Crisis Investing – Diversify by Purchasing Highly Discounted Spanish & UK Investments

Fortaleza, 1st June 2009

SCHEDULE

• Torcana Services Provided

• Spain: Economic overview, opportunities within the property market

• Spain: Detailed project descriptions of Granada & Almeria investments• Spain: Detailed project descriptions of Granada & Almeria investments

• UK: Economic overview, opportunities within the property market

• UK: Detailed project descriptions of our Birmingham development

• Questions, Answers & Debate

Torcana Turnkey Services Provided

Before and During Purchase Process

• Review all documentation, ensure you have correct legal representation

• Assist with international transfers of deposits and other payments

• Project manage the furnishing and letting of your property

• Assist with every step of the mortgage application process

• Liaise with currency specialists on your behalf • Liaise with currency specialists on your behalf

After Purchase Process

• Ensure accountancy and legal services are made available to you

• Help you create a UK bank account

• Assist with all matters regarding rental and mortgage payments

• To resell or assist with resale of property in the future

Investing in Spain

Spain – A General Overview

9th largest economy with a GDP of $1.6 trillion and a population of 46 million.

Spanish tourist industry is 2nd largest in the world, worth $45 billion, with Barcelona, Andalucia and Madrid the 3 most popular destinations

Majority of visitors come from Germany, Great Britain, Scandinavia & Ireland

Spanish banks have avoided the severe problems of US & UK banks due to more stringent regulations which effectively prevented them from exposing themselves to the sub prime crisisthe sub prime crisis

Spain – A General Overview

So how did Spanish banks come to control 100,000s of properties?

• Spain had one of largest property booms ever seen

• At it’s peak, construction industry responsible for 16% GDP and 12% employment

• Property boom well and truly over, with developers struggling to meet loan obligations

How an individual investor can access these highly discounted How an individual investor can access these highly discounted properties??

• Both banks and developers are desperate to protect their reputations (and share prices)

• The only large discounts are available off market through a select number of intermediaries

• Torcana is one such intermediary and we have signed collaboration agreements with two large Spanish banks

DISCOUNTED SPANISH PROPERTIES

Granada

DISCOUNTED SPANISH PROPERTIES

El Jardín Nazarí

A beautiful 288 unit project designed to be a resort for personal, holiday, retirement or 2nd home use

Terrific on site facilities including 4 swimming pools, spa, gymnasium, saunas, arab themed courtyard and gardens

Strategic location with access to beach, ski, golf, sailing, airport & historical sites

Best of all, Torcana have secured massive discounts on the few remaining units…

DISCOUNTED SPANISH PROPERTIES

El Jardín Nazarí

More than 80% of units sold

25-36% distressed developer discounts available

Apts range from 538 – 1114 sq feet & prices from $123,800 - $236,800

Estimated net yield of 8%

Management company and community in place

Up to 80% financing available from the Spanish bank controlling the development

Investment Sample – Apartment H03

Detail 2 bedroom example

Original Sales Price $191,806 (136,052 euro)

Nov 2008 Valuation $218,519 (155,000 euro)

Current Purchase Price $124,950 (91,788 euro)

Closing Costs $14,500

Furniture $8,000

Monthly IncomeMonthly Income

Estimated Rental $12,528 per year

Gross Yield 10%

Monthly Expenses

Community Fee $1662 per year

Management Fee $918 per year

Annual net cash flow $9,948

Net Rental Yield 8%

DISCOUNTED SPANISH PROPERTIES

Almeria

DISCOUNTED SPANISH PROPERTIES

Almeria

DISCOUNTED SPANISH PROPERTIES

Marina de la Torre

Low density project near picturesque Spanish towns, natural beauty & pristine Low density project near picturesque Spanish towns, natural beauty & pristine beaches

Apartments within walking distance to golf course and beach

Facilities include Gym, sauna, swimming pools, terraces & gardens

18 hole golf course on site, with 3 others within 30 minutes

24 beaches & 2 marinas within a 30 minute drive

Torcana has secured a great selection of properties at a 30% discount …

DISCOUNTED SPANISH PROPERTIES

Marina de la Torre

Less than 25% of development currently availableLess than 25% of development currently available

Selection of highly discounted (up to 30%) 2 & 3 bed apartments for sale

Management Company & community already in place

Prices range from $235,500 - $319,800 (€173,000 - €235,000)

Estimated net rental yields 6.3%

Up to 80% financing available from Spanish bank controlling development

Investment Sample – Apartment 13

Detail 2 bedroom example

Original Sales Price $366,142 (295,900 euro)

Current Purchase Price $256,300 (207,130 euro)

Closing Costs $27,630

Furniture $9,000

Monthly Income

Estimated Rental $18,852 per year

Gross Yield 7.4%

Monthly Expenses

Community Fee $1662 per year

Management Fee $918 per year

Annual net cash flow $16,272

Net Rental Yield 6.3%

The United Kingdom

The United Kingdom – Economic Overview

Worlds sixth largest economy with a population of 62 million

The UK has a diverse economy, strong domestic market, stable government and sophisticated financial systems

Service sector makes up 73% of GDP

London is the most visited city in the world by a considerable margin

A combination of the credit crunch, property downturn, demographic trends and A combination of the credit crunch, property downturn, demographic trends and dramatic slowdown in housing starts will all lead to serious supply shortages in major urban areas

Torcana knows where these shortages will be most acute and use our contacts in the banking and construction industry to get huge discounts on cash flow positive properties within them

The United Kingdom contd.

• Areas and Types of Properties Available

- First time buyers- 1 – 2 bed properties- Either central or commuter belt

• What you should avoid

- Offplan Properties- Very large properties

Financing Options

• 70% Variable LTV from 1.99% to 2.19% above BOE base rate • Loan amounts calculated on 5 times net salary• Number of mortgage loans increased in Feb 09 for first time since Feb 07

- Very large properties- Areas with oversupply - Extremely large developments

OPPORTUNITIES AVAILABLE AT THIS SEMINAR:

Who’s familiar with Birmingham, the UKs 2nd biggest city? (Pop 2.3m)

• Located in the heart of England

• Centre of leisure, culture, business, education

(5 universities) & tourism

• 42% of UK’s conference & exhibition trade

• Superb transport links

• Property prices half that of London

OPPORTUNITIES AVAILABLE AT THIS SEMINAR:

The Birmingham Flatiron

271 one & two bed apartments in three blocks – 30% remaining

35 units (13%) have been set aside for Torcana investors

Incredible 40% discounts on official 2009 RICS valuations

Up to 50% below previous sales price

Selection of 1 and 2 bed properties ranging from 466 to 860 sq feet

Prices range from $108,250 - $201,500 (£71,496 to £133,176)

Gross yields of 9.7%, net yields of 6.8%

Low interest UK financing available

Investment Sample - Apartment 114

Detail 2 bedroom example

Previous Purchase Price $249,895 (161,450 GBP)

Current Purchase Price $119,950 (77,496 GBP)

Closing Costs $11,000

Furniture $9,000

Monthly Income

Estimated Rental $11,580 per annumEstimated Rental $11,580 per annum

Gross Yield 9.68%

Monthly Expenses

Management Fee (10%) $1,158

Community Fees $2,385

Annual net cash flow $8,037

Net Rental Yield 6.8%

CONCLUSION

Thank you very much for listening