Professional Documents
Culture Documents
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY Location Development Concept The Site Climate Site Area Site Conditions History Accessibility Highway Access PROJECT DESCRIPTION Project Overview The Project Program Objective Estimated Costs of Construction, Design and Management Services Construction Sources and Uses of Funds Construction Schedule Summary Sales Returns per Residence Club Infrastructure and Utilities Environmental Matters DEMOGRAPHICS Mexico Market Quintana Roo and the Caribbean Market Economic Conditions Timeshare Market DEVELOPMENT TEAM Organization Our Mission Investment Strategy Site Acquisition Land Development
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V. EXHIBITS Exhibit A - Survey of El Sinai / Boca Del Mar Exhibit B - Legal Ownership of Property Exhibit B-1 - Translation of Document Exhibit C - Energy Distribution Access Exhibit C-1 - Translation of Document VI. APPENDIX Development Site (Aerial View) - Site Plan Detailed Site Plan Conceptual Aerial View House Plan Elevations Floor Plans Conceptual Floor Plans Project Conceptuals
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TheBocaTerraceResidenceClubprojectsiteislocatedatthefootofone of the Caribbean Seas most beautiful coastlines, the Costa Maya. The CostaMayaisalsoknownastheundiscoveredjeweloftheCaribbean. The area between Mahahual and Xcalak were known as old fishing villages.Ithasbecome,inthelast10years,themostexplosiverealestate market, the most diversified small tourist destination and one of the mostamazingportofcallsfortheinternationalcruiseindustry. Privateregionalairports,hotels,boutiquehotels,cruiseportfacilitiesand the development of secondary homes both seaside and inland have earnedtheCostaMayathenicknametheJeweloftheCaribbean. CostaMayaisapproximately680milessouthofMiami,Florida. TheweatherinCostaMaya,MexicoiscomparabletoSouthFlorida(West Palm Beach, Fort Lauderdale and Miami). Most days are hot and sunny with high humidity. The average yearround temperature is 80F. The average yearround water temperature in the Caribbean is from upper 70sFtolower80sF.Theclimateisaridwithover300daysofsunshine. The property is approximately 364 acres with more than 1.1 miles of highwayfrontageontheMahahualXcalakHighway. The topography on the site is relatively flat, solid, rocky and easily accessible.Densetreecoverandtropicalfoliageisfoundthroughoutthe site.Thisforestedareawillprovideascenicbackdropforthedeveloped portionsoftheproperty. Costa Maya is a region in the state of Quintana Roo, Mexico, the only statewithCaribbeanSea.TheareaborderswithBelize,andincludestwo villagesMahahualandXcalak.TheMayantribewaspredominantinthe region from 200 BC to 900 AD, when they developed the skills to build thehistoriccitiesweknowtoday.Duringthisperiod,theMayanpeople traded a variety of goods, such as fabrics and jade, along the Mexican coast.Becauseoftwoopeningsinthebarrierreef,thevillageofXcalakin theCostaMayaregionwasusedasalandingpointfortradeships. Within close proximity, Costa Maya also gives visitors access to ancient Mayan ruins featuring structures that date back to 500 A.D. These recently discovered sites offer guests a firsthand look at an ancient Mayan civilization. It is the first Western Caribbean port designed exclusively for the cruise ship industry and is strategically located just hoursfromCancunonMexico'ssouthernYucatanPeninsula.Resembling anancientMayancity,CostaMayaisabletoaccommodatethreeshipsat once,withthecapabilitytodockOasisandEpicsizedships,andentertain visitorsatadestinationthatshowcasestheancientandcolonialheritage oftheMexicanCaribbeanwithalloftoday'smodernconveniences.
