investment prospectus -...

INVESTMENT PROSPECTUSPalawan Real Estate

DUBAI • MANILA

OVERVIEW

Briefly about us:Paradise Investments and Development Corp. has developed a deep understanding of the Palawan Island and its real estate market. We specialize in high growth non-speculative real estate projects. The properties we sell and develop are known for their value, desirability, surroundings, prices and return on investments.

Investment concepts You will have an opportunity to choose an investment option that outlines your specific profile.

Option 1: Landbanking: Annual yield suited for low-risk investors. Option 2: Invest, build & sell: Accelerating annual yield with construction and sale of property. Very good ROI and perfect for investors with a mid and short term outlook. Option 3: Invest and operations: Complete business development including construction and operations. A concept suited for established hotel chains and luxury rental business.

The properties we offer are often at reduced prices due to a number of factors such as, but not limited to: • Financial distress of the owner• No middle-men as we are in the possession of the property or exclusively representing the owner• General development opportunities

LocationPalawan is the western most region of The Philippines. This gives the Island a very good geographical location being in the center of South-East Asia and soon also connected with two new international aiports. The favorable travel time from the South-East Asian region, Oceania and Europe gives the Island a competitive advantage over the other destinations within the Philippines including Boracay and other exotic destinations such as Bali and the Seychelles.

PALAWAN

BruneiBandar Seri Begawan

East Timor

Dili

Philippines

Manila

Indonesia

Jaka rta

Singapo re

Kuala LumpurMal aysia

Phnom P enh

Naypyidaw

Hanoi

Bangkok

Vientiane

Cambodia

Vietnam

Laos

Thailand

Myanmar

Puerto Princesa

San Vicente

Bali

Boracay

South-East Asia map

303 Alabang Zapote Road, Las Pinas City, 1740, Metro Manila, Philippineswww.paradiseinv.com

South-East Asia map


KEY FACTS

About the Palawan marketPalwan is currently a frontier market in terms of both business and investments. Meaning that very soon we can expect it to become the most emerging real estate, tourism and by this the new business area of The Philippines. It does not stop there. As Palawan has a very favourable geographical location being close to countries like China, Malaysia, Thailand and the whole of Europe compared to the rest of the Philippines, we can for sure expect that the Island will become very attractive for real estate investors. The main parameters for measuring these factors are research conducted on the terrain, tourism statistics, government engagement and infrastructure investments. The Philippines is currently also the fastest growing economy in South-East Asia.

Presence and developmentPresent on the Island our team has evidented a considerable increase in property transactions, private individuals contacting us for sale of properties, investors for acquisitions and the development of resorts. Further visits to what used to be unreachable areas are now becoming linked by roads. Additionally almost all of the Island is now covered with 3G signal and the telecom operators are contiously expanding the network due to demand and arrivals of tourists into the area. Big investors such as Japanese Kazou Okada have announced an investment circle exceeding $4 billion over the coming years. Several hotel chains such as Best Western have already established themselves and other 5 star resorts have just recently opened their doors to visitors on the Island. There is however a huge demand for many more in order to cope with the influx of more visitors. There will also be a considerable market for private residential developments, both for the influx of workers/employees and expats (wealthy, management and retirees).

Fast tourism growthThe number of arrivals in Palawan have steadily been increasing year on year even without any focus on the new infrastructure or marketing. But as these come into play the arrivals are set to accelerate at a rate of 200.000 arrivals per year and surpass the already established Boracay by 2018. Just recently, reputated international media (CNN, Tripadvisor, Lonely Planet, Huffington Post, Daily Mail etc) have started to cover Palawan and regard it as one of the worlds best Islands praising it for its natural beauties and various alcalades. As the Island becomes connected globally, the whole area will boom in both the number of arrivals and the price of land.

Government engagementThe local government has initiated several activities which have lifted the prospectus of Palawan both as an investment destination and as a place to visit. The local municipalites have also engaged in a wide establishment of tourism offices and information points. Some of the bigger municipalites have together with the local government invested in the development of masterplans for the main areas and infrastructure developments. Never has there been such a focused and concrete approach towards creating a favourable investment climate in this region. This has resulted in the possiblity to invest and buy areas of land regulated for tourist resorts, private developments and business service areas. The aim of the local government is to have a sustainable and controlled development of the Island standing out in the region.

Rapid infrastructure developmentTo cope with the evidented demands from new visitors and to further accelerate the number of tourists Palawan, will be opening two new international airports within the first quarter of 2017 linking the Island direct with various cities around the world. With this in mind, those areas best connected and being the closest to the new airports will have a tremendous rise in land price once the terminals are ready to welcome their first international flights. The government is also investing heavily in other infrastructure projects to further support the planned increase in visitors. One being a new network of roads, linking previously unaccesable areas of stunning beauty.

