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I N V E S T M E N T P R O S P E C T U S

C O N T E N T S

INVESTMENT OPTIONS ................................... 2

COMPARATIVE MARKET VALUES ...................... 3

COMPARATIVE RENTAL RATES ......................... 4

WHY INVEST IN THE CORAL ............................. 5

PURCHASING IN BRAZIL .................................. 9

SAFEGUARDS & GUARANTEES ....................... 10

SUMMARY OF SERVICES ................................ 11


P L O T I N V E S T M E N T

The first step when investing at The Coral is purchasing a plot. The

table below shows the investment costs from purchasing a 450 sqm

(4,844 sqft) plot at The Coral. Capital growth on land plots at The

Coral is estimated between 10% and 15% per annum.

PLOT INVESTMENT US$

Plot Price (Royal Dunes Community) $40,500

Closing costs 6% $2,430

Admin fees $1,800

TOTAL INVESTMENT $44,730

ESTIMATE PLOT PRICE Year End 2018* $46,778

*All plot prices are in US dollars. This scenario is based on the price of a 450 sqm (4,844 sqft) plot. The price of these plots once infrastructure works has been completed (2018) will be US$46,778. Plot prices vary depending on their location and size within the resort. Admin fees cover the costs of drawing up the contract, lawyers’ fees, transfer of the deed and other administration costs. The figures included in this scenario are estimates based on current property growth values in the market. They are used to provide an example only and may be subject to change

I N V E S T M E N T P R O S P E C T U S 02

I N V E S T M E N T O P T I O N S

V I L L A R E N T A L I N V E S T M E N T

This investment option is to buy a plot and build a villa to let short-term to the

tourist market. Investors will earn from instant equity on completion, capital

appreciation and an annual rental income. In addition, they have the option to

use the property themselves.

I N V E ST M E N T CO ST R $

TOTAL INVESTMENT1 R$ 965,675

INVESTMENT RETURN - 65% OCCUPANCY R $

Gross annual rental income2 R$ 256,230

Marketing Costs R$ 38,435

Property Management R$ 54,449

Variable Costs R$ 48,284

Community fees R$ 3,000

NET ANNUAL RENTAL INCOME R$ 112,063

ANNUAL RENTAL RETURN 11.60%

1 This price includes plot price, building costs, cabinet package, furniture package, swimming pool, gardens, irrigation system, fence, closing costs and administration fees.2 This is the estimate gross annual rental income of the villa once the beach club is operational and the hotel launched, based on comparative market values.

The figures included in this scenario are estimates based on current values in the market. They are used to provide an example only and may be subject to change. Plot prices are in US$ whilst build costs are in R$. Figures may vary slightly according to actual currency exchange rates.

V I L L A I R A C E M A

V I L L A I N V E S T M E N T R E N T A L S C E N A R I O

Detailed villa

investment scenarios

available on request.


C O M P A R A T I V E M A R K E T V A L U E SComparative analysis of similar new build, completed properties in local areas and surrounding Fortaleza.

03

LOCATION PROPERTY TYPE R E S O R T A M E N I T I E S SIZE SQM SALES PRICE R$ PRICE/SQM R$

TRAIRI 4 Bedroom House No 120 R$1,500,000 R$12,500

ECO RESIDENCE RESORT, TRAIRI

3 Bedroom House

Yes With beach club, swimming pools, sauna,

bars, gym, tennis and football.

121 R$1,000,000 R$8,264

4 Bedroom House 240 R$1,800,000 R$7,500

5 Bedroom House 240 R$1,500,000 R$6,250

6 Bedroom House 250 R$2,000,000 R$8,000

ALTO DAS DUNAS, FORTALEZA 4 Bedroom House Yes. Recreation area with swimming pool,

sauna, games room, gym. 117 R$750,000 R$6,410

SAFIRA, ALTO DAS DUNAS, FORTALEZA 4 Bedroom House

Yes. Recreation area with childrens playground, adult and child pools, BBQ area,

games room, gym, sauna and other relax areas.185 R$1,089,630 R$5,890

TRAIRI ECO RESIDENCE RESORT, TRAIRI

ALTO DAS DUNAS, FORTALEZA SAFIRA, ALTO DAS DUNAS, FORTALEZA

Updated: May 2018 | Sources: vivareal.com.br / trovit.com.br / propertyportal.com


C O M P A R A T I V E R E N T A L R A T E SRental rates of the most comparable tourist accommodation in the area.

