pah holdings - treasure cove belize business plan
TRANSCRIPT
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TREASURE COVE BELIZE
BUSINESS PLAN
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TABLE OF CONTENTS
Executive Summary………………………………………………………………………………………….. 3
Mission Statement…………………………………………………………………………………………… 4
General Company Description…………………………………………………………………………. 4
Major Benefits of Treasure Cove Belize…………………………………………………………… 6
Developmental Partners…………………………………………………………………………………. 7
Company Goals and Objectives………………………………………………………………………. 10
Goals…………………………………………………………………………………………………….. 11
Objectives……………………………………………………………………………………………… 11
Phase One…………………………………………………………………………………. 11
Phase Two…………………………………………………………………………………. 16
Property Comparables……………………………………………………………………………………. 17
Economic Trends in the Caribbean………………………………………………………… 18
Consumer profile………………………………………………………………………………….. 19
Competition………………………………………………………………………………………….. 20
SWOT Analysis………………………………………………………………………………………………… 21
Financial Plan – Year 1 ……………………………………………………………………………………. 23
Over the Water Bungalows and Beach Villas ………………………………………… 23
Song Bird Casitas, Free Hold …………………………………………………………………. 24
Song Bird Casitas, Quarter Fractional ……………………………………………………. 24
Future Phases: Song Bird Casitas, Free Hold ………………………………………… 24
Coral Garden Estates Community …………………………………………………………. 25
Treasure Tours ……………………………………………………………………………………… 26
Financial Projections ………………………………………………………………………………………… 27
4-Year Financial Summary ……………………………………………………………………………….. 27
Corporate Officers …………………………………………………………………………………………… 28
Summary…………………………………………………………………………………………………………… 29
Appendix…………………………………………………………………………………………………………… 30
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Executive Summary
“Location, Location, Location” has always been the #1 rule in real estate development. With over one
mile of beach frontage facing one of the world’s largest marine habitats, the Belize Barrier Reef,
Treasure Cove has the premier location in all of Belize for a large-scale development. Located just 7
miles from Belize City, just 20 minutes by boat from the International airport, and a simple 5 minutes
(2.5 mi) from where the cruise ships dock bringing 900,000+ visitors to Belize each year, Treasure Cove
is poised by mere proximity to attract and welcome a high percentage of those tourists each week.
As the first Mega-Green Resort in the world, Treasure Cove Belize will be a unique and unparalleled
resort development, playing a leadership role in promoting responsible tourism surrounding the Belize
Barrier Reef in recognition of its growing importance to sustainable development and the protection of
the sensitive marine environment.
With 2012 designated as the “Year of the Maya” showcasing the current Mayan Calendar coming to an
end, Belize enjoyed increased global interest, with tourism rising significantly. Guests at Treasure Cove
Belize will have access to shops, restaurants, Over the Water Bungalows, Beach Villas, Songbird Casitas
(vacation homes), and the Hotel and Casino. Congruent with these facilities is a docking station for the
Belize Submarine Tour, complete with Sales Office and Presentation Center. Throughout the resort,
the overall Design Concept of Treasure Cove Belize is to bring the feel of the Belize Barrier Reef
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indoors, designed by HGTV Design Star, David Bromstad. This Design Concept will be enhanced
through mega aquariums manufactured by Acrylic Tank Manufacturers, and featured on the Animal
Planet TV show, “Tanked.” In relation to the mega green theme, Treasure Cove will establish a
“Seahorse Sanctuary” and a “Coral Propagation Unit” both of which will be replenishing and sustaining
the Belize Barrier Reef.
Treasure Cove Belize will be the first 5-star facility in the country of Belize, since currently no premier
5-star hotel/property exists in Belize. A luxury resort in this location is highly desirable, and will help
promote Belize further since the country is one of the top growing tourist destinations in the world.
Treasure Cove will be the #1 destination-of-choice for the 1.2 million annual tourists arriving in Belize.
Mission Statement
The mission of Treasure Cove Belize Resort, the largest mega-green resort in the Caribbean, is to
provide an exceptional 5-star hospitality experience, in spectacular surroundings, by delivering
distinctive quality service in an atmosphere of comfort, friendship, and respect. The company shall
adhere to the principles of sustainability and environmental responsibility and ecotourism,
recognizing that our unique surroundings must be preserved and protected for the enjoyment of
future generations. Treasure Cove guests should experience an authentic reflection of Belize culture,
nature and history, and take with them precious lasting memories.
