Les Bordes opportunity

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Deutsche Bank AG is authOnS00 under German Banking Law (Competent authenty BaFin - Federal Financial Supervisory AutiOntyl arid auther6.00 and bunted 10 limited regulation Dy me MN Financial 0/ Mud Authority. 0001$ about the extent 01 Deutsche Banc AG'S atChonsallon and regulation by the Financial Conduct AVhenty are avoidable on requeSt 018080 051514 EFTA01116967 Overview of the opportunity Build the world's most exclusive residential development and country club 1,600 acre of unspoiled tranquility with a rich history Situated in the heart of the Loire Valley. the location of choice for generations of French royal families and aristocracy to situate their magnificent chateaux and hunting estates First archaeological evidence of settlement on Les Bordes estate dates back over 3.000 years: home to a small monastic order in the Middle Ages and hunting grounds for noblemen for centuries In 20th century. home and retreat of Baron Marcel Bich. founder of the Bic pen and razor empire In 1986. Robert Von Hagge created the "Augusta of Europe. an 18 hole course that would be one of the most sought after in the world Europe's number 1 golf course — Golf World "One of the not enchanting piaturc.ouc and tranquil settings in the whole 01 1Vall &reel Journal "Les Bordes raises expectations dangerously for the rest of our golfing life. Golf could get more luxurious, but probably only if each three-ball had its own personal team of ground staff just ahead of it. attending to each green with nail scissors and microfibre cloths. : i.l, 1.. . , • . . .L,. t.... .,t risk-rev—int architectural Financial Times "The course remains Ruben Von Ilagges linc4 work. As a picture of golfing excellence. there are few locations to rival Les Bordes." The Daily Telegraph "Eighteen of the moat terrifying but enjoyable holes imaginable? The Guardian "h should unquestionably. undeniably. he in anyone's top-five in the •orld." Golf World Magazine Perfectly located in the "Garden of France" • Nearest transportations - Nearest train station: 9km - Nearest airport: 47km 10km from Chateau de Chambord - 3i0 most visited historic monument in France Distance from Paris - 75 min by train - 90 min drive - 35 min by helicopter oximate flights times to Paris - from London:1h - from Moscow: 3h - from Doha: 5h30 - from New York: 7h - from Los Angeles: 10h30 Approximate helicopter times to Les Sorties: - from London: 1h30 - from Nice.1h45 Planning in place to create Europe's largest residential and leisure development Developments SO M SO FT Potential facilities to include 400 Los Bordes golf lodges 162.797 1.751.693 - Hunting estate 50 luxury Los Bordes estates 75.000 807.000 240 hotel branded residences 56.856 611.766 - Equestrian centre Other facilities 6.427 69.155 - Tennis academy Hotel 4.000 43.040 Spa 4.000 43.040 - Shooting academy Chateau Bel Air, boutique hotel 2.660 28.622 - Cookery school Total 311.739 3,354.315 - Car livery service Total land area 5.600.000 sq m - Adventure playground Total POS approved area 353.921 sq m Total build density 6% - 24 hour security 1 1 EFTA01116968 Key investment highlights Les Bordes Golf, a unique trophy asset Extraordinary planning consent with strong support from the regional and local authorities Attractive market with strong fundamentals Low risk profile with attractive returns Highly experienced team of advisors in place Golf course consistently ranked as number 1 in Europe by Golf World magazine and among the best golf courses in the world One-off opportunity in prime Western Europe Unique planning permission to develop a landmark resort of 3.8m sq ft within a world heritage site Exciting prospect for the region expected to generate c. 1.750 jobs Strong demand for high-end and luxury residential resort properties, driven by the substantial growth of wealth creation in emerging markets Most visited country in the world (c. 80m foreign tourists a year) with Chateau de Chambord amongst the top three most visited historic sites in France Already existing golf course leveraging Les Bordes' excellent reputation Self financing project in the third year of development thanks to residential phased