04

ORIXAS ART (DAYÓ) HOTEL - FLECHEIRAS BEACH

YEAR 2 0 1 8 2 0 1 9AVG. ANNUAL PRICE / NIGHT

MONTH MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR

AVG. PRICE PER NIGHT

Master Suite (165 m2)R$1.200 R$1.200 R$1.390 $1.200 $1.200 $1.200 $1.200 $1.200 $1.390 $1.200 $1.200 $1.200 R$1.232

ZORAH BEACH HOTEL - TRAIRÍ

YEAR 2 0 1 8 2 0 1 9AVG. ANNUAL PRICE / NIGHT

MONTH MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR

AVG. PRICE PER NIGHTVilla (140 m2)

R$2.000 R$2.000 R$2.500 R$2.000 R$2.250 R$2.275 R$2.300 $2.420 R$2.690 R$2.520 R$2.150 $2.300 R$2.284

KEY HOLIDAY DESTINATION

The Coral is situated in an area that has been a firm favourite for Brazilian

holidaymakers for years. It is renowned for its exquisite natural beauty

and variety of tourist attractions.

The state of Ceará is currently recording its best tourism figures ever

with both the state and its capital, Fortaleza, ranking among Brazil’s

top holiday destinations. An Airbnb survey in spring 2018

reported that searches for Carnival 2018 rose by 115%

on 2017 and income from the holiday letting platform in

Fortaleza rose by 60%, the fourth highest in the country.

Internationally, the state has considerably raised its

profile as Fortaleza Airport has become the Air France/

KLM flight hub for Northeast Brazil. In mid-2018, the

airport offered 47 direct international flights a week

to 14 destinations including Paris, Amsterdam, Orlando and Miami

(up from just 14 in 2017) and 25% more domestic flights covering all

large Brazilian cities. State authorities expect international tourist to

increase by 20% in 2018 compared to 2017.

The beaches in northern Ceará are increasingly being discovered as

superb holiday destinations for Brazilians as well as international

visitors. In April 2018, the holiday portal Kayak ranked Praia de Mundaú

as one of the best places in Brazil for a honeymoon and of its tips for

13 beaches to visit in 2018, three were in Ceará. The Diário do Nordeste

described Flecheiras as “one of the best places to enjoy quiet holidays

away from the hustle and bustle.”

In addition, the area has recently increased its presence on the

international kitesurf circuit and enjoys an excellent reputation as one of

the best places in Northeast Brazil for kitesurfing thanks to its unspoilt

beaches and favourable weather conditions.

The Coral is strategically located to access the key attractions and places

of interest that bring visitors to the state.

HIGH DEMAND FOR LUXURY PROPERTY

According to The Knight Frank Wealth Report 2018, the world’s ultra-

high-net-worth individuals (UHNWIs) have grown in number and with

them, their wealth. In Brazil, the UHNWI population grew between 20%

and 30% between Q1 2016 and Q1 2017. The number of Brazilians with

assets in excess of US$5 million and US$50 million are both set to rise

by 26% by 2022. While the so-called demi-billionaires will increase by

31% in Brazil. The report also found that 24% of Latin American UHNWIs

plan to buy property in their own country and 28% abroad in 2018.


W H Y I N V E S T I N T H E C O R A L

“The Coral will bring

a completely unique

residential and vacation

experience to the area. ”

The area north west of Fortaleza, where the resort is located, is under

represented in scope, scale and quality of luxury resorts that cater for

both the residential and tourism markets. Tourist accommodation

currently consists of lower-end pousadas and boutique hotels

with minimal or no additional facilities, amenities or services. In

addition, tourist accommodation currently has occupancy rates

of almost 100% indicating the demand that is already present and

the need for more accommodation in the area.

