The economic feasibility study Project ECO- · PDF fileHECCO-SOLUTIONS - Fevereiro 2012 The economic feasibility study Project ECO-RESORT

HECCO-SOLUTIONS - Fevereiro 2012

The economic feasibility study Project ECO-RESORT

1

Index

IntroductionSupporting studiesProject specificationsPhoto GalleryUrban Settings Location Tomar and the Castelo do Bode DamThe target market - Attachment complementary A Business Tourism Sector Senior Tourism Sector Senior Tourism Sector - Residences Medically assistedTarget Segments - Attachment complementary BPEST Analysis - Attachment complementary C Politics Economics Sociocultural TechnologyPotential turistic of the TerritoryPortugalSWOT Analysis SW Analysis for the 3rd Age sector SW Analysis for the business tourism sectorSE Analysis for the Top tourism sector Feasibility Studies - Presentation and Analysis of resultsContributions to the realization of feasibility studiesMethod applied for the Feasibility StudiesFeasibility Study - Based on the sale of 100% of Real EstateFeasibility Study - Based on 50% Sale Real Estate / 50% of the Tourism & HospitalityFeasibility Study - Based on 100% the Tourism & HospitalityAttachment IAttachment IIPhotos

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The present study has the purpose to demonstrate the benefits in investing in the tourism sector in Portugal and the economic feasibility of the project VALE-PARAÍSO.

The decisions on investments in the hospitality and civil construction sectors should be taken after a series of studies and not on the pretended sensibility of the entrepreneur.

The study presented here demonstrates the feasibility of the project by inserting a historically and culturally renowned city, centrally located, with a small population but high-impact tourism, that lacks a real estate development of this model. This Plan was prepared after thorough feasibility analysis of different information sources, which were applied economic engineering techniques, to obtain indicators that support the feasibility and which are decisive for the decision-making.

Market research is developed for determining economic and technical data about the enterprise. The sales prices were calculated taking into account the current situation, the uniqueness of the location and type of services provided.

The net present value (NPV) was the main method used in the analysis. Internal Rate of Return (IRR), Payback and return index (RI) assist in decision making. The exploration work showed that the project, in its different aspects, and its size is manageable, in terms of technical, market and economic variables.

2

CorporationRelease

Economic factorsPositive gain:

Economic Return (NPV);Benefit-Cost Ratio (BCR).

Financial FactorsGetting Resources for:

Product financing;Customer financing.

These feasibility study results, as mentioned above, of a comprehensive analysis of the target markets and market segments. To obtain more credible evidence, there was also a review of other previous studies of tourism investment in Portugal and were analyzed further, the recent socio-economic data of the tourism potential of the property and surrounding area.

Attachments: - Target Market Study - Target Segments Analysis - Politics, Economics, Sociocultural and Technology Analysis (PEST)

Supporting studies

Introduction

Vale Paraiso is a property with a total area of 531.950m2, framed in an approved plan of development of the tourist area, based on a concept of ECO RESORT.

The property, set in a Environmentally Restricted Zone, is located on the outskirts of Albufeira de Castelo do Bode, a privileged area of idyllic landscapes.The Project Plan Detail inserted in Vale Paraiso - Eco Resort comprises the construction of a Touristic resort with lodging properties like detached houses, townhouses and apartments sets.

Also form part of the Plan details a range of infrastructure support such as a marina, shopping and dining and recreational areas legal, such as playgrounds, pools and walkways. The Property Vale Paraiso - Eco Resort is an urban system integrated with several existing and projected road accessibilities, public transport, public utility services and health.

3

Project specifications

4

Photo Gallery

5

Urbanistic Plan

531.950,00sq.m. 21.115,00sq.m.

30.060,00sq.m.193un.636un.520un.

23.635,00sq.m.1.520,00sq.m.1.650,00sq.m.

28.988,00sq.m.2.492,00sq.m.

52.035,00m210.149,00m225.535,00m22.493,00m2

Plan LegendExecution Units

Apartements units:Townhouse units:

Detached House units:Commerce and Service units:

Recreation areas:Marina & Services:

UA1 - UA2UB1 - UB2UI1 a UI96

C - CSUL1 a UL3

M - SM

Property area:Deployment area:

Gross construction area:Nr. accommodation units:

Max. number of beds:Max. number parking spaces:

- Impermeable Areas - Housing units:

Commerce and services support:Sport and recreation support units:

Pavement network:Footpaths to be build:

- Permeable Areas - Cottage private gardes:

Areas for sport and recreation:Nature areas:

Footpaths to be build:

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Location

The property Vale Paraíso – Eco Resort is located on the outskirts of Albufeira de Castelo do Bode, near Tomar.

Right in the centre of Portugal, Vale Paraíso is served by a great road network, ensuring fast and secure access to all parts of the country.

Depart from the main airports in Spain or Portugal; you can reach Vale Paraíso - Eco Resort in a quick and comfortable way, 90% of the route is either motorways or highways.

With the completion of a new route IC9, scheduled for 2012, Vale Paraíso - Eco Resort will have a direct connection to the coast. Just 40 minutes will be enough time to reach some of the most beautiful beaches.

