash On Cash 4%

Traditional Rental @ 4000 $6,070

*1 Variable Globe Commission (12% if Income is below $5000 or 24% if Income is more than $5000)

*2 Cleaning Fees are based on the amount of guest check-ins @ $120 per cleaning

*3 Fixed Costs are defined on the following page

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1 Bed Costs Outlined

30% Down & 4.5%

Unit Cost $489,000

Down Payment $146,700

loan Amount $342,300

Mortgage Payment Monthly $1,284

Total Sqft 750

Monthly Fixed Costs

Long Term Monthly Maintenance Reserve $50

Monthly Mortgage Payment, 30% Down & 4.5% Interest $1,284

Florida Lights & Power $89

Association Dues $25

Monthly Taxes @ 1.8% Annually $734

Liability Insurance $125

Share Cost Includes: Maintenance, Hurricane & Flood Insurance $855

Total Fixed Costs $3,161

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2 Bed Projections

2 Bedroom

Monthly Guests 7 7 8 3 4 5 5 5 3 3 4 7

Month January February March April May June July August September October November December

Rate 408.0 370.0 454.0 375.0 388.6 364.2 377.3 369.8 364.8 391.4 389.2 413.2

Occupancy 72% 100% 86% 85% 74% 74% 83% 77% 68% 72% 77% 69%

Gross Income $8,813 $11,100 $11,713 $9,563 $8,643 $8,094 $9,400 $8,583 $7,482 $8,498 $8,995 $8,557

Globe Comm*1 $2,115 $2,664 $2,811 $2,295 $2,074 $1,942 $2,256 $2,060 $1,796 $2,039 $2,159 $2,054

Cleaning Fees*2 $1,260 $1,260 $1,440 $540 $720 $900 $900 $900 $540 $540 $720 $1,260

Fixed Costs*3 $4,903 $4,903 $4,903 $4,903 $4,903 $4,903 $4,903 $4,903 $4,903 $4,903 $4,903 $4,903

TOTAL Net Income $535 $2,273 $2,559 $1,825 $946 $348 $1,341 $720 $244 $1,015 $1,214 $341

Gross Annual Income $109,440.14 Cash On Cash 6% Down Payment $234,000

Annual Net Income $13,361.26 Traditional Rental, Cash On Cash 3%

Traditional Rental @ $5500 $7,167

*1 Variable Globe Commission (12% if Income is below $5000 or 24% if Income is more than $5000)

*2 Cleaning Fees are based on the amount of guest check-ins @ $120 per cleaning

*3 Fixed Costs are defined on the following page

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2 Bed Costs Outlined

30% Down & 4.5%Unit Cost $780,000Down Payment $234,000loan Amount $546,000Mortgage Payment Monthly $2,048

Total Sqft 1190

Monthly Fixed Costs Long Term Monthly Maintenance Reserve $50Monthly Mortgage Payment, 30% Down & 4.5% Interest $2,048Florida Lights & Power $129Association Dues $25Monthly Taxes @ 1.8% Annually $1,170Liability Insurance $125Share Cost Includes: Maintenance, Hurricane & Flood Insurance $1,357

Total Fixed Costs $4,903

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The Opportunity Overview

• Buy a unit in the prestige's Morgan's Mondrian hotel– Be well positioned in for future Asset gain– Leverage of the low Dollar – Buy real estate at bottom prices

• Place the unit in the Globe Properties management program:– Overcome all the problems investors are normally faced with

when managing an asset– Have real time knowledge of your units performance– Leverage of the vacation rental boom– Enjoy higher than normal monthly returns– Use your unit whenever you wish

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Contact Globe PropertiesFor Investment AdviceTel: +1 917-830-8106