The Northeast has always been a favourite domestic

holiday and second home destination for Brazilians,

and there is an increasing trend towards rental vacation

accommodation in place of staying in hotels. The Coral

will cater exactly to this demand from the increasing

prosperity of the Brazilian population looking for

second homes and resort-style holidays in Northeast

Brazil

The Coral will bring a completely unique residential and vacation

experience to the area. A long list of onsite amenities, leisure

facilities, social conveniences, health and well-being therapies

in exquisite natural surroundings and concierge services will be

provided all within a sustainable development.

There are a number of key aspects that make The Coral suitable to

its target market.

A study carried out by Credit Suisse in late 2017 saw the number of

millionaires in Brazil set to rise by 81% by 2022, almost four times the

global rate (22%). Increased sales in luxury markets such as high-end cars,

yachts, tourist packages and property have already been noted. Praia de

Guajirú specifically is an already established holiday destination amongst

wealthy Brazilians. Second homes in Praia de Guajirú are a popular option,

however, there is a severe shortage of luxury second homes in the area and

a lack of resort accommodation with high-end facilities.

The Coral provides a solution to this shortage offering 5-star standards and

services, luxury private villas and beachfront apartments alongside an

extensive list of onsite amenities. The Coral will provide an option for both

purchasing second homes and renting luxury holiday accommodation.

GROWING DOMESTIC WEALTH

Brazil’s middle and upper classes are expanding in line with the country’s

increasing GDP per capita. They currently represent 104 million Brazilians whose

aspirations include resort holidays and second homeownership. The Boston

Consulting Group estimates that affluent households (earning over $45,000)

will increase from 3.7 million households to 5.6 million in the decade to 2020

and will account for 29 per cent of Brazilian consumption. ‘Established income’

households (earning between $30,000 and $45,000) will grow from 3 million to

4.6 million. The Coral’s high-end resort accommodation and facilities appeals

directly to this growing wealthy sector of the Brazilian population.

HOLIDAY LETS INCREASING

Demand for holiday rental accommodation in Ceará is growing significantly.

Brazilians are increasingly seeing the benefits of holiday rentals over hotels

and locations with stunning beaches and warm weather are where demand

is strongest. Alugue Temporada, the Brazilian subsidiary of HomeAway,

highlights that Ceará combines these two requirements to perfection with

its spectacular coastline and year-round warm sunshine. In addition, the

increasing number of foreign visitors to Ceará show a preference for holiday

let accommodation. The Coral will offer a number of options for holiday

lets within a full-service resort and in a breathtaking beach front position.

ONSITE FACILITIES

The Coral will offer a comprehensive range of onsite facilities, amenities

and services that are not currently offered anywhere else in the area. In

particular, the well-being centre and exclusive beach club will separate The

Coral from other residential and tourist options. The resort will provide an

exceptional quality of living and a unique holiday experience.

LOCAL ATTRACTIONS

The Coral is in an ideal location at the heart of Ceará to access all the main

tourist attractions and sporting activities that bring visitors to the state. This

combined with the spectacular surrounding natural environment of the

area provides residents and tourists the ideal place to be when holidaying

or residing in Ceará.

A C T I V I T I E S

Surfing, windsurfing & kite surfing

Largest waterpark in South America

Sand Dune Surfing

Beach Buggy and Quads

Snorkelling / Diving

Fishing

Canoeing and Catamarn trips

Shopping Malls (comparable to US and Dubai)

Museums, historic monuments and Theatres in Fortaleza

Traditional craft markets

Adventure sports - rock climbing & abseiling

Paragliding

T O W N S & C I T I E S

Fortaleza / Trairi / Mundau / Flecheiras

Praia de Guajiru / Cumbuco

N AT U RA L AT T RACT I O N S

Parque Nacional de Jericoacoara

Rio do Cocó Ecological Park, one of the largest city parks in South America

Lagoa do Sapiranga Park

Sertão semi-arid natural oasis

Lagoons and sand dunes at Mundau

Coral reefs

Km of palm lined, sandy beaches

L O C A L A T T R A C T I O N I N C L U D E :


BUOYANT LOCAL PROPERTY MARKET

Fortaleza has one of Brazil’s fastest-growing property markets. Prices have

increased by 79.65% since March 2010 to August 2018 according to the

FipeZap Asking House Price Index. Sales values went up by 14% in 2017

to R$1.9 billion and launches of new-build properties rose by 77%. At the

end of December, supply had dropped to 6,900 although the city and state

have a deficit of around 400,000 units.

