Nesebar Golf & Country Club OOD Project Overview

Prepared by Roger Jones Golf & Leisure and LJM 1 March 2014

1.0 INTRODUCTION

Nesebar Golf & Country Club is an experiential residential golf and leisure resort planned on 100 hectares of land in the Burgas Province of Bulgaria. The resort will attract patronage from tourists and local residents. It will be the first ever mixed-use residential golf and leisure resort in the south east of Bulgaria. It will be differentiated from other existing, and proposed, resorts in the following ways:

! Open all year round; ! Contemporary architecture; ! Experiences System; ! International brands; ! Contain components that attract high value tourists e.g. golf & wellness.

1.1 LOCATION

The development site [GPS co-ordinates 553095E, 4729964N] is situated off road #9061 next to the village of Tankovo, 6 kms inland from Bulgaria’s most popular tourist destination Slanchev Briag [Sunny Beach], 9 kms from the UNESCO protected medieval town of Nesebar, 28 kms from Burgas Airport, and 35 kms from the city of Burgas, using the existing road network.

Nesebar Golf & Country Club OOD Project Overview

Prepared by Roger Jones Golf & Leisure and LJM 2 March 2014

The site slopes in an east-west direction, from 6.0 metres at its lowest point, to 38.5 metres at highest, over a distance of 1,300 metres. Although a relatively small elevation change [+32.5 metres] this has a positive impact on the siting and design of resort components in terms of short and long-range views. Currently, there is no immediately adjacent development. The adjoining land is in private ownership and used for agricultural purposes due to its high quality stone-free soil. Bulgaria has a temperate climate and 4 distinct seasons. The climate of Burgas Province is regarded as being more ‘humid subtropical’, with considerable maritime and continental influences’, and defined Cfa by Köppen climate classification.

1.2 MASTER PLAN

A detailed master plan for the resort has been programmed and designed. It creates a development framework defining the land-use pattern, urban characteristics, and overall design concepts. It illustrates that residents and tourists will be able to enjoy activity and an abundance of natural space. In content terms, the master plan provides the potential for a mix of accommodation, sports and leisure facilities, accompanied by appropriate landscaping and infrastructure, as follows:

! Residences - Villas, Townhouses & Apartments; ! 100 bedroom [200 beds], 5* Boutique / Lifestyle Hotel; ! 160 unit [400 beds], 3*+ Aparthotel; ! Wellness Centre; ! 18-hole Golf Course plus Golf Academy with Golf Range & Short Game Practice Area; ! Tennis Academy with 4 Indoor & 4 Outdoor Courts; ! Resort Town Centre – with commercial units and public spaces; ! Communal Recreation Areas - with pools, terraces and activity areas for children and adults; ! Vineyard, Orchard & other landscaping features.

Architecturally, the resort will be contemporary. This measure further differentiates it from many existing residential offers that have used architecture mimicking the Bulgarian vernacular.

Nesebar Golf & Country Club OOD Project Overview

Prepared by Roger Jones Golf & Leisure and LJM 3 March 2014

1.3 MARKETS

Research and analysis has been carried out on the main industry sectors that will impact on the resort. These are namely Tourism, Real Estate, Hotels, Golf & Wellness. It has also defined the main source markets. The key insights are:

! Between 2009 and 2013, the number of international tourist arrivals increased by 17% - in 2013 the number of international tourist arrivals amounted to 9.19 million, 52% of which were holiday and recreation tourists;

! International tourist arrivals are forecast by UNWTO to grow by 4.4% per annum to 2030; ! In Burgas Province, which accounts for over 30% of all tourists in Bulgaria, the number will double

between 2012 and 2030; ! The demand for real estate in Bulgaria, as primary and secondary residences, is growing again,

from overseas buyers, and from Bulgarian buyers looking for a higher quality real estate product; ! Real estate values in Bulgaria are starting to increase once again; ! The game of golf continues to grow globally. Although still in its relative infancy in Bulgaria, a

growth in supply will increase demand from the resident population and tourists; ! Nesebar Golf & Country will be in an unique position to attract new golfers by being the first ever

golf facility in the province; ! The hotel industry continues to grow in both supply and demand, with sectors like boutique /

lifestyle hotels appealing to increasingly sophisticated tourists; ! Wellness tourism is a high value sector, and forecast to grow at more than twice the rate of

overall tourism; ! Specialised services and treatments in the fields of weight loss and detoxification offer the

highest revenues to wellness centre operators; Nesebar Golf & Country Club will be the first resort of its kind in the Burgas province. It’s primary competition will come from similar residential resorts on the northern Black Sea Coast. It will have secondary competition from other residential developments in the province, in Bulgaria, and in other European countries.

1.4 OPPORTUNITY

The project is owned by Nesebar Golf & Country OOD, which is a Bulgarian registered company whose shareholders are resident in Ireland. It’s administrative and financial affairs are all up date in accordance with Bulgarian law. The company has financed the acquisition of the land, and all planning and advisory work carried out to date, from its own resources. It is currently in the process of obtaining the required statutory permission from the municipality of Nesebar. Once this process is completed, construction work can begin. The project has been introduced to senior figures in the Bulgarian tourism and golf sectors, and to the Bulgarian government. The development proposals have been enthusiastically received for their differentiation, and for the opportunity they present to the Burgas Province to begin the development of a new cluster of golf-related facilities that will enable Bulgaria to become a more recognisable and desirable golf tourism destination. The business and financial planning of the project has proven its commercial viability and its ability to generate a positive return on investment. The company has given consideration to the options it has for the next stages of the project. In summary these are considered to be:

Nesebar Golf & Country Club OOD Project Overview

Prepared by Roger Jones Golf & Leisure and LJM 4 March 2014

a. To sell the land and the project to a third party at a price to be agreed between the parties; b. To secure an equity partner for a percentage of the construction costs, and to secure loan financing

for the balance; c. To secure an equity partner for all of the construction costs.

The company shareholders have an open mind on any of the above options and welcome expressions of interest. A full copy of the resort business plan, together with supplementary information, is available from the company’s lead advisors, as follows: Mr Liam Murphy: LJM Project Management & Quantity Surveyors - Tel: +353 86 259 3232 Email: liam@ljm.ie Mr Roger Jones: Roger Jones Golf & Leisure - Tel: +34 649 753180 Email: roger@rogerjonesgolf.com

1.5 BULGARIA & BURGAS PROVINCE

Bulgaria is situated in the southeast of the Balkan Peninsula, and has a population of 7.28 million persons. It is an attractive country in which to invest for a number of reasons:

! EU Member since 2007; ! Economic growth, low labour costs, and a well-educated labour force; ! Low taxes and favourable investment legislation; ! One of the only EU countries to get a credit rating upgrade by Moody’s since 2010; ! Lowest government debt in the EU [18.9% of GDP] and one of the lowest budget deficits [-0.5%]

as of 2012; ! Easily accessible from all parts of Europe and Asia with an ever-improving infrastructure network; ! The nearest international airport [Burgas] is just 28 kms from the resort and has recently opened

its new passenger terminal; ! A new highway linking Sofia, the capital city and Burgas, was opened in 2013.

Burgas is the largest province in the country by area, and the leading tourist region accounting for 33% of all international arrivals in the country. The city of Burgas is the fourth largest by population in the country. It is also a region of outstanding natural beauty, containing site of global importance

Ropotamo Nature Reserve

Burgas Lakes