Jackson Beach and Golf Resort
Samana, Dominican Republic

Table of Contents

1. Executive Summary
2. Projection Analysis
3. Maps and Photos
4. Demographics

Executive Summary
Jackson Beach and Golf Resort
Samana, Dominican Republic

The Opportunity:

The Developer has under contract approximately 2.1 million M2 (520 Acres) on one of the most beautiful beachfront properties on the north Atlantic shore of the Samana Peninsula. The negotiated price of $20.00 per M2 ($42 Million) was appraised higher by the Lender who approved a $100 million line of credit. The purchase terms are two equal payments; fifty percent or $21 million due on or before May of 2007 and subsequent balance due one year after completion of the new highway connecting the property to the Airport 5 kilometers away. The Developer anticipates the new road to be nearing completion to the property line by late 2007 or early 2008. By that time the Developer expects to have sold out of Phase 1 and 2, completed interior road access to the beach and construction of the Beach Club House/Sales Center.

The Developer has also secured an option for an additional 2.1 million M2 (500 acres) of adjoining property for future development which includes additional beachfront land. Twenty – five acres or 100,000 M2 has been included in this proposal with the intent of consummating a joint venture or out right sale (for a premium) the optional beachfront land in exchange for infrastructure, water and sewer to service this Hotel amenity area. This beachfront land of would be only dedicated to the Hotel Operation; Lobby, shops, Restaurants, Convention Center, Facilities and guest amenities. The Golf Development Condos, Suites and Villas will provide the actual Hotel guest quarters. Beach unit prices will set the trend for the golf course community and allow comparisons to prevail. Total integration to the Hotel is essential for a complete Resort community.

The Developer is inviting one or more equity investor partner(s) to underwrite the project in this early phase of planning and development in exchange for up to 70% of controlling interest. The more substantial financial backing, -the faster the project can advance in both presales and infrastructure prior to the road completion and the larger signature five star brand Resort/Casino Condo/Hotel Partner can be attracted. The profitability projected on the Optional Beach land has been included in this development for the benefit of all Equity partners entering into this early phase. Additional Optional land not included in this proposal will also be shared as part of this total development as well as any other out growth as a result of this project without prejudice. There is the potential for optional land acquisition to influence this project favorably to evolve into two Hotel/Condo projects sharing one champion 27 hole golf course and thereby virtually doubling the projections.

The Developer believes that he has secured this land prior to an exponential value escalation impact from the new road, particularly on property where the road directly traverses. The Developer was privy to the official road surveys and construction plans prior to being public knowledge and was able to act on it in time. Values are quickly escalating as speculators are combing the area in an attempt to capitalize on the new road.

The Property:

The Property is strategically located just 5 kilometers (3 miles) from the newly inaugurated El Catey International Airport servicing the Samana Peninsula. The property is one of the few beautiful development sites in this northern coast, given most of the beaches in this north shore have less attractive dark sand from heavy mineral deposits washing or surfacing at the beach. The government has not only commenced the new highway uniting all points of Samana with the Airport but also a new highway cutting the travel time to the capital of Santo Domingo in half from three hours to under two. Reliable electricity from the city of Samana is available at the property line.

Currently, the Samana Peninsula is dominated by small intimate Inns and Hotels and has only a few large developments planned in scattered areas. The nearest town to the property is Las Terrenas; a quaint intimate village popular with Europeans. The town has numerous quality restaurants and shops for a day trip and Banks and markets for year round residents. Development has been concentrated in the flat land areas near the largest city of Samana located just thirty minutes away.

The property is consistent with popular ecotourism character that Samana is famous for; lush tropical rain forest, waterfalls, pristine beaches with coral reefs and rising elevations more typical of pacific islands instead of the Caribbean. The north Atlantic coast is also famous for Humpback Whale watching, where they breach the surface in their mating ritual. The property has approximately one-mile of gorgeous Atlantic Ocean frontage with numerous areas of white sand beach and bluffs rising inland up to 320 meters in height. In some beach areas, some tree clearing will be required to open areas up that has overgrown close to the waters edge. The property has a diversity of contours of steep and gentle slopes, valleys, knolls and waterfalls fed from under ground mountain springs providing excellent limitless fresh drinking water quality.

Approximately 600,000 M2 (150 acres) will be dedicated to an 18 hole champion Golf Course and Club House exploiting both dramatic views, land marks, waterfalls and natural vegetation. A commercial retail development along the main road perimeter will create a much needed commercial district for visitors and future year round residents. There is also the potential for a marina development in neighboring dark sand beaches less attractive to Hotel development.

About the Dominican Republic:

The Dominican Republic possesses everything required for a high quality vacation destination experience, including great weather, spectacular ocean views, white sand beaches, dark blue warm ocean water and a stable government. It has been a favorite destination for European vacationers, resulting in over 3,000,000 tourists per year. Today Americans are increasing exponentially as word of mouth of a good value for a high quality vacation experience continues to be had by most. The increasing affluent tourism has resulted in a great demand for Hotel Condo and Villa development with a branded Five Star Luxury management. This project intends to capitalize on this trend in addition to offering a wide cross section of real estate property options from Condos to grand Villa Estates and lots. The affluent market also perceives a cost saving advantage in buying a Condo Hotel Unit versus paying $500 - $1,000 daily rate as a Hotel guest.

Recent important institutional, legal and infrastructure improvements have paved the way for; impressive macroeconomic indicators, high international investor confidence and a thriving tourist market. Signing of the CAFTA-DR trade agreement with the United States and Central America and the consistent ideal vacation climate are compelling reasons for optimism for the near future. The current political administration has imposed temporary high taxation enforcement to relieve the fiscal crisis inherited from the previous administration. However, much of the Tourist based development investment boom is a result of both foreigners and Dominicans alike enjoying the Tax free or at least tax reduction status imposed on profits emanating from tourist based development hotel and condominium projects. Tax relief has also been extended to rental income and property taxes for the buyers in tourist orientated developments, creating another strong reason to buy property.

Dominican labor pool offers an eager to learn work force willing work with pride. The government has extended the Haitian migrant labor force, who traditionally worked the sugar cane fields, into supplying an abundant labor force to meet the current construction boom demand. Haitians are currently working for wages as low as $12 to $15.00 per day on sites running 24 hour schedules to deliver pre-sold projects and hotels anxious to open soon.

The Project:

The 2.1 million M2 (520 acres) will be distributed in the following manner: approximately 420,000 M2 (100 acres) will be dedicated to infrastructure; 600,000 M2 (150 Acres) to the 18 hole Golf Course; 240,000 M2 (60 Acres) to Condominiums; 800,000 M2 (200 Acres) to Villas, Townhomes and Estate Lots; 40,000 M2 (10 acres) to commercial retail space. The conservatively projected project yield will be: 900 Bungalow Style Villas with Ocean/golf views averaging unit prices of $600,000; 100 premium 2,000 M2 (½ Acre) Estate Lots and 50 4,000 M2 (1 Acre) premium ocean/golf view Estate Lots ranging in prices from $750 – 1.5 million or $300. per M2 ($30. per SF). Approximately 3,200 Condominium/Hotel suites will be scattered about in 4 story/26 unit buildings (mixed configuration), ranging in prices from $199 for a 100 M2 (1,000 SF) 1 bedroom suite to $1.5 million for a 300 M2 (3,000 SF) 3-4 bedroom Penthouse Suite, -depending on final size, views and proximity to the Beach. Although the land is entitled to more than projected, it is important to retain a low density impact consistent with the ecotourism quality expected in Samana. Living and recreation areas will find landscaped privacy and quiet relaxation amongst a tropical back drop accentuated with waterfalls, rain forest nature trails, rivers and tropical gardens. The Signature Hotel will enjoy exploiting both the Ocean and the land environment in a cross section of guests at both ends of the affordable spectrum. Also the number and variety in the unit quality mix will offer variety in daily, weekly and even monthly rates for extended stays.

In a preconstruction promotion, Phase 1 and 2 are expected to sell out rapidly to investors who hope to catch the first price release and earn high appreciation as the project advances. Additional investor grade buyer sales incentives will include deep discounts in exchange for an immediate preconstruction advance closing. Only minimal initial infrastructure, models and grading of golf course will begin simultaneously to the initial international sales effort. The project will be propelled on pre-construction sales providing a 30% deposit at contract and released for construction; commissions and marketing budgets for the next phase roll out. Each phase will be treated as an individual project and allow for suitable financial options to execute the completion based on each sales success. Early Bird Buyers will have the opportunity to resell contracts through the Developer if a market is willing to pay more for being nearer to completion. Prices are expected to rise as the project advances and ultimately set record sales due to the lack of comparable competitive development in the immediate area. Buyer financing is available from a local bank for up to 80% mortgage at the rate of 9% for 10 years and Stuart Title handles all escrow disbursements and title insurance.

Condo Hotel Phenomenon:

No longer are lenders financing Hotel Developments for 100’s of millions of dollars, thus Hotels and Developers have partnered to recoup the construction investment to the satisfaction of all parties. It is a win win situation for all, including the baby-boomer buyer who wants a full service worry free vacation property in a five star Resort. Aside from the more obvious reasons of: amenities, security, rental income potential, management and maintenance solutions, furniture and décor packages; buyers are increasingly demanding a luxury lifestyle full of prestigious elite associations to fit their ego identity. Today their seems to be no logic or reason why premium luxury real estate continues to sell for record pricing other than the fact that it sells to the “got to have it, and don’t care what it costs elite” that collect status symbols even if for just a short while. This conspicuous consumer doesn’t care about how the property will offset annual costs, but does care that the property remains new and free of costly future assessments. A big relief to the buyer is the elimination of the intrusive, demanding and sometimes abusive owner’s association role in the property operation, -that so many buyers from prior experience have come to dread. No one objects to the regular replacement of unit furnishings because it contributes to charging high daily rates and assures significant appreciation that a five star reputation can sustain. The Signature Hotel also enjoys the variety of less premium (something for everyone) units to start at a lower price point rate or be able to provide extended stay rates to wintering guests. The Developer benefits from preconstruction sales at a higher price point and thus higher price per sellable square area, thanks to the immediate association a five star luxury brand reflects. The continued exposure of units to affluent guests assure resale potential that will ultimately escalate so high that the natural evolution of five star Hotel Condos will have to be fractional ownership for those needing only weeks of use annually. This trend is also supported by the mere fact that luxury hotel daily rates are currently so high that it justifies purchase when an annual pampering at a preferred property becomes attractive to a visiting guest.

About the Developer:

The Developer is a highly experienced Golf Course Resort Community Developer in the United States and has also developed a 9 hole course for a Spanish Hotelier in the Dominican Republic. In addition the Developer is a consultant and irrigation designer and contractor for the Golf Course Development industry. Currently the Developer is in negotiations or under contract for several Golf and Beach Resort properties throughout the Dominican Republic and the United States and maintains a complete staff of highly experienced professionals to undertake each project. United Capital Realty has partnered with the Developer to provide sales, marketing, design, management consulting and equity partnerships investor solutions for each project.