PORTUGAL

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Tomar and Barragem Castelo do Bode

Tomar is a beautiful city, the county seat, the Central region, located on the beautiful banks of the river Nabão and in marshy land.

As one of the most historic cities of Portugal, with so much to tell and see, Tomar was elevated to city status in 1844. With 43,000 inhabitants, was conquered from the Moors by D. Afonso Henriques in 1147 after being donated by the King to the Knights Templar in 1159.

The rich historical heritage of Tomar stand out landmarks are the Convent of Christ, the Castle, the Church of St. John the Baptist in the fifteenth century, the Church of Nossa Senhora da Conceição (sixteenth century) and St. Mary of the groves, among many others . There is much to see in this charming Templar town, like the curious Matches Museum or the Museum Luso-Hebrew, or the fantastic Mouchão Park, with its beautiful gardens, and the river Nabão. Among the many attractions Tomar also stands out for its religious art and tiles.

Tomar today is well known for its tourist potential offered by the numerous historical buildings, archaeological remains and the fresh and leafy strolls in the gardens along the river Nabão. But there is much beyond the city and its magnificent historical monuments.

The dam of Castelo de Bode is one of the most important dams in Portugal. With a length of about 60 km, extends from the vicinity of up to take around Cernache Bomjardim near the dam Bouçã and is a benchmark in air travel, since it is one of the main routes of approach to Lisbon. The dam of Castelo do Bode is a unique place to practice water sports or a relaxing boat ride on the S. Christopher, pleasure craft where meals are served during the trip. Its great extension provides the appearance of numerous bodies of water, where you can find authentic oasis of tranquility.

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The target market - Attachment complementary A

Was taken as an option to study the feasibility of the project Vale Paraiso –in tandem with different sectors of tourism, these being the market of 3rd Age, business tourism, top tourism and secondary or leisure housing markets.

One priority is to focus on Tourism and housing for the 3rd Age and entrepreneurs, seeking to entice the Portuguese or foreign visitor, whether it be for business, leisure, to have a "short break" based on proposals of culture, romance, animation, health, sport and leisure, with the provision of high quality services to promote this ECO-RESORT, taking advantage of the technologies of information and the latest media.

Under the Tourism or Senior Housing this project aims to provide a higher quality of life adapted to their needs, focusing on Health Tourism with medically assisted housing, sports and other adapted and organized trips or visits, for the elderly population, with possibilities of travel in Portugal and abroad, at prices tailored to their different financial circumstances.

This focus, in the tourism business and senior citizens, is related to its high profitability and future prospects. The investment in these sectors will be made through a high-end offering and differentiated services, notably through a strong technological component in the spaces of the Hotel / Resort building.

Business Tourism Sector

Business tourism can be defined as a set of trips, whether collective or individual conducted in professional activities, whatever there nature. These may be conferences, conventions, workshops, symposium, seminars, trade shows, exhibitions or incentive trips.

This is an important sector because: Great demand by companies; Search in low season and high; Maximised financial return of spaces such as meeting rooms; High average expenditure per capita / day; Urban tourism; Entertainment.

In this sector the categories of establishments searched are high and medium quality (4 and 5 star), the profile of the search is very demanding for quality and personalized service.

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The target market - Attachment complementary A

Senior Tourism Sector

The progressive increase in average life expectancy of people in developed countries, increases the number of older people grows every year. It is true that the world population is increasingly aging, with the difference that new generations of seniors have nothing in common with the past. Currently the elderly constitute a significant factor in tourism development, both for its availability of time and by their great purchasing power.

This new market segment, more expressive, require an elaborate and supply of high quality in order to meet their demands because it is a segment of highly experienced, informed and demanding people.

The basic motivation of this tourist segment is enjoying the most senior, in a frame with a pleasant climate combined with recreation, but always fun and with the appropriate facilities. That is, security is a priority. When we talk about security we speak not only of peace but mainly the satisfaction of basic needs, their own age group in question. With greater or lesser health problems this segment requires some basic medical care but above all concerned with easy access to health services and welfare, of the highest quality.

In short, the main activities in this sector we are interested are: Access to health care - medically assisted Residences; Wellness / Physical Activities; Social relations (social animation, festivals, pilgrimages, quality time occupation); Travel / Tours organized; Gastronomy; Nature.

-- Quote International Press --

“Stockholm, 12 March (Press Lusa) - The interest of pensioners from Sweden in Portugal has increased 200 percent in two years, according to the Swedish newspaper Aftonbladet, which gives as the main reason for this trend the favorable taxation comparing the Portuguese to the Swedish. The newspaper says that the Swedish pensioners can earn "hundreds of thousands of crowns [dozens of thousands of euro] each year" if they move to Portugal, and says that the beaches, the weather, taxation and, above all, the living cost, allow Portugal to compete to traditional destinations for retired Swedes spend part of the year."France, Spain and Thailand have attracted the majority of Swedes in recent years, but now Portugal is the country that captures more interested," says the paper, which considers thecountry "the logical ‘hot’ choice”.”

Senior Tourism Sector - Residences Medically assisted

Health services for the Senior Tour, is absolutely essential and as such a decisive factor in choosing the package or purchase of housing.A deficiency in the existing tourism in this market segment is can be filled with the Paraiso Vale project - Eco-resort.