In early 2018, many banks increased the Loan-to-value on mortgages from

70% on resale properties and 80% on new builds. This together with the

historically low interest rate of 6.5% (May 2018) makes property purchase

much easier for Brazilians.

The Ceará coastline ranked second in the world’s best places for property

investment in 2018 for Live and Invest Overseas. “Rentals targeting the

local holiday market can earn better than 8% new yield reliably,” said the

report, adding that plot prices in the area are “a global bargain”.

SHORTAGE OF RESIDENTIAL PROPERTY

According to Coopercon-CE (the Ceará civil construction cooperative),

Ceará has one of the lowest inventory levels in the country with very strong

pent-up demand for property. The deficit in Fortaleza alone is 120,000

properties, a figure that rises to 400,000 when the whole state is taken

into account. The Coral offers villas and apartments, and is in an ideal

commuter location being only one hour twenty minutes to Fortaleza. This

is of particular interest for those who want the choice of an exclusive living

experience not far from the capital city.

PECÉM PORT COMMUTER BELT

Pecém Port, 93km south of The Coral, is currently undergoing major

expansion in both its freight facilities and its industrial complex. In its third

phase of expansion, the port is already handling record levels of freight

and is one of the most important import/export hubs in Brazil. The port is

one of the main engines behind Ceará’s economy.

Pecém Port is recruiting thousands of highly-paid, educated, professional

workers from across the country and internationally, as well as providing

job opportunities for the local population. These relocating professionals

will require quality accommodation within easy commuting distance and

with additional services for their families. The Coral is an easy commute

away with comprehensive onsite facilities and state-of-the- art security. It

is one of the few resorts in the area meeting such requirements.

PROXIMITY TO FORTALEZA

Fortaleza, the state capital of Ceará, is situated only one hour and twenty

minutes from The Coral resort. The journey time has been dramatically

reduced from two hours and thirty minutes thanks to the completion of a

new coastal road.

Fortaleza regularly ranks as one of the country’s most visited holiday

destinations. Visitors rose by 6.2% at Christmas 2017 and by 14.5% during

Carnival. International visitors rose by 11.7% between January and

October 2017.

ARCHITECTURAL DESIGN

The architectural design of the resort will appeal to the target market due

to its unique style and high-quality finish. Features such as the pyramid-

style buildings, freeform swimming pools and natural materials give a

luxurious and elegant look to the resort that would be expected from five-

star destinations.

Many tourists and second home buyers choose this particular area because

of the beauty of the natural environment. An integral part of the resort’s

design is to maintain the original natural beauty of the site, and this will

be a key driver attracting buyers and visitors to The Coral.


“An integral part of the resort’s design is to

maintain the original natural beauty of the site”


BUYING LAND & PROPERTY IN BRAZILForeign nationals are permitted to purchase and own 100% freehold on land and property in Brazil, and the government actively encourages foreign investment.

PROPERTY PURCHASE COSTSBuyers of Brazilian property are liable for costs and fees associated with the purchase and these usually average between 6 and 7 per cent of the purchase price, depending on the location of the property:

• Property tax (known as ITBI in Brazil). The amount varies depending on the district where the property is situated;

• The drafting, signing and registration of title deeds;

• Notary and registrar fees.

• Translation of deeds.

ADMINISTRATIONBRIC Group takes care of all the legal aspects of your purchase and ensures you fully understand all the legalities and proceedings when purchasing Brazilian property. Legal costs are included in the administration fee for the plot (US$1,800). Compulsory power of attorney has an additional cost (approximately US$500).

BRIC Group will:

• Provide comprehensive advice and information on buying a property in Brazil.

• Check the property has the correct title;

• Check for any charges or liabilities outstanding on the property;

• Check the financial status/credibility of the owner.

