Jisepo Marina and Marine Village Project

Business Plan

April 30, 2012

Contents

Ⅰ. Business Overview ................................................. Error! Bookmark not defined.

1. Business Purpose .................................................................................................. 3

2. Project Site ........................................................................................................... 3

3. Development and operation plan ...........................................................................

4. Business Calendar ...................................................................................................

5. Company Overview ................................................................................................

Ⅱ. Feasibility Studies ..........................................................................................

1. Reason for site selection ........................................................................................

2. Macro environment analysis ...................................................................................

3. Micro environment analysis ....................................................................................

4. Political environment analysis .................................................................................

Page 3

Ⅰ. Business Overview

1 . Business purposes

This project consists of a marina, hotel residence accommodation, retail stores and

marina related facilities in a Marine Recreational Special zone as designated by the

Ministry of Knowledge and Economy of South Korea located at Jisepo Port, Ilwoon

Myeon, Geoje City, Gyeong Sang Nam Do Province, South Korea. The project is under

a development contract between the company and the Geoje City municipal government

and under permit processing with The Ministry of Food, Agriculture, Forest and Fishery.

[Table 1 ] Project Overview

Category Contents

Project Name Jisepo grand marina and marine village development project

Developer

Florida Marina Development Corporation incorporated in

Korea. The company was established in accordance with the

Foreign Investment Act of South Korea.

Business Location Government reclamation land at Jisepo port, Il Woon

Myeon, Gyeong Sang Nam Do Province, South Korea

Business Structure

The company will develop hotel residence, retail commercial

properties, marina and related facilities through project

financing with phased plan.

Project Period March 2010 - March 2017

Development

Scope

Accommodation

Land size: 8,500 ㎡, Construction area: 25,500 ㎡

Accommodation 300 rooms

Marina Facilities Ocean surface: 89,000 ㎡, Wet slips: 200

Other facilities Fuel, retail stores, water, sewer, dry storage etc.

(Source : Company provided information)

Page 4

2. COMPANY PROFILE

2.1. Company profile

Florida Marina Development, Inc. (“FMD”) is a premier marine design and development

firm with extensive experience in the conceptualization, design, and construction of world-

class waterfront facilities and destinations. FMD has been involved in extensive

discussions with the Korean government regarding the application of a Floridian/Caribbean

approach to waterfront development in Korea for the last five years. FMD’s vision,

expertise, and technical capabilities have been well received by representatives from the

various provinces and regions involvement– to the extent that local governments have

executed an exclusive Development Agreement with FMD regarding engaging FMD as the

developer for the historic fishing port revitalization projects of South East Coast of

Peninsula in Gyeong Sang Nam Do Province.

As the first of the fishing port development projects, FMD has secured the development

rights to a waterfront village and marina project in the prestigious Geoje City, located in

Southeastern Korea in the Gyeong Sang Namdo Province. The Waterfront Village and

Marina at Jisepo Port, Geoje City, will be a vibrant and attractive destination for both

tourists and residents that can serve as one of the primary commercial anchors for Port

Jisepo. The Village features an upscale extend stay hotel residence, an entertainment

district (dining, bars, retail) and commercial space. The plan also includes a large-scale

marina project, featuring both in-water slips and a dry storage facility. The project,

reflective of the yachting and waterfront lifestyle of South Florida and the Caribbean, will

be wholly unique to Korea.

FMD concludes negotiations with the government for the acquisition of approximately

8500 m2 of waterfront land (to be reclaimed from the shallow seabed) and 89,000 m

2 of

water surface usage rights. The project is fully entitled and is under final permit

processing before commencing construction. A suite of fiscal and economic incentives are

available to FMD as a registered Foreign Investment Corporation.

The Florida Marina Development, Inc is headquartered in Miami, Florida USA Company

information is listed in the following Table.

Page 5

[Table 2] Florida Marina Development Inc.

Category Contents

Name Florida Marina Development Inc.( hereafter ‘FMD’)

Goal Development marina and waterfront village in South Korea

Business area

Marina and waterfront property Development

Cruise terminal development

Marina and waterfront planning, design, construction, financing

and operation

Address 2781 SW 56th Avenue Pembroke Park, Fl 33023

Telephone Tel: 786 228-9396 Fax: 866 431-7242

Homepage http://www.floridamarinadevelopment.com

The company is a registered corporation according to the foreign investment act of

South Korea. The Florida Marina Development Corporation in Korea information is

as follows.

[Table 3] Florida Marina Development Corporation in Korea

Category Content

Name Florida Marina Development Corporation

Mission The company mission is to develop marina and waterfront property in South

Korea and its pilot project is Jisepo Grand Marina and village development.

Other Registered in Korea ( 100% Foreign Investment Firm)

Page 6

3. Project Site

3.1. Project site location

The project is located at Jisepo port, Gyeong Sang Nam Do province in South Korea. The

location is under development by The Ministry of Food, Agriculture, Forest and Fishery

under National Multipurpose Fishery Development Act since 2005. The project is located

10 miles from the world’s the largest ship-building company, Samsung Heavy Industry

and 5 miles from Daowoo Shipbuilding Merchant Engineer Company in Geoje City, The

Geoje city is connected with Korea’s second largest city, Busan, has a population of over 5

million residents and is one of the largest commercial ports in the world.

[Figure 1] Project Site

FMD PROJECT

SITE

Geoga Bridge (BUSAN)

Highway

(Seoul)

SAMSUNG Heavy Industries

( Shipyard )

DSME Shipyard

MASAN

Page 7

3.2. Reason for marina site selection

Executives and marina engineers of FMD made extensive coastline tours in South Korea and have evaluate twelve selected marina

sites. The company made twelve check lists based on water depth, airport distance, population, municipal government enthusiasm,

ocean environment, local resident response and other. The reason Jisepo port was selected as the pilot project site is below:,

[Table 4 ] Marina development and selection of analysis parameters designation

Area Water

Depth Wave Currents

Available

Land

Break-

water Tidal Sea Agriculture

Community

Cooperation CIQ

Airport

Access

Population

(30mile) Permit

Myeong-dong, Jinhae Good No Good No No Good No Yes Good Good Optimal 3 years

Mulgeon, Namhae Good Good Good Yes Yes Good Yes Yes No Good No 1 year

Yeosu Port, Yeosu Good Good Good No Yes OK No No Good Good Good 1 year

MokpoPort, Mokpo Good Good Good No No Severe No No Good Good Good 1 year

Kuk Dong, Yeosu Good Good Good Yes No OK Yes No No Good Good 1 year

Seosang Hang, Nam Hae Good Good Good No Yes Good No Yes No Good No 1 year

Mijoe, Namhae Good Good Good Good No Good Yes Yes No Good No 2 years

Jeon Gok, Gyung Gi No Good Heavy Good Yes 27ft No Yes No No Good 1 year

Donam Hang, Tong Young Good Good Good No Yes Good Yes No Good No Good 1 Year

SSangun, Geoje No Good Good Good Yes Good Yes Yes Good Good Good 1 year

North Port, Busan Good Good Good No Yes Good No Yes Good Good Good 3 years

Jisepo, Geoje Good Good Good Good Yes Good No Yes Good Good Good 1 year

Page 8

4. Project Scope

4.1. Ocean Marina

[Figure 2] Marina Layout – Water Surface Size 89,000 square meter

Jisepo Gran Marina Layout

[Table 5] Marina development scope

Category Size Other

Water Surface 89,000 m2 Wet slip: 200slips 10,840 LF ( up to 200ft slip )

Dry Storage 1,390 m2 Dry storage

Marina Facility m2 Fuel, water, power, sewer, Dock Master

Other marina infra Breakwater Under negotiation with government

Page 9

4.2. Land accommodation and commercial property ( Extended Stay hotel residence )

[Figure 3] Land development layout – 8,500 square meter

Jisepo Grand Marina Land Usage Plan

[Table 6] Land development scope

Category Area ETC

Accommodation 8,000 m2 Accommodation, Commercial

Commercial 500 m2 Retail, commercial facilities

Construction

Area

Accommodation 24,000 m2

Hotel-Residence 300 Units,

FAR 300%

Commercial 1,500 m2 Marine retail

[Table 7] Land Usage plan Unit : m2

Category Phase

Plan

Area Size Construction Size Parking ETC

Land Accommodation Retail

Hotel

Residence

Phase 1 4,000 12,000 - 2,400

Phase 2 4,000 12,000 - 2,400 Sales

Retail Phase 1 500 - 1,500 1,500 Lease

Storage Phase 1 -

합계 8,500 24,000 1,500 6,300

Page 10

5. Operation Plan

5.1. Operation plan

1. Global brand name hotel-Residence chain management contract

The company plans to operate the accommodations with a well known hotel management

company. The company is evaluating the pros and cons of an internationally branded

company versus local companies.

2. Hotel-Residence sale and operation

The company plans to make a contract with third party sales and marketing companies in

Korea who are specialized in hotel residence sales and marketing.

3. Marina operation

The company plans to operate the marina business with an internationally established

marina operator to provide world class services and benefits to its members. The

company received a letter of interest from world’s largest marina operation company.

4. Super yachts marketing

In order to increase profit margins for marina operations, the company plan to develop it as

a far east Asia super yacht destination. The company will hire super yacht marina

planners and designers and arrange super yacht refit facilities nearby to attract super

yachts .

5. Yacht Club Membership

The company is networking with yacht clubs in Asia - Shanghai, Qingtao, Hainan Island,

Singapore, the United States and Caribbean Island in order to provide reciprocal benefits to

its members.

Page 11

6. Development Calendar

The project initiated in 2010 and exit in 2020 with three development phase plan.

[Table 8] Jisepo Grand Marina and waterfront village development calendar

Category / Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Pre Construction

Reclamation Land

Master Plan

Permit

Development Calendar

Land Acquisition

Commercial Property

Commercial Sales

Phase 1

PRC Construction

PRC Sales

PRC Operation

Phase 2

PRC Construction

PRC Sales

PRC Operation

Marina Construction

Phase 1

Phase 2

Phase 3

Marina Operation

EXIT Acquisition and exit

(*) Calendar can be changed without notice

Page 12

Port Jisepo Waterfront Development, Geoje City, Korea

Project At A Glance

Project Name

Project Location

Project Description

Land Description

Land Size

Building Area

Water Description

Ocean Surface Size

Type of Products

Number of Units

Developer

Project Team

Jisepo Grand Marina and Waterfront Village Project

Sodongri, Jisepo port, Geoje City, Gyeong Sang Nam Do

Province, South Korea

Jisepo Marina and Waterfront Property Development

Reclamation land

8,500 m2

25,500 m2

Jisepo Multiple Fishery Development Marina Site

89,000 m2

Hotel- Residence, Commercial property, Marina and Marina

Related Service

Hotel Residence Units: 300 Units, 24,000 m2

Commercial Properties: 1,500 m2

Marina Wet slips: 200 Slips, 10,840LF

Florida Marina Development, Inc.

Planner and Architect – OBMI Marina Engineering – Allied Technology

Marine Construction – Shoreline Foundation

Permit Consultant – Seil Engineering

Feasibility Study – Price Waterhouse Coopers in Korea

Korea Business Development – Myungkune Moon

Jisepo Grand Marina Master Plan Jisepo Marina Location