Panery_investment_opportunity_v5

Profile of investment opportunity

Resort development in western Provence Wine tourism, golf Pont-du-Gard, Avignon,

Nîmes (2m visitors/year)

Spring

2015

Carte professionnelle 1204T11 Mandat 2014-1201

In Provence: wine tourism & golf resort development opportunity 2

Location Between Provence and Languedoc, a 1,300-acre estate with easy access to the rest of the world.

Unique estate Domaine de Panery is a one-of-a-kind multi-purpose estate in Provence, South of France, set on the

ground of a Gallo-roman villa. Wholly owned 1,300 acres (incl. vineyards 140 acres) property: farming,

winemaking (Côtes-du-Rhône), forest used as a sporting ground. Buildings 37,000 sq.ft. Suitable for:

wine tourism, golf course, polo farm, hunting business and real estate development.

Ideal location Truly ideal location on the “Mediterranean arc.” Preserved landscape and Provencal climate

atmosphere, proximity to historical sites (Avignon, Pont-du-Gard, Uzès, and Nîmes), and easy access

to the rest of France, Europe and the world:

Within 30mn from Avignon, Nîmes and Uzès;

30mn from the TGV station in Avignon – with high-speed trains to Paris (2hrs45mn), London

(St-Pancras in less than 6hrs) or Brussels (in less than 5hrs);

Easy access to international airports: Arles-Nîmes (25mn), Montpellier (60mn) and Marseille

(80mn).

© U

zège

Tra

nsa

ctio

ns

et

Dév

elo

pp

emen

t 2

015

Carte professionnelle 1204T11 Mandat 2014-1201

In Provence: wine tourism & golf resort development opportunity 3

Significant investment opportunity Wine tourism ang golf in western Provence

A mixed use, multi-anchor destination resort

Destination resort with a spa and wellbeing services (possibly including wine cosmetics and treatments), also catering to upmarket overnight visitors to the nearby cities of Avignon and Uzès and UNESCO-listed Pont-du-Gard. Weddings and corporate incentives packages potential.

The full range of wine tourism activities (wine tour, wine experience and immersion, etc.) on an operational Côtes-du-Rhone wine making estate. Enhanced by cooking classes, hot air balloon discovery trips. Equestrian estate potential.

A 18-hole dry-climate golf course designed to optimize water use in the Mediterranean landscape will cater the needs of foreign and local players looking to add another quality stop to their Languedoc and Provence golf circuits.

Residential development of 70 eco-conscious villas and apartments (between 110m² and 180m²) spread in and around the hotel and winery at the center of the estate.

Indicative development proposal Illustrative consolidated resort development budget.

Model assumes: 150 key boutique hotel, 4* including penthouse, apartments and cottages (70 units),

with 18-hole Mediterranean golf course, and functional winery (150 acre).

Gross development value

Hotel Number of rooms 150

Rooms sold 35 588

Rooms available 54 750

Occupancy (%) 65%

ADR 290 €

Revenue

Rooms 10 320 375 €

Food & Beverage 4 644 169 €

Other departments 2 786 501 €

Other income 722 426 €

Total revenue 18 473 471 €

© U

zège

Tra

nsa

ctio

ns

et

Dév

elo

pp

emen

t 2

015

Carte professionnelle 1204T11 Mandat 2014-1201

In Provence: wine tourism & golf resort development opportunity 4

Departmental costs & undistributed operating expenses

Total costs assumed at 85% 15 702 451 €

Net operating income (EBITDA) 2 771 021 €

Capitalisation rate 10%

Gross development value 27 710 207 €

Residences 20 3-bed penthouse units 180 m² 6 650 € per m² 23 940 000 €

30 2-bed penthouse units 130 m² 6 650 € per m² 25 935 000 €

20 2-bed cottages 110 m² 7 120 € per m² 15 664 000 €

70 65 539 000 €

Gross development value 93 249 207 €

Acquisition costs

Land

Land value 10 600 000 €

Stamp duty & legal fees 7,0% 742 000 €

Subtotal: Acquisition costs 11 342 000 €

Development & construction costs

Hotel

Civils, roads and MEP infra and landscaping 1 200 000 €

Construction costs 166 144 € per room

150 Rooms 33 m² 2 560 € per m² 12 672 000 €

1 Restaurant 1 950 000 € 950 000 €

1 Spa 1 680 000 € 680 000 €

1 Clubhouse 1 930 000 € 930 000 €

1 Golf course 1 5 800 000 € 5 800 000 €

1 Amenities 1 1 560 000 € 1 560 000 €

Infrastructure allowance 1 5% 1 500 000 € 1 129 600 €

24 921 600 €

Residences

20 3-bed penthouse units 180 m² 2 250 € 8 100 000 €

30 2-bed penthouse units 130 m² 2 250 € 8 775 000 €

20 2-bed cottages 110 m² 2 250 € 4 950 000 €

Infrastructure allowance 1 5% 1 850 000 € 1 091 250 €

22 916 250 €

Subtotal: Development & construction costs 47 837 850 €

© U

zège

Tra

nsa

ctio

ns

et

Dév

elo

pp

emen

t 2

015

Carte professionnelle 1204T11 Mandat 2014-1201

In Provence: wine tourism & golf resort development opportunity 5

Assumptions

Hotel & residences construction period assumed 3 years;

Model assumes hotel fully operational 5 years after project sign off;

Hotel ADR rate based on comparable properties within 50 km radius;

Hotel revenue distribution levels taken from similar hotel models ;

Residential sales prices adapted from prices of comparable projects.

