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Transcript of Dolphin Capital Investors - Corporate Presentation
www.dolphinci.com March 2013
COMPANY PRESENTATION
Dolphin Capital Investors Limited: March 2013
DOLPHIN OVERVIEW AND STRATEGY
2
Amanzoe Beach Club
Executive Summary 03
Dolphin at a Glance 04
Our Track Record Since the IPO 05
Our Projects 06
Dolphin Partners 07
Aristo 08
Major Shareholders 09
Dolphin Team 10
Financial Highlights 11
Balance Sheet as at 31 December 2012 12
Potential Cash Generation of Dolphin portfolio 13
Objectives for remainder of 2012 14
Dolphin’s Strategic Focus 15
Attractiveness of Investing in Dolphin 16
Dolphin Capital Investors Limited: March 2013 3
Executive Summary
› Dolphin is a leading global investor in the luxury residential resort sector with a unique coastal land portfolio of 63 million m2 and 59 kilometers of beachfront, located in 6 countries in the Eastern Mediterranean, the Caribbean and Latin America
› Five of the 14 major projects in Dolphin’s portfolio are under construction and are selling lots and residences. The current development plans include 22 hotels, 8 golf courses, 5 marinas and over 10,000 residential units.
› Dolphin also owns 49.8% of Aristo Developers, Cyprus’ largest holiday home developer and private landowner, with more than 25 years of experience and more than 60 projects currently under development
› Amanzoe, the first green field resort completed by Dolphin, became operational on 1st August 2012, and is already recognized as probably the best resort in the Mediterranean and among the top resorts in the world
› Dolphin has no bank debt at the Company level and a low overall consolidated debt to total asset value ratio of 14%
› The completion of the first phases of the projects under construction is expected to unlock over €550 million of cash returns in the next 5-6 years and will spearhead the development of Dolphin’s remaining portfolio
› Dolphin’s portfolio has the potential for a cash return of c.€ 4.2 billion over the coming 12 years against a current market cap of c. € 278 million
› The Company is closely held with c. 14% of the stock owned by the Company Managers, while another c. 70% is owned by 9 institutional investors: Third Point, BlackRock, Fortress, Tosca fund, Telford, J O Hambro, F&C, Fir Tree and SC Fundamental.
Dolphin Capital Investors Limited: March 2013 4
Dolphin at a Glance
Dolphin is a leading global investor in the residential resort sector in emerging markets and one of the largest real estate investment companies quoted on AIM of the LSE in terms of net assets, with a Net Asset Value of € 709 million BDITL
Amanzoe
LAND UNDER DEVELOPMENT
63 million m2
LARGE-SCALE LEISURE-INTEGRATED RESIDENTIAL RESORTS
14 major projects
OTHER SMALLER ARISTO PROJECTS
60+ residential projects
DIRECT COASTLINE
59 kilometres
RESIDENTIAL CAPACITY
10,000+
(2 PERMITTED)
5 marinas
(5 PERMIITED, 2 CURRENTLY OPERATING)
8 golf courses
(12 PERMITTED, 2 CURRENTLY OPERATING)
22 hotels
Dolphin Capital Investors Limited: March 2013 5
Our Track Record Since the IPO in December 2005
› Raised a total of €948 million in equity and $40 million of debt. The latest equity placement of €50 million in October 2012 was led by Third Point and the Investment Manager to strengthen the Company’s balance sheet and accelerate the development of its portfolio.
› Invested approximately €836 million to acquire one of the largest seafront developable land portfolios in eastern Mediterranean, Caribbean and Central America
› Acquired 100% ownership of Aristo, the largest development company and private real estate owner in Cyprus, which was listed on the Cyprus Stock Exchange, in a pioneering Public-to-Private transaction
› Achieved preliminary or final zoning for 12 out of 14 major projects and for almost the entire Aristo land portfolio with current plans for 22 hotels, 8 golf courses, 5 marinas and over 10,000 residential units
› Partnered with the some of the world’s most acclaimed masterplanners, architects, designers, luxury operators and marketing experts to create world-class resorts
› Created Amanzoe, operative since August 2012, and already recognized as probably the best resort in the Mediterranean and among the top resorts in the world
› Executed the Aristo Exchange, a €375 million transaction concluded at NAV, whereby Dolphin exchanged 50.25% of its shareholding in Aristo against a 34.14% stake in Dolphin which was held by the Aristo CEO
› Generated over €490 million of sales, which have been executed at a premium to NAV
