Model Invest

The Leisure Property Developer

INVESTOR GUIDE

Grsu Mah. 10. Cad. 25/C, Konyaalti ANTALYA / Turkey Tel: +90 242 229 6 229 Fax: +90 242 229 6 329 e-mail : invest@modelinvest.com

www.modelinvest.com

A welcome from Model Invest

Welcome to Model Invest, The members of the Board invite you to learn more about investment opportunities and find out how you can be part of our international growth. We hope that you will soon be just as inspired and enthusiastic about the future of Antalya as we are, and we look forward to meeting you.

Enis Ocakli, founder of Model Invest Group, Engaged in land & property development business over 25 years
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Mission & Vision of Model Invest

Mission Statement Model Invest executives, through Ksanta De Luxe Hotel & Residence development are committed to develop efficient investment cooperation with international partners. Vision Statement During the development process, we will act with complete integrity and candor in all matters, always delivering on 100% of our commitments in an honest and professional manner. Business Strategy The experience in the property development industry reveals that behind our business success there is a core system of values that guides us.

Investing in Turkey
The land of beauty: Bordered on three sides by by 4 seas, Turkey's historical and natural richness attracts in excess of 30 million tourists yearly from all corners of the world. With its rich culture, advanced tourism facilities, hospitable people and unique cuisine, Turkey is worlds number 7 most popular tourist destinations. The land of variety and diversity: The Euro-Asian cultural harmony, seas and forests, old and new, nature and culture, sunbathing and skiing, daily excursions and nightlife, idyllic villages and modern cities, Turkish cuisine, swimming - All of these can be found in Turkey. The land of history: The greatest wealth of Turkey is probably history. Turkey was the home of many great civilizations throughout the history and is also the setting for many important events and legends. The ark of Noah landed on Mount Ararat, Santa Clause lived in Myra. First money was used by Lydians. Hatti, Asuria, Kommagene, Ionia, Pontus, Phrygia, Karia, Clycia, Hellen, Roman, Byzanz, Seljuk and Ottoman Turks are among the countless civilizations that rose or interacted in Turkey.
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Investing in Turkey
The land of growing economy: Stable rising economy, 2009 expected GDP grow; 5.6%, inflation rate 9,2% Worlds 17th largest economy Multiparty, secular democratic governmental regime EU membership forecasted for 2014 Double tax treaties with 73 countries. Secure deed registry for foreign investors (total deed transfer cost only 3%) Superb build standards, a large export base Turkey is worlds, 1st Hazelnut, cherry, fig, apricot, quince & pomegranate producer 2nd watermelon, cucumber, green pepper, olive & chick pea producer 3rd tomato, eggplant, lentil, pistachio & home textile producer 4th onion & marbel producer 5th Tea, sugar & cotton producer 6th Tabaco, apple & cement producer 7th Glass, almond & apparel producer 8th Wheat & raw wool producer 9th grapefruit & fertilizer producer 10th glass & lemon producer 11th raw steel producer 12th white goods producer 15th vehicle producer
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Some Multinational corporations in Turkey

3M ABB ABN AMRO AC NIELSEN ZET ACCENTURE ACCOR ALCATEL ALLIANZ AMERICAN EXPRESS ARCELOR ASTRAZENECA AVENTIS PHARMA AVON AVIVA AXA BANCA DI ROMA BARCELO BARCLAYS BANK BASF BAT BOSCH BP BRIDGESTONE BRISTOL MYERS SQUIBB CARGILL CARREFOUR CHEVRON CISCO SYSTEMS CITIBANK CLARIANT CNN COATS COCA COLA COLGATE PALMOLIVE CROWN CORK DAIMLER CHRYSLER DANONE DEUTSCHE BANK DHL DOW CHEMICALS DUPONT ELECTROLUX ERICSSON FERROLI FIAT FORD FOSTER WHEELER FOUR SEASONS FRITO LAY GENERAL ELECTRIC GENERAL MOTORS GILETTE GLAXOSMITHKLINE GOODYEAR HENKEL HEWLETT PACKARD HONDA HUGO BOSS HYUNDAI IBM IMPERIAL TOBACCO INTERGEN ITOCHU CORP. JOHNSON&JOHNSON JP MORGAN CHASE JTI KIMBERLY CLARK KRAFT JACOBS LAFARGE LEVI'S L'OREAL LG LILLY LOCKHEED-MARTIN MAN MCDONALD'S MCKINSEY MERCK SHARP DOHME MERLONI METRO AG MICROSOFT MITSUBISHI MOBIL OIL NESTLE NIKE NORTEL NETWORKS NOVARTIS ORACLE PARS MCCANN PEPSI COLA PERFETTI PFIZER PHILLIP MORRIS PHILIPS PIRELLI PROCTER&GAMBLE RENAULT REUTERS ROCHE SCHERING PLOUGH SERVIER SHELL SIEMENS SOCIETE GENERALE SODEXHO SONY TETRA PAK THAMES WATER TNT TOTAL TOYOTA UNILEVER VODAFONE VOLKSWAGEN XEROX
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Source: Istanbul Chamber of Industry & www.yased.org.tr

Politics / Legal
Democracy with a strong tradition of secularism. Elections are held every 5 years. The President is the Head of State. The Prime Minister and the Council of Ministers exercise executive authority. The Turkish Constitution establishes a separation of powers between the legislative, executive and judicial branches. Young population, average age only 27 Highly skilled professional workforce and entrepreneurism The Turkish administrative law is similar to the French system, Turkish criminal law has its roots in the Italian legal system and both the Turkish Commercial and Civil Codes are based on the German and Swiss legal systems. Turkish law both prohibits and sanctions unfair competition. Foreign Investment Law encourages foreign investments, applies international standards to the definition of investor and, most importantly, protects the rights of foreign investors. This law guarantees national treatment and comprehensive investor rights (e.g.: foreign companies are treated as Turkish companies) = the law does not distinguish between Turkish and foreign companies; both are treated equally.

Real Estate Market in Turkey

Turkeys highly-industrialized northwestern region was hit hard by a destructive earthquake in August 1999. Construction permits had been temporarily suspended, a new regulation has been introduced and constructing buildings has become more difficult. Due to the new regulation, costs for new housing projects have surged, and the Turkish real estate market had gone through a nationwide contraction. The single-party government took over the administration in 2002, after a decade of coalition governments and improvement in the economic indicators began. 2003, real estate acquisition law in Turkey has been regulated in favor of citizens of 44 countries, including RF. British buyers acquired over 25.000 and Germans around 18.000 properties in Turkish Riviera. Till the end of 2008 nearly 120.000 properties are acquired by non-locals, among them only 2.200 Russian buyers. In fact, there is a tremendous need of informing Russians about the possibility that they are allowed to buy immovables in Turkey. The EU bid makes Turkey more promissing for foreign investors. Investors from Middle East and Europe are very interested in Turkey, the US investment appetite should soon begin to appear too.

Comperative Figures

Turkey Area km2 Cost Line km Population, estimated for 2009 Population growth % Urbanization % Average m2/ price of Luxury Hotel & Residences (e.g. Ksanta Residence) Deed transfer taxes & legal fees % 780.580 8.110 72.850.000 1,34 70

Bulgaria 110.910 354 7.200.000 - 0,8 64

Spain 504.782 4.960 40.525.000 0,07 77

Montenegro 14.026 293 672.000 - 0,14 52

UAE 83.600 1.318 4.700.000 3,7 87

1.750

2.875

4.080

3.350

5.500

4,5

13-15

4,75

2,5

Source: Housing Systems, Norris & Shields 2009

Largest cities of Turkey by population

Largest cities of Turkey by population 1 2 3 4 5 6 7 8 9 10 Istanbul Ankara Izmir Bursa Adana Konya Antalya Mersin Gaziantep anlurfa 12,573,836 4,466,756 3,739,353 2,439,876 2,006,650 1,959,082 1,789,295 1,595,938 1,560,023 1,523,099 11 12 13 14 15 16 17 18 19 20 Diyarbakr Izmit Antakya Manisa Samsun Kayseri Balkesir Kahramanmara Van Aydn 1,460,714 1,437,926 1,386,224 1,319,920 1,228,959 1,165,088 1,118,313 1,004,414 979,671 946,971

Populations based on the 2007 census

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Investing in Antalya
Investing in Antalya properties is now becoming more popular, especially since Spain, Bulgaria, Montenegro or Dubai are not producing those returns as in the past. In recent years there has been a 250% increase in the number of Britons buying property in Antalya for investment purposes. And a 120% increase of Russian buyers. Antalyas climate is characterized by hot dry summers with bright sunny days and pleasant mild winters . So, it is not just investors who are buying properties in Antalya. We now see more retirees from all over the world, choosing costal Antalya as their new home.
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Investing in Antalya
Antalya region offers views of the spectacular Taurus Mountains and the Mediterranean sea with beautiful blue flag beaches. The safe, warm, crystal clear waters are ideal for swimming, sailing, windsurfing, water skiing, snorkeling and scuba diving. Healthy and fresh produce provides delicious cuisine catering for all tastes. There are many restaurants, local kebab houses, bars and a buzzing nightlife. International airport offers easy access with flights to and from 45 cities of RF. The international community of West Europeans and Russian settled in Antalya contribute to city's life. There are 350 active Russian companies in the city, and Russians are either directors or partners in 275 firms.
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Investing in Antalya
Very popular international tourist destination (10 mil. tourists yearly) Some of the best coastal scenery in Mediterranean Europe During the season 412 planes land daily (110 from RF) Increasing demand on leisure related properties Flexible and expanding access routes Russian speaking diaspora (24.000) Increased environmental controls Political & economical stability Steady increasing land values Growing urban infrastructure Lower maintenance costs Modern shopping malls Organic agriculture Low cost of living 641 km coastline Free trade zone Russian schools Great climate

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Investing in Antalya
Turkeys annual production of fresh fruit and vegetable is 68 million tons and the export value is 1.2 billion . 21% of fresh fruit and vegetable export of Turkey materializes from Antalya. In winter period 70% of the total fresh fruit and vegetable export is actualized from Antalya. The main reason for this high portion is the greenhouse cultivation resulting from convenient climate. Antalya is Turkeys green house capital. Antalyas most important fresh fruit and vegetable export markets are ranked 1. Germany, 2.Greece, 3.Russian Federation, 4.Holland, 5.Romania Antalya is the center not only for fresh fruit and Vegetable export but also for fresh cut flower export. In 2008; 70% of Turkeys fresh cut flower export in value of 90 Million , was realized from Antalya. The free trade zone in Antalya is home to over 100 international companies, active in production of yachts, agricultural machinery, yachts instruments, medical instruments, textile products, air conditioners, electronical circuits and cheeps, chemical products, hotel equipments, automative spare parts, forestry products, fire equipments, tissue culture, cable confection.
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Antalya Konyaalti Beach 15

MODEL INVEST Property Development & Marketing Group 2008 Confidential

Who is Model Invest?

Model Invest is one of the largest estate players in Antalya, specialising in development and marketing of leisure related properties. Model Invest plans and develops currently, more than 500 new apartments and villas of various sizes. Companys business Philosophy is based along 14 main lines :
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Honesty & reliability Reputability Feasible growth Teamwork Professionalism Profit maximization Advantages in competition Focus on practical solutions Respect for the environment Mutual Respect & positive approach Dynamic and innovative development team Quality work with style for a comfortable living Seeking out opportunities for growth and investing in them Providing value through carefully created projects on exceptional locations
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Who is Model Invest?

Basic property development activities: Off Plan partnership Land & infrastructure development Cadastral survey Project management Development in flat for land basis Feasibility studies Housing & commercial properties Sale of building material Legal and auditing consultancy Model Mortgage Finance Intern. marketing; buy to let & sell

Comprehensive property valuation expertize of housing, commercial or industrial property units Title deed registration formalities; residence permit, bank account, tax number, establishing companies, translation services etc.) Property management & After sales support (maintenance, repair, interior design, garden landscaping, relocation advice, insurance service, airport transfers, car hire, payment of bills etc.)
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View from the Model Invest office

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Who is Model Invest?

