Investor Overview Caribbean Development Partners, LLC Strategic Resort Developers
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Investor Overview
Caribbean Development Partners, LLCStrategic Resort Developers
Page 1 of 30
Project Opportunities: Pan-Caribbean Region
Orlando, FL
Bonaire
Mayan Riviera
Bahamas
Turks & Caicos
Costa Rica
ArubaCuraçao
St. Lucia
St. Croix
Antigua
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Caribbean Development Partners, LLC (CDP) is a real estate development company which is focused on the resort sector in the Pan-Caribbean region. We are seeking well-capitalized investment partners to form joint venture or strategic partnership to fund the acquisition & development of one or more resort projects offering limited risk with the potential of significant financial returns over a five year period.
CDP was formed by (5) highly experienced professionals from diverse sectors of the real estate industry including global resort development, Caribbean economic development, commercial brokerage and architectural planning. Our managing partner, has had a distinguished 30 year career as a Institutional Fund Manager for Fixed Income and Real Estate. This unique collaboration of creative thinkers, real estate professionals & highly-respected business executives have collectively envisioned, planned, constructed and operated multi–billion dollar real estate assets for large public Companies and institutional pension funds.
During the past 3 years, members of the CDP management team have traveled throughout the Pan Caribbean region to evaluate various resort project opportunities, undertake in depth research, perform economic analysis and establish a extensive network of influential relationships with key government officials, tourism officials and business leaders.
CDP has already identified a number of fully-approved resort projects which have been made available to our team through our collective network throughout the region. In light of the current credit markets in the US, we have been offered premier land assets which can be acquired at prices well below appraised value, with the potential to produce extremely attractive yields.
CDP has long term relationships with global entertainment, lodging and retail brands and seek to engage in new resort developments in the Pan Caribbean region. The scope & range of CDP partner’s project development experience includes large scale resorts in Europe, Asia, Los Angeles and the $4 billion (USD) 800 acre Universal Studios in Orlando, Florida.
Caribbean Development Partners – Corporate Overview
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Strategy - Development of World-Class Properties
Initial focus on the Southern Caribbean and Orlando
Identify significant value-added development opportunities
Analyze feasibility of an integrated, world class development including master planning
Identify capital investor(s) and appropriate resources
Provide on-the-ground expertise (entitlements, acquisition strategy, permitting, infrastructure support, project due diligence, etc.)
Develop a sustainable source of capital
Build a pan-Caribbean investment portfolio through careful execution of CDP strategy
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To identify properties with significant value-added opportunities realized through creative, cost-effective integrated development
To work, in a comprehensive fashion, with landowners, governments, and other local parties to analyze projects and provide pre-development planning, positioning, and packaging
To attract sufficient capital and other resources necessary to “execute” To aggregate investment opportunities across the region into an investment
portfolio that diversifies the risk while providing for significant long-term capital appreciation
The Mission
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Proximity to most major North & South American population centers positions the Caribbean between markets.
Expanding European Travel Marketwith low cost fares from UK, IrelandHolland & Spain via Ryan Air, Virgin
Reliable and Affordable Airlift from international and U.S. hubs expands
Demographics of Tourists from North America, Europe & South America drive
Year round visitation Exotic setting, Natural Beauty, sunshine
with Tropical Climate with consistent weather throughout the year
Regionally diversified cultures, people, music, cuisine & products provides unique experiences established resort destinations
Caribbean Tourism – Market Strengths
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Caribbean Tourism – Economics
$40B economic activity (2004 total demand)
814,550 direct jobs (5.2%)
$8.7B direct contribution to GDP (4.5%)
Orlando has a $29.82B Hospitality/Tourism Sector (2006)
Adventure travel is a $200B industry in the US
Hotel occupancy has passed 85% on the islands of Curacao, Bonaire, and St. Lucia
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Economic Outlook – Strong Growth in Resort Travel
78,000,000 adults about to turn 60 years of age
These Boomers have a robust sense of wanderlust, fueled by good health and more discretionary income
Between 2003 and 2004 alone, leisure travel among Boomers increased by 25% (AARP, 2005 Travel & Adventure Report)
from AARP 2005 Travel & Adventure Report
The Era of Global Baby Boom Travel is beginning to unfold:
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U.S. $102B of economic activity by 2016 ($51.3B in 2006)
4.8% growth in total demand in for tourism For Caribbean Region
3.9% annual growth forecast 2007-2016 (KPMG)
Investment Capital is seeking quality Resort Investment Opportunities in the region as other markets are overpriced and over developed
Strength of foreign currencies are attracting foreign investment to the Pan-Caribbean region at increasing rate
Economic Trends
U.S. tourism spending projections in the Caribbean (in $U.S. billions)
51.3
102
0 20 40 60 80 100 120
2007
2016
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The Caribbean is a diverse, fragmented, and geographically large region with different cultures, languages, and political sovereignty
There are few high quality, integrated resort-type developments
There is a lack of comprehensive pan-Caribbean development with the intent of establishing a geographically diverse investment portfolio
The Baby Boomer population and Y generation are seeking lifestyle experiences that are offered by select destinations within the region
There are still extremely attractive sites available for development located in desirable settings with stable settings
Regional Trends
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Properties are in the hands of land-owners without access to adequate capital or expertise necessary to develop
Existing resorts have been mismanaged or poorly developed by non-professional developers
Proper utilization and development of the resorts has been the victim of weak economic cycles
Many resorts have been encumbered by government policy but CDP has made established influential relationships with government leaders, tourist officials and utility/infrastructure executives
Identifying Opportunities
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“Hotel performance in the Caribbean has improved steadily since the rebound in 2003 from the downturn of 2001 – a year earlier than most markets. The growth is expected to continue over the medium term, with travel and tourism expected to rise by 3.9% per annum between 2007 and 2016 (according to the World Travel & Tourism Commission).”