Rapid capital deployment and significant value creation while adhering to stringent risk management criteria
EXECUTED
€ 490 m
OF SALES SINCE IPO
Dolphin Capital Investors Limited: March 2013 6
Our Projects
Greece % size
1 The Porto Heli Collection 100% 3,470,000 m2
2 Sitia Bay Golf Resort 78% 2,800,000 m2
3 Kea Resort 67% 650,000 m2
4 Scorpio Bay Resort 100% 1,717,000 m2
5 Lavender Bay Resort 100% 3,100,000 m2
6 Plaka Bay Resort 60% 4,400,000 m2
7 Triopetra 100% 110,000 m2
Cyprus
8 Venus Rock Golf Resort 49.8% 10,000,000 m2
9 Eagle Pine Golf Resort 49.8% 3,190,000 m2
10 Apollo Heights 100% 4,610,000 m2
Croatia
11 Livka Bay Resort 100% 630,000 m2
Turkey
12 Mediterra Resorts 100% 120,000 m2
Dominican Republic
13 Playa Grande 100% 9,500,000 m2
Panama
14 Pearl Island 60% 14,440,000 m2
Other projects Cyprus 49.8% 3,920,000 m2
Aristo Hellas 100% 270,000 m2
Total 62,890,000 m2
Project Locations in the Americas Project Locations in the Eastern Mediterranean
Major Projects
14
LARGE-SCALE DEVELOPMENT
PROJECTS IN GREECE CYPRUS CROATIA,
TURKEY, THE DOMINICAN REPUBLIC
AND PANAMA
Dolphin Capital Investors Limited: March 2013 7 7
Dolphin partners Operators and designers
currently in place
Operators currently in
discussions
www.banyantree.com
www.bulgarihotels.com
www.fourseasons.com
www.stregisresidences.com
www.ritzcarlton.com
www.amanresorts.com
www.garyplayer.com
www.kempinski.com
www.oppenoffice.com
www.denniston.com.my
www.ghmhotels.com
www.nicklaus.com
www.tonyjacklin.com www.harthowerton.com
www.nikkibeach.com
www.waldorfastoria.hilton.com www.oberoihotels.com
www.edsaplan.com
Dolphin Capital Investors Limited: March 2013 8
Aristo
3,000+
HOLIDAY HOMES SOLD IN THE PAST FIVE YEARS
Aristo’s competitive advantages include:
› The largest private landowner in Cyprus
› Cyprus’ largest holiday home developer, both in terms of annual turnover and number of units sold
› 29 years of development expertise and market knowledge
› Over 3,000 holiday homes sold over the past five years
› Portfolio includes hundreds of constructed homes and thousands of additional residential units under planning
› Extensive sales network in Cyprus, Greece, the UK, Russia, China, Ukraine and Scandinavia
Dolphin holds a strategic 49.8% shareholding in Aristo Developers, the largest residential real estate development company in Cyprus
Dolphin Capital Investors Limited: March 2013 9
Major Shareholders
Company Number of shares %
Third Point LLC 129,000,000 20.08%
Dolphin Capital Holdings 86,774,952 13.51%
BlackRock Investment Management 76,627,431 11.93%
Fortress Investment Group 53,271,702 8.29%
Toscafund Asset Management 41,084,669 6.40%
Telford International Ltd 34,700,000 5.40%
J O Hambro Capital Management Ltd 33,456,128 5.21%
F&C Asset Management 31,964,717 4.98%
Fir Tree Inc. 31,205,000 4.86%
SC Fundamental 21,749,800 3.39%
Total 539,834,399 84.03%
Other 102,605,768 15.17%
Shares in issue 642,440,167 100.00%
Dolphin Capital Investors Limited: March 2013 10
Dolphin Team
› Dolphin is managed by Dolphin Capital Partners (“DCP”). The DCP team comprises over 25 professionals
and was set up by Miltos Kambourides and Pierre Charalambides in 2004. The DCP investment, finance and
asset management teams oversee the various projects
› Through its various project subsidiaries, Dolphin has development teams totaling over 400 people with more
than 25 years of experience and with a focus on high-end development, project management and operations
Miltos Kambourides Managing Partner
Pierre Charalambides Founding Partner
Miltos Kambourides is the Founder and Managing Partner of Dolphin Capital Partners. Prior to
founding Dolphin Capital Partners in 2004, Miltos was a Founding Partner of Soros Real Estate
Partners, a global real estate private equity business formed in 1999 by George Soros. Prior to
joining Soros, Miltos spent two years at Goldman Sachs working on real estate private equity
transactions for the Whitehall Funds. Miltos graduated from the Massachusetts Institute of
Technology with a BS and MS in Mechanical Engineering and a BS in Mathematics.
Pierre Charalambides is the Co-Founder and Partner of Dolphin Capital Partners. Prior to
founding Dolphin Capital Partners in 2004, Pierre worked at a Soros Real Estate Partners
initiative with Miltos focused on real estate opportunities in Southeast Europe. From 1999 to
2003, he worked at JPMorgan where he advised on various financial transactions of over US$6
billion and prior to that he worked at Hilton International where he executed numerous new
hotel development projects. Pierre holds an MBA from INSEAD and two BS degrees from the
Management School of The Hague.