Under the Tourism or Senior Housing project Paraiso Vale - Eco-resort meets all conditions to provide a unique offering in this market. It covers all the conditions to offer a higher quality of life, adapted to the specific needs of this sector. Investing in Health Tourism with medically assisted housing, coupled with the provision of other leisure services, welfare, sports and other activities such as organized trips or visits, this project is the choice of excellence. This unique combination of geographical features, urban and landscape will allow full satisfaction of all the needs and wants of this market segment.

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Performing an analysis on the national tourism sector, we see that is very segmented.

These market segments have good business opportunities, specifically in the sectors that have only recently been developed (are less consolidated and are more easily penetrated), as in the case of rural tourism and the case of "short breaks" (holiday weekend, the occasion, small time dimension).

The reasons for interest in this market segment and the fact that this represents good investment opportunities, is proven by the following chart:

Using this plot we can see that there is a slight decline of "traditional tourism" (eg, beach tourism and rural) and on the other hand, the growth of tourism in the cities. This change in trend may be related to almost economic stagnation of the country, and reduced the real income of domestic tourists, who thus prefer shorter vacations (eg taking advantage of the bridges of some holidays), with less travel (and therefore less expense). This segment has the kind of economically active customer on vacation, the age is not very high.

On the other hand, there is a segment noted that in absolute terms have increased expression, and that presents a great growth: medical tourism. This segment has the largest customer population already has age, which is the model of senior tourism. These potential customers some old, retired or not, have financial availability and free time above the average, and want not just a mini vacation. They are willing to pay for a period of rest but of recovery, wellness, if possible with some medical treatments are either (in the case the thermal baths) or esthetic, included.

Although for a segment is no longer mass but niche, has shown a sharp increase, making it attractive for that segment.

Thus, these two segments, business tourism (short breaks) and the Senior Tourism, due to the trend growth and economic developments in Europe, are still considered attractive segments.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Beach Countryside City Mountain Dam / Lake

2005

2010

Target Segments - complementary Attachment B

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PEST Analysis - Complementary attachment C

Politics

Tourism appears as one of the fastest growing sectors in recent years in almost everywhere. This is assuming a major role in the smaller countries that can attract more tourists, as is the case of Portugal. The various governments that go through the power have been aware of the power of this sector and have been continuously investing in the dissemination of our country (example is the advertising campaigns developed by the Secretary of State for Tourism spend in the organs and international television) as well as an improvement in the conditions offered. The very entry into the European Union and the consequent opening of borders in Europe (after the signing of the Schengen agreement) emerged as an added convenience to the circulation of European tourists, taking into account that about 90% offoreigners are received from countries covered by this agreement.Portugal is a country with political stability, and the position of Prime Minister belongs to Pedro Passos Coelho, who has, together with his team, to promote various changes to the country's economic policy and the position of President of the Republic belongs to Professor Cavaco Silva, seen as a person who can restore the level of consumer confidence in positive values, and a respected figure in international politics.

Economics

Tourism positions itself more as a supportive activity of the national economy, getting a share of 7% to 8% of national GDP. Another fact to be considered relates to the use of the absorption field has reached about 10% of the national. The consecutive increase in revenue is also an indicator of the growth of tourism in Portugal, as in 2010 revenues reached more than 8.3 billion euros.

Politics

Economics

Socio-cultural

Technology

Tourism

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PEST Analysis - Complementary Attachment C

Sociocultural

Portugal has extraordinary resources and tourism potential.Emerged as one of the countries with a historical legacy of the world's richest, a pleasant climate, the beauty of the 1713 km of coastline, a great diversity of natural landscapes, good infrastructure for sports and a good level of resources and hoteliers. Added to this is the fact of being recognized as a country of friendly welcoming people and have a recognized status as a tourist destination.

The major demographic change affecting the world, including the reduction of birth rates in some European countries, with increasing life expectancy will have a lasting impact on ways to travel and spend more leisure time and purchasing power than at any other time.Customers are more sophisticated and unstable, with a greater number of options to purchase, such as internet, mobile phones of the 3rd and 4th generation. These same customers are primarily have greater awareness of the value of goods / services offered in the current competitive market.The level of university education is increasing in Portugal which probably contributes to the increase in entrepreneurship and business innovation, changing lifestyles and promoting business tourism.Increasingly, the company seeks to mini-vacation to keep in shape and reduce the psychological stress level throughout the year.

Technology

Technological innovations have been playing a really important role in recent decades in any sector, not fleeing from tourism to this rule.Quoting Porter:

"Information technology is a major driver of the opportunity-or need - change enterprises since they may modify one or more of the five competitive forces that determine the profitability of a sector. (...) That's why executives should closely monitor information technology. "(Porter, 2001).

With regard to tourism technology it embraces the sector in an indirect way. Obviously it's not the technology that creates attractions, but can contribute strongly to improve its impact on visitors. One of the key roles of technology is related to the speed of information transmission that is a very important factor in spreading the destinations. The use of audiovisual media (television, radio, Internet) as a way to get to know a country has been explored and the results is beyond question.