sales resulting in limited cash flow requirements Full team of highly experienced professionals already mandated 2 EFTA01116969 Les Bordes Golf, a unique trophy asset Existing site Europe's number 1 golf course, Les Bordes Championship 18 hole golf course: - golf course, practice greens and driving range - offices, storage facilities, clubhouse: c. 11,000 sq ft 10 cottages providing 41 letting bedrooms: c. 23,000 sq ft Two further 18 hole golf courses: golf course, practice greens and driving range clubhouse: c. 8,000 sq ft storage building and ancillary building with apartment Château Bel-Air, an ornate 1906 château - main building: c. 29.000 sq ft ancillary buildings: c. 12,000 sq ft An equestrian property comprising a house, several stables and grazing land Proposed developments Les Bordes — private estate aimed at UHNW individuals Development of 50 super prime estates ranging from 400 to 2,000 sqm. These residences will have access to the services of the 5-star hotel Development of 400 prime golf homes of 300 sqm - Existing Château Bel Air to be refurbished and operated as a boutique hotel Le Ganay - master planned community open to the general public and aimed at a young and successful demographic Development of 240 hotel branded residences ranging from 160 to 300 sqm Development of amenities including a village square with retail units, tennis centre, fitness centre, shooting academy, equestrian centre, 200 acre children's adventure playground, organic farm and cookery school Development of a 5-star luxury hotel with beauty spa 3 EFTA01116970 Extraordinary planning consent with strong support from the regional and local authorities Permits and authorisations received 24 December 2009 6 June 2010 15 February 2011 19 July 2011 ■ 13 January 2012 24 April 2012 H 2 May 012 31 October 2012 6 January 2014 war POS (modification of land use) PUP (local Commune agreement for services) Diagnostic archaeological survey Tree clearance permission Site infrastructure permission Road and path declassification Land exchange with local Commune Water law permission Infrastructure work commenced Project phases (10-year development) Les Bordes Le Ganay Golf Le Ganay residences Amenities - Development of - Development of Agree hotel Development of 2 luxury homes new Ganay operator tennis. - Development of course Development of equestrian & 24 lodges Hotel & spa development 20 hotel branded residences shooting centre - Development of - Ganay course - Development of 6 luxury homes completed 60 hotel - Development of Hotel branded 52 lodges operational residences Amenities operational - Development of - Development of 16 luxury homes - Development of 124 lodges 80 hotel branded residences - Development of - Development of 23 luxury homes - Development of 176 lodges 60 hotel branded residences - Development of - Development of 3 luxury homes - Development of 24 lodges 20 hotel branded residences 4 EFTA01116971 Attractive market with strong fundamentals Strong demand for high- end and luxury residential resort properties, driven by the substantial growth of wealth creation in emerging markets Most visited country in the world 2012 International tourists (in m) I 46.4 _ j 29.3 Source: World TalliST Organize:ion 35.7 30.4 83.0' Top visited historic sites O Arc de Triomphe O Mont Saint Michel 10 Chateau de Chambord Attractive length of golf stays 8 nights or longer 22% 4-7 nights 56% 1- 3 nights 22% Strong growth of UHNWIs, our target market CAGR 2008 - 2012: 8.5% 2008 • North America • Asia-Rad& - Europa • Latin America • Middle East •Afelca UHNWI 10.1 10.8 11.1 O 11.9 ■ 2009 2010 2011 2012 Source: World Wealth report 2013. Capgen,tni Key demand factors for second homes 80% 60% 40% 20% 0% ; Cultural/ Golf I Beach Children's Madna Lake Ski historical entertainment attractions Source: KPMG Goa Insights 2O3 Source: Savors 2013 5 EFTA01116972 Low risk profile with attractive returns Self financing project in the third year of development thanks to residential phased sales results in limited cash flow requirements Financial summary Sale price (€1 sq ft) Net salesol (Em) Cost (E / sq ft) Total Costal(Em) Total Profit Residential development # of luxury estates 1.022 850 (279) (315) 535 63% # of