Dolphin Capital Investors Limited: March 2013 11
Financial Highlights
As at 31 December 2012 :
› Sterling NAV per share before DITL of 90p
› Gross assets of € 910 million
› Net Asset Value before DITL of € 709 million
› Total Debt of €132 million and Group total debt to asset value ratio of only 14%
› No bank debt at the Company level. The Company has only provided corporate guarantees
on the $40 million Playa Grande Convertible Bonds, and the servicing of Banco Leon loan
interest at Playa Grande. The Company is expected to increase its direct debt in the near
future through the issue of €50 million of convertible bonds.
assets
14%
TOTAL GROUP DEBT TO ASSET
Dolphin Capital Investors Limited: March 2013 12
Balance Sheet as at 31 December 2012
ROBUST BALANCE SHEET
€709m NAV BDITL
Condensed consolidated statement of financial position
31 December
2012
31 December
2011 €' 000 €' 000 Assets Real estate assets (investment and trading properties) 579,609 598,733 Equity accounted investees 285,560* 306,750* Other assets 50,046 13,075 Cash and cash equivalents 22,181 25,058 Total Assets 937,396 943,616 Equity Equity attributable to Dolphin shareholders before DITL 708,600* 724,485* Non-controlling interests 32,293 35,955 Total equity 740,893 760,440 Liabilities iInterest bearing loans and finance lease obligations 140,351 133,544 Other liabilities 56,152 49,632 Total liabilities 196,503 183,176 Total equity and liabilities 937,396 943,616
*Amounts include the 49.8% DITL of Aristo
Dolphin Capital Investors Limited: March 2013 13
Potential Total Cash Generation of Dolphin Portfolio
› Four Advanced Projects :
› more than €550 million of net cash returns or circa 70p per share, from the development and sale of their first phases over a period of an average of 6 years starting from 2012
› circa €1.5 billion of net cash returns or circa 189p per share through the development and sale of all phases over an estimated period of 12 years 2012-2023
› Ten Other Major Projects:
› spread over 2,160 hectares of land with plans to build and sell approximately 662,000 residential buildable m2
› with estimated net cash generation of c.€1.2 billion over the next 12 years
› residual building coefficient of c. 1.45 million m2 , with a future value of c. €1.16 billion (based on an estimated average value of €800 per buildable m2)
› Aristo Developers:
› largest developer and private land owner in Cyprus, with currently more than 72,000 buildable m2 of residential product in stock or under construction, circa 318,000 m2 of readily available retail land plots with a total listed sales potential of over € 95 million and a vast portfolio of land assets with potential to sell over 676,000 residential buildable m2 once fully developed
› Following the recent restructuring, Dolphin retains a strategic 49.8% participation in Aristo. Upon market recovery, Aristo is expected to have a dividend capacity in excess of €30 million per year
› Based on the above, the Investment Manager estimates Dolphin’s total portfolio net cash generation potential to be circa €4.2 billion spread over the next 10-12 years
TOTAL PORTFOLIO CASH
GENERATION POTENTIAL OF C.
€4.2 bn
Dolphin Capital Investors Limited: March 2013
Strategic priorities for 2013
14
1. Conclude the issue of the new Convertible Bond
2. Continue to sell Amanzoe Villas
3. Progress the development of the Aman Golf Resort at Playa Grande
4. Promote and sell the Founder Aman villas at Playa Grande
5. Follow up on the completion of the Founders’ phase infrastructure works and leisure facilities at Pearl Island
and complete a JV agreement to develop the Ritz Carlton Reserve phase of the project
6. Assist Aristo’s management in increasing retail sales to China, Russia and the UK allowing it to return to net cash
generation, reducing leverage and distributing dividends to Dolphin
7. Implement the already executed sales and collect the future proceeds
8. Successfully complete the additional divestment negotiations currently underway and initiate new ones to
further demonstrate the true value of the portfolio
9. Pursue further NAV accretive, attractively-priced or distressed acquisitions in eastern Mediterranean and
the Americas
10.Advance construction of Nikki Beach
11. Continue the construction of the infrastructure and leisure works at Venus Rock allowing for the successful
launch of the residential sales of the new phases in autumn 2013
12.Advance the zoning and permitting of Dolphin’s other Major Projects, enabling the Company to sell them –
either partially or wholly – at a profit, or develop them and realise their full cash return potential
Dolphin Capital Investors Limited: March 2013
Attractiveness of Investing in Dolphin
15
Investing in Dolphin offers the opportunity to participate alongside world class institutional investors in an otherwise closely held company offering a unique risk / return investment proposition:
› Blue chip institutional shareholder base and fully aligned Managers being one of the largest shareholders in the Company
› Leader in the residential resort sector with 14 large-scale and 60 smaller projects in 6 countries providing a geographically diverse land portfolio
› Portfolio of 59 km of spectacular zoned coastlines representing one of the most appreciating asset classes in the world and offering a good hedge against inflation
› Network of partnerships with top resort brands and a dedicated development team with more than 25 years of development experience
› Fully capitalised to execute its current plans