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Potential Tourism of the Territory

Portugal

Portugal is a country of simple beauty and genuine, where life is savored for the moment.Every year millions of tourists from all corners of the globe, are seduced by that Portugal can offer. According to the World Tourism Organization (WTO) Portugal is one of the 20 most popular countries in the world, is visited every year by more than 12 million foreigners, a number higher than the country's own population.Portugal is widely recognized in Europe and increasingly throughout the world, the sun, beaches, cuisine and strong cultural heritage and of course property.All this makes this "corner planted by the sea" increasingly a haven for foreigners who do residential tourism. From north to south the landscape,the culture, the charms, the sun will only increase the number of visitorsFor those looking for romance, culture, sports, ecology, food, sun or health Portugal is your destination.

SWOT AnalysisStrengths, Weaknesses Opportunities and Threats

Strengths:Favorable climate.Friendly people and easy communication.Diversity physiography, landscapes, cuisine, heritage, cultures and environments that can respond to different motivations.Political stability and integration in the European Union and the Euro.Geographical proximity of a substantial part of the major source markets.Destinations with a tradition of quality.Emergence of strong national business groups.Tourism high segment.Competitive prices.Premium recognition as a tourist destination for tourists from around the world.Safety, low crime rates.

Weaknesses:Poor signage and tourist trafficHigh incidence of accommodation offer not rated.Concentration of the product attractive - sun / sea - where the offer is primarily targeted for searches massed, and in many cases, it can only compete by priceThe poor integration of tour operators and travel agencies national

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Tourism Potential of the Territory

SWOT Analysis

Opportunities:Overnight stays in hotels rose 4.1% in 2005. The domestic market (4.4%) showed a better performance than the external market (3.9%).In 2010, the movement of passengers in seaports showed a growth rate of 7.6% over 2007.The number of passengers on international flights landed at major airports has grown by 3.4% in 2010.The poor integration of tour operators and travel agencies nationals.Opportunity to diversify the tourism product offering with the increased demand for alternatives by tourists.

Threats:Excessive increase in the price of fossil fuels and the consequent impact on the reduction of flights and road trips.Absence of a strategy for sustainable tourism in the medium and long term.

SW Analysis for the 3rd Age sector

Strengths:Trend towards the gradual aging of the populationDependent careLow availability of specialized tourism in this area

Weaknesses::They require specific care and specialized human resourcesNeed for recognition of the company (credibility)Expensive care -> need to focus on a 3rd age rich

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Tourism Potential of the Territory

SW analysis for the sector of business tourism

Strengths:Portugal with a strong position in the tourism business (between 2008 and 2010 Portugal was the 8th congress destination worldwide and 6th in Europe).

Weaknesses:Dependence on the Portuguese business sector.

SW analysis for the Top range tourism

Strengths:Strong demand and appetite for golfers, with 43% of users and residents in Portugal.The offer of a new golf course to be created in Tomar and proximity to the coast, as a huge booster of this type of tourist stay.Portugal stands out for its range of golf courses, with 52% of the preference of foreign practitioners of the sport.

Weaknesses:Dependence of the socio-economic system.

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Feasibility StudiesPresentation and analysis of results

ECO-RESORT VALE PARAÍSO

Contributions to the realization of feasibility studies

The studies to be presented are based on the detailed plan approved for the ECO-RESORT Vale Paraiso. The cost estimate is derived of that approved plan.The parameters used for this are based on the current socio-economic growth prospects in the medium / long term.

These parameters can be influenced by variables such as estimated production costs, disbursements and renumbering of services, plus this variables is not calculable, imposed by the market, such as inflation and interest of the economy.

The study for the evaluation of this investment will be based on the methods of discounted cash flows, with special focus on calculations of the IRR - internal rate of return and NPV - Net Present Value.

Method applied for the Feasibility Studies

The feasibility of this project using the economic point of view (returns) and financial (solvency) is presented using the following model for evaluation:

Estimated stages:A - Acquisition of Land (the end of t1);B - Project Specific architectural (t2: 3 months);C - Approval from the competent bodies (t3: 3 months);D - Budgeting and planning (t4: 2 months);E - Development of speciality projects (t5: 3 months);F - Approval from the competent bodies (t6: 3 months);G - Advertising (t7: 76 months);H - Infrastructure (t8: 26 months);I - Construction (t9: 72 months);J - Property Sales (t10: 78 months);K - Management development (t11: 84 months);

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Feasibility Study - Based on the sale of 100% of Property

Note: Support values - see the support framework Attachment I

YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEARS

1 2 3 4 5 6 7 8 9 10 11 12 24 36 48 60 72 84 MONTHS

Land Purchase-10.500.000 € -10.500.000 €

Architectural project -80.000 € -80.000 € -80.000 € -240.000 €

Approval from the authorities organisms0 €

Budgeting and planning-25.000 € -25.000 € -50.000 €

Development of the specialty projects-50.640 € -50.640 € -50.640 € -151.920 €

Approval from the authorities organisms-25.000 € -25.000 € -25.000 € -75.000 €

Advertising-50.000 € -50.000 € -15.000 € -15.000 € -15.000 € -45.000 € -45.000 € -35.000 € -35.000 € -25.000 € -25.000 € -355.000 €