Dear partner, Model Invest project development team has enormous experience in land acquisitions, construction, sales & marketing and of course after sales services. The company has earned an enviable reputation for the quality of its resort developments and the ethical way in which it conducts its business. Registrations: Commercial title record: 21628 Patent registration number: 200701312 Company registration number at ATSO*: 23512 Company tax number: Kurumlar Tax Office, 751 0048 843 Telephone & fax: +90 242 229 6 229, fax: +90 242 229 6 329 Registered address: Grsu Mah. 10.Cad. 25/C Konyaalti, Antalya 07070 Web sites: www.modelinvest.ru, www.modelinvest.com
* ATSO : Antalya Chamber of Industry & Commerce

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Model Invest Off Plan Developments

Off Plan investors buy at discounted prices which in return provides an investment yield not less than 30% a year. Benefits of Model Invest Off Plan Developments Properties are freehold Attractive investor discounts Rental guaranty of 5% for the first 3 years Properties are designed for year-round use Forecasted steady growth on property value Accredited, decent & well established company Buyer has control over the internal layout of the property Buyer is joint owner of the building land according his share Buyer may sell the residences right after or even prior to completion Site location is surrounded by beautiful natural environment, excessive choice on tourist attractions and numerous historical sites Reasonable value for money (compare sqm prices of similar projects in other countries: Dubai 5.500, France 5.000, Spain 3.500, Bulgaria 2.500) Property management amenities: maintenance, security, housekeeping, restaurants, room service, SPA center, concierge, kids entertainment etc.

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Model Invest Off Plan Developments

Based on trust of many years of experience in business, Model Invest offers 10 developments on different stages; Completed, Off Plan, On-Going and Key-Ready. We now proudly announce the development of a new Off Plan investment to our partners.

Ksanta De Luxe Hotel & Residence

The hotel is situated at the heart of the resort and is designed to integrate with the surrounding landscape. It has been designed to enable residents to relax and enjoy as a natural extension of their free hold property. The developments unique features and excellent location make it an outstanding opportunity, but what makes it even better still is the choice of financing approaches. This is an excellent opportunity to start the purchase with a small payment: Only 1% deposit and 10% payment when paperwork is done and only up to 60% payment until turn key completion. Financing program for rest payments of 40% up to 10 years.

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Ksanta De Luxe Hotel & Residence

The hotel & residence complex of 270 units (+70 hotel suites) is located on a hillside overlooking the most beautiful beach in the region. It is planned to take occupancy in May 2011. This is an excellent dont miss off-plan investment opportunity consisting suites, 1 or 2 bed room apartments, 2 or 3 bed room villas within the exclusive, fully managed Ksanta De Luxe Hotel in West Antalya.

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Ksanta De Luxe Hotel

Key Points of the Ksanta Concept

Full Property Management: security, reception, gardening, house keeping, room service, market, business center, technical service, SPA, gym & concierge Site maintenance fee: 1 per 1sqm per month Multi-lingual staff Only 1% reservation depozit, only 10% first payment, credit up to 10 years 3 Year minimum guaranteed rental return at 5% All units are fully furnished to the highest standard. The interior design and furniture decoration substantially similar to that of hotel suites. Ksanta De Luxe Hotel & residence is east and south facing, so we enjoy the maximum amount of natural light during the day We have surrounded all buildings with lots of green Decides the resident joining the guaranteed rental program, he may use his unit 28 days a year from 1st of October till 1st of May. Ksanta De Luxe Hotel facilities are at disposal of residents at discounted prices. Situated on a Hillside overlooking the regions best beach 301 days of sunshine per year Tennis Courts, basketball, volleyball

Key Points of the Ksanta Concept

Fully fitted designer kitchen and bathrooms Terraces and porches are finished non-slip stoneware Double glazed windows and doors which boast acoustic and heat retention Units have 2 telephone points, Internet and satellite TV cable systems The complex will use the maximum of solar energy as a lighting source We use local terrain stones as facade overlay for better integrating Ksanta Complex within the surrounding domain The peninsula where the complex is situated is known as the oxygen capital Thermic isolation of lava argil makes our buildings more climate efficient 24 hour physical and lazer guided camera security within the Ksanta complex Each unit has smoke detectors and alarm push buttons Medical consultation facilities of the district hospital with emergency services Master-planned by world renowned architect Kursat Aybak, creator of Kempinski The Dome, Rixos Premium, Ottoman Pallace Dubai etc.