General Company Description
Treasure Cove Belize is a premier mixed-use development project in the Caribbean with unparalleled
beauty, unsurpassed natural resources and is located in one of the prime locations of Belize. With
some of the most desirable beachfront, and located directly in front of the 2nd largest barrier reef,
Treasure Cove Belize is in a position to become an elite 5-star resort. Treasure Cove Belize will be the
Treasure Cove Belize – site plan
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first “Mega-Green” Resort in the Caribbean, a unique and unparalleled resort development operating
under responsible environmental stewardship principles.
The project’s close proximity to all major forms of transportation is a key factor in insuring its success.
The International Airport is 12.5 miles away, the Cruise Ships dock 2.5 miles away and Belize City is only
6.2 miles from the site. Travel to the resort will be inexpensive and easily accessible for visitors, using a
20 minute boat ride from less than a mile from the International Airport, or a 12 minute boat ride from
Belize City, or a 5 minute boat ride from where the Cruise ships dock.
Treasure Cove Belize is located in Belize, Central America on the Island of Drowned Caye. Belize is one
of the fastest growing tourist destinations in the world. The property is owned by Treasure Island
Management Ltd. a Belize Corporation and encompasses 75 acres of land comprised of 5250’ linear
feet of beach front with a depth of 716’ feet. The total market value reflected by the certified
international appraisal is over Thirty Five Million U.S Dollars ($35,181,000) (see Exhibit A, and
“Optimized Appraisal” attached) and has a net equity of $35,056,000 USD
When the cleaning and filling of the property is completed, the property shall increase in value to
$1 Million U.S. Dollars per acre, raising the value to reflect in excess of Seventy Five Million USD
($75,000,000).
Belize Barrier Reef
Treasure Cove Belize – site plan
Drowned Caye
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Major Benefits of Treasure Cove Belize
- 1.2 miles of the most Premier virgin Beachfront
property in all of Belize
- Property faces the Belize Barrier Reef
- First 5-star development and convention facility
in all Belize.
- Closest proximity of any resort in Belize to
disembarking passengers from Cruise ships,
which annually bring 900,000+ tourists to Belize
- Tourism is #1 economy in Belize with 1.2 Million annual tourists visiting Belize, and this rate
continues to grow each year.
- Close proximity and ease of access to City of Belize and International Airport
- MEGA GREEN RESORT:
o “Green business” with environmentally responsible emphasis on sustainable
development, and eco-tourism practices which are economically and socially beneficial,
while minimizing their negative impacts on the environment.
o Commitment to community development efforts with:
- the Seahorse Sanctuary and Coral Propagation Units to help sustain the Belize
Barrier Reef,
- Educational Fund for employees and Scholarship program for youth in Belize,
- Partnership with Ministry of Education and Youth, and the Ministry of Agriculture
and Fisheries,
- Recycling program,
- and educating the general public on becoming environmentally aware, and
promoting Eco-Tourism best practices as an example for all of Belize to follow.
o Treasure Cove Belize will publish an Annual Sustainable Development Report
highlighting progress made towards improving environmental performance and
enhancing workplace and societal well-being for all to witness, such as corporate
stakeholders, customers, suppliers, employees, investors, regulators, members of the
local community and environmental groups, to demonstrate the company's
commitment to environmental protection and social responsibility.
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Developmental partners:
The company has had discussions with the following companies, having received several bids/quotes,
as well as Letters of Interest:
David Bromstad, HGTV Design Star
Santec Corporation
Wastewater treatment
Lifestream Water
Purification Systems
Wyndham Worldwide
Group RCI
Timeshare Vacation Exchange
Acrylic Tank Manufacturers (ATM)
(featured on Animal Planet Network TV show, “TANKED”)
Casino Development
Nancy J. Friedman
Public Relations
Gaspar Vega,
Deputy Prime Minister
Minister of Natural Resources
Stewart Title Guaranty
Brian Darnell, Architect
David Tutera, Wedding Designer
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Gaspar Vega, Deputy Prime Minister and Minister of Natural Resources and the Environment:
Honorable Vega is responsible for approving all permits and has highly endorsed this project, and we
have close relations with him. He was pleased to provide a letter of interest as this resort will provide
over a thousand jobs and is poised to be the largest employer of Belizeans in the country. (see Exhibit B)
British Caribbean Bank (BCB): This bank has expressed an interest and is comfortable in loaning
Treasure Island Management $5,000,000 for construction and development. (See Exhibit E)
Wyndham Hotels: We have had several meetings and ongoing discussions with Wyndham Hotels and
Vacation Rentals. Wyndham has a very strong footprint in the Caribbean, and has sent forth a Letter of
Interest in Treasure Cove Belize offering their technical resources expertise in design and planning of
our 5 star Hotel, as well as a timeshare offering that would be part of Wyndham Vacation Ownership.