This is the most opportune time to aquire real estate in Palawan Never has there been so many indicators nor interest in the Island. The outlook for 2017 and further is remarkable in terms of the increase in land prices and investment opportunities due to first mover advantage. An additional factor which makes us confident in this unique place is the fact that there are no other professional investment management companies active on the island and by this we are the first and only company placing Palawan on the investor map. We have worked extensively over the last two years to communicate with the locals, consult with the local government and conduct analysis thus presenting our clients with secure and profitable investment opportunities.


INDICATORS •

The increase in prices for selected areas Increase in land prices have been growing steadily in Palawan since 2010. The charts below are based on historical data collected from local municipalites and from data collected from previous transactions. The prediction estimate is showing a growth which is below the historical growth, the figures are rather conservative even though the growth rate is very high.


Projected price increases of some areas based on factual data in PHP

Boracay and Palawan compared price of land per sqm in PHP

Minipla

Ibobonowang

Pinsawan

Budbud

Long Beach

Verde Safari

Alimanguan

Barangonan Island

Laput Island

Kemdeng Island


INDICATORS • •

The increase in tourist arrivals Currently Palawan is served by three domestic airports with direct flights to the capital Manila. As two new international airports are set to open in 2017 the effects on the number of arrivals will increase tremendously, not to mention the value of land. Boracay which is an established exotic destination in The Philippines has only one international airport and will be surpassed by Palawan by 2018 in number of tourist arrivals.

Developers already present and active

Ayala Land Corporation Developed a 5 stars luxury resort in El-nido.

Century Properties Putting up a 20 billion PHP resort in San Vicente, Palawan.

Megaworld International Invested in Palwan to develop resorts similiar to the already established in Boracay.

Discovery Group Acquired 20 hectares of land for development in San Vicente.

SM Properties Invested in development of shopping mall in Puerto Princesa. Set to open in 2016.

AmanResorts InternationalInvested in what is known as the most luxurious resort in Palawan, Amanpulo.

Best WesternInvested in beach front hotel resort in San Vicente.


Boracay and Palawan comparison in tourist arrivals

INDICATORS • • •

Comparison of average prime property prices and tourist arrivalsWe have collected average prices for prime beach front and island properties from similiar destinations in South-East Asia. Palawan is close to Boracay in terms of tourist arrivals without the infrastructure and accomodation offer like the other two destinations. The average price for Palawan is calculated with a 90th percentile.


Average price of prime beach front lots in PHP per sqm

Number of tourist arrivals in 2015

Palawan

Boracay

Bali

Palawan

Boracay

Bali


INDICATORS • • • •

Comparison in terms of hotel resorts, airport traffic and land sizeThe figures show Palawan compared to the more established destinations Boracay and Bali. Taking into account the increase in tourist arrivals, airport statistics and the upcoming international flight connections the island requires high growth of beach resort developments. In terms of land size Palawan is made up of 14.650 km2, this is almost three times the size of Bali (5700km2) while Boracay (10 km2) is 1/100 of the size. With its big surface Palawan outnumbers both in terms beaches, islands and development potential.


Number of 4-star and 5-star resorts

Number of airport passengers in 2015

Palawan

Boracay

Bali

Palawan

Boracay

Bali

SUSTAINABLE DEVELOPMENT

A true Filipino feeling Known as the last frontier and unlike the Philippines current jewel in its tourism industry Boracay, Palawan is to be developed much more sustainably in keeping with its natural surroundings with a true Filipino feeling. A masterplan has been developed by the renowned Palapox associates commissioned by the Tourism Infrastructure and Enterprise Zone Authority “TIEZA” which provides perspective buyers a planning concept for developments to complement the surrounding, unspoilt environment ecologically.

Master Plan of San Vicente, PalawanSan Vicente has more than 165,000 hectares with landscapes that include rice fields, waterfalls, unique coastlines with rich marine life, mangroves, mountains and forests.

There are two approaches in tourism planning and development. The first is “build and they will come,” such that investments like roads, an airport and seaport, water, drainage and sewerage system, and power facilities are implemented early on as catalysts for development. The second option is to have a wait-and-see attitude with the “build as they come” approach. The leaders of the Municipal Government of San Vicente, Department of Tourism and the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) chose the first option.

In creating the Integrated Tourism Master Plan, stakeholders such as residents, farmers and fishermen, investors, developers, local and national government, were consulted. Studies were done to determine vulnerabilities to climate change and reduce potential risks in environmental stability. A multi-disciplinary team that included specialists in environmental planning, architecture, design, engineering, socioeconomics, institutional management, marketing and finance. The masterplan is based on both conservative and aggressive visitorand population projections until 2044, even if the published national projections for visitor arrivals are only until 2016. The carrying capacity of this one beach, (the longest in the Philippines at 14km long) is over 350.000 people.