Infrastructures-93.085 € -93.085 € -1.117.000 € -1.117.000 € -2.420.170 €

Construction-4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -25.320.000 €

Administration of the project-12.500 € -12.500 € -12.500 € -12.500 € -12.500 € -12.500 € -12.500 € -12.500 € -12.500 € -12.500 € -12.500 € -12.500 € -150.000 € -150.000 € -150.000 € -150.000 € -150.000 € -150.000 € -1.050.000 €

YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEARS

1 2 3 4 5 6 7 8 9 10 11 12 24 36 48 60 72 84 MONTHS

805.715 € 805.715 € 805.715 € 805.715 € 805.715 € 4.028.571 € 4.028.571 € 4.028.571 € 4.028.571 € 4.028.571 € 4.028.571 € 28.200.001 €

630.000 € 630.000 € 630.000 € 630.000 € 630.000 € 3.150.000 € 3.150.000 € 3.150.000 € 3.150.000 € 3.150.000 € 3.150.000 € 22.050.000 €

320.000 € 320.000 € 640.000 € 1.280.000 €

300.000 € 300.000 € 300.000 € 300.000 € 500.000 € 500.000 € 500.000 € 500.000 € 500.000 € 500.000 € 4.200.000 €

132.685 € 132.685 € 132.685 € 132.685 € 132.685 € 663.428 € 663.428 € 663.428 € 663.428 € 663.428 € 663.428 € 4.643.993 €

133.668 € 133.668 € 133.668 € 133.668 € 133.668 € 668.342 € 668.342 € 668.342 € 668.342 € 668.342 € 668.342 € 4.678.392 €

275.000 € 275.000 € 275.000 € 275.000 € 1.100.000 €

600.000 € 0 € 0 € 0 € 0 € 0 € 600.000 €

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEARS

12 24 36 48 60 72 84 MONTHS

-11.498.090 € -5.532.000 € -5.532.000 € -4.405.000 € -4.405.000 € -4.395.000 € -4.395.000 € -40.162.090 €

10.350.340 € 10.525.341 € 9.285.341 € 9.285.341 € 9.285.341 € 9.010.341 € 9.010.341 € 56.402.046 €

-1.147.750 € 4.993.341 € 3.753.341 € 4.880.341 € 4.880.341 € 4.615.341 € 4.615.341 € 16.239.956 €

0,90 1,90 1,68 2,11 2,11 2,05 2,05 1,403,35 4,00 4,15 4,17 4,18 4,18

-998.043 € 2.777.640 € 5.245.522 € 8.035.873 € 10.462.265 € 12.457.604 € 14.192.682 €YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

EXPLORATION Based on the Sales of 100% of Property TOTAL

Profitability index

INVESTMENT Development & Project Promotion, Vale Paraíso / Eco-Resort TOTALYEAR 1

0€ - projecto aprovado

TOTAL

INCOME - Income before tax

Sales - Townhouse - 2st Line

IRR - Internal Rate of ReturnNPV - Net Present Value - Discount rate 15%

YEAR 1

Sales - Detached Houses - 1st Line

Sales - Stores

Sales - Marina

SALES

RESULT Investment & Project Exploration Vale-Paraíso / Eco Resort

Sales - Detached Houses - 2nd Line

Sales - Townhouse - 1st Line

Sales - Apartments T0

Sales - Apartments T1

INVESTMENT - TOTAL costs with construction and promotionSALES - Revenues from sales

18

Feasibility Study - Based on 50% Sales Property / 50% of the Tourism & Hospitality

Note: Support values - see the support framework Attachment I & II

YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9YEAR 10YEAR 11YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEARS

1 2 3 4 5 6 7 8 9 10 11 12 24 36 48 60 72 84 180 MONTHS

Land Purchase-10.500.000 € -10.500.000 €


Approval from the authorities organisms 0 €




Advertising-50.000 € -50.000 € -15.000 € -15.000 € -15.000 € -45.000 € -45.000 € -35.000 € -35.000 € -25.000 € -25.000 € -355.000 €


Construction-4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -25.320.000 €


YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9YEAR 10YEAR 11YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEARS

1 2 3 4 5 6 7 8 9 10 11 12 24 36 48 60 72 84 180 MONTHS

805.715 € 805.715 € 805.715 € 805.715 € 805.715 € 4.028.571 € 4.028.571 € 4.028.571 € 4.028.571 € 4.028.571 € 4.028.571 € 28.200.001 €

630.000 € 630.000 € 630.000 € 630.000 € 630.000 € 3.150.000 € 3.150.000 € 3.150.000 € 3.150.000 € 3.150.000 € 3.150.000 € 22.050.000 €

0 € 267.300 € 273.983 € 280.832 € 287.853 € 295.049 € 342.167 € 350.721 € 359.489 € 4.047.040 €

0 € 584.010 € 598.610 € 613.576 € 628.915 € 644.638 € 747.582 € 766.272 € 785.429 € 8.842.169 €

0 € 266.220 € 272.876 € 279.697 € 286.690 € 293.857 € 340.784 € 349.304 € 358.036 € 4.030.688 €

0 € 544.068 € 557.670 € 571.611 € 585.902 € 600.549 € 696.453 € 713.864 € 731.711 € 8.237.430 €