(see Exhibit C)
Group RCI: a subsidiary of Wyndham Worldwide Corporation, (NYSE:WYN) an S&P 500 company, is the
worldwide market leader in vacation exchange and European vacation rentals. We are in discussions
with them regarding the timeshare sales as well as performing a Feasibility Study of timeshares in
Belize through their TORE Consulting & Advisory Group. (see Attachment)
Spectrum Gaming Group: Joseph Weinert, Senior Vice President has presented a proposal to TCB to
provide a market analysis for our proposed destination gaming resort in Belize. They believe this study
will provide Treasure Island Management Ltd. with a comprehensive, independent and expert
foundation on which our team can make informed decisions. Upon completion of the market study,
they will be prepared to discuss recommendations for the Phase One development scope –
recommendations that could be used to develop a market feasibility study. (see Attachment)
Gomes Gaming: has acquired the reputation of being a premier leader in the casino gaming
management and operations industry. They have presented a Letter of Interest, offering their
expertise in the gaming operations and management of the future casino in Treasure Cove Belize. (see
Exhibit D)
Brian Darnell, Architecture and Planning: Brian Darnell has worked closely with Treasure Cove Belize in
all phases of architectural planning. His team of highly specialized designers has demonstrated their
unique ability to conceptualize and design this project. Brian’s central business archetype is
demonstrative of the exacting measures demanded by showcase estates for CEO’s of Fortune 500
Companies to local private venture capitalists.
Nancy J. Friedman: NJFPR has expressed great interest in making our resort one of the premier resorts
in the world. She operates one of the top 10 PR companies in the world focusing highly on Hotels and
Resorts.
Stewart Title Guaranty: Stewart continues to handle our escrow accounts.
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Acrylic Tank Manufacturing (ATM): ATM has sent a letter of interest (see Exhibit F) regarding
incorporating their aquariums throughout the resort to bring the feel of the Belize Barrier Reef indoors.
Aquariums designed by ATM are the feature of the syndicated TV show “TANKED” which is broadcast
globally, and receives over 10 million viewers per episode. Treasure Cove Belize will be regularly
featured on TANKED, which will serve as enormous international publicity for the resort.
David Bromstad, HGTV Design Star: Mr. Bromstad has agreed to create the overall Design Concept for
Treasure Cove Belize that will be incorporated throughout the resort. He will be working directly with
ATM. He will also be featuring Treasure Cove Belize on the HGTV Network on specialized shows similar
to “House Hunters International”, “HGTV Design Star,” “Color Splash” and others, all which are
broadcast internationally drawing millions of viewers worldwide.
David Tutera, Wedding Designer. Treasure Cove resort will feature a “global wedding destination,”
which will be designed in its entirety from the ground up, by wedding designer David Tutera. David has
designed first-class wedding facilities in many locations, including “David Tutera Couture at Disney
World.” He designs weddings for many notable and famous people, and also hosts the show, “My Fair
Wedding” featured on HGTV.
Lifestream Water Purification Systems: has presented a bid on the desalination, filtration, recycling,
and purification of all water systems throughout the resort. Lifestream supplies systems for island use
that can operate not only from local power but gensets and solar. (see Attachment)
Santec Corporation: has presented a bid on the wastewater treatment for Treasure Cove Belize
resort. Santec has proposed utilizing tertiary filtration and UV treatment for disinfection which will
ensure the quality of reclaimed water. UV treatment is important for ponds and other features which
may contain aquatic animals with low resistance to chlorine (most common disinfection practice).
David Tutera, Wedding Designer
David Bromstad, HGTV Design Star
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Company Goals and Objectives:
Goals:
The Goal of Treasure Cove Belize is to develop the largest mega-green resort in the world, and sustain
a healthy, successful company that is a leader in customer service and that has a loyal customer
following by:
- Exceeding customer's expectations for luxury beachfront accommodations.
- Maintaining a 90+% occupancy rate during the peak periods.
- Assembling an experienced and effective staff.
“Dragonfly” model, Song Bird Casita 2-Bedroom Over the Water Bungalow
Over Water Bungalow design Song Bird Casitas rendering
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Objectives:
Phase One:
� Bungalow Fractional Sales: 50 Over the Water Bungalows, and 50 Beach Villas, for a total of 100 units.
