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0 WELCOME

10for IREX-755 Client Presentation October 16

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WELCOME

Where is your money now?

• Most people utilise high street options – Savings Accounts– ISA’s– Bonds

• Low risk, but low returns • Typically 1% to 3%

‘How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.’

Robert G. Allen

Stock & Shares

Source: Yahoo!

Trend 5.52

• A total downward trend in value• Requires specialist knowledge of markets• Decisions being made on your behalf • Lack of control or visibility with what happens to your

money• Alternative investments increasingly popular

So what are the alternatives?

Stock & Shares

The alternatives

• Alternative investments can deliver much higher returns• Lots of options – but tend to be specialist and niche• Property stands out as the obvious choice for most people

– stick to what you know!

‘An investment in knowledge pays the best interest.’ Benjamin Franklin

Property

LandWine

Precious Metals

Art

Car Parks

Storage Pods

Stamps

UK vs Cape Verde

UK Cape Verde

Market the Property Property Marketed on your behalf

Additional Investment required No additional Investment required

Potential empty periods Assured 7% with ongoing 5% minimum NET rental Yields after completion

Potential Bad tenants Melia Hotel International as your tenant

Tax relief cut in 2017 from 45% to 20% No tax on rental income in Cape Verde

Increase on Stamp Duty on second homes by an additional 3% No Stamp Duty

• Generally two types - Commercial or Residential

• There are pro’s and cons for each

• Commercial property can be more expensive to buy

• But it tends to deliver a higher yield

• Residential Property is often cheaper to acquire

• But management costs are usually higher and yields are lower

Touristic properties combine residential and commercial – an ideal option.

What type of property?

• It’s a freehold property investment• Prime beach-front land • Occupancy driven by tourism, not reliant on one long

term tenant• Marketed to millions of people around the world• Management and maintenance done on your behalf• Benefit from rental income and capital growth• Plus, you can enjoy the added benefit of personal usage

Holiday Resort Property

How to choose the right location?

• The location checklist: – Seasonality – Demand– Saturation– Stability– Longevity

Location is the key factor

What about low season, or hurricanes and other climate risks?

Year round climate = year round income

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23

25

26

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Average temperature (°C)Jan Feb March April May June July Aug Sept Oct Nov Dec

• Cape Verde offers year round sunshine• Temperatures consistent at 23-27 degrees • No hurricanes or rainy season

Seasonality and Climate

Some holidays seem to be popular one year and not the next, are enough people going there? • Cape Verde is a sunshine beach destination

– It will always be globally popular• Tourism numbers growing year on year for last 20 years• More flights and operators every year• Easily accessible - just south of the canaries• A tropical location closer than the Caribbean• A welcoming culture with a “no stress” mantra

Sunshine & beaches will always be popular = reliable and consistent occupancy

Demand

Brazil, Rio de Janeiro UK, Bristol and Glasgow

SUMMER FLIGHTS / WINTER FLIGHTS

Germany - Cologne, Dusseldorf, Frankfurt, Hannover, Munich, Nuremburg France - Paris OnlyNetherlands - AmsterdamPortugal - LisbonBelgium - BrusselsUK - London Gatwick , Manchester, Birmingham, Bristol, GlasgowItaly - Verona, Bologna, Milan Malpensa, RomeSpain - BarcelonaSwitzerland - BaselSweden - StockholmBrazil - Rio de Janeiro

Increasing flights from across the world

New flights 2015/16

Cape Verde Tourism continues to grow…

Cape Verde tourism is on the rise again, as it becomes a must-visit destination in 2016

•60,000 Visitors in 2000 •569,000 Visitors in 2015• 5.5% rise on 2014• 3.7 million overnight stays• 8.9 nights stay average

What about over-development, some destinations seem to have too many properties and not enough tourists!

•This is true for some destinations–Caused mainly by a lack of government control

•Cape Verde law prohibits high rise and high density resorts•Legislation exists to protect land •The size of the Islands further restricts level of development•Property owners will be an exclusive group of investors

Cape Verde can not become saturated = property values will grow

Market Saturation

How stable is the country, what about security issues or terrorism?

• Cape Verde is a democratic independent country• Low risk profile for internal unrest • Low risk profile for terrorist incident• Minimal crime levels• Excellent overall safety record for tourism

Local Stability

Safe and secure country = Lower risk investment

Can I expect a good return now and in the future?

• Billions of private investment into the country• Tourism is the key driver of the local economy• Large scale infrastructure improvements being made• Continuous improvement as a holiday destination

– New Blue Lagoon development for example– Improves swimming conditions– Adds exciting Beach club concept

Billions being invested in continuous improvement = sustainable returns

Investment Longevity

Year round climate = year round income

Sunshine and beaches will always be popular = consistent occupancy

The market cannot become saturated = significant capital growth

Safe and secure country = Lower risk investment

Billions being invested in continuous improvement = sustainable returns

The Cape Verde Checklist

And a trusted developer….?