Ksanta De Luxe Hotel & Residence

Ksanta De Luxe Hotel & Residence

(TYPE B)

Ksanta De Luxe Hotel & Residence

(TYPE C) Villas

Sample Sales Procedure

Investor views the site A bilingual sales contract is prepared between the investor and Model Invest The initial payment of 1% is made, reserving properties for 2-3 weeks. Decides the investor to discontinue with the deal, this payment will be refunded. Decides the investor to continue with the deal, second payment of 10% is made. Every 3 months, Model Invest reports to the investor about the project progress through certified independent building inspectors Farther payments are made according to the payment schedule. Decides the investor to resell properties, Model Invest starts marketing program. Decides the investor to register properties on his name, Model Invest should start resident permit procedure: getting the tax no, opening a bank account etc. Application for military consent for the title deed transaction is made. This ensures that the property is not within a military sensitive zone (up to 4 months). Power of attorney given by the investor to Model Invest staff to apply for water and electric services in your name to the property. Obtaining military consent and completion of the title deed transaction. A new title deed (tapu) document is created and registered in investors name. Completion; rest payments or credit program according to the payment schedule. Model Invest hands over the keys to the investor
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Ksanta De Luxe Hotel & Residence

(TYPE D)

Ksanta De Luxe Hotel & Residence

LOCATION The residence is located in direction to Kemer, West Antalya. Kemer is a prosperous dynamic modern city full of Mediterranean character. It boasts over 12,000 residents and a variety of commercial centers, sports facilities and leisure activities of all kinds. West Antalya is one of the fastest growing regions of Turkey. Over the next 10-15 years it is expected to continue producing high capital growth as the boutique tourism demand grows especially in this area. An all new marina of 250 yachts capacity is planned in the area. The location is ideal as a the starting point for excursions to nearby historical sites such as Phaselis, Olympos, Chimera, Myra, Kekova and much more.
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What is Off Plan Trade?

By buying a property that has not yet been built (off plan), you secure a property at today's prices, but complete the purchase some time in the future, typically 24 months. So, when buying Off Plan, you are buying a property from an architects drawing where planning and building permission has been given. Model Invest is ready to introduce all necessary legal and technical guaranties for all Off Plan purchising acts, such as: Title deed (TAPU) of the plot, recommendation letter from banks, company due diligence, guaranty certificate of an independent building audit firm, official letters from the tax office, from the cadastral office on the mayor, from the title deed registrar etc.

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Off Plan Investment Benefits

A small initial payment of 10%, secures the benefit from capital growth on 60% to 80% of the property value within 24 months. Also remember; your This discount off todays market valuation offered by Model Invest as a developer, will give instant equity on completion. In case the investor requests, Model Invest can activate a resale marketing process, in the name of the investor. Buying off plan means you get in at the very start so you can literally watch your investments grow Property investment history of Model Invest has shown that the value of our property doubles every seven to ten years. However, house prices dont go up in a straight line and there might be a few highs and lows, such as the global crisis.

generated profit of Off Plan Investment is free from capital gain tax.

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Stock Market or Off Plan Investment

Investing 50.000 in the stock market would give you on average a 14% return of max.7.000 . This result isnt so bad. In Western Europe even 10% is now concidered as good return. Off Plan investment gives you at least 2 times more, because Off-plan properties are priced below the actual market value. And, you get investors special discount when buying 10 properties on the same development. 50.000 in the stock market is only controlling the stocks of 50.000 value. On the other hand, 50.000 invested in an Off Plan property is controlling 100.000 of assets! The developer lends you actually 50.000 to buy his off plan property but no company will lend you even 1 to buy his stocks.

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Investment Strategies
Buying property off-plan before the development starts, and then selling at completion (or even before) and realizing the capital growth gained during the development cycle. In other words, you become an investing partner in the size of your share with the developer and share the general advantages. Lets assume you invest in 10 suite apartments each 56 sqm, at Off Plan phase, sqm price 1.200. 10 suite apartments x 56 sqm x 560 sqm x 1.200 = 672.000. You pay this amount not at once. So, you just pay 60% of it in instalments till the completion. For the rest payment of 40% you may prefer the credit program up to 10 years. Per sqm minimum sales price by completion will be 60% higher: 1.200 + 60% 1.920. Your investment of 672.000, becomes max. in 2 years 1.075.200 So, you pay 672.000 and actually make another 672.000.

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