� Song Bird 10 Beach Frontage Fractional Sales: (6 models) and 93 others to follow, totaling 103 units
� Coral Garden Estates Community (Free Hold; 2 models): 147 lots, including 12 Beachfront, 103 second
street lots, and 32 reserve lots
� Restaurant, Bar & Grill and Beach Club
� Treasure Tours – Ancillary Tours and Belize Submarine Tour
Over the Water Bungalows: Our preliminary designs provide splendid views, unmatched beauty and an
exotic flair, which will be the only 5-star water bungalows in the Caribbean. We plan to offer 3
different 1-bedroom floor plans (Sofia and the Marilyn) and a perfectly designed 2-bedroom floor plan
(Ursula), and several different floor plans, views and amenities to meet all of our guests needs.
Over the Water Bungalows Beach Villas Concierge
There will be a total of
50 Over-the-Water Bungalows.
-A total of 31 - 1 Bedroom Suites
-A total of 19 - 2 Bedroom Suites
1 Bedroom Over the Water Bungalow rendering
Treasure Cove Belize – site plan
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Beach Villas: We plan to offer 3 different 1-bedroom floor plans (Sofia and the Marilyn) and a
perfectly designed 2-bedroom floor plan (Ursula), and several different floor plans, views and
amenities to meet all of our guests needs. There will be a total of 50 Beach villas.
`
Song Bird Casitas, and Fractional Homes Sales. The property has 680’ that shall be dedicated to 10
homes to be sold as fractionalized or freehold. These will serve as the model homes for Song Bird. The
cost of the development of the lots which includes the cleaning and filling, survey, water, power and
sewer is already included in the Joint Ventures monies. These ten lots as well as the other eighty three
can be marketed immediately.
Beachfront Homes:
The Beachfront homes shall be sold at $250,000 per quarter share they would generate a net profit of
$750,000 per unit or $7,500.000. Currently there are no new homes in Belize facing the reef that have
a price of under $1,000,000.
Second Street:
The other eighty three Custom Homes for sale would generate an average of $100,000 each or
$8,300,000 net per unit; the basis of that is regardless of the true construction costs, the lot would still
generate $100,000 net profit.
Song Bird Casita Model
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Coral Garden Estate Community: 147 lots, including 12 Beachfront, 103 second street lots, and
32 reserve lots make up this private planned community. Every road has a view of the Caribbean
Sea and the Reef. Units furthest from the beach are located facing the beautiful Lagoon.
As each new phase develops throughout Treasure Cove Belize resort, property will likewise
continue to increase in value. While property in fully developed resorts are selling at a top dollar
rate, during the first phases Treasure Cove is offering entry level at pre-construction prices.
Marine Biology and Conservation: Seahorse Sanctuary and Coral Propagation Unit
The Seahorse Sanctuary will be an exciting new aquaculture development designed to breed
Seahorses and set them free back into their natural habitat. Each year millions of seahorses
are taken from our oceans. They are used in traditional medicines, as dried trinkets, pets in
the aquarium, and accidental "by catch" in some fisheries. This has lead to a demonstrated
decline in the population of seahorses and become a great concern for conservation groups
around the world.
Coral Garden Estates Community – site plan
The Treasure Cove Belize Coral Propagation Unit will focus on advancing the
ocean’s ecosystem in helping sustain the Belize Barrier Reef by nursing local
coral back to health and replanting them back onto the Reef.
Coral reefs are very fragile sensitive ecosystems. The Belize coral reef
encounters damages from both the hands of Mother Nature as well as man.
One of the most visually dramatic effects of climate change on corals has
been bleaching. When the ocean warms, the oxygen content reduces, and
corals become ‘bleached’. The heat stress damages the algae and in
consequence leads to coral death. Damaged corals can recover with a
gradual accumulation of zooanthellae, usually taking six months.
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Treasure Tours:
1. Ancillary Tours
Treasure Cove Belize will offer Special tour packages for Water Sports, such as fishing, snorkeling,
scuba diving, Blue Hole tours, yacht harbor, para-sailing, and sailing, as well as Inland Tours such as
cave tubing, zip lining, Belize Zoo, etc.
Average tour prices are as follows: Scuba Diving $168, Cave tubing/Ziplining $125, Snorkeling $50,
Fishing $200/person/day.
Services to be provided by independent contractors and licensed tour operators.