• Revise the contract and advise you on its contents and your obligations.

• Provide a translation of the contract into your language.

• Represent you at the notary’s office for the signing of the title deeds.

• Guide you through the payment and transfer of funds.

• Ensure the property is registered in your name.

TAX CONSIDERATIONSOwning a property in Brazil involves certain tax considerations. We can provide all buyers with a comprehensive guide to Brazilian taxes on request.

PURCHASE PROCESSBuying a plot is straightforward and involves the following steps:

1. You sign a reservation form and pay 10 per cent deposit plus US$1,800 administration fee. This fee covers legal fees, translation costs and registration of the title deeds plus courier charges etc.

2. BRIC Group Compliance Officer prepares the purchase contract for your approval and signature. Once signed, this is sent to your legal representatives.

3. You pay the outstanding amount of the plot purchase price within 2 to 4

weeks (unless you have a finance option) and arrange Power of Attorney. The Compliance Officer will advise on the necessary procedure for this.

4. Your legal representative finalises the closing costs, paid by you before the title deeds are signed by the notary and your representative via Power of Attorney in Brazil.

5. You receive full title to the plot and the deeds. The entire process takes approximately 12 weeks.

BRAZILIAN TAX NUMBERIn order to buy property in Brazil you need a Brazilian tax number (Cadastro de Pessoa Fisica/CPF). BRIC Group will organise your CPF on your behalf.

MONEY TRANSFERFunds being sent from non-Brazilian banks into Brazil for property purchase go via the Central Bank of Brazil (CBB). However, we have other bank transfer options available if required.

BRAZILIAN BANK ACCOUNTUnless you have a permanent resident visa, opening a bank account in Brazil can be a complex process. Our team based at our Brazil office can assist with this and all aspects of administration regarding the purchase of property in Brazil.


P U R C H A S I N G I N B R A Z I L

AWARD-WINNING RESORT

The Coral in its short history has won several awards from the Americas International Property

5* award for Best Residential Development in Brazil 2017-2018


Highly commended award for Leisure Architecture Brazil 2016-2017

5* award for Best Residential Development in Central and South America 2016-2017


Highly commended award for Mixed-use Development Brazil 2015-2016

5* award for Best Residential Development in Central and South America 2014-2015


Highly commended award for Mixed-use Development Brazil 2014-2015

Highly commended award for Architecture Single Residence 2014-2015

Highly commended award for Property Single Unit 2014-2015

Consultants On-hand

Each and every client has a personal BRIC Group consultant who is available to advise on any aspect of The Coral and your investment. They will guide you through every step both before and after your purchase and assist you in maximising your investments.

In-house Compliance Officer

BRIC Group’s in-house compliance is dedicated to ensuring every purchase at The Coral is a smooth process and that all clients are kept fully informed of the legalities and process of their purchase.

Full Permissions and Licences in Place

The Coral holds overall planning approval for the resort, beach club and infrastructure works. All villa plots have building permission and building licenses are granted on an individual basis.

Full Title of Property

The owner of BRIC Group is Rob van Kuijk. He owns full title to the land and plots are in his name, or the name of his company HBM Empreendimentos Imobiliários Limitada. On completion of purchase, investors receive full title and all paperwork related to ownership of their chosen plot.

Construction Underway

Building work is well underway at The Coral with infrastructure installation almost complete, the beach club construction advancing well, the show home finished and numerous villas at various stages of construction.

Due Diligence

Like all BRIC Group investments, The Coral has undergone rigorous due diligence and extensive research prior to being offered to investors. This ensures investors are offered a solid financial opportunity with guaranteed full ownership and clear exit market strategies.

Inspection Trips Available

BRIC Group organises personalised inspection trips for investors who wish to visit The Coral site and surrounding area for themselves. This provides the opportunity to inspect the resort and see construction progress first hand as well as giving you the chance to ask questions about your investment to local professionals during the visit.

Quality Design and Construction

Quality is the hallmark behind every aspect of The Coral resort from the conception of the Master Plan right to the final touches. Superior standards characterise the resort design, conceived to take full advantage of the site’s natural beauty while preserving the pristine surroundings; construction, carried out using high quality materials sourced locally; maximum sustainability and efficiency, guaranteed through use of the latest technological advancements and equipment; and amenities, designed to cater for every resident’s needs.