SUMMARY Massive Government investment in infrastructure to support targeted tourism growth including:• 2 new International Airports• 1 new Sea Port• Improvement of existing Sea Ports• New network of roads connecting previously inaccessible areas of natural, stunning beauty• Huge push to make Palawan the main eco-tourism hub of South East Asia• Hospitality growth will lead to residential, commercial and industrial growth• Todays low land prices are rising fast. Outstanding yields achievable by the first movers right now• Geographically located away from typhoons and earthquakes• Safe and friendly environment• The Philippines is the fastest growing economy in south east Asia with the highest GDP We can therefore offer a guaranteed 25% annual yield on our prime mega properties over a 5 year period meaning:• A $5m property at 5 years from purchase will have yielded a minimum 125% capital gain ($6.25m profit), that is a sell on price of $11.25m.• This is Guaranteed in that Paradise Investments offers to purchase the property back from the investor at a 125% increase on the original purchase price ($11.25m)• The actual yields can be demonstrated as much higher, some at around 350% but our Guaranteed 5 year yield is 125% For all our other prime properties we can Guarantee 20% annual yields over a 5 year period meaning:• A $2m property at 5 years from purchase will have yielded a minimum 100% capital gain ($2m profit), that is a sell on price of $4m.• This is Guaranteed in that Paradise Investments offers to purchase the property back from the investor at a 100% increase on the original purchase price ($4m)• The actual yields can be demonstrated as much higher, some at around 280% but our Guaranteed 5 year yield is 100% Because we know the actual yields will be significantly higher than quoted, we have the absolute confidence to offer these guarantees.


STATEMENT

Acting in the interests of our clients and establishing trusted relationships is the cornerstone of our business model. Our clients expect that we sit “at the same side of the table” with them so that when we analyse their options they have every assurance of our dedication to providing them with unbiased advice and expert execution. This is our number one commitment.

Paradise Investments and Development Corporation selects properties that it believes will both increase in value over the long term and provide current income, focusing on properties that will do both will favor current income as well as capital appreciation. Total return consists of increases in value from both increase in land prices and potential income.

Licensed corporate unit Paradise Investments and development Corporation is a registered, licensed and british owned company in Manila, The Philippines.

Head office303 Alabang Zapote RoadLas Pinas City, 1740, Metro Manila, PhilippinesBusiness License Number: 2016081365

ContactDirect: +63 (0)977 288 1087Email: [email protected]

SOURCES

Links to sources for data from government, from developers and others:

http://sanvicpalawan.com/ - Municipality of San Vicente

http://www.palafoxassociates.com - Developer of San Vicente masterplan

http://www.palawan.gov.ph/ - Government of Palawan

https://psa.gov.ph/sites/default/files/attachments/ird/quickstat/Palawan_16.pdf - National Statistics Office

http://www.neda.gov.ph/wp-content/uploads/2013/10/RegIVB_RDP_2011-2016.pdf - Mimaropa Regional Development Plan

https://drive.google.com/file/d/0B8Ea-1LCHCloUDI1QXVHdnN3OHM/view - National Economic and Development Authority Region 4-B (MIMAROPA)

http://www.huffingtonpost.com/2016/07/07/coron-palawan-philippines_n_6193058.html

http://www.cntraveler.com/galleries/2015-07-13/visiting-the-most-beautiful-island-in-the-world-palawan-philippines

http://edition.cnn.com/2015/03/01/travel/palawan-yacht-charter/

http://www.dailymail.co.uk/travel/travel_news/article-3697736/Exotic-Philippine-island-Palawan-Best-Island-World-SECOND-year-running.html

Sources for developments and hotels already present:

http://www.ayalaland.com.ph/hotel/el-nido-resorts/

http://www.gmanetwork.com/news/story/141877/money/companies/discovery-group-buys-palawan-property-eyes-acquisitions-in-asia

http://www.livingincebuforums.com/ipb/topic/79871-sm-city-puerto-princesa-mall/

http://cnnphilippines.com/videos/2015/03/23/Town-in-Palawan-on-way-to-being-next-Boracay.html

http://business.inquirer.net/190576/century-putting-up-p20b-resort-in-palawan#ixzz3YC3LdO4z

http://www.megaworldinternational.com/why-invest/boracay-newcoast.html

http://www.gmanetwork.com/news/story/141877/money/companies/discovery-group-buys-palawan-property-eyes-acquisitions-in-asia

http://www.livingincebuforums.com/ipb/topic/79871-sm-city-puerto-princesa-mall/

http://www.booking.com/region/ph/palawan.en.html?aid=323684;label=palawan-xAHgTs_KgZjETKAK7ouXBwS105666906523:pl:ta:p1230:p2:ac:ap1t1:neg:fi:tikwd-3144770919:lp2070:

li:dec:dm;ws=&gclid=CLqAzIv_1M8CFQxmGwodOqAJLA


DUBAI • MANILA

www.paradiseinv.com


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