2. Belize Submarine Tour
In order to make the operation of a tourist
submarine a success, a minimum of 10,000
annual tourist arrivals per seat on a submarine
are required given average industry capture
ratios. With this 48-passenger submarine, we will
receive twice the amount of tourists needed to
make it a success. Belize Submarine Tours will
operate tours starting at $69, with sunset cruises
and night dives at $99. Tickets average a
minimum of $69 per adult, and projected income
will be a minimum of $2,000,000 per year.
In Year 2, a second submarine is planned, to
accommodate the overflow of cruise ship
passengers, thereby increasing our revenues.
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The Nautilus IV is a State of the Art semi submersible
submarine exclusively developed for use on the Belize
Barrier Reef. Cruising at 6 feet below the ocean’s
surface, in the air-conditioned hull of this underwater
observatory, large clear glass windows allow tourists
to enjoy all the wonder and beauty of the Belize
Barrier Reef. State of the Art LED lighting has been
added to illuminate the great diversity of sea life
around the Barrier Reef during the Sunset Cruises.
Treasure Island Management, Ltd. is developing the
only tourist submarine operation in Belize, the
Nautilus IV, and the company owns the exclusive
concession for this venue. Belize Submarine Tour
intends to capitalize on the opportunities available in
a growing tourism market, which has continued to
grow at a rate of approximately 18% per year and this
coming year will be no exception.
Belize Submarine
will accommodate
its passengers
with a similar style
transfer vessel
from cruise ships
to tourist sub
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Phase Two
A 250 room hotel/casino and timeshares with 75-150 time share units similar to Atlantis in the
Bahamas. After the RCI-TORE report and Spectrum Feasibility Study are completed, we may increase
the size of the hotel and timeshare offers. It has been suggested that in fact the country needs 4 or 5
of these hotels. Comparatively, Cancun takes in currently 3 million annual visitors through its
international airport. Revenues are based on comparable hotels of the same size. This part of the
project will be done with a key partner as a joint venture partnership. We understand that all
projections suggest Treasure Cove will initially need between a 250-500 room hotel, to create this 4 to
5 star resort. Estimated quarterly combined RevPAR is $4,050,000, for an annual total of $16,200,000
for hotel revenue alone. The Casino will easily be able to bring in about 25,000,000 annually as is seen
in similar sized projects.
Sample Renderings of
Hotel/Casino
Site and Design
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Property Comparables Belize, is currently witnessing sustained interest from both foreign and local investors. Real estate
prices in mainstream Caribbean territories for single unit properties similar to some of the properties
offered by Treasure Cove Belize are now exceeding the million dollar mark. And it has not just been the
islands that have seen significant rises: Panama and Costa Rica have both witnessed considerable
capital appreciation.
With prices still much lower than most of the Caribbean, Belize is set to enjoy capital appreciation for
many years, to eventually match property valuations seen in other Caribbean destinations. Within
Belize, Treasure Cove offers an extremely attractive value proposition and future opportunity.
The chart below lists published pricing for two bedroom/two bathroom condominiums throughout the
Caribbean and Central America. Treasure Cove Belize is currently offering two bedroom/two bathroom
Homes (est. 1,500 square feet including indoor and verandas) with ocean views starting in the low
$300,000, a cost per square foot of $200.
Location Average Price Sq. Ft. Price Per
Sq. Ft.
The Pavilions - Turks and Caicos (1) $1,210,000 1,540 $786
Pelican Point Resort, Oceanview Residences - Turks and Caicos (2) $1,445,000 1,671 $865
Grand Isle Villas - Bahamas (4) $1,695,000 1,865 $909
Placentia Hotel, Belize – Condo $895,000 910 $983
The Montclaire - Seven Mile Beach - Grand Cayman (6) $1,495,000 2,025 $738
The Atlantis - Paradise Island - Bahamas (7) $995,000 1,497 $665
Seven Stars Resort - (Current Phase) Turks and Caicos (8) $1,150,000 1,374 $837
Red Frog Beach Resort (Current Phase) - Panama (9) $748,672 1,623 $461
Crystal Azure Beach Resort - Cayman Brac, Cayman Islands (10) $450,000 724 $622
Cocoa Beach, Ambergris Caye, Belize – Condo $365,000 1,100 $331
Grace Bay Beach, Turks and Caicos (12) $650,000 1,078 $603
Average $1,051,697 1,395 $756
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Economic Trends in the Caribbean:
- Raw data on arrivals in the Caribbean over the last three decades is clear, with air arrivals
having risen over five fold for the period. Cruise visitors sailed even more swiftly behind
catching up in recent years while growing almost three times as fast as land-based tourism, on
average.