S A F E G U A R D S & G U A R A N T E E SInvestment at The Coral comes with solid guarantees affording you absolute peace of mind:

Sustainable Development

The Coral prides itself on being eco-friendly and sustainable, and this ‘green’ ethos pervades the whole resort. Construction is low density and designed to have minimum impact to preserve the stunning natural environment. The Coral uses sustainable materials and natural resources to ensure the smallest environmental footprint possible.

Quality Partnerships

BRIC Group has partnered with specialist companies whose extensive experience and long track record in their niche industries ensure The Coral’s high quality standards will be achieved.

• Eikon Arquitectura e Urbanismo is an innovative architectural firm established in 2005, renowned for their unique quality designs.

• MD-Brasil is another architectural development company founded in 1982 whose high-profile and award-winning portfolio includes Fortaleza International Airport.

• MZG Advogados is part of Veirano Advogados, one of Brazil’s longest-standing and prestigious legal firms with expertise in corporate law. Responsible for ensuring The Coral complies fully

with Brazilian planning laws and assisting investors with their purchase.

• CMB Engenharia Ltda is one of the construction companies delivering works onsite. A local company in Northeast Brazil, they have been involved in a number of industrial, commercial and residential projects.

• Atlantica Hotels International is the largest privately held multi-brand hotel manager in South America and one of the 100 largest in the world. The company was founded in 1996 and is based in São Paulo, Brazil.

• RCI is one of the largest international fraction and timeshare exchange programs in the world.

Total Transparency

As part of the BRIC Group mission to provide investors with solid opportunities, investment in The Coral is an entirely transparent process. Investors receive clear communications at all times and step-by-step instructions at each stage of their investment.


S A F E G U A R D S & G U A R A N T E E S

S U M M A R Y O F S E R V I C E S

Investors are offered the following list of services by BRIC Group and its partner companies, when purchasing at The Coral:

Identifying the correct investment options to match your requirements

Keeping in regular contact with you regarding all aspects of your investment

Providing quarterly updates about the development’s building progress

Ongoing investment portfolio advice and consultation after your purchase from your personal Investment Advisor

Guidance processing all relevant paperwork throughout the purchase process from our in-house Compliance Officer

Assistance with administration procedures from our team on the ground including application for non-resident tax numbers

Provide currency exchange service partners to ensure you obtain the best rates

Introduce you to tax specialists who can help advise you on your specific tax situation

Assistance with future re-sale and exit of your investment

www.mzg.com.br

www.new.atlanticahotels.com.br www.rci.com www.eikon.brasil.com

www.md-brasil.com www.cmbengenharia.com.br

[email protected]

BRAZIL

Av. Dom Luis, 1200 SLR1304/1305 Torre 1 Business Ed.Patio Dom Luis MeirelesFortaleza, Ceara, Brazil

+(55) 85 3013-1111

SPAIN

Centro de NegociosPuerta de BanúsEdificio E, Oficina 3929660 Marbella, Spain

(+34) 952-810-711

HUNGARY

Mammut II - 3rd floorLövöház utca 2-6.1024 Budapest

(+36) 1 345-8211

DUBAI

Grosvenor Business TowerSuite 1508Tecom(Consulting office)

(+971) 44 275-072

Last update: 11 / 2018 Disclaimer : The information contained herein is solely for informational purposes and does not constitute an offer by BRIC Group to sell, rent or lease real estate. All information provided is believed to be accurate and correct at the time of publishing and is given in good faith. Prices are accurate at time of publication but maybe subject to change at any time. BRIC Group disclaims any warranties or representation concerning the accuracy, correctness or reliability of the information contained within this document and instructs you to independently verify the accuracy of the information provided. All intellectual property rights are retained by their owners. All content including text, images and logos are the property of BRIC Group. It is not permitted without the express prior consent of BRIC Group to transfer, copy, distribute or compile in whole or part any of the content contained herein.

www.bric-investment.comwww.thecoral.com.br

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