“The Caribbean has made progress in terms of regional stability and infrastructure, which has created an attractive destination for investment. Furthermore, the proliferation of renovations and the development of upper tier properties will continue to enhance the overall perception of the region, increase all-important airlift and boost average market rates.” – Source: Hotel Investment Outlook: Jones Lang LaSalle Hotels, 2007
A Need for Hotels in the Caribbean
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Timeshare and Vacation Club
Timeshare sales will continue to grow: 27% of timeshare buyers are looking to
buy in the Caribbean (Interval International, Market Profile 2006)
Equal numbers of American and European investors are interested in purchasing vacation time during the next two years as those who currently own vacation time
Escalating cost of resort real estate makes both timeshares and longer fractional ownership interests look more attractive
Two-thirds of Interval International’s clients cite the Caribbean as their preferred international location (2006 U.S. Membership Profile)
Preferred International Locations to Which Interval International Members
Plan to Travel, 2007-2008
66.5
44.4
24.820.4
10.2 9.9
0
10
20
30
40
50
60
70
Ca
rib
bea
n
Euro
pe
Me
xic
o
Ca
nad
a
Am
eri
cas
Asi
a
%
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Project Types: Hotel, Casino Redevelopment
Existing Hotel, Casino Acquisition, Redevelopment & Expansion w/ Timeshare development
Redevelopment and repositioning of large underperforming properties with potential to become fully integrated resorts
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World class destination resorts integrate complimentary products with “signature place making”experiences where the whole is greater than the sum of it’s parts
Project Types: Integrated Resort Developments
Integrated resort destinations drive repeat visitation and sustainable market growth via a strategic product mix of lodging, residential and fractional components with first class amenities
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Integrated Resort Components
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Project Types: Greenfield Resort Developments
Greenfield development opportunities offering a signature development model that reinforces the brand of CDP to the investment community and delivers a unique, memorable experience for the tourist and individual buyer
CDP has identified land owners who are in need of capital and real estate development expertise to convert these underutilized assets to world-class resorts with a project range of $300M - $1B
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Project Types: Eco & Cultural Tourism
Ecotourism is a nature based form of specialty travel defined by The International Ecotourism Society (TIES) as “responsible travel to natural areas which conserves the environment and sustains the well-being of local people.”
The World Resources Institute (1990) found that while tourism travel overall has been growing at an annual rate of 4%, nature travel is increasing at an annual rate between 10% and 30% (Reingold, 1993).
The Caribbean region offers exceptional diversity of land & sea based ecological nature parks, which attract incremental new & repeat visitation.
CDP partners are actively involved in planning $300M-$1B resort developments in Costa Rica focused on Eco Tourism.
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Project Types: Marina-Oriented Projects
Mega yacht (100+ length) industry is multi-billion dollar sector of the marina industry
Mega yacht production exceeds available marina facilities in the Caribbean (Most current mega marinas are fully occupied & located in ‘Hurricane Belt’
The islands of Curacao, Bonaire & Aruba are south of the ‘Hurricane Belt’ and are considered the safest berths for mega yachts in the Caribbean
Mega yacht owners & cruise ships drive significant demand for lodging, retail, and residential development
CDP has identified prime waterfront sites for world-class mega yacht facilities for development
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Project Types: Residential/Hotel Golf Resorts
Strategic alliances with the global leader in golf course development & management will deliver world-class golf destinations.