› Low risk proposition with zero debt at the corporate level and only 14% loan to value on remaining SPVs whose debt has no recourse to Dolphin, apart from the $40 million Playa Grande Convertible Bonds and the servicing of the interest on the $5 million Banco Leon loan at Playa Grande
› Dolphin’s four Advanced Projects estimated to generate net cash returns over a period of an average of 6 years of over €550million and €1.5billion over the coming 10 years, as all phases of the Advanced Projects are completed
› Entire Dolphin portfolio has potential to generate circa €4.2billion of cash returns over the coming 10 - 12 years against a current market cap of c. €278 million
Dolphin currently trades at an 60% discount to Net Asset Value and 49% to original cost of investment and this represents a unique investment opportunity with significant upside
Dolphin Capital Investors Limited: March 2013 16
APPENDIX A: ADVANCED PROJECTS
The Seafront Villas
Dolphin Capital Investors Limited: March 2013 17
Four Advanced Projects Overview
› Advanced Projects are 4 of the 14 major projects in Dolphin’s portfolio, considered to be advanced in the sense that they have commenced development and sales or are already operating
› The total residential capacity of these projects is:
- Approximately 720,000 buildable m2 for sale, with c. 310,000 m2 planned for their first phases; plus
- Over 3.4 million m2 of retail land plots for sale
› Estimated net cash returns to Dolphin of first phases of Advanced Projects of over €550 million or 70p per share and estimated total potential development net cash returns of c. €1.5billion or circa 189p per share
› Completion of first phases expected to unlock significant profitability of remaining phases with little or no requirement for additional Dolphin equity
› Amanzoe, at Porto Heli, commenced operations in August 2012 and the remaining three projects already commenced construction. The first phase infrastructure and leisure facilities of Venus Rock and Pearl Island are planned to be completed by the end of 2013 and Playa Grande by end 2014, when all 4 Advanced projects are to become cashflow positive from the sales of residences.
The Porto Heli Collection Greece (100% ownership)
► www.portohelicollection.com
Venus Rock Golf Resort Cyprus (49.8% ownership)
► www.venusrock.com
Playa Grande Dominican Rep. (99% ownership)
► www.playagrande.com
Pearl Island Panama (60% ownership)
► www.pearlisland.com
€550m
PROFITABILITY POTENTIAL OF FIRST PHASE OF ADVANCED
PROJECTS
Dolphin Capital Investors Limited: March 2013
Potential Cash Generation by the Advanced Projects
18
Residential Units Land Plots Leisure
(€ million) Sales Costs Sales
Leisure Net Operating Income
Leisure Terminal Values
Leisure Construction Costs
Project Cash
Advanced Projects
The Porto Heli Collection 100%
First phase 202 85 23 31 70 42 199
Other phases 536 193 - 342
738 279 23 31 70 42 541
Venus Rock 49.8%
First phase 384 199 - 1 21 21 186
Other phases 211 101 - 110
595 300 - 1 21 21 296
Playa Grande 100%
First phase 159 73 2 11 56 30 124
Other phases 268 143 161 286
426 216 162 11 56 30 409
Pearl Island 60%
First phase 45 14 - 5 12 6 42
Other phases 356 236 76 196
401 250 76 5 12 6 238
TOTAL 2,160 1,045 261 48 159 99 1,484
Basic Assumptions: ─ All cost assumptions cover future development, marketing, sales, branding and agency and do not include already incurred expenses for land acquisition and development. ─ The above cash returns do not include annual management and performance fees, and corporate overhead costs during the period. ─ For the Other Phases of the Advanced Project, the above cash returns do not include financial costs. ─ Following the sale of the Founders’ Phase of Pearl, the first phase of Pearl Island is now assumed to be the Ritz Carlton Reserve phase. ─ No inflation adjustments have been made. ─ Cash returns are calculated on a before corporate income tax basis. Actual taxes would depend on the jurisdiction of each project and the structure of each specific sale transaction. ─ Residential units are assumed to be developed on a “sell and build basis”, apart from minor investments in “show” units. ─ Net Operating Income of the Advanced Projects is calculated over a period of at average seven years. The sale of the Leisure components assumes that the hotels, golf courses and other leisure
components are sold at exit at a multiple to their NOI ranging from 8x to 10x. ─ No interim project exits have been assumed.
Dolphin Capital Investors Limited: March 2013 19
THE PORTO HELI COLLECTION Peloponnese, Greece
first
VILLA INTERGRATED
AMAN RESORT IN
EUROPE
Dolphin Capital Investors Limited: March 2013 20
The Porto Heli Collection www.portohelicollection.com Partners
Location Region of Argolida, near Porto Heli (one of the most upmarket, second home residential areas in Greece)
Access Within 2-hours driving distance from Athens International Airport and two hours by ferry from Piraeus Port
Special features
Probably the most exclusive development in Greece, to host a range of high-end, masterplanned, leisure-integrated residential resorts, in a serene environment with panoramic sea views
Area size 347 hectares
Composition First phase
› Amanzoe, a 38-pavilion hotel and spa designed by Ed Tuttle, opened on 1 August 2012
› The Aman Beach Club, opened on 1 August 2012
› The Aman Villas, serviced by the Aman hotel
› The Nikki Beach Resort & Spa at Porto Heli, which will include hotel suites as well as apartments for sale
› The Seafront Villas
Other phases
› The Chedi with 102 hotel rooms, spa, 40 club suites and 40 residences Jack Nicklaus Signature Golf Course
› Golf boutique hotel, golf clubhouse and c. 225 golf residences
› Equestrian centre, tennis academy, kids’ club, beach club.
