Off Plan Property Investment, Argentina | Mendoza - Valle De Uco Wine & Golf Estate

Valle de Uco Wine & Golf Estate Mendoza, Argentina

Beat the UK banks

Find out how you can increase your capital by 60% in just two years • • • • •

$50,000 entry point Built-in security Project over 1 year ahead of schedule Frontline 3,000m2 golf plots available Returns independent of development completion

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Deal Summary 30% annual returns - Developer Buyout

Our latest deal comes with an optional Developer Buyout that delivers the equivalent of a 30% annual return for two years and is secured by fertile, wine friendly land in one of the fastest growing regional economies. You normally associate such high returns with the very earliest stage of the property cycle yet this deal offers you the opportunity to participate after the land has been purchased, master planned and approved for planning and subdivision, as well as with a top class golf partner already on board.

The deal in numbers

$50,000 Exit capital = $80,000 Annual return = 30% Total return = 60% Exit in = 2011 Entry capital =

• Beat the UK banks The 30% annual return is an opportunity to make your money grow while the UK banks keep the base interest rate low. • High returns but low risk This deal comes with a developer-backed return of 30% per annum which will be paid at the end of the investment term. Returns on this scale are usually associated with high-risk investments but since R2i has been involved the project has achieved planning permission a year ahead of schedule and signed a major name golf partner to design the golf course, raising the value of this Development significantly. • Fixed time scale of 2 years The two-year investment term ties in with the completion of the golf course and the commencement of retail sales to the South American market, giving the Developer the chance to sell these plots on to end users.

The Valle de Uco Wine & Golf Estate is situated in Argentina’s prestigious wine-growing region of Mendoza. The Developer has released a limited number of frontline residential golf plots within the Estate that require a $50,000 (approx £30,000*) deposit to reserve. You can choose to purchase the plot in full but we think the key benefit for investors here is the Developer Buyout option that lets you sell back your contract for $80,000 in 2011, a profit of $30,000 (£18,500*). This would give a 60% return on capital in just 2 years.

• Security Your investment is backed up by security in the form of land within the Valle de Uco Wine & Golf Estate. These are frontline residential golf plots that will be sold on to end users for $250,000+. Alternatively you can also choose to purchase the plot yourself by paying the balance of $200,000, also in 2011. • Multiple exit channels The Developer is not just relying on retail sales to fund this buyback offer. Because we are so early in the development cycle the project could still look to secure Mezzanine Finance from a bank or large investor. An exclusive golf Founders’ Club is also being launched soon for premium golf fans wishing to be personally associated with Eduardo Romero. All of these channels will bring funding into the development.

To find out more about this deal contact our Investor Relations team today on 01273 627900 * Exchange rate of $1 = £1.62 correct as of 7/7/09

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Contact To talk to one of our property consultants call: +44 (0)1273 627 900

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Development timeline The value of land

September 2008 – Zona de Frontera, the first stage of planning, is completed. This is an authorisation from the Argentinean Government needed by foreign entities wishing to own land close to the Chilean border. We had been warned that this could take up to two years. Achieving this milestone in two months puts the Development well ahead of schedule.

$ OFFICIAL OPENING

October 2008 – Master Planning begins.

PRE-OPENING - GOLF & SPORTS

February 2009 – Eduardo Romero joins the development as golf partner. His company, Romero Design, begins work on designing the site’s 18-hole championship standard course.

SECURITY & GATING INSTALLATION HOTEL & FACILITIES CONSTRUCTION

RETAIL SALES

April 2009 – Following completion of the course plans by Romero Design, the final Master Plan is submitted and subsequently approved by the Tunuyan Municipality. July 2009 – Work continues on clearing the site and forming irrigation channels. FUTURE MILESTONES September 2009 – The golf Founders’ Club is launched. July 2010 – This is how long the Zona de Frontera permission could have taken. Achieving this in September 2008 - over a year and a half earlier - shows just how much has been achieved ahead of schedule. Q4 2010 – The course plan is set out and finalised and shaping of the golf course commences ready for civil engineering. Q4 2010 – Vineyards are planted. Q4 2010 – Seeding and planting of the course fairways commences and work begins on the tees, bunkers, driving range and practice facilities. Q4 2010 – Construction of club house, hotel, spa and the first villas begins. Q4 2011 – Golf course completes. July 2012 – The Valle de Uco Wine & Golf Estate opens. July 2014 – This would have been the opening date of the Valle de Uco Wine & Golf Estate had planning not been achieved so quickly.

OFFPLAN SALES Key Developer profit milestones

March 2009 – Outline planning permission/subdivision is granted. This means that the Valle de Uco Wine & Golf Estate has been given the go-ahead, but each element within the Development (hotel, spa, etc) will need to submit detailed plans separately.

RESIDENTIAL CONSTRUCTION

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February 2009 – The Valle de Uco Wine & Golf Estate officially breaks ground as work begins on the waterways and main arterial roads.

R2i investors exit here

SPORTS PARTNER HOTEL PARTNER COURSE CONSTRUCTION

VINEYARD PLANTING COURSE IRRIGATION GOLF COURSE SHAPING CIVIL ENGINEERING GOLF FOUNDERS’ CLUB GOLF PARTNER

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MILESTONES ACHIEVED July 2008 – The Valle de Uco Wine & Golf Estate site is acquired.

The project is currently at this stage

SUB-DIVISION MASTER PLANNING VALUATION LAND PURCHASE Land is one of the most profitable assets of any property developer. In cities, the land is often worth more than the building upon it but for a development of this kind the value is locked in by the adding of planning permissions and progress through to completion. The Valle de Uco Wine & Golf Estate is still at a very early stage despite progressing quickly through master-planning. This gives you the opportunity to make the kind of returns usually associated with seed capital but at a considerably reduced level of risk.

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Valle de Uco Wine & Golf Estate The mighty Andes Mountains travel down the backbone of Argentina and overlook the whole Mendoza region. This spectacular setting is the backdrop to the Valle de Uco Wine & Golf Estate. An 18-hole golf course will be central to the resort, taking up a third of the whole site. Architects Romero Design have been designing the course with the aim that it will be included on the Tour de las Americas circuit. Romero Design will be using the site’s existing terrain, natural springs and native trees to maintain a feeling of harmony between the course and the rest of the site. Wine will also feature prominently in the Development. Vineyards will be planted throughout the site to create a lush environment for residents and owners. Grapes will be used to produce a signature label wine for owners and residents. There will also be a winery and wine-tasting facilities to complement the region’s rich wine-making tradition and appeal to the growing number of wine tourists. The resort will also feature a 60-room luxury-branded boutique hotel, wellness spa, sports academy, riding trails, game fishing and a variety of restaurants serving everything from local casual ‘quincho’ cuisine to fine dining. Wine & Golf Tourism Sports tourism as a whole generates an estimated $1.3trillion annually. Golf is a significant component of this with 20 million players travelling the world’s courses each year. By creating a course that is of a championship standard and endorsed by one of the game’s most notable players, the Valle de Uco Wine & Golf Estate will have a significantly raised profile to appeal directly to this lucrative market. Wine tourism is also increasing in popularity and, as one of the world’s eight ‘Great Wine Capitals’, Mendoza is starting to realise the potential of this market. A more established region, such as Napa Valley in California, receives millions of visitors to its wine trail each year, pumping billions of dollars back into the local economy. Mendoza is Wine Enthusiast Magazine’s current Wine Region of the Year. Disclaimer

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Eduardo Romero

Legendary Argentine golfer Eduardo Romero has signed to be the brand partner for the Valle de Uco Wine & Golf Estate’s signature 18hole course. The intention is for this course to be included in the ‘Tour de las Americas’ – a competitive circuit across South America that counts current Masters Champion Angel Cabrera as a former winner. As the likely end-users of this resort are from the American markets it was important to secure a big name as the golf partner. Romero is one of Latin America’s most celebrated sportsmen, having represented the country an unprecedented 14 times in the World Cup and most recently winning the US Senior Open in 2008 and the Toshiba Classic in March 2009. Unlike other golf brand names, Romero has only chosen to put his name to very few courses and this exclusive association is already having a positive effect on the resort. The course architect Romero Design has since expressed a desire to use the Valle de Uco Wine & Golf Estate as the company’s flagship course. This means the Eduardo Romero signature will feature prominently throughout the course, raising its profile even further. In a 2008 KPMG survey focussing on South Africa, the majority of respondents noted that adding a golf course to a development adds 20% to the price of real estate. Signature course architects also add a further 10%+ premium.

Ready2invest Limited (“R2i”) is acting as agent of the developer identified in this document. This document has been produced by R2i for information purposes. Whilst R2i make every attempt to ensure the accuracy and reliability of the information contained in this document, this information should not be relied upon as a substitute for formal professional advice. R2i, its employees and agents will not be responsible for any loss, howsoever arising, from the use of, or reliance on this information. R2i make no warranties or guarantees in respect of the content of this brochure. The reader agrees not to hold R2i or any of its employees or agents liable for decisions that are based on information from this document. R2i highly recommends that before making a decision, the reader carries out their own due diligence and collects several opinions related to the decision and verifies facts from at least several independent sources. The reader acknowledges that the value of property can increase or decrease, as can rental yields. No representation or guarantee is given by R2i that statements, views, projections or forecasts contained in this document are specific to any particular property. The information contained in the document merely represents a general picture of the property market in the territory identified and the reader must determine for themselves what reliance they should place on such information. The reader also acknowledges that tax and other legislation may change.