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Boca Terrace Residence Club is located in the Costa Maya region in the MunicipalityofOthonP.Blanco,StateofQuintanaRoo,Mexico,theonly statewithCaribbeanSea.Itisapproximately680milesfromSouthFlor ida.CostaMayaiscurrentlythehottestrealestatemarketintheworld. The regions geography is a dynamic mix of colorful tropical landscape, whitesandybeachesandexoticwildlife.AlthoughSpanishistheofficial languageoftheregion,Englishiswidelyspoken. AIHG plans to build, market and sell a 613 key upscale luxurious residence club with commensurate amenities managed by an internationally recognized Timeshare Management Company. The concept of selling timeshare intervals in the residence club will provide manysignificantbenefitsfortheFractionalInterestOwnerssuchas: 1. Significantlegalreductioninincometaxes. 2. OwningluxurypropertyintheCaribbean. 3. Significantpotentialforfuturecapitalgain. 4. Anapproximate560%returnthroughtimeshareintervalsales. 5. Significantpotentialforfutureincomeinongoingbusiness. 6. Significantpotentialforfutureappreciationoftheproperty. 7. Owningasecure,tangible,hardassetthatcannevergotozero. The project is a fully integrated and comprehensive luxury resort residenceclub.Itcentersaround613,2storysinglefamilyupscalepool front homes, each with 3 bedrooms, 2 baths, Jacuzzi, ceramic tile throughout,granitecountertops,topofthelineappliances,ceilingfans, exotic hardwood exterior rooftop sundeck, premium finishes and fixtures,andthemostuptodatehometechnology.Eachhomerangesin sizefrom2000to2200sq.feetunderair. Every residence club will be comprised of four luxury homes and will boastainfinityswimmingpool,Jacuzzi,cabana,privategarden,outdoor shower, manicured lawns, maid service, spectacular Caribbean view to the east and stunning golf course view to the west. The residence club willhaveaccesstoallhotelandgolfcourseamenities. Allresidenceunitswillbeslabongrade,exteriorstuccoovercinderblock walls and concrete roofing. All structures are designed for energy efficiencyandsafetywithhurricaneimpactwindowsanddoors. AIHGsgoalistobecomethenumberonedestinationresortontheCosta Maya and one of the top fifty destination resorts in the world. The projects superior Caribbean location at the foot of one of the finest beaches in the world, lends itself well to the creation of a prime luxury resortcombinedwithanaffiliationtoafivestarhotelresortspa,andwill resultinthecreationofanexceptionalworldclassdestinationresort.
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The primary goal AIHGs Fractional Land Ownership & CoDevelopment Program is to produce a debtfree, professionally managed, luxury residence club with the appropriate ancillary products that will rank at the top of the luxury scale in the destination resort industry, providing theFractionalInterestOwnerswithsignificantincomereturnsgenerated bytimesharesalesandasureandcertainprosperousexitstrategy. Depending on the Design (Architectural and Engineering) and Management (Construction Management) approach selected, as well as the conditions and scope that are agreed upon, Soft Costs for design andmanagementservicesalongwiththeContingencyfactorwillbe: Architectural&Engineering: 57%ofconstructioncosts ConstructionManagement: 2.53%ofconstructioncosts Contingency: 5%ofconstructioncosts Total construction costs (Hard & Soft Costs) for one complete Boca Terrace Residence Club comprised of four, 2 story singlefamily upscale homes,ranginginsizefrom2000to2200sq.feet,eachwith3bedrooms, 2 baths, ceramic tile throughout, granite countertops, sundeck, the most uptodate home technology, swimming pool, Jacuzzi, cabana, private garden, outdoor shower, landscaping, appliances, FF&E (Furniture, Fixtures & Equipment) are estimated at approximately US$1,825,000. The construction and furnishing cost per square foot used for this estimateisUS$208persquarefootwhichisappropriateforahighquality resort at the 5 star level. In total, the cost of construction bringing the residence club to point of handover to operations is estimated at US$1,825,000.AIHG,asDeveloper,willusealltheproceedsfromthesale ofthe365FractionalInterestsoftheresidenceclubpropertytobearthe burdenoftheentirecostofconstructionoftheresidenceclub. Thefundingsourceforthedevelopmentwillcomedirectlyfromthesale of the 365 Fractional Interests of the residence club property. This will allow AIHG to accomplish its program objective to deliver a fully operational, turnkey, debtfree, professionally managed luxury residenceclubtotheFractionalInterestOwners.Fundsgeneratedbythe salesoftheFractionalInterestswillnotbeusedandconstructionofthe residenceclubwillnotcommenceuntilall365FractionalInterestsofthe residenceclubpropertyhavebeensold. Thebreakdownoftheprojectphaseswillbeasfollows: DesignPhase 23months BidPhase 12months ConstructionPhase 6months In some circumstances, these phases may overlap. The intention is to achieveasmuchworkinparallelaspossible.Thisnormallyoccursduring boththeDesignandBidphases.