0 € 140.940 € 144.464 € 148.075 € 151.777 € 155.571 € 180.415 € 184.925 € 189.549 € 2.133.894 €

0 € 288.036 € 295.237 € 302.618 € 310.183 € 317.938 € 368.710 € 377.928 € 387.376 € 4.360.992 €

0 € 117.000 € 119.925 € 122.923 € 125.996 € 129.146 € 149.770 € 153.514 € 157.352 € 1.771.432 €

0 € 157.000 € 160.925 € 164.948 € 169.072 € 173.299 € 200.973 € 205.998 € 211.148 € 2.377.049 €

0 € 937.500 € 960.938 € 984.961 € 1.009.585 € 1.034.825 € 1.200.079 € 1.230.081 € 1.260.833 € 14.194.164 €

0 € 0 € 0 € -357.600 € -366.540 € -375.704 € -435.701 € -446.593 € -457.758 € -4.464.088 €

0 € -52.370 € -53.679 € -55.021 € -56.397 € -57.807 € -67.038 € -68.714 € -70.432 € -792.905 €

0 € -740.563 € -759.077 € -778.054 € -797.505 € -817.443 € -947.983 € -971.683 € -995.975 € -11.212.451 €

0 € -362.433 € -371.494 € -380.781 € -390.301 € -400.058 € -463.945 € -475.544 € -487.432 € -5.487.396 €

0 € -121.000 € -60.750 € -60.750 € -60.750 € -60.750 € -60.750 € -60.750 € -60.750 € -850.000 €

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9YEAR 10YEAR 11YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEARS

12 24 36 48 60 72 84 180 MONTHS

-11.498.090 € -5.532.000 € -5.532.000 € -4.405.000 € -4.405.000 € -4.395.000 € -4.395.000 € 0 € 0 € 0 € -40.162.090 €

7.178.575 € 7.178.571 € 7.178.571 € 7.178.571 € 7.178.571 € 7.178.571 € 7.178.571 € 0 € 0 € 0 € 50.250.001 €

0 € 0 € 3.302.074 € 3.384.626 € 3.469.241 € 3.555.973 € 3.644.872 € 4.226.934 € 4.332.607 € 4.440.922 € 49.994.859 €

0 € 0 € -1.276.366 € -1.245.000 € -1.632.206 € -1.671.493 € -1.711.761 € -1.975.417 € -2.023.284 € -2.072.347 € -22.806.839 €

-4.319.515 € 1.646.571 € 3.672.279 € 4.913.197 € 4.610.606 € 4.668.051 € 4.716.681 € 2.251.517 € 2.309.324 € 2.368.575 € 37.275.931 €

0,62 1,30 1,54 1,87 1,76 1,77 1,77 2,14 2,14 2,14 1,590,13 0,48 0,61 0,67 0,70 0,72 0,72 0,72

-3.756.100 € -2.511.056 € -96.473 € 2.712.663 € 5.004.950 € 7.023.077 € 8.796.252 € 11.774.637 € 12.101.010 € 12.392.095 €YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9YEAR 10YEAR 11YEAR 12 YEAR 13 YEAR 14 YEAR 15

EXPLORATION Based on 50% Sales Property / 50% of the Tourism & Hospitality TOTAL

INVESTMENT Development & Project Promotion, Vale Paraíso / Eco-Resort TOTAL

YEAR 1


TOTAL

INVESTMENT - TOTAL costs with construction and promotionSALES - Revenues from sales

INCOME - Income before tax

YEAR 1

Sales - Detached Houses - 1st Line

Sales - Detached Houses - 2nd LineSALES

Restaurant and marina support Operation Period: Annual

Marina - boat tie stations / 50% occupancy rate Operation Period: Annual

Apartements T0 - 45 units / 50% average occupation rate Operation Period: March / Apri l

Apartements T0 - 45 units / 70% average occupation rate Operation Period: May / October

Profitability indexIRR - Internal Rate of Return

NPV - Net Present Value - Discount rate 15%

RESULT Investment & Project Exploration Vale-Paraíso / Eco Resort


Townhouse T2 - 18 units / 50% average occupation rate Operation Period: March / Apri l

Townhouse T2 - 18 units / 70% average occupation rate Operation Period: May / October


Advertis ing Operation Period: Annual

EXPLORATION - Income hotel operationsEXPLORATION - hotel operations costs

Hotel ExplorationIncome

Hotel ExplorationCosts

Regular Maintenance Operation Period: Annual

Marketing Operation Period: Annual

ESS (External Service Supply) Operation Period: Annual

Sa laries (2.5% annual growth) Operation Period: Annual

Commerce - Stores / 100% average occupation rate Operation Period: Annual

19

Feasibility Study - Based on 100% the Tourism & Hospitality

Note: Support values - see the support framework Attachment II

YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9YEAR 10YEAR 11YEAR 12YEAR 13 YEAR 14 YEAR 15 YEARS

1 2 3 4 5 6 7 8 9 10 11 12 24 36 48 60 72 84 156 168 180 MONTHS

Land Purchase-10.500.000 € -10.500.000 €


Approval from the authorities organisms0 €




Advertising-50.000 € -50.000 € -15.000 € -15.000 € -15.000 € -45.000 € -45.000 € -35.000 € -35.000 € -25.000 € -25.000 € -355.000 €