- Visitor spending has kept pace and reflected the movement in arrivals over the years.
- In 1978, aggregate visitor spending stood at around USD$3.8 Billion.
- In 2010, spending rate clearly out-paced that of arrivals resulting in estimated total
spending of over USD$27 Billion in the Caribbean. (OneCarribean.org)
- Continued perception that the Caribbean as a relatively safe and stable region.
- According to IMF (International Monetary Fund) projections, Latin America as a whole will
grow 5.7 percent in 2010 and 4 percent in 2011, while the Caribbean (including all independent
Caribbean Community states, Haiti and Dominican Republic) will have a combined rate of 2.4
percent this year, with some countries still recording negative rates.
- The REO (Regional Economic Outlook) shows that tourism remains a powerful force in the
regional economy, where a 10 percent increase in tourist arrivals per capita can increase
growth by 0.2 percent. (http://www.imf.org/external/np/sec/pr/2010/pr10394.htm)
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Consumer profile
A plethora of tourist destinations exist around the world each offering a variety of products and
services to attract visitors. The Caribbean continues to attract global visitors, as seen in these reports.
In Belize, the Tourism industry was boosted by the influx of 6.6 thousand more tourists in 2010 than in
2009. This modest performance was the net effect of arrivals increasing in both the Winter season (1.7
percent) and the Summer season (3.6 percent). Belize welcomed 279 cruise ships in 2010, five fewer
than the previous year. However, the Cruise Passenger numbers climbed by 8.4 %, totaling 764,600.
In 2012, (January through April) cruise ship passengers reached an all time high of 328,000 passengers.
22001111 -- 22001133
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Competition
Competitors to Treasure Cove Belize within the country of Belize are few and well below the 5-star
rating that will be Treasure Cove Belize.
1. Ambergris Caye is the largest of several islands in the northernmost waters of Belize, situated
35 miles to the north of Belize City. The island, including the town of San Pedro, is currently the
top tourist destination in Belize, however the cost to tourists for travel to and from the island
adds a significant drain upon their travel budgets of approximately $300 per person for air fare
alone from Belize City. There are currently no hotels above a 3-star rating on Ambergris Caye,
and travel about the island is costly and cumbersome if traveling to remote areas. Some outer
areas of Ambergris Caye are only accessible by an additional boat ride, as the road system is not
fully developed throughout the island.
2. Placencia and Caye Caulker are two other tourist destinations in Belize for those who do not
mind extensive travel times to get there. Placencia requires over 3 hours of land travel, and
Caye Caulker is only accessible by boat or small plane with accommodations ranging from small
cabanas to small 1-star hotels.
3. Cayo Espanto is a tiny island resort just south of
Ambergris Caye, which rents at $1,595 per night for its
cheapest room, which also happens to be its only over-
water bungalow (with no pool). There are 5 private
oceanfront villas (with private plunge pool) for prices that
range from $1,695 to $2,495 per night.
4. 2 Hotels, The Princess Hotel and Casino, and Radisson
Hotel, are the only two larger hotels, with 115 and 102
rooms respectively, in the heart of Belize City. With the
high crime rate and low quality rating, these hotels are not
considered competition to our proposed 5 star resort.
Cayo Espanto Resort
Princess Hotel/Casino, Belize City Radisson Hotel, Belize City
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SWOT Analysis
Strengths
1. Premier Property in all of Belize
2. 15 year tax holiday
3. Location is closest to all major
forms of transportation
4. First to the Market with a 4 or 5
Star Resort
5. Low cost of land per sq ft
6. Strong Government ties
7. Low cost of labor ($2/hr)
8. CARICOM Pack Labor Force
9. Mega Green Resort = Green
business, socially and
environmentally responsible
Capitalize on Strengths
1. Introducing new exciting tourist destination with
all amenities offered – the “Jewel of the
Caribbean”.
2. Tax exemption on all investments for 15 years
until initial capital is returned
3. Will have own fleet of water taxis for delivery of
tourists to and from major ports of entry.
4. Belize is in great need of upper scale hotels and
convention facilities, of which TCB will be the first.
5. Offer investor opportunity with huge returns.
6. Removes obstacles and makes for more expedient
development process.