Additional costs

Hotel

Professional fees 11,0% of construction costs 2 741 376 €

Contingency 4,0% of construction costs 996 864 €

Realtors fees 0,0% of sales costs

Marketing fees 0,0% of sales costs

Legal fees 0,0% of gross revenue

Pre-opening and marketing costs 650 000 €

Fixtures, furniture and equipment 2 450 000 €

6 838 240 €

Residences

Professional fees 11,0% of construction costs 2 520 788 €

Contingency 4,0% of construction costs 916 650 €

Realtors fees 5,0% of GDV 3 276 950 €

Marketing fees 1,0% of GDV 655 390 €

Legal fees 2,0% of GDV 1 310 780 €

8 680 558 €

Subtotal: Additional costs 15 518 798 €

Total development costs 74 698 648 €

Finance

Loan-to-cost ratio 60%

Loan value 44 819 189 €

Construction period 3 years

Interest rate 220 points over LIBOR

EUR 1Y LIBOR 0,75%

Total financing costs 3 966 498 €

Proforma P&L

Gross development value 93 249 207 €

Total development costs 74 698 648 €

Total financing costs 3 966 498 €

Developers profit 14 584 061 €

Funds invested 29 879 459 €

IRR 16%

ROI 49%

© U

zège

Tra

nsa

ctio

ns

et

Dév

elo

pp

emen

t 2

015

Carte professionnelle 1204T11 Mandat 2014-1201

In Provence: wine tourism & golf resort development opportunity 6

Important notice Uzège Transactions et Développement gives notice that the sole purpose of these particulars is to provide outline information for this

development to prospective investors who are solely responsible for making their own investigations and seeking independent advice,

including the costs of doing so, and forming their own view as to the condition of the property, its fitness for their requirements and the

accuracy and completeness of the statements herein. These particulars do not constitute any recommendation or offer to enter into any

contract regarding this property. Uzège Transactions et Développement does not guarantee the accuracy or completeness of any description,

dimensions and other details contained herein, and prospective purchasers must not rely on them as statements of fact or representations.

Rates quoted in these particulars may be subject to additional levies and as such Uzège Transactions et Développement accepts no liability

or responsibility (whether in negligence or otherwise) for any loss arising from using or relying on these particulars.

Market opportunity Underserved hospitality market with 2m visitors per year within 30 km

Ideal location The estate:

Is located right at the center of the French Mediterranean region, where Provence meets

Languedoc;

Enjoys extremely convenient access from anywhere in France, Europe or the world thanks to

a network of motorways, train lines et airports second to none;

Is less than 30 minutes away from the ancient Roman aqueduc the Pont-du-Gard (1.3 million

visitors a year), Avignon the other Papal city (700,000 visitors a year) and also Uzès, smaller

medieval art and center of growing reputation (300,000 visitors);

Is self-contained, very private and very easy to develop.

Underserved hospitality market The upmarket hotel rooms offer in the vicinity of the Pont-du-Gard, the second most visited site in

France (after the Eiifeel tower) is extremely limited: less than 100 rooms in a 15-km radius around the

Roman aqueduc.

For over 10 years, elected officials and local authorities have been clamoring for the development of

large capacity (up to 300 rooms) hotel or resort in the vicinity of the Pont-du-Gard. The main cause of

the lack of such a development is the availability of appropriate land – which creates a unique

opportunity at Panery.

Note: the projected 36,000 rooms sold presented in the indicative development proposal above

represent 65,000 customers (1.8 guests per room) each year – i.e. only 3.2% of the 2 million local

visitors.

© U

zège

Tra

nsa

ctio

ns

et

Dév

elo

pp

emen

t 2

015

Carte professionnelle 1204T11 Mandat 2014-1201

In Provence: wine tourism & golf resort development opportunity 7

Growth tourism markets The proposed development will benefit on three growing tourism markets, all catering to the over 50

crowd blessed with a strong purchasing power:

Wine tourism : Designated one of the 5 central development axis for the French tourism

industry, in between the Vallée du Rhone and Languedoc vineyards, the largest in France;

Golf : A renewed interest from both French and foreign players, within the context of the

upcoming Ryder Cup in France in 2018 ;

Wellness : Boomers want meaningful experiences, whether that means adventure, exercise,

self-improvement or service.

Comparable projects Three projects illustrate the attractiveness of the area

Domaine du Château de Lavagnac A 17th century castle extensively renovated by Groupe France Pierre, with its 184 hectare estate

where 600 residential villas and apartments (from studios to 260m² villas) offered for sale from June

2014 as a “country club residence”. With its own winery, equestrian center and 18-hole golf course.

Includes a 1,000m² spa and wellness center. [1] on the map

www.lavagnac-countryclub.com

www.francepierre2.fr

Château Les Carrasses A 19th Century wine domaine in Quarante near Béziers, extensively restored by Domaine & Demeure

(in association with Bonfils Vignobles) as a luxury self-catering estate and boutique winery. Facilities

include pool, floodlit clay tennis, boulodrome and barbecue area, conservatory, orchard and olive

grove. A bistro and bar serve Mediterranean cuisine alongside the best regional wines and classic

cocktails. Luxury self-catering accommodation consists of 28 stylish suites, apartments and villas, many

with panoramic views, private gardens and pool, and all fashioned from the original buildings. [3] on

the map

www.lescarrasses.com

www.domainedemeure.com

Château-Abbaye de Cassan French developer SERCIB is currently conducting the renovation of the Cassan abbey (owned since

2002) to be turned into a major wine tourism center with new wine making facilities, 120 key hotel,

250 seat restaurant. [2] on the map

www.chateau-cassan.com

© U

zège

Tra

nsa

ctio

ns

et

Dév

elo

pp

emen

t 2

015