A Unique Investment Opportunity on the Adriatic Coast

ADRIATIC APARTMENTS
SVETI STEFAN CRVENA GLAVICA, BUDVA, MONTENEGRO
January 2011
STRICTLY CONFIDENTIAL
1

A unique opportunity to buy land and a real estate project at an exquisite location on the coast of the Adriatic sea in Montenegro, one of the most beautiful tourist destinations in the world, to build and sell 41 luxurious apartments, all with amazing see views in a apartment complex designed by an award winning architect.

STRICTLY CONFIDENTIAL

Nominal GDP of Montenegro was $4.114 billion in 2009. The GDP PPP for 2009 was $6.916 billion, or $11,048 per capita. According to Eurostat data, the Montenegrin GDP per capita stood at 46% of the EU average in 2008. GDP grew at an impressive 10.7% in 2007 and 7.5% in 2008. The country entered a recession in 2008 as a part of the global recession, with GDP contracting by 4%. However, Montenegro remained a target for foreign investment, the only country in the Balkans to increase its amount of direct foreign investment. The country is expected to exit the recession in mid-2010, with GDP growth predicted at around 0.5%. In 2007, the service sector made up for 72.4% of GDP, with industry and agriculture making up the rest at 17.6% and 10%, respectively. Aluminum and steel production and agricultural processing make up for most of the industrial output. Tourism is an important contributor to Montenegrin economy. Approximately one million tourists visited Montenegro in 2007, resulting in 480 million of tourism revenue. Tourism is considered the backbone of future economic growth, and government expenditures on infrastructure improvements are largely target towards that goal.

STRICTLY CONFIDENTIAL

STRICTLY CONFIDENTIAL

STRICTLY CONFIDENTIAL

STRICTLY CONFIDENTIAL

STRICTLY CONFIDENTIAL

STRICTLY CONFIDENTIAL

STRICTLY CONFIDENTIAL

STRICTLY CONFIDENTIAL

10

STRICTLY CONFIDENTIAL

11

STRICTLY CONFIDENTIAL

12

AