INVESTORS GUIDE - JUNE 2016 Investing in Sports Tourism

SportsWorld USA Condominium Resort

Investing in Sports Tourism

What is SportsWorld USA?

Sportsworld USA is a purpose built resort commissioned to address the massive shortfall of accommodation in Foley Alabama, created not only by the rapid organic growth of general tourism in Southern Alabama but also by the projected high demand associated with the success of Foley Sports Tourism.

In May 2016 Jeff Rouzie, Director of Economic Development for the City of Foley said “The birth of Foley as a much needed Sports tourism destination together with the new Poarch Creek entertainment park has come together to create unprecedented occupancy requirements for the City of Foley.” Jeff went on to say “Over the next six years we could utilise an additional 3,000 rooms as a result of driving 2 to 3 million additional visitors to the area each year.”

Where is Sportsworld USA?

The resort is just a few miles inland from the magnificent white beaches of Gulf Coast Alabama. The areas of Gulf Shores and Orange Beach have firmly established the area as Alabama’s Riviera.

Why invest in SportsWorld?

Apart from forecasted visitor demand, which has highlighted a massive supply imbalance in the region, SportsWorld USA will offer room rates significantly below alternative accommodation in the area and a conservatively estimated utilisation of over 85% year round occupancy. Combining this with projected returns of at least 10% each year, net of all costs, make SportsWorld USA a compelling investment in the expansion of ‘Sports Tourism’ that is currently seeing huge growth in the county.

It is very rare to see a City Council working so closely with a Developer to ensure the success of a project.

Foley’s Executive Director of Sports, Don Staley and his team have already succeeded in attracting 100 new events in to the Foley Sport Complex prior to construction of the Sportsworld USA resort commencing and expects to attract an additional 200 events to the area by 2018.

Foley’s City Administrator, Mike Thompson, who has overall responsibility for overseeing the development of Foley as the new home of Sports Tourism in the USA said “SportsWorld USA Resort is being developed by an outstanding local development team with a track record of building superb developments in the area over many years. We welcome the much needed accommodation that the resort will provide for visitors to Foley.”

The development will be managed by a local resort specialist Management Company who currently manage and own approximately 1,300 high end condominiums with another 500 under construction in nearby Gulf Shores.

Property Investment Opportunity in the USA’s New Sports Tourism Destination

With construction planned for completion in Spring 2107, SportsWorld USA Condominium Resort will form an integral part of a planned 540 acre “Mega Sports” & Entertainment Complex which, as well as making Foley, Alabama a household name, will establish the area as one of the leading ‘Sports Tourism’ destinations in the USA.

The “Mega” Sports & Entertainment Complex will comprise:

The SportsWorld USA Condominium Resort (www.sportsworldusaresort.com)

The Foley Sports Tourism Complex (www.foleysportstourism.com)

The Paradise Walk Theme Park and Entertainment District

The City of Foley Indoor Arena Events and Conference Centre All the condominiums, which are available, now for pre-construction purchase, will have 3 bedrooms with en-suite bathrooms. They will be finished to a high stylish specification featuring wood flooring, granite working surfaces and the bathrooms tiled throughout. The bedrooms are to be carpeted and the kitchen fully fitted with cooker, dishwasher, refrigerator and microwave. The units are designed to split into 2 (2 beds / 1 beds) with secure access to each by separated lockable doors in the lobby so can be rented out separately or together. The condominiums are to be situated around a spectacular water park featuring a 1,500 foot long lazy river, multiple swimming pools and water slides, play and chill-out BBQ areas, a Club House with indoor pool, a Fitness Centre and a Community Room with kitchen.

Property Investment Opportunity in the USA’s New Sports Tourism Destination

In addition to all the events and attractions at the “Mega” Sports & Entertainment Complex, the area is planning to feature a nature park and a large array of retail, dining and entertainment establishments.

The massive Tanger Outlet Mall, which has 110 top designer outlet stores and 6 restaurants, is a short walk from the condominiums.

Foley is situated on the beautiful Southern Gulf Coast, famous for its stunning sunny beaches and beautiful scenery making this the perfect holiday destination to suit all the ages looking for a healthy, sporty leisure experience.

Strong demand for property associated with the resort is envisaged. We recommend you check the current state of play by contacting us at +44 (0)207 859 4179 E: sportsworld@remax.co.uk

SportsWorld USA Condominium Resort

*Architect’s Rendering

SportsWorld USA Condominium Resort

*Architect’s Rendering

SportsWorld USA Condominium Resort

*Architect’s Rendering

SportsWorld USA Condominium Resort

*Architect’s Rendering

SportsWorld USA Condominium Resort

Projected Investor Returns

Purchase Price: $425,000 (corner unit $430,000)

Unit Type: 3 bedrooms / 3 bathrooms

Gross Income to Investor

365 room nights x Blended ADR of $250 per night = $91,250 (Potential Gross Income)

$91,250 (PG) x 85% Occupancy = $77,563 Adjusted Gross

Total Estimated Annual Income $77,563 @ 65% to Investor = $50,416 Gross Income

Investor Expenses:

Home Owners Association: $285 per month / $3,420 annually

Inside unit insurance: $150 annually

Utility bill (electric/water): $250 per month / $3,000 annually

Real Estate Taxes: $1,250 annually

Total Annual Investor Expenses: $7,820

Net Income $42,596 – 10%

SportsWorld USA Condominium Resort

Why $250 per night ?

Local Hotels Avg. Rates Off Season

(March 2016)

Best Western on the Beach (2-star) $285

Hotel Magnolia (3-star) $149

Hilton Garden Inn Orange Beach (3-star) $209

Comfort Suites Foley-North Gulf Shores (2-star) $180

Hampton Inn Foley, AL (2-star) $160

Holiday Inn Express & Suites Foley (2-star) $150

Econo Lodge Inn & Suites (2-star) $117

Best Western Riviera Inn (3-star) $120

Quality Inn (2-star) $117

Average for standard hotel room $165

Assuming a 3 bed Condominium is twice this rate $330

We have assumed a blended rate of $250 per night and

85% occupancy in all calculations.

SportsWorld USA Condominium Resort

Projected Investor Returns

250

300

350

400

450

500

10.0% 12.4% 14.8% 17.1% 19.5% 21.9%

US$

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r n

igh

t

Return

Returns based on $425,000 purchase price and nightly rate 85% occupancy and 35% management fee

SportsWorld USA Condominium Resort

Projected Investor Returns

SportsWorld USA Condominium Resort

Projected Investor Returns

SportsWorld USA Condominium Resort

Projected Investor Returns

SportsWorld USA Condominium Resort

Pricing 3 bed/3 bath – All buildings similar pricing

Building No. 6 - South Elevation

Unit 401 Unit 403 Unit 405 Unit 407 Unit 409 Unit 411 Unit 413 Unit 415 Unit 417 Unit 419

Level 4 $430,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $430,000

Unit 301 Unit 303 Unit 305 Unit 307 Unit 309 Unit 311 Unit 313 Unit 315 Unit 317 Unit 319

Level 3 $430,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $430,000

Unit 201 Unit 203 Unit 205 Unit 207 Unit 209 Unit 211 Unit 213 Unit 215 Unit 217 Unit 219

Level 2 $430,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $430,000

Unit 101 Unit 103 Unit 105 Unit 107 Unit 111 Unit 113 Unit 115 Unit 117 Unit 119

Level 1 $430,000 $425,000 $425,000 $425,000 Mtg. Room $425,000 Mtg. Room $425,000 $425,000 $430,000

End Unit Int. Unit Int. Unit Int. Unit Int. Unit Entry Int. Unit Int. Unit Int. Unit Int. Unit End Unit

Building No. 6 - North Elevation

Unit 420 Unit 418 Unit 416 Unit 414 Unit 412 Unit 410 Unit 408 Unit 406 Unit 404 Unit 402

Level 4 $430,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $430,000

Unit 320 Unit 318 Unit 316 Unit 314 Unit 312 Unit 310 Unit 308 Unit 306 Unit 304 Unit 302

Level 3 $430,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $430,000

Unit 220 Unit 218 Unit 216 Unit 214 Unit 212 Unit 210 Unit 208 Unit 206 Unit 204 Unit 202

Level 2 $430,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $425,000 $430,000

Unit 120 Unit 118 Unit 116 Unit 114 Unit 112 Unit 110 Unit 108 Unit 106 Unit 104 Unit 102

Level 1 $430,000 $425,000 $425,000 $425,000 $425,000 $425,000 Mtg. Room $425,000 $425,000 $430,000

End Unit Int. Unit Int. Unit Int. Unit Int. Unit Entry Int. Unit Int. Unit Int. Unit Int. Unit End Unit

SportsWorld USA Condominium Resort

***** STOP PRESS ***** From 2017, The Foley Sports Tourism Complex will become the home of US Soccer and USA Lacrosse National and collegiate competitions and championships with events already booked to take place in 2017. National and International TV broadcasts of events in the Sports Complex should build Foley’s reputation for sport, leisure and healthy lifestyle, ensuring growth and employment in the area and strong demand for property purchase and short-stay managed rental accommodation in the area.

Source: Foley Sports Tourism

USEFUL LINKS

Frequently Asked Questions Legal Process and Adviser Currency Provider

Mortgage Broker Furniture Pack RCI – Vacation Club

T: +44 (0)207 859 4179

E: sportsworld@remax.co.uk

W: www.remaxinvest.property

SportsWorldUSA Condominium Resort

DISCLAIMER

This Document (The “Information”) is Confidential. By accepting this information, the recipient hereof (“You” or “Potential Purchaser”) represents and warrants that it will maintain the same in confidence and will not reproduce or further distribute all or any portion hereof.

This information does not constitute an offer to sell or a solicitation of any offer to buy any “Security” (as so defined in the U.S. Securities Act of 1933, as amended) and is void where prohibited by law. The information involves the potential pre-construction purchase of a Real Estate Condominium Unit (the “Unit”) in the Foley SPORTSWORLDUSA Resort, a Condominium, (the “Condominium) in the City of Foley, Alabama, USA. As a part of its purchase of the Unit or otherwise, the Purchaser is not required to enter into any rental agreement or rental management arrangement. Purchaser is aware that it may elect to occupy, rent or not to rent the Unit, and may use a Rental Agent of Purchaser’s choice, or no Rental Agent. Accordingly, there is no requirement that Purchaser hold the Unit available for rental for any period of time or use an exclusive Rental Agent. No resale profit, rental income, financial results or other economic benefit is guaranteed or assured. The sole purpose of this information is to assist knowledgeable, sophisticated and accredited potential purchasers in deciding whether to further investigate the purchase and ownership of a Unit, utilizing their separate, qualified and competent Financial, Tax and Legal Advisors (“Advisors”).

The information does not purport to contain all information that potential Purchasers and their Advisors may require to adequately investigate the risks & merits of the purchase and ownership of a Unit. Potential Purchasers should conduct their own due diligence, not rely on any financial assumptions, estimates or other “Forward-Looking Statements” contained herein, and consult with their Advisors and any other Professional that can help them understand and asses the risks associated with the purchase, ownership, potential rental performance, resale price, liquidity, tax issues, other economic benefits and any other items of importance to them.

No regulatory authority (State, Federal or Otherwise) has reviewed or approved the adequacy or accuracy of this information or recommended or approved the purchase of any Unit by any Party.

Cautionary Note Regarding Forward-Looking Statements Pursuant to the U.S. Private Securities Litigation Reform Act of 1995

This Information and other documents, including any documents incorporated herein by reference or delivered in connection with the subject matter hereof contain, and representatives or agents of the developer of the Condominium (“We” or “Us”) may from time to time make, "forward-looking statements" within the meaning of the safe-harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding:

In General: Estimated owners association (“Association”) budget items, amounts and adequacy thereof and of the timing of expenditure thereof. Estimates of Number of owners in the Association. Types and levels of insurance or the adequacy thereof. When or at what price a Unit might be re-sold. Return on investment. Interest rates, amortization schedules, advance rates or other terms of financing or that any financing may be available. Tax or other economic benefits. Financial results. Whether a Unit may be purchased utilizing retirement-restricted or pension-restricted assets. Strategies for risk management. Other meaningful factors tailored to this situation. For Purchasers considering entering the developer’s rental management agreement (which is not required as a condition to purchasing the Unit) or renting through another agent or using no agent: Gross or net rental income or rental expenses. Rental rates or average rental rates. Occupancy levels or rates. Operating expenses. Operating leverage. Financial leverage. Rental Market attributes or factors, present or future. Strategies or tactics for rental customer acquisition, retention, growth, market position and the like. Other meaningful factors tailored to this situation.

DISCLAIMER (continued)

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in any forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

Economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets. Volatility in the capital or credit markets. The success of existing and planned investments, initiatives, activities and businesses in the vicinity of the condominium project. The impact of conditions in the housing market and/or unemployment rates on the value or desirability of Units for occupancy, rental or resale. The occurrence of hostilities, political instability or catastrophic events. The Owner and rental customer experience on site and in the in the vicinity of the condominium project. Changes in rental customer or resale purchaser demand. The actual number of Units sold. Developments and changes in laws and regulations applicable to the Units, including the purchase, occupancy, rental or resale thereof. Changes in the price of fuel and other key materials and disruptions in supply chains for these materials. Closures or slowdowns and changes in labour costs and labour difficulties. Disruptions to technology networks, including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of operating systems, structures or equipment. [Other meaningful factors tailored to this situation.] Any forward-looking statement made in the Information is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

For more information about The SportsWorldUSA Resort and RE/MAX Invest and to follow us on social media, please use the website links below.

To check current availability of units in the development and for information about pricing and potential investor returns, please contact:

SportsWorld USA Condominium Resort RE/MAX Invest 45 Pont Street

Chelsea London

SW1X 0BU T: +44 (0)207 859 4179

E: sportsworld@remax.co.uk W: www.remaxinvest.property