Design › Aman facilities masterplanned and designed by Ed Tuttle
› Chedi hotel and residences, golf clubhouse and golf villas masterplanned and designed by Jean Michel Gathy (Denniston International)
› Golf course designed by Jack Nicklaus Signature Design
Dolphin Capital Investors Limited: March 2013
VENUS ROCK GOLF RESORT Cyprus
21
largest
SEAFRONT RESIDENTIAL RESORT
UNDER DEVELOPMENT IN EUROPE
Dolphin Capital Investors Limited: March 2013 22
Venus Rock Golf Resort www.venusrock.com Partners
Location Between the towns of Limassol and Paphos, next to Aphrodite Hills
Access Cyprus’ most significant golf resort area, located 10 minutes from Paphos International Airport and one hour from Larnaca International Airport
Special features
Europe’s largest residential beachfront resort development
Area size 1,000 hectares with 850m of beachfront
Composition First phase
› Two 18-hole Golf Courses designed by Tony Jacklin
› Two Golf Club Houses
› A Nikki Beach Club
› Approximately 1,000 Villas and 261 Plots
Other phases
› More than 2,000 residential units
› Retail, commercial and leisure facilities
› A 5-star hotel with spa and branded villas operated by Nikki Beach
› Marina and other sport facilities
Design A truly integrated residential resort, masterplanned by EDSA. The golf clubhouse and commercial facilities have been designed by Robert A.M.Stern, who also designed the first phase of multi-family residential units and established the architectural guidelines for custom-built units.
Dolphin Capital Investors Limited: March 2013
PLAYA GRANDE CLUB & RESERVE Dominican Republic
23
first
GOLF-INTERGRATED AMAN RESORT IN THE
WORLD
Dolphin Capital Investors Limited: March 2013 24
Playa Grande Club & Reserve www.playagrande.com Partners
Location Northern coast of the Dominican Republic, situated between the towns of Cabrera and Rio San Juan, each approximately 8 km away from the site
Access Approximately an hour’s drive from Puerto Plata International Airport and Nagua Airport. The journey time to Santo Domingo has been reduced to two hours due to completion of a new highway
Special features
First golf-integrated Aman Resort in the world. Operating golf course often referred to as the ‘Pebble Beach of the Caribbean’, designed by Robert Trent Jones Sr, and with 10 direct oceanfront holes (more than any other golf course in the western hemisphere) running alongside 20 m-high cliffs bordering the Atlantic Ocean. Playa Grande Beach perceived as one of the most spectacular beaches in the Caribbean.
Area size Approximately 11 km of seafront, spread over approximately 950 hectares of land
Composition First phase
› A 30-room Aman Hotel designed by John Heah (the first Aman Resort in the Dominican Republic and the first Aman golf-integrated resort in the world)
› The Playa Grande Aman Beach Club
› A new Golf Club House, fitness, spa and tennis facilities
› 38 Aman Villas serviced by the Aman Hotel
› The renovation of the existing, legendary Robert Trent Jones, Snr. Golf Course based on new designs by his son Rees Jones
Other phases
› Approximately 400 additional residential units (beachfront, hill-top and cliff villas)
› Tennis, spa, beach and equestrian clubs
Design Project masterplanned by Hart Howerton. Golf course renovation design undertaken by Rees Jones, son on Robert Trent Jones, Sr. Aman Resort designed by Heah & Co led by John Heah
Dolphin Capital Investors Limited: March 2013 25
PEARL ISLAND, ARCHIPELAGO DE LAS PERLAS Panama
largest
PRIVATE ISLAND RESIDENTIAL RESORT
DEVELOPMENT IN
CENTRAL AMERICA
c.30 km
OF SEAFRONT WITH 14
PRIVATE BEACHES
Dolphin Capital Investors Limited: March 2013 26
Pearl Island www.pearlisland.com Partners
Location In the Archipelago de las Perlas, approximately 40 nautical miles south of Panama City
Access Accessible by boat in 1 hour and by air in 20 minutes. Project permitted for its own airport
Special features
› Largest private island residential resort development in Central America
› 70% of the island is retained as a natural reserve park
› A unique ecosystem, marine and bird sanctuary
› Natural harbour set to become one of the largest marinas in Central America
Area size 1,440 hectares with a total seafront of 30 km and 14 private sandy beaches
Composition Founders' Phase (7% of the island) - sold
› Beach club, spa and other leisure facilities
› A 40-berth and 30 dry-dock marina
› Approximately 200 residential units (villas and plots)
› Private landing strip
First Phase - Ritz Calrton Reserve (3% of the island)
› 80-key Ritz Carlton Reserve hotel with beach club and related amenities
› Approximately 80 branded residential units
Other phases (90% of the island)
› Development potential for over 425,000m2 of buildable residential space or approximately 945 residential units and lots for sale
› Up to four additional luxury 5-star hotels
› Marina with up to 500 berths and retail facilities
› Recreational and sports facilities, including scuba diving, whale watching, fishing, over 40 kilometres of natural biking, hiking and equestrian trails
› International airport
Design Masterplanned by Hart Howerton
