Our company N.Z. Paradise Hotel (Overseas) Ltd. has been incorporated as an offshore company in Cyprus for the purpose of investing in the tourism industry in Brazil.

 

About 18 years ago we decided to commence our investment plan and proceeded initially with the purchase of over 225. 000 m2 of land part of which is environmentally protected mangrove. At Ilha Da Croa, Barra Do Santo Antonio, near Maceio, in the state of Alagoas in the north-east of Brazil, where the sun shines all year round and the temperature ranges from 24 to 34ºC.

 

The Dourado Coast, extending from Maceio to Recife, was selected by the World Bank for tourist development in Brazil because of its beautiful landscape and ideal climatic conditions.  The World Bank finances the necessary infrastructure and when the whole project is finished it is anticipated to be the most successful tourist destination in Central and South America, better than the Caribbean and Cancun.

 

The plot is planted with more than 4.000 fully grown coconut trees and other tropical fruit trees, cultivated organically without any chemical fertilizers.  On one side the plot ends on a white sandy beach of the Atlantic Ocean.  The beach about 25km in length has been officially named, by the local authorities, as Praia Capt. Nikolas and is considered among the six most beautiful beaches in Brazil.  Three miles off the coast there are spectacular coral reefs.  On the other side the plot ends at the Santo Antonio River, with mangroves where 1.000 different species of crab live.

 

Our Investment plan consists of four phases.

 

Phase one included the purchase of the land and the construction on it of a small hotel as a pilot plant.  The first phase was completed in late 1996 at a total investment of about US$16 mil (exchange rate at the time of investment: R$1= US$1.18) realized exclusively with our own capital. The hotel and Shareholders do not have any loans or mortgages.

 

Since then we have been operating the 5-star Boutique Captain Nicolas Ecological Island Resort Hotel, consisting of 39 guest cottages (150 beds), reception and administration building, restaurant, service areas, gym with 4 saunas and steam baths, conference/night club hall, tennis, beach volley-ball and basket ball courts, swimming pool, beach bar and kiosks.

 

After operating the pilot hotel for the last nine years we feel it is time to proceed with the second phase of the planned investment, the construction on the same plot of the Captain Nikolas Beach Village, consisting of an apartment-hotel with 336 residential units, swimming pool, food courts and restaurants, service and administration areas and additional sports and recreational facilities.  The total investment is budgeted at EURO 33.0 mil being EURO 13.0 mil for purchase of existing improvements and land plus EURO 20.0 mil for new improvements. It is expected to be self-financed to a great extend by the sale of the residential units.  We calculated that the pay back period of the investment is two to three years with the internal rate of return on the investment of more than 24%.

 

The basic idea behind the Captain Nikolas Beach Village is to rent the residential units, while unoccupied by the owners, as a part of the already operating Hotel.  Thus the owner of the unit will have an income from his investment, which income is expected to pay back for the investment in about 8 years of rental operations.

 

For the future we have planned phases 3A & 3B and phase 4.  Phase 3 consists of the construction of a 5-star resort hotel with 368 keys, complete with conference facilities, thalasso-spa and additional pools and sport/recreational facilities.  In Phase 4 the purchase of additional land is contemplated for the construction of an ecological/farm hotel, golf court and a small marina for yachts.

 

At this point, for personal reasons and being fully occupied with other activities, we are unable to implement the project ourselves and thus we are looking for buyers interested to purchase wholly or partly Captain Nikolas Hotel.

 

In case you are interested we can send you our updated 2008 feasibility study, which concerns the construction and sale of the apartment hotel as well as the construction of a separate 5-star hotel.  These are our own ideas of how to develop the available land, which can be considered for construction purposes separately, in any sequence, or together.  Of course there could be a series of alternative ideas that could be considered as the particular property has tremendous potential for a number of different types of development.

 

To enable you realize the true prospects of the specific region we can also submit to you a preliminary information document of Ondazul Resort International’s new mega investment consisting of a number of hotels, hotel apartments, residential projects, marina, sport facilities etc scheduled to be realized in an area that is only about 7km away form our property and which will occupy about 10km of beach, under the management of Four Seasons, according to recent information.

 

Also we can send you a CD-Rom with about 160 photos of the property, video tape, prospectus of the existing hotel as well as additional documents regarding the registration, shareholders, directors and other related issues for both N.Z. Paradise Hotels (Overseas) Ltd. and N.Z. Exotic Paradise Hotels Ltda.

 

Should you need any additional information and/or clarification kindly note that we are available to meet you at any place, preferably at Captain Nikolas Hotel – Brazil, to provide you with the same.