This would also provide opportunities for an international client base as well as including the PGA tour programs.
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Resort Site Selection Expertise
Industry trends indicate that the Bahamas, Turks and Caicos, Aruba, Bonaire, Curacao, have the most potential for growth.
CDP’s extensive travel and research to the Caribbean region has created an ongoing source of resort projects opportunities
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Two-Tier Business Model
Pan-Caribbean DevelopmentStrategy and Portfolio
Carefully Selected ProjectsCreative Integrated Developments
Professional Management
Capital FundingPartners
SustainableCapital
Stake holders StrategicPartners
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CDPLandowner Seed Capital
ProjectFinancing
Hotel Flag
Design Team
Gov’t Approvals
Contractor
Phase I
CDPLandowner
Sustainable
Capital
ProjectFinancing
Hotel Flag
Design Team
Gov’t Approvals
Contractor
Phase II
Business Model
Phase IProject A
(Curaçao & Orlando)
Phase IIProjects B, C, D, etc.
(select Caribbean sites)
Caribbean DevelopmentPartners
Build a balanced Pan-Caribbean Investment Portfolio of complementary integrated resort destinations that differentiate themselves in their respective markets
Locations should leverage CDP’s strategic economic development relationships and specific location investment benefits
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A Multifaceted Development Team
Robert WardMark Towery Hugh Magee John Somers Thomas Degnan
Page 24 of 30
Strategic PlanningBrand Alliances
Project Development& Implementation
Robert Ward
Local Market KnowledgeSite/Property Selection
Feasibility Analysis
Mark Towery
Acquisition Strategy& Negotiation
ValuationProperty Management
Hugh Magee
Project Design & Management
Market ResearchSite/Property Selection
Tom Degnan
Enterprise ManagementFinancial Expertise
Capital DevelopmentAdministration
Portfolio Management
John Somers
A Multifaceted Development Team
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Strategic Planning and Brand AlliancesCreative Visioning and Master PlanningHigh Level Concept DesignBuilding the Creative TeamAdded value Brand Alliances
Managing the Development and Implementation process
25 years experience as a Senior Executive with Universal Studios Parks and Resorts, Head of Universal’s Planning and Development Team with extensive international experience. Member of Imagineering team at Disney
Robert Ward
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Economic Development Expertise and Local Market Knowledge Site/Property Selection Managing local Resources
Consultants, Lawyers, Accountants Government Relations
Zoning, Building Permits, Regulatory, Infrastructure
Feasibility Analysis 24 years experience as Managing Director with
International Strategic Consulting Firm, extensive international experience in Economic Development, Government Relations, and Strategic Analysis. Significant experience on several Caribbean islands
Mark Towery
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Real Estate Expertise Valuation Acquisition Strategy and Negotiations Property Management
35 Years Experience Site Selection and Marketing Development
New and Redevelopment Property Expertise
Environmentally-Sensitive Project Management
Hugh Magee
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Project Design and Management Directing/Contributing to the Product/Facility Design Effort Project Management of the Implementation Process Principal of an Architectural Firm with extensive Top Tier
Residential Market Experience Marina, Lodging and Residential Conceptual Development
Experience (Costa Rica…)
Market Research Tracking Market Trends & Project marketing focus Identifying and Investigating Unique Opportunities
Evaluating Competitive Products
Tom Degnan
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Enterprise Management Administration Accessing Capital Markets Project Finance
Portfolio Management Greater Pan-Caribbean portfolio oversight
34 years Investment portfolio experience• Institutional Fund Management for Fixed Income
and Real Estate VP Development, Prudential SVP Commercial Mortgages and Real Estate, TIAA EVP, Head of Fixed-Income and Real Estate, TIAA
John Somers
Page 30 of 30
CDP Representation
Goodwin Proctor LLPCounselors at Law599 Lexington AveNew York, NY 10022T: 212.813.8800F: 212.355.3333
Christopher B. [email protected]
Legal (U.S. & International)
PricewaterhouseCoopersJulianaplein 38PO Box 360WillemstadCuraçao, Netherlands AntillesT: +599 (9) 430 0000F: +599 (9) 465 5152
Ivan de Windt [email protected]
Accounting
Tax Consultant (Caribbean)
Gregory Elias, Managing DirectorIntertrust (Curaçao) NVLandhuis JoonchiCuracao, Netherlands AntillesT: +599 (9) 736 6277F: +599 (9) 736 6161
Caribbean Development Partners, LLC514 Lakeview Street, Orlando, Fl. 32804
For more information on marketing, please contact:
Thomas DegnanPartner
NJ: 732-974-8600NY: 212-691-6085
CELL: 732-539-8173
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