Dolphin Capital Investors Limited: March 2013 27
APPENDIX B: ADDITIONAL CORPORATE INFORMATION
View from the beach of Playa Grande
Dolphin Capital Investors Limited: March 2013
Investment Principles
Country Selection Criteria
› Emerging new economies with significant tourist inflow
› High barriers to entry for foreign investors without local network
› Beautiful coastlines, unspoilt landscapes, pleasant climate
› Wealth of outdoor activities, safety, rich history and culture
› Limited supply of serviced residential resorts managed by luxury international operators
› Commitment and legislative initiatives from local governments to nurture sustainable luxury tourism and second-home industry
› Significant capital appreciation potential as they converge with mature economies
28
Investment Parameters
› Large coastal land sites of striking natural beauty with residential development potential
› Located near the sea and within driving distance from an airport
› Development capacity for residential units (villas, town houses and apartments), and leisure components such as a hotel, golf course, country club, spa facility, marina or other sporting facilities
› Potential for comprehensive residential services (such as food and beverage, concierge services, health services, security maintenance and property management) and leisure experiences (such as sports, adventure travel, excursions, spa, arts, culture and nature-oriented activities)
› Attractive locations for affluent holiday and retirement home buyers, primarily from Europe, Russia, the Middle East, Latin and North America
Risk Mitigation
› Land acquisition prices which are at a big discount to south-west Europe and North America
› Conservative phasing of the projects
› No speculative building of homes
› Financing of the residential construction through pre-sales
› Financing of the leisure components mainly with ring-fenced non-recourse bank debt on a project-by-project basis
› No or limited borrowings at the corporate level
Dolphin acquires attractively-priced seafront sites of exceptional natural beauty and transforms them into fully permitted, high-end, premium-branded development projects, capitalising on its in-house expertise of over 25 years.
low-risk APPROACH
Dolphin Capital Investors Limited: March 2013
Value Creation Strategy
29
Realise significant returns from land permitting, brand and development and from land price convergence with mature markets
Dolphin takes advantage of low land prices and compelling medium- term supply/demand dynamics to generate significant capital appreciation
Identify locations with potential for high capital appreciation in emerging resort market
Acquire unique large developable land sites at attractive prices
Partner land sites with the world’s best designers, operators, marketers and strong local partners
Design high-end, branded, leisure-integrated residential resorts
Obtain construction permits through a low-risk and well-planned process
Attract international private and institutional investors with sophisticated marketing
Exit or monetise upon full permits being obtained or develop alone or with partners
niche STRATEGY
Dolphin Capital Investors Limited: March 2013
Project Land site (hectares) DCI's stake Investment
Cost * Debt Real Estate Value Loan
to real estate asset value (%) ( €million) ( €million) ( €million)
Advanced Projects
1 The Porto Heli Collection 343 163 40
2 Venus Rock 1,000 50% 83 -
3 Playa Grande 950 100% 35 44
4 Pearl Island 1,440 60% 28 -
Total 3,733 - 309 84 444 19%
Major projects
5 Sitia Bay 280 78% 17 -
6 Kea Resort 65 67% 9 -
7 Scorpio Bay 172 100% 14 -
8 Lavender Bay 310 100% 24 -
9 Plaka Bay 440 60% 7 -
10 Triopetra 11 100% 4 -
11 Livka Bay 63 100% 24 10
12 Apollo Heights 461 100% 12 21
13 Eagle Pine-Aristo 319 50% 18 0
15 Aristo Hellas 27 100% - 11
14 Mediterra Resorts 12 100% 30 6
Total 2,160 - 159 48 268 18%
Other - Aristo Cyprus 392 50% 86 n/a 126 0%
Grand Total 6,285 554 132 838 16%
30
Group Investment Position
diversified
PORTFOLIO
*Including amounts paid in shares
Dolphin Capital Investors Limited: March 2013 31
Dolphin Portfolio Breakdown by Country as at 31.12.2012
Breakdown by Real Estate Value
► Greece €363m 43.3%
► Cyprus €294m 35.1%
► Croatia & Turkey €59m 7.0%
► Americas €122m 14.5%
Total €838m 100.0%
Exposure by Net Investment
► Greece €238m 42.9%
► Cyprus €199m 35.9%
► Croatia & Turkey €54m 9.8%
► Americas €63m 11.3%
Total €554m 100.0%
Breakdown by Debt
► Greece €51m 38.5%
► Cyprus €21m 16.2%
► Croatia & Turkey €16m 11.9%
► Americas €44m 33.4%
Total €132m 100.0%
Breakdown by Land Size (hectares)
► Greece 1,648 26.3%
► Cyprus 2,172 34.6%
► Croatia & Turkey 75 1.2%
► Americas 2,390 38.0%
Total 6,285 100.0%
Breakdown by NAV
► Greece €288m 40.7%
► Cyprus €300m 42.3%
► Croatia & Turkey €52m 7.2%
► Americas €69m 9.8%
Total €709m 100.0%
Dolphin Capital Investors Limited: March 2013 32
Asset Valuations
› Dolphin’s asset valuations are undertaken by Colliers and updated on a quarterly basis
› Dolphin’s NAV reflects current land prices based on existing uses and market comparables and does not take into account:
− Value upside from future permits
− Expected operating cash flows or sales
− Value from high-quality design and branding
− Market growth or inflation
› Total sales achieved to date are over €490million, representing a considerable premium to the relevant Colliers valuation
› Latest Dolphin NAV reflects significant valuation reductions effected by Colliers for Greece and Cyprus in the past 4 years, in spite of permitting advances, to reflect the adverse market conditions globally and locally
› Dolphin’s accounts are audited by KPMG
Dolphin Capital Investors Limited: March 2013 33
Other Major Projects
Sitia Bay Golf Resort Kea Resort
Partners
Location The island of Crete
Dolphin Ownership
78%
Access A 10-minute drive from Sitia International Airport, a 1.5-hour drive east from Heraklion International Airport and a 15-minute drive from Sitia Harbour
Special features
A secluded peninsula of unspoiled natural beauty on the largest of the Greek islands and the most popular Greek tourist destination with 2.3 million visitors in 2007
Area size 280 hectares with 2.5 km of seafront
Composition › Over 80,000m2 of buildable residential units
› A 200-room Warldorf Astoria resort
› A convention centre
› An 18-hole championship golf course
› A golf clubhouse
› A 32-berth marina
› A beach and country club and other leisure facilities
Design Masterplan and hotel design by WATG. Nicklaus Design has been appointed as the golf course architect
Partners
Location The island of Tzia (Kea)
Dolphin Ownership
67%
Access 1-hour ferry ride from Lavrio Harbour and a 15-minute drive from Athens International Airport. Regular ferry services from Lavrio all year round
Special features
Dramatic sea views and a spectacular sandy beach offering a natural harbour and a safe shelter from the Aegean winds
Area size 65 hectares with private beach
Composition › Aman hotel and residences
› Beach club
Design Designed by Heah & Co led by John Heah
Dolphin Capital Investors Limited: March 2013 34
Other Major Projects
Scorpio Bay Resort
Lavender Bay Resort
Partners
Location Skorponeri, Voiotia region, making this probably the closest luxury seaside residential resort to Athens
Dolphin Ownership
100%
Access 1- hour’s drive from Athen’s International Airport
Special features
A mountainous peninsular of unspoilt natural beauty overlooking a secluded bay and the island of Evoia, and within a 1-hour drive from the ski resort of Mount Parnassus
Area size 172 hectares with approximately 2 km of sea frontage
Composition Luxury Oberoi operated hotel and full service spa, integrated with a residential development and sea-related leisure facilities
Design Hotel and villa designed by Heah & Co led by John Heah
Partners
Location Near the town of Volos, in the region of Thessalia, at the mouth of Pagasitikos Gulf
Dolphin Ownership
100%
Access Approximately 2.5-hours drive from both Athens and Thessaloniki International Airports. Also 20-minutes’ drive from New Aghialos International Airport
Special features
Unspoilt, undulating hills fronted by a 2 km beach and surrounded by forest
Area size 310 hectares with 2 km of seafront
Composition › A 180-room Kempinski operated hotel
› More than 220 branded residential units
› More than 390 non-branded residential units
› An 18-hole Gary Player Signature golf course
› Beach club and other leisure facilities
Design Masterplan by EDSA, golf design by Gary Player and hotel and residences design by Chad Oppenheim (Oppenoffice)
Dolphin Capital Investors Limited: March 2013 35
Other Major Projects
Plaka Bay Resort Triopetra
Partners
Location The island of Crete
Dolphin Ownership
60%
Access A 40-minute drive east from Sitia International Airport, a 2-hour drive east from Heraklion International Airport and in close proximity to Sitia Harbour
Special features
Easternmost point of Crete
Area size 440 hectares with 7 km of seafront
Composition › A residential development of over 100,000m2
› One or more five-star hotels
› Other supporting recreational facilities and potentially an 18-hole golf course
Design Masterplan prepared by Hart Howerton
Partners
Location On the southern side of Rethymno Prefecture, Crete
Dolphin Ownership
100%
Access Approximately 54 km from Rethymno, the Prefecture’s capital and main port. The international airports of Heraklion and Chania fall within a distance of approximately 104 km and 124 km
Special features
Dramatic sea views and a spectacular sandy beach
Area size 11 hectares with a 280m façade along a marvellous, scenic sandy and pebbly beach, with crystal clear waters
Composition › A 60-room luxury five-star hotel with restaurant, retail, spa and fitness, water-sports, outdoor activities and nature treks
› Approximately 8,870 residential buildable m2 of non-branded villas
Design Permit design prepared by Aristo Developers architectural team
Dolphin Capital Investors Limited: March 2013 36
Other Major Projects
Eagle Pine Golf Resort Apollo Heights Resort
Partners
Location Inland, with stunning sea views, overlooking the Episkopi and Akrotiri regions near Limassol