• Developer of 5-star hotels and resorts• Sell the resort properties to freehold purchasers• Retain ownership of Resorts working with Hotel Operators• We don’t just build and move on• We’re in it for the long term with our property owners

The Resort Group PLC

• Group turnover in excess of €110 million

• NET Profit of €28 million in 2014

• Estimated NET Profit for 2015 €32 million

• Significant growth projected this year

• 85% deposit average on property sales

• Assets worth in excess of €100 million

Financially Secure

Global Partnerships

TRG has relationships with globally recognised brands

Gerald Eve – Asset Management (including property valuations)

Deloitte - Auditors

Grupo SanJose – Construction Company

Also have key agreements with hotel and tour operators

Global Partnerships

• TRG have agreements in place with Melia Hotels International and Hilton Worldwide

• Melia operate our completed projects and two pipeline resorts • Hilton Signed for Santiago business hotel and project in Boa Vista• Letters of Interest with several other major brands

• Established market leader in Cape Verde• 2 Resorts successfully completed and operating • The number one 5-star developer in Cape Verde• 3 Resort under construction • 5 Resorts in planning stages• Approximately 6,415 rooms within the portfolio

once completed

Proven Track Record

MELIÃ Tortuga Beach Resort

• 372 Properties

• Opened May 2011

• Voted Cape Verde Leading Hotel past 4 years (World Travel Awards)

• Avg. occupancy since opening in 2011 - 74%

MELIÃ Dunas Beach Resort is the largest holiday resort

on the African continent 2 0 1 5Cape Verde's Leading

Hotel

— MELIÃ Tortuga Beach —

2014 Winner

Certificate of Excellence

Cape Verde's Leading

Hotel

Cape Verde's Leading

Hotel

MELIÃ Dunas Beach Resort & Spa

• 1,251 Properties• Largest resort on African continent• Opened November 2014• Recently voted number one hotel in Santa Maria, Cape

Verde on Trip Advisor• Won several 2015 Hotel of the Year awards including ‘Best

Lifestyle Resort Worldwide’ and ranked 7th Best Hotel Resort in the World 2015

• Full due diligence pack available for all clients

• Overview of TRG and our resorts

• Details our financial accounts

• Land ownership and other legal certificates

• Environment impact studies

• Offers total peace of mind

Due Diligence

Making your money work harder

LIMITED OFFER FOR OCTOBER RESERVATIONS ONLY!

755 Property Options just got BIGGER!

• 7% 10% Assured Return

• 5% Net Guaranteed Rental Yield - for the duration of the rental programme, or a 50% share of the net room revenue whichever the greater

• 5 Year Resale Option - The Resort Group will commit to market the property 5 years after investment has been made. This will be at the market value less cost of sale

Guaranteed Returns

£150,000 - £15,000 PA @ 10% - 3YRS = £45,000

£150,000 - £7,500 PA @ 5% - 2YRS = £15,000

TOTAL RETURN OVER 5 YRS = £60,000 (Guaranteed)

Within 5 Years you will have been paid back 40% of your purchase price

Together with projected capital growth at 3% pa £22,500 over 5 years

TOTAL INVESTMENT RETURN OVER 5 YEARS = £82,500

TOTAL INVESTMENT VALUE OVER 5 YEARS = £242,500

Llana Beach Hotel - Sal Island, Cape VerdeCurrently under construction - Due to open 18th December 2016

Llana Beach Hotel - Sal Island

• Currently under construction • Opens November 2016• 601 luxurious hotel suites - 556 Completed• Hot tubs, swim up pools• Full range of 5 star facilities & services

CGIs Llana Beach Hotel

Beach Bar CGI’s

Bikini Beach Bar CGIs

Current Progress - Sept 2016

White Sands Hotel & Spa - Boa Vista

• Being sold off-plan• Construction commenced end of 2015• Completed in late 2018/ early 2019• 835 properties• Stunning views from all properties• Situated on Santa Monica Beach, Boa Vista• Regarded as best beach in Cape Verde• The first of 6 planned resorts on Boa Vista

Boa Vista, Cape Verde CGI

White Sands Hotel & Spa CGIs, Boa Vista, Cape Verde

White Sands Hotel & Spa, Boa Vista, Cape Verde - Groundbreaking 19th December 2015

Current Progress - Sept 2016

SUMMARY

Developer with proven track record

5-star luxury award winning resorts

Guaranteed Returns

Structured exit strategy / resale option

Delivered capital growth on previous resorts

What do you want?

• Your requirements and investment needs

• Discuss budget and property type

• Prepare a bespoke investment option to suit your budget

• Schedule 2nd appointment to discuss above

Next Steps

Cape Verde IMAGES

Among Lonely Planet’s Top 4 Travel Destinations in the world

Things to do in Cape Verde…

Trip Advisor Travelers Choice Awards 2015 have recently shortlisted Boa Vista and Sal within their Top Ten Best Islands to visit in Africa.

The island is known for marine life and traditional music, as well as its ultramarathon, sand dunes and pristine white sandy beaches.

Miles and miles of beautiful white sandy beaches...