Construction-4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -4.220.000 € -25.320.000 €


YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9YEAR 10YEAR 11YEAR 12YEAR 13 YEAR 14 YEAR 15 YEARS

1 2 3 4 5 6 7 8 9 10 11 12 24 36 48 60 72 84 156 168 180 MONTHS

0 € 620.400 € 635.910 € 651.808 € 668.103 € 684.806 € 794.164 € 814.019 € 834.369 € 9.393.130 €

0 € 1.413.384 € 1.448.719 € 1.484.937 € 1.522.060 € 1.560.111 € 1.809.251 € 1.854.482 € 1.900.844 € 21.399.258 €

0 € 382.200 € 391.755 € 401.549 € 411.588 € 421.877 € 489.248 € 501.480 € 514.017 € 5.786.677 €

0 € 864.360 € 885.969 € 908.118 € 930.821 € 954.092 € 1.106.454 € 1.134.115 € 1.162.468 € 13.086.792 €

0 € 267.300 € 273.983 € 280.832 € 287.853 € 295.049 € 342.167 € 350.721 € 359.489 € 4.047.040 €

0 € 584.010 € 598.610 € 613.576 € 628.915 € 644.638 € 747.582 € 766.272 € 785.429 € 8.842.169 €

0 € 266.220 € 272.876 € 279.697 € 286.690 € 293.857 € 340.784 € 349.304 € 358.036 € 4.030.688 €

0 € 544.068 € 557.670 € 571.611 € 585.902 € 600.549 € 696.453 € 713.864 € 731.711 € 8.237.430 €

0 € 140.940 € 144.464 € 148.075 € 151.777 € 155.571 € 180.415 € 184.925 € 189.549 € 2.133.894 €

0 € 288.036 € 295.237 € 302.618 € 310.183 € 317.938 € 368.710 € 377.928 € 387.376 € 4.360.992 €

0 € 117.000 € 119.925 € 122.923 € 125.996 € 129.146 € 149.770 € 153.514 € 157.352 € 1.771.432 €

0 € 280.000 € 287.000 € 294.175 € 301.529 € 309.068 € 358.424 € 367.384 € 376.569 € 4.239.324 €

0 € 937.500 € 960.938 € 984.961 € 1.009.585 € 1.034.825 € 1.200.079 € 1.230.081 € 1.260.833 € 14.194.164 €

0 € 0 € 0 € -775.600 € -794.990 € -814.865 € -944.993 € -968.618 € -992.834 € -9.682.176 €

0 € -52.370 € -53.679 € -55.021 € -56.397 € -57.807 € -67.038 € -68.714 € -70.432 € -792.905 €

0 € -940.563 € -964.077 € -988.179 € -1.012.883 € -1.038.206 € -1.204.000 € -1.234.100 € -1.264.953 € -14.240.539 €

0 € -432.433 € -443.244 € -454.325 € -465.683 € -477.325 € -553.551 € -567.390 € -581.574 € -6.547.227 €

0 € -141.000 € -70.750 € -60.750 € -60.750 € -60.750 € -60.750 € -60.750 € -60.750 € -880.000 €

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9YEAR 10YEAR 11YEAR 12YEAR 13 YEAR 14 YEAR 15 YEARS

12 24 36 48 60 72 84 156 168 180 MONTHS

-11.498.090 € -5.532.000 € -5.532.000 € -4.405.000 € -4.405.000 € -4.395.000 € -4.395.000 € 0 € 0 € 0 € -40.162.090 €

0 € 0 € 6.705.418 € 6.873.053 € 7.044.880 € 7.221.002 € 7.401.527 € 8.583.502 € 8.798.089 € 9.018.042 € 101.522.991 €

0 € 0 € -1.566.366 € -1.531.750 € -2.333.875 € -2.390.703 € -2.448.952 € -2.830.332 € -2.899.572 € -2.970.542 € -32.142.847 €

-11.498.090 € -5.532.000 € -392.948 € 936.303 € 306.005 € 435.298 € 557.575 € 5.753.170 € 5.898.518 € 6.047.499 € 29.218.054 €

0,00 0,00 0,94 1,16 1,05 1,06 1,08 3,03 3,03 3,04 1,400,08 0,10 0,11

-10.695.898 € -15.482.918 € -15.799.225 € -15.098.121 € -14.884.971 € -14.602.914 € -14.266.833 € 959.047 € 3.102.058 € 5.145.907 €YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9YEAR 10YEAR 11YEAR 12 YEAR 13 YEAR 14 YEAR 15

EXPLORATION Based on 100% the Tourism & Hospitality TOTAL

INVESTMENT Development & Project Promotion, Vale Paraíso / Eco-Resort TOTAL

YEAR 1


Townhouse T2 - 18 units / 70% average occupation rate Operation Period: May / October

YEAR 1





Townhouse T2 - 18 units / 50% average occupation rate Operation Period: March / Apri l