Dolphin Ownership
49.8% (after the Aristo Exchange)
Access Less than an hour’s drive from both the island’s international airports
Special features
A few kilometres from Apollo Heights Polo Resort and a 15-minute drive from Venus Rock
Area size 319 hectares
Composition › Golf facilities and a residential development component to up to 100,000m2 of residential units
Design Masterplanning by EDSA, golf design by Graham Marsh in association with Hans-Georg Erhardt, resort design by Porphyrios & Associates
Partners
Location Near the town of Limassol
Dolphin Ownership
100%
Access Less than an hour’s drive from both of the islands international airports
Special features
With excellent views of the sea, the mountains and neighbouring villages, the site is also adjacent to a number of polo fields and an 18-hole golf course
Area size Approximately 461 hectares, 500m away from the beach
Composition › Hotel facilities
› Residential units
› Polo fields
› 18-hole golf course
Design Masterplanned by EDSA and golf course by Tony Jacklin Design
Dolphin Capital Investors Limited: March 2013 37
Other Major Projects
Livka Bay Resort Mediterra Resorts
Partners
Location The bay of Livka on the south end of the island of Solta, off the Dalmation Coast
Dolphin Ownership
100%
Access 20 km boat ride from Split International Airport
Special features
One of the first luxury residential resorts on the Dalmation coast
Area size 63 hectares with 3 km of seafront
Composition › Luxury hotel with 60 suites
› Approximately 200 private serviced residences and apartments
› 160-berth marina
› Other supporting recreational, sports and retail facilities
Design WATG
Partners
Location The Antalya region of sourthern Turkey
Access A 1.5-hour drive from Dalaman International Airport to La Vanta and 115 km from Antalya International Airport to Port Kundu
Special features
› LaVanta development is very close to the well-known beaches of Kaputas and Patara, and within walking ditance from Kalkan beach
› Port Kundu’s homes will be surrounded by water canals along the banks of the Aksu river, and a private marina will offer home owners direct access to the sea
Area size › LaVanta: 8 hectares, 5 minutes drive to the sea
› Port Kundu: 4 hectares, situated on the water canals, and in turn only a 10-minute walk to the beach
Composition › LaVanta is a development of over 25,000m2, comprising over 120 villas and townhouses. Phase 1, comprising 49 homes, has been completed in 2009. The delivery of homes to owners commenced in May 2009
Design Cemal Mutlu and Xavier Bohl
Dolphin Capital Investors Limited: March 2013 38
General Terms and Conditions
The information in this presentation, which is for background and informational purposes only, is preliminary in nature and subject to change. This presentation has not been issued for circulation to the general public. This presentation does not constitute an offer or invitation to enter into any contract or commitment with Dolphin Capital Investors (‘Dolphin’).
Neither Dolphin nor its subsidiaries nor any of their respective officers, employees, managers, agents or shareholders have verified any of the information or opinions set out in this presentation and do not represent or warrant their accuracy or completeness. Nothing in this presentation is, or should be relied upon as a promise or a forecast and no representation or warranty is given as to the accuracy, achievement or reasonableness of any future projection, forecast or other statement.
All statements are based on future expectations rather than on historical facts and are forward looking statements that involve a number of assumptions, risks and uncertainties. The Company and the Investment Manager cannot give any assurance that such statements will prove to be correct. Any forward looking statements made by or on behalf of the Company are made only on a best estimate basis as of the date they are made and they do not constitute future earnings, revenues or profits forecasts or guidance. Neither the Company nor the Investment Manager undertake to update forward looking statements to reflect any changes in expectations, events, conditions or circumstances upon which such statements are made.
Dolphin and its subsidiaries as well as their respective officers, employees, agents or shareholders disclaim to the fullest extent permitted by law any and all liability for representations, either express or implied, whether contained in or omitted from the presentation in any other written or oral communication made in connection with this presentation.
This presentation is confidential and neither it not any of its contents may be reproduced in whole or in part or passed on to any person without the consent of Dolphin Capital Partners (‘DCP’). This presentation is not intended to be an inducement to a contract, no is it intended to form the basis of an investment decision. Receipt of this document does not constitute the giving of the investment or other advice by Dolphin or DCP and recipients are recommended to consult their own independent advisers.