Crisis Investing in Europe

Crisis Investing in Europe

Toronto June 2010

SCHEDULE

• Who are Torcana Ltd?

• How is the economic crisis affecting European property markets?

• The UK market and our latest discounted investment

• The German market and property types we target

• Questions

Crisis investing in Europe

Who are Torcana Ltd?

A Dublin, London and Florida based investment specialist

We promote a variety of real estate & energy investments in Germany, USA & UK

No offplan, no tourist rentals

Focus only on cash flow positive, high quality assets with very solid management in place and a clear resale market

Further details and company profile

available on Torcana.com

How is the crisis affecting Europe? (diff pic)

Ireland, Spain, E. Europe, The United Kingdom

• Prices doubled roughly every 5 years for 15 years between 1993-2007

• Construction industry represented unsustainable level of GDP

• Almost every part of society / media became obsessed with property

• Young people under a lot of pressure to get on the property ladder

• Huge numbers of amateur buyers lost money

• Financial institutions have made massive write downs on their loan books

Crisis Investing in Europe

The United KingdomThe United Kingdom

The United Kingdom – Economic Overview

Worlds sixth largest economy with a population of 62 million

The UK has a diverse economy, strong domestic market, stable government and sophisticated financial systems

Service sector makes up 73% of GDP

London is the most visited city in the world by a considerable margin

A combination of the credit crunch, property downturn, demographic trends and dramatic slowdown in housing starts have all lead to serious supply shortages in major urban areas

UK Economic Overview

Torcana knows where these shortages will be most acute and use our contacts in the banking and construction industry to get huge discounts on cash flow positive properties within them

The United Kingdom contd.

• Areas and Types of Properties Available

- First time buyers- 1 – 2 bed properties- Either central or commuter belt

• What you should avoid

- Offplan Properties- Very large properties- Areas with oversupply - Extremely large developments

UK Economic Overview

The United Kingdom – Road to recovery

GDP GROWTH RATE – Gross domestic product increased by 0.3 per cent in the first quarter of 2010.

UK Economic Overview

• 55 one & two bedroom luxury apartments• Just 5 minutes away from the city centre

W4 Wolverhampton(very near Birmingham)

• 15 units have been set aside for Torcana investors• 38% discount off developer list prices

• A selection of 1 and 2 bedrooms ranging from 556sq ft to 606 sq ft

• Prices range from $79,000 - $119,000

• Net yields from 5.7% - 7.3%• 60-65% UK financing available

W4 Wolverhampton(very near Birmingham)

GermanyGermany

German Economy

Worlds 3rd largest economy with a population of 82 million

Out of recession Aug 09, 2010 growth forecast at 1.4%

Unemployment 7.5% (Spain 20%, France 10.1%, USA 9.9%)

The hub of the European economy

Safe haven for investors due to economic and asset price stability

German Property Market

No property “bubble” in recent years means no “bust” in 2009-10.

German residential and commercial rents are up to 20% -50% lower than in other leading economies .... But yields are the same

€100,000 in June 2009 cost $142,000 (USD)

Commercial property transaction volumes in Q1 2010 up 175%

Strong banking sector

€100,000 in June 2010 costs $122,000 (USD)

German Deals

We favour multi-tenanted properties with strong leases in mature areas

Our target commercial tenants are the small and medium sized family/private businesses that are the heart of the German economy.

We target established assets rather than new build. Existing properties are available at 50% - 80% of the build cost of a similar property

German Deals

These businesses (and half of all Germans) prefer to rent

The preferred investment period is 5-7 years to take advantage of renewal of leases

The properties pay their way each year after all costs and payment of full interest and capital to the bank

Investing in Europe

What Next?

Come and talk to me

Collect some handouts and detailed brochures

Register your interest and receive detailed project information

Many thanks for listening...

Colin Murphy

Managing Director Torcana Ltd

Come back at 4.50pm to hear more detail on my “Top three cash flow positive investments”