7. Less labor costs to build and operate.
8. Specialized licensed workers will be used without
Visa or Work Permit issues
9. Regular publications and Press Releases on our
Green Business, and Eco-Tourism, setting an
example for all to follow
Weaknesses
1. Availabilities of Specialty Goods/
Higher Quality Foods
2. All goods must be shipped by barge
3. Self-contained infrastructure must
be completed first before home
construction can commence
4. Marketing alliances not yet in place
5. Belize City high crime rate
Address Weaknesses
1. BELTRAIDE - Belize Trade & Investment
Development Service – gives us exemption to
bring in any and all goods with tax/duty
exemption
2. Will have own barges for delivery of goods
3. Use stackable infrastructure in relation to
water/power/sewer
4. Initial discussions with Nancy Friedman of NJFPR
international public relations firm.
5. Private island with private security force and
highest technology surveillance system to be used
on this private resort for guest security and
protection
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Opportunities
1. Global Green awareness of
ecotourism.
2. Ability to offer all sectors of Real
estate investing including
Timeshares/Fractional
ownership/freehold/ vacation
homes.
3. Ability to dominate market in
specialized tours and water related
diversions
Maximize Opportunities
1. Join TIES (The International Ecotourism Society)
2. Sales Presentation centers, and global
presentation centers
3. Own exclusive venue for first tourist Submarine in
Belize; Offer Special tour packages for fishing,
snorkeling, diving, yacht harbor, sailing.
Threats
1. World Economics
2. Weather / hurricane
3. Other major hotels
Minimize Threats
1. World Economic System has more cash reserves
in the history of banking; US HIRE Act is
heightening awareness and urgency to move
investment funds offshore
2. Weather is generally mild, with very few
hurricanes coming near Belize, due to cold deep
water channel directly in front of Barrier Reef,
which deflects storms
3. There are only two large hotels in Belize, which
are still significantly smaller than TCB and are of
lower quality and located in Belize City, which is
undesirable. There are no other hotels currently
slated.
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Financial Plan – YEAR 1
Over the Water Bungalow and Beach Villas
The illustration below is a Phase 1 comparison of revenues between a Rental bungalow, and a
Timeshare bungalow. We will actively pursue both revenue sources.
Comparable Over the Water Units in Belize, and globally, show rentals starting at $1,500/night, up to
well over $3,000/night. So, this particular example is conservative at best.
When all 100 units are constructed, these numbers reach over $3,536,000 for Rentals, and
$26,520,000 for Timeshares.
Over the Water Bungalows
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Song Bird Casitas, Free Hold (Second street)
Selling 25 units Free Hold
Average Sq 1000’ selling at $300,000. There are no units at this price on any Island in Belize thus
netting $150,000 per unit = $3,750,000
Song Bird Casitas, Quarter Fractional (Beachfront)
Selling 12 Song Birds Quarter Shares or 48 units at $250,000 =500,000 X 12 units =$12,000,000, minus
building cost and sales cost of $200,000 per unit, netting $3,750,000.
Future Phases: Song Bird Casitas, Free Hold (Second street):
Year 2: 50 freehold at $300000 = $15,000,000 at 50% profit = $7,500,000, and this can continue yearly.
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Coral Gardens Estates Community
147 lots, including 12 Beachfront and 103 second street lots, and 32 reserve lots make up the first phase
this private planned community. Prices are predicated on price of property, $6/sqft, (raw land) on an
average, our cost is $4,000USD per lot which includes infrastructure. There are 8 lots per acre. With profit
at $100,000 per lot and cost of building = $800,000 per acre, which is our profitability.
In essence, Treasure Island Management is building homes at a true building cost of $50/ft, and can deliver
a 1000 sqft home freehold for $149,999 USD. This does not include upgrades, which is expected to net
$12,000 which will cover marketing and sales costs. Our average cost to build a home (including
infrastructure) is $50,000 per lot.
PROFIT:
Our goal is to make $100,000 profit for each Second street lot, and $250,000 profit for each Beachfront
unit plus profit through upgrades of a minimum of $12,000 per unit.
Year 1 Total Profit will be: Year 2 Total Profit: Year 3 Total Profit:
$3,144,000 for Beachfront lots
$5,040,000 for Second street lots $5,040,000 $5,040,000
$8,184,000
GRAND TOTAL PROFIT over 3 years: $18,264,000
Year 1
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Treasure Tours
First year conservative projections from Treasure Tours are below.
NOTE: The submarine anticipates shuttling a minimum of 50,000 qualified customers per year, or 1000
per week that will walk through the sales center for this project, and at a conversion rate of 1%, will
directly impact resort sales in a positive manner.
Proposed Reception and Presentation Center
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FINANCIAL PROJECTIONS
The financial projections for Treasure Cove Belize are quite encouraging. The continual growth of the tourist
industry in Belize, especially with increased focus on the Mayan calendar drawing record numbers of tourists in
2012, the lack of large high-level resorts in Belize, and the opportunity for ground level investment, provide a
unique window of opportunity for Treasure Cove Belize to be the first 5-star resort in the country of Belize. The
following sections provide a synopsis of the financial outlook for the business.
4-Year Financial Summary.
The table below provides a 4-year earnings outlook for Treasure Cove Belize. As can be expected,
earnings and cash flow for Startup, Year 1 and Year 2 are negative due to slow revenue ramp-up with
heavy expenditures in content development to build the site and marketing functions to attract a large
number of necessary customers.
OPERATING EARNINGS
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Corporate Officers
Rick Pierce, CEO, Treasure Island Management Ltd.
Professional skills include 25 years experience in executive sales management, including a broad
background in development and building of commercial and residential property, to include MONY
advanced Certified Financial planning. Mr. Pierce, age 50, is a Belizean citizen with close personal ties
with government officials within the country of Belize.
Mark R. Moskowitz, Esq., Senior Counsel, Treasure Island Management, Ltd.
Mark R Moskowitz, Esq. has practiced corporate and securities law at the highest levels for 40 years.
While Mark has worked with companies in dozens of industries, he has been involved, in particular,
with the “gaming” industry. Mr. Moskowitz, age 64, among other things: represented Mirage Resorts
(previously known as Golden Nugget, Inc.) as the public company’s principal outside counsel for a
period of 15 years (while it was controlled by Steve Wynn), including in connection with corporate and
project-related debt and equity offerings, both public and private, aggregating approximately $2
Billion, its interaction, as a publicly traded company, with the SEC.
David Perniz, COO, Treasure Island Management Ltd.
Mr. Perniz has many years of experience in Executive Management, business planning, sales
management, marketing and corporate development. He has served as President/CEO/CFO and a
board of directors member of several corporations, including as a sales management in a multi-billion
dollar semiconductor company. Mr. Perniz, age 43, has also developed specific expertise in technical
sales assisting the Company with its product development, technical solution implementation and
application requirements.
John Micheli, General Project Manager
Mr. Micheli has over 20 years experience as both a Senior Estimator and Project Manager at some of the largest
contracting companies in the United States, including W. M. Lyles Co., who, out of the top 400 contractors in the
USA, they are number 366. Mr. Micheli, age 63, has specialized in estimating, contract negotiations, purchasing,
construction management, and the design and installation of mechanical engineering applications on projects
ranging from $35M up to $114M. Duties will include utilizing his expertise as General Project Manager in all
phases of this project, including transportation and logistics.
Greg King, Secretary Treasurer, Treasure Island Management Ltd.
20 years experience in residential and commercial real estate as well as an extensive background in
sales and employee management. Duties include the Assistant Project Manager for Treasure Island
Management Ltd. to include the development of Treasure Cove Belize resort.
Irene Whiteside, Executive Administrator, Treasure Island Management Ltd.
14 years experience in Management of Companies up to 100 Employees, Corporate Secretary, 10 years
in Government Policy and Affairs, 15 years in commercial construction and Real Estate.
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Summary
It is clear that a large scale project such as Treasure Cove Belize will have a very
positive impact in relationship to direct economic benefits for the country, as well as
the citizens of Belize. Treasure Cove estimates that directly and indirectly over one
thousand jobs will be created, thereby reducing the unemployment by the largest sum
ever in the history of Belize. The Bahamian economy is driven by 50% tourism thereby
generating three times the economy that Belize has. With the creation of the coral
propagation and the seahorse sanctuary, Treasure Cove will be the standard in
relationship to replenishing and revitalizing our most valuable asset that we have in
Belize, “The Barrier Reef”. It is clear that Belize is not attracting the high-end
corporate clients such as Banks, Insurance companies and Fortune 500 Companies
simply because there is no venue for these large corporations to send their people on
corporate retreats. The country of Belize truly needs “TCB” working with government
as well as the private sector in Belize so that together we can change the country for
the better.
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Appendix
Exhibit A
Addendum to Original
Appraisal, with current
value of property, dated
August 1, 2013
31
32
Exhibit B
33
Exhibit C
34
Exhibit D
35
Exhibit E
36
Exhibit F
37
Exhibit G
38
Exhibit H
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Exhibit I