Hotel ExplorationIncome

Commerce - Stores / 100% average occupation rate Operation Period: Annual

Restaurant and marina support Operation Period: Annual

Marina - boat tie stations / 50% occupancy rate Operation Period: Annual

RESULT Investment & Project Exploration Vale-Paraíso / Eco Resort TOTAL

INVESTMENT - TOTAL costs with construction and promotion

Hotel ExplorationCosts

Regular Maintenance Operation Period: Annual

Marketing Operation Period: Annual

ESS (External Service Supply) Operation Period: Annual

Sa laries (2.5% annual growth) Operation Period: Annual

Advertis ing

Detached Houses 1st Line - 47 units / 50% average occupation rate Operation Period: March / Apri l

Detached Houses 1st Line - 47 units / 70% average occupation rate Operation Period: May / October

Detached Houses 2nd Line - 49 units / 50% average occupation rate Operation Period: March / Apri l

Detached Houses 2nd Line - 49 units / 70% average occupation rate Operation Period: May / October

EXPLORATION - Income hotel operationsEXPLORATION - hotel operations costs

INCOME - Income before taxProfitability index

IRR - Internal Rate of ReturnNPV - Net Present Value - Discount rate 15%

Operation Period: Annual

20

ANEXO I

Note 1:

Detached HousesNº de units Type Construction Area Price / sq.m REF. Recomended Price Unit TOTAL

Detached Houses 1st l ine 47 T4 180/200sq.m. 3.000 € 600.000 € 28.200.000 €Detached Houses 2nd line 49 T3 150/180sq.m. 2.500 € 450.000 € 22.050.000 €

Townhouse UnitsNº de units Type Construction Area Price / sq.m REF. Recomended Price Unit TOTAL

Townhouse Units 1st l ine 4 T2 130sq.m. 2.450 € 320.000 € 1.280.000 €Townhouse Units 2nd line 14 T2 130sq.m. 2.300 € 300.000 € 4.200.000 €

ApartmentsNº de units Type Construction Area Price / sq.m REF. Recomended Price Unit TOTAL

Apartments 45 T0 60sq.m. 1.720 € 103.200 € 4.644.000 €Apartments 34 T1 80sq.m. 1.720 € 137.600 € 4.678.400 €

StoresNº de units Type Construction Area Price / sq.m REF. Recomended Price Unit TOTAL

Stores 20 1200 a 1300sq.m. 870 € 1.100.000 € 1.100.000 €

Marina & ServicesNº de units Type Construction Area Price / sq.m REF. Recomended Price Unit TOTAL

Store + Tie Stations 2 250sq.m. 600.000 € 600.000 €

Units UA1 - UA2 - Total de 79 Units

Units CS1 - Área bruta de 1500sq.m.

Units M1 + C1

Annex to the Feasibil ity Study - Values of Real Estate Sale

Note 2: The values shown concern the market study for Portugal, based on the values of supply currently available in the area and quality of services provided.

Units UI-1 a UI-96 - Total de 96 units

Units UB1 - UB2 - Total de 18 Units

21

ANEXO II

Note 1:

Detached HousesNº de Units. Type Construction Area High Season - weekly rental Low Season - weekly rental

Detached Houses 1st l ine 47 T4 180/200sq.m. 1.790 € 1.100 €Detached Houses 2nd line 49 T3 150/180sq.m. 1.580 € 970 €

Townhouse UnitsNº de Units. Type Construction Area High Season - weekly rental Low Season - weekly rental

Townhouse Units 1st l ine 18 T2 130sq.m. 1.050 € 650 €

ApartmentsNº de Units. Type Construction Area High Season - weekly rental Low Season - weekly rental

Apartments 45 T0 60sq.m. 103 € 66 €Apartments 34 T1 80sq.m. 127 € 87 €

StoresNº de Units. Type Construction Area Monthly rental

Stores 20 1200 a 1300sq.m. 9.750 €

Marina & ServicesNº de Units. Type Construction Area Monthly rental Annual Income - by unit

Restaurant and Services Suport 1 250sq.m. + fuel Post 1.750 €Tie Stations 250 7.500 €

Units UB1 - UB2 - Total de 18 Units

Units UA1 - UA2 - Total de 79 Units

Units CS1 - Área bruta de 1500sq.m.

Units M1 + C1

Annex to the Feasibil ity Study - Values of Real Estate Sale

The values shown concern the market study for Portugal, based on the values of supply currently available in the area and quality of services provided.

Note 2:

Units UI-1 a UI-96 - Total de 96 Units

22

Photos

22

Contacts

Urbicastelo-Bode, urbanizações S.A.

Casal dos Durões, nº 76 Quinta do Falcão

2300-184 TOMAR Santarém – Portugal

Tel: (+351) 244 892 641 Fax: (+351) 244 892 641Telm: (+351) 929 197 171

Technical and Commercial Department

E-mail: [email protected]

E-mail: [email protected] Tel: (+351) 244 892 641

Telm: (+351) 929 197 171

Estudo desenvolvido por Hecco-Solutions - Fevereiro 2012

HECCOHECCOHECCO

SOLUTIONS

Documents

The economic feasibility study Project ECO- · PDF fileHECCO-SOLUTIONS - Fevereiro 2012 The economic feasibility study Project ECO-RESORT