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The preliminary figures below show PHASE 1 projected sales returns of one residence club, comprised of 4 luxury homes, representing 200 timeshareintervalstobesoldatUS$59,000perinterval. The residence club maintenance fee is US$1,250 per interval. This is an annual fee charged to the timeshare interval owner. This maintenance fee is also used to pay for future management and administrative servicestobeprovidedafterthecompleteselloutoftheresidenceclub. Theforecastbelowisbasedonacompleteselloutoftheresidenceclubs 200 weekly timeshare intervals. Both the 100% occupancy rate and pricinglevelsmeetindustrystandards. PHASE1:SALESRETURNS(showninUScurrency) INCOME 200TimeshareIntervalUnits 11,800,000 200AnnualMaintenanceFees 250,000 Total 12,050,000 EXPENSES SalesCommissions& ManagementFee(30%) 3,540,000 Utilities 72,000 FF&ERefurbishments 6,800 Personnel 26,000 Insurance 6,000 Taxes 4,800 Total 3,655,600 NETPROFIT 8,394,400 ResidenceClubProperty/BusinessValue 1,825,000 TotalProfit 10,219,400 TOTALPROFITperFractionalInterest 27,988 PERCENTAGEOFINCOMERETURNper FractionalInterest 560% All the infrastructure elements needed to develop the project are present. Water is available and abundant. Electricity is onsite and provided by the Federal Commission of Electricity (CFE). Private ecologicalsewagesystemswillbeabsorbedintheconstructioncosts.The development of streets, pathways and pedestrian networks are to commenceQ22011. The Environmental Impact Assessment report submitted to the Urban Planning&EnvironmentalSafetyCommissionshowsnoprotectedfauna, floraorspecieswerefound.Theprovisionsforeseeforthemanagement ofsolidandliquidwastearewithinthemostadequatetosecurethatno contaminantsarereleasedtothesurroundingarea.
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TimeshareMarket
The timeshare concept began in Europe in the 1960s as an innovative wayforincreasingvacationchoice.Insteadofbookingaweekortwoata resorteveryyear,timeshareofferstheabilitytobuyrightsofoccupancy inaproperty,typicallyinmultiplesofoneweek,foreitherasetperiodor perpetuity. The timeshare industry is over 30 years old, and generates revenues of over$15billionperannum.Itisforecasttogrowtwiceasfastasoverall world travel and tourism over the next decade. Today, there are 6.7 million timeshare owners worldwide in over 5,400 resorts, in over 110 countries worldwide. These timeshare resorts provide about 325,000 accommodationunitsworldwide. Of the 5,400 resorts worldwide, 25% are in Europe; 31% are in North Americaand;16%areinLatinAmericawhereMexicoleadswith40%in the region. In Mexico and the Caribbean, market penetration rates remainlow,leavingplentyofpotentialforfuturegrowth. MexicoandtheCaribbeanarethehottestnewmarketsfortimeshare.A study on Caribbean timeshare by the American Resort Development Association and HVS Timeshare Consulting Services shows nearly 8,500 newtimeshareunitsplannedfortheMexicanRivieraandtheCaribbean. The average price, per week, of a Mexican Caribbean timeshare is approximately21%higherthanthatoftheglobalaverage. Reflectingtheinternationalappealofbothdestinationandthetimeshare resort concept, 66% of the buyers of Mexican Caribbean timeshares reside in the United States. Mexicans represent the secondlargest ownership group (17%), followed by Europeans (8%), and South AmericansandCanadians(representing4%each).Thesefindingsclearly demonstrate that the Mexican Caribbean corridor continues to display considerablevacationingappealandoutperformsthevisitorprojections developedbyFONATUR(NationalTrustFundforTourismDevelopment). Withtheinfluxofinboundvisitation,arearesortdeveloperscancontinue to anticipate expanding revenue growth. While timeshare resorts typicallyoperateatan85 percentoccupancy,according tothe Mexican Resort Development Association (AMDETUR), the Mexican Caribbean boastsa90percentannualoccupancyrate. Theleveloftimesharerevenuegrowthpointsdirectlytothepopularityof the timeshare resort concept and the attractiveness of the Mexican Caribbean. As a result, expansion trends should continue for the resort timeshare industry throughout the Mexican Caribbean region. With FONATUR projecting future growth of more than 11 million additional tourists and a resident population of 3 million by 2025, the Mexican Caribbean stands ready to welcome the most discriminating travelers. And within the wide variety of resort lodging alternatives available to them, resort timesharing is well positioned to emerge as the lodging optionofchoice.
