High Yield Syndicated Real Estate & Business Opportunity in MaltaExclusively for Professional Investors

Key Financial Projections

Project Costs @ US$115.8 million Project / Business Value @ Year Ending 2025 = US$ 222.3 million Annual Capital Growth = 8.47% TOTAL Pre-Tax Revenue From 2020 To Year Ending 2025 = US$90.5 million TOTAL Gain on Investment to Year Ending 2025 = US$196.8 million Project ROI @ Year Ending 2025 = 169.8% Qualifying Investors Receive up to 12.5% Annual Investment Rebate From 2021

Introduction We are delighted to offer professional investors the opportunity to co-own one of Europe’s most exciting real estate based projects… an innovative 4* hotel that offers 160 technologically advanced hotel rooms and suites plus 280 spacious 1 & 2 bedroom apartments for extended stay guests.

This 43,000m2 project forms part of Malta’s prestigious Smart City development, which is just 11 kms from both Valletta, the capital city, and the international airport.

The project founder, Graham Brown, has as a result of 30 months intensive work secured the rights to acquire circa 30,000m2 of prime building land from Smart City to design, develop and operate the hotel with various food and beverage and retail outlets plus the supporting businesses which include a conference centre; cinema; spa; lido and vertical farm.

Phases 1 and 2 of Smart City’s 360,000m2 high tech mixed use city are already completed and includes the primary infrastructure for much of the development, 3 office buildings, food and beverage outlets, gym, creche and retail outlets plus the grand steps open air theatre and the lagoon with the spectacular dancing fountains.

Within phase 3, we have our hotel development, a new private 214 bed international teaching hospital specialising in neurology and orthopaedics.

Many of the 1,000 staff will be from the USA or Italy and we have been asked to provide most of the accommodation for key medical staff. In addition, we will support the hospital by providing accommodation for family visiting patients from overseas and conference facilities.

Also within phase 3, will be a new training centre for both Maltese and International students studying tourism and the Malta Tourism Authority. A luxury sea front residential apartment development is also planned to start in 2017 along with a further office block. When fully completed around 7,500 will work in Smart City, mainly in the medical, education, finance, media and IT sectors.

Our Market Place Our market is effectively split between short stay tourists and business travel and long stay expats who are moving to Malta to take advantage of our superb climate and booming economy, Malta having the highest growth rate in the EU. In these troubled times, Malta is also considered to be both a personal and financial safe haven, this being a major reasons why our off season (January to April) visitors have increased by 11% compared to 2015. With the highest year round occupancy rates in the EU and a scarcity of land for new hotels, Malta’s hotels have a very positive future.

New International Private Hospital - Opening 2019

Our Project The key objectives for this project were to use advanced technology to deliver unrivalled customer service at the lowest practical cost. For example, all of our rooms and suites will be powered by renewable energy plus 80% of our water will be recycled to create high quality drinking water. When combined with state of the art energy and water saving technology we will reduce our utility costs by around US$ 4 million a year at 2016 prices.

Creative use of technology also means that we are able to reduce our staffing levels from the industry standard for Malta of 1 member of staff for each guest room down to 0.45 per guest room. These reductions in staff costs amount to US$2.5 million per year (2016 rates). This high efficiency model means that we can typically undercut our competitors by 20 to 25% - thereby ensuring excellent value and above average occupancy rates.

This concept is traditionally not found in the hotel sector (with a few very successful exceptions) but has been used to great effect in the aviation industry. Airlines like Emirates, Etihad and Virgin Atlantic all provide award winning service levels at a fraction of the cost of the traditional national carriers.

Our project is simply not just about adding technology, its about designing in total efficiency from the outset. Much of the facade is covered with p/v tiles, not only do they produce power, but the facade never needs painting; A plug and play approach to design means that we can replace individual elements quickly and at low cost and even carry out a complete refit of a room or suite in just 48 hours, including bathrooms and kitchens… compared to around 1 month for a traditional refurbishment.

Our modular design also means that we can reduce construction and fit out costs by some 22 to 27%, enabling us to fund our technology budget.

Our Team The project founder is Graham Brown, a UK citizen, now living in Malta, with over 30 years experience in the global residential and commercial property market. Graham was also a co-owner of one of Mallorca’s best performing and most highly rated 4* hotels. Both within the hotel and privately, he also has considerable experience in setting innovative holistic spas.

Away from the property / tourism sector Graham was a representative of the British Government as an advisor to the OECD economic development team as well as being a business mentor.

Assisting Graham are an international team of architects, engineers, designers and consultants. The current design is based on the works a Zaha Hadid with a sinuous intersecting layout that maximises the passive potential of the property as well has ensuring privacy for guests and residents.

The primary retail and F&B outlets will be in a shaded Piazza which will run from the Grand Steps through the hotel reception towards the dome like structure that is home to the combined business / cinema complex along with the spa and part covered lido.

Adjacent to the commercial zone will be the above ground automated self-parking car park for around 600 cars, with the service area, centralised store, kitchens and vertical farm being located primarily under the business / leisure complex with a rapid transit system serving the various outlets in the Piazza.

The Opportunity We are seeking to raise a total of US$115.8 million in 30 “tranches / units” each of US$3.86 million. Each “tranche / unit”, will give the investor with a 3% shareholding in the UAE based holding company and subsidiary Maltese operating companies. In addition, shareholders will receive concession on accommodation within the hotel. Non EU-citizens may also apply for the right to reside in Malta on the basis of their investment in this project.

Investment Rebate

The same investment made in 2018 would result in 10 annual payments of US$578,400 starting January 2023. All rebates will be paid tax free in the UAE.

The Investment rebate does not change the investors share holding but provides an effective way for the investor to recoup all or most of his investment WITHOUT the need to sell their all or part of his shareholding.

The rebate is based on how much and when the investment is made.

EG. If you purchased 3 “units” in 2016 you would receive US$1,446,000 each year for 8 years starting in January 2021.

Year Invested No. Of Units Percentage Rebate Paid

2016 One 60% 10% each year from January 2021

2016 Two 80% 10% each year from January 2021

2016 Three 100% 12.5% each year from January 2021

2017 Two 40% 10% each year from January 2021

2017 Three 60% 10% each year from January 2022

2017 Four 80% 10% each year from January 2022

2017 Five or More 100% 12.5% each year from January 2022

2018 Two 30% 10% each year from January 2022

2018 Three 50% 10% each year from January 2023

2018 Four 70% 10% each year from January 2023

2018 Five or More 90% 12.5% each year from January 2023

Company Structure It is proposed to establish a Holding Company in a free zone in the UAE (Probably Masdar City) plus one or two operating companies, under the same management, registered and based in Malta. The primary benefit of the Holding company is the ease of transferring shares within the company, typically tax free. Investors may also receive their “rebates” in the UAE, again tax free.

Unlike many, so called tax havens, the UAE has a excellent reputation in addition to stringent regulations relating to financial services.

It is proposed that the Company Board be represented by the investors as well as the senior managers, with the General Manager, Marketing Manager & Catering Manger having Non-Executive Director status. The Founder will take on the role as Chairman supported by up to 10 investor Board Members, making a Board of 14 members in total. Whilst expenses will be paid, Board members will not receive additional remuneration or benefits.

Security All funds received from the investors and paid out to suppliers will be handled jointly, through an Escrow account, by Maitland, Dr David Gonzi or Dr. Roland Wadge. Maitland is a global advisory and administration firm providing seamless multi-jurisdictional legal, tax, fiduciary, investment and fund administration services to private, corporate and institutional clients, which is registered with and authorised by Malta Financial Services Authority and is a member of Malta Finance. Dr. David Gonzi, heads our legal team. He is the son of a former Maltese Prime Minister and has considerable experience in both corporate and taxation matters. Dr Roland Wadge is a Notary Public. This, we believe, ensures the highest level of accountability.

Revenue / Expenses + Business Value

* By year ending 2025, on average each investor will have received US$1.43 million in rebates and seen the value ofeach US$3.86 million “unit” increase to circa US$7.9 million based on standard industry EV/EBITDA valuation rates and techniques. This equates to an average annual ROI of circa 14% for 9 years.

Christopher Hess-Wegrzecki h.Lubicz at office@hessbusinessconsulting.info

EquityInvestment

Pre Tax Revenue

Total Revenue Construction Costs

Investment Rebate *

Total Costs Revenue Less Costs

Operating Balance

2016 $ 3,860,000 $ 0 $ 3,860,000 $ (3,389,864) $ 0 $ (3,389,864) $ 470,136 $ 470,136

2017 $ 34,740,000 $ 0 $ 34,740,000 $ (30,290,813) $ 0 $ (30,290,813) $ 4,449,188 $ 4,919,324

2018 $ 38,600,000 $ 0 $ 38,600,000 $ (29,337,750) $ 0 $ (29,337,750) $ 9,262,250 $ 14,181,574

2019 $ 38,600,000 $ 2,167,486 $ 40,767,486 $ (40,481,675) $ 0 $ (40,481,675) $ 285,811 $ 14,467,385

2020 $ 0 $ 13,438,833 $ 13,438,833 $ (5,994,625) $ 0 $ (5,994,625) $ 7,444,208 $ 21,911,593

2021 $ 0 $ 14,446,559 $ 14,446,559 $ 0 $ (482,500) $ (482,500) $ 13,964,059 $ 35,875,652

2022 $ 0 $ 15,575,965 $ 15,575,965 $ 0 $ (4,825,000) $ (4,825,000) $ 10,750,965 $ 46,626,617

2023 $ 0 $ 16,697,411 $ 16,697,411 $ 0 $ (9,650,000) $ (9,650,000) $ 7,047,411 $ 53,674,028

2024 $ 0 $ 17,808,411 $ 17,808,411 $ 0 $ (13,992,500) $ (13,992,500) $ 3,815,911 $ 57,489,939

2025 $ 0 $ 18,522,914 $ 18,522,914 $ 0 $ (13,992,500) $ (13,992,500) $ 4,530,414 $ 62,020,353

Total $ 115,800,000 $ 98,657,579 $ 214,457,579 $ (109,494,726) $ (42,942,500) $ (152,437,226)

BH:+48 507-26-19-18 AH:+48 790-644-717 F: +48 587-627-884 Skype:hess-chris www.HessBusinessConsulting.info