luxury golf lodges 883 1,628 (200) (504) 1,124 69% # of hotel branded residences 883 561 (200) (173) 388 69% Total 3.039 (992) 2.047 Hotel & other facilities Additional value created from hotel and other facilities (€m) 104 Hotel and other facilities development costs(4) (Ern) (61) Inlrastructure Infrastructure development costs@) (€m) (66) Total estimated profit (Ern) 2,024 Profit on costs 1.8x Time horizon 10 years (1) Net sales post marketing. agency and legal tees with 2% inflation assumed on sale price per sq ft across project time horizon (2) Total cost post contingency and professional fees with 2% inflation assumed on COSI per sq ft across project time horizon (3) Includes central mfrastructure and existing chateau refurbishment (4) Includes Hotel and facilities development and central overheads 6 EFTA01116973 Highly experienced team of advisors in place Professional team gleede I I Programme Management Cost Management Project Management 2013 sales volume by region Continental US Europe 1% 9% 1 ) UK APAC 49% 41% APAC Europe& 5% Alma 13% US. Canada & SAmerica 82% Consultant Operations Infrastructure Architecture Sales and marketing Hotel Water Resort Sales Les Bordes I I VEOLIA I HKS Contractor Power Residential a Sales Hart Howerton Riko Group Dalkia UI Anderson Orr ge CHRISTIE'S se Golf Surveying/Roads Golf Course 12aoceicar r Cabinet Perronnet I Von Hagge IE Lefevre Pelletier I I Estate Management QVEOUA I bare/Planning EDSA Note: Additional local team members have since been engaged through competitive bid process for Architect of record. Environmental. SPS (health and safety). Soil Survey. Bissau de Controle (regulatory confonney) lcatlo PRCo 7 EFTA01116974 Appendix I ,aitional information EFTA01116975 Comparable developments Golf/Country club community sale prices s 2.419 tt 1 1.998 1,359 Fisher Island 1.299 1.223 1.217 1.200 Kiawah Island O Sheraton Pines 1.126 1.123 .O Coming to the market hotel branded residence sale prices GI 1.104 1,022 I 1,014 O w - r 924 to Golfe Juan Royal Mougins 883 829 CO .o 2 .0 co Average: 1,109 783 754 742 687 • • • • S m 4, 3 3 0 ,.. -O . . 0 O _. (n co O ti El El El II II El 3.369 I 2.722 ■ 232 2.020 1 012 1,777 1,766 1 ,346- " Average: 1,734 883 797 547 639 Kempinski Kempinski Kempinski Four Seasons Four Seasons Chedi Kempinski Chedi Penthouse Penthouse Apartment Apartment Apartment Penthouse Apartment Apartment 1. LB Hotel frmanzoneVilla Mandarin Mandarin Residence Oriental Oriental Villa Apartment EFTA01116976 Project master plan Le Ganay golf course - redesigned by Robert von Hagge 5-star hotel with branded residences Sports and Fitness village Village and Golf Club House Mayr Spa Hotel branded residences 1 Les Hordes private estates: 150 plots which can be combined to build ambassadorial estates or Lodg Les Bordes golf course 8 private estate ro pe's #1 golf course 10 EFTA01116977 Taxation on holiday homes in France The typical buyer of a holiday home in France tends be looking for low risk, long term value Most people will expect to own their properties for many years and are unlikely to be looking for a quick gain French Rental Income — Non-Residents French income tax on French rental earnings is payable by both residents and non-residents alike However France has double taxation agreements with many countries, so in most cases people are unlikely to be taxed twice on the same income - The basic rate is 20% of tax on the net rental income for non-residents. Non-residents are not liable for a further 15.5% social charges provided the property is a furnished letting Capital Gains Tax - If you are resident in the EEA then capital gains tax is charged at a rate of 19%. Plus a further 15.5% social charges. However the French system of taper relief reduces the amount on which capital gains tax and the social charge is levied - There is a complete exemption from capital gains tax after 22 years of ownership, with tapered relief from the 6th year of ownership. The method by which this is achieved is a discount of 6% a year from the 6th year, and 4% in the final 22rd year - There is complete exemption from the social charges after 30 years of ownership again with taper relief form the 6th year of ownership 11 EFTA01116978