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The future of timesharing has never looked brighter, as evidenced by several independent research studies, timesharing continues to show both high product satisfaction among current owners and leisure travelers, enhancing awareness of vacation ownership. Timesharing has been cited as one of the fastestgrowing sectors of the worldwide hospitality industry and it has proven its staying powers by weathering peaksandvalleysintheglobaleconomy. Today there are more than 5100 resorts in nearly 110 countries, with some 6 million timeshare owners residing in 270 countries, with worldwide timeshare sales estimates at nearly $15 billion. The industry worldwidehasgrownmorethantenfold. The growth rate has been explosive. HVS International a leading timeshare consulting and hospitality services firm has reported that timeshare sales have been growing at a compound rate of more than 17% for the past 22 years. And look whos involved: Disney, Marriot, Hyatt, Ramada Suites, Fairfield Properties, Carnival Cruise Line, Royal CaribbeanCruiseLineandthelistgoesonandon. Timeshare has also proved to be a more recession proof form of developmentwithcontinued growthexperiencedin theperiodsaround the Gulf War, 9/11, the Iraq Conflict and most recently the A/H1N1 influenzaoutbreakandtheeconomiccrisis. According to the American Resort Development Association, over 3 million U.S. households own timeshare, representing approximately 4.9 million timeshare intervals. Leisure and travel experts contend the industryhas barelyscratchedthesurfaceinterms ofmarketshare.The current low penetration rate of the leisure travel market points to significantgrowthpotential. Consumer awareness and confidence are higher than ever before as more and more savvy travelers realize the benefits of vacation ownership, including spacious residencestyle accommodations plus the flexibilityofexchangingvacationtimeinpopulardestinationsacrossthe globe. The National Leisure Travel MONITRSM revealed that nearly 6 in 10 of todays leisure travelers are interested in staying in residencestyle accommodations while on vacation. Moreover, 15% (which is projected tobeabout12.5millionadults)areinterestedinpurchasingsomeform oftimeshareinthenexttwoyears.Nothingdemonstratessatisfactionas wellasfuturepurchaseintent. The boom in Mexico real estate has already begun. All over the world peoplearegettingtheidea.InMexico,peoplefromaroundtheglobeare buying up choice property. The market has just become prolific in Mexico, with about 1.5 million Americans now owning property in Mexico says Mitch Creekmore, Vice President of the Stewart Title GuarantyCompanyofMexico,officeinHouston,Texas.
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LandDevelopment
Wewillacquiresitesfordevelopmentthroughvariousmeans,including the assembly of urban development sites and purchase of land lots originallyzonedforagriculturalpurposesandreserves,withtheintention of applying to have these sites rezoned for development. These strategies will allow AIHG to obtain more desirable property sites at a relativelylowcost. AIHG creates master planned communities where diverse residential neighborhoods are mixed with commercial and mixeduse projects. A well designed community is an autonomous, thriving community that includesavarietyofhousingandbusinessoptions. AIHGcreatescosteffectiveandimaginativesolutionsthataddsignificant value to the development process from conception to completion. Whether facing challenging site constraints, sensitive environmental issues or permits, AIHG is known for creating winwin solutions for complexlanddevelopmentprojects. Ourgoalistomasterplancommunitiesthataresensitivetotheexisting environmental conditions and land uses while at the same time having the vision to develop communities that will meet the future needs of residents. We believe this will be achieved by our ability to know and understandmarketneedswhileworkingcooperativelywithgovernment officialsandcommunityinterestgroups. AIHGbringsitsexpertiseinallareasofdevelopmentandconstructionto bear on any challenge facing your project. By understanding all aspects andtheirrelationship,onetoanother,AIHGcanhelpassurethesuccess ofyourobjectives. Thekeytodevelopingatrulysuccessfulmasterplannedcommunityisto remaincommittedtotheprospectiveresidentsnow,andtohomeowners foryearstocome.Itsamixofartandscienceoftangibleamenitieslike recreational facilities, landscaping, and location, as well as intangible ones like community spirit. At AIHG, we focus on creating communities thatfosterarecreationallifestylealifestylethatisactiveandintegrated withnatureandneighbors. We offer an impressive list of amenities that will surprise most buyers, but these alone dont make a community vibrant. We believe its the spiritofthepeopleinourneighborhoodsthatbringsourcommunitiesto life. Weleverageourbuyingpowertosecurepremiumlocationsandensure the very best resources, labor and amenities available. For you, that translatesintolowriskandamaximumreturnonyourinvestment.And thatsaluxury.
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Boca Terrace
RESIDENCE CLUB
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Boca Terrace
Clubhouse GolfCourse
RESIDENCE CLUB
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HotelSite
Entrance
EquestrianClub
Boca Terrace
RESIDENCE CLUB
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9
/10 ofaMile
Entrance
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LaundryRoom 9X8
Foyer 14X9
BOCATERRACE RESIDENCECLUBMODEL
Entry 4X9
CarPort 20X14
AREASUMMARY
TOTAL
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Balcony 4X16
Bedroom#2 13X22
Bedroom#3 13X22
Bathroom 4X15
Balcony 5X14
BOCATERRACE RESIDENCECLUBMODEL
AREASUMMARY
TOTAL
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Boca Terrace
RESIDENCE CLUB
Fractional Land Ownership Program
The particulars contained in this brochure are believed to be correct, but cannot be guaranteed. All liability, in negligence or otherwise, for any loss arising from the use of these particulars is hereby excluded. Images, photographs and other information: Any photographs, computer generated images or other information provided within this brochure are indicative of the style of the development and do not represent the actual finish or fittings. Any such information may change at any time and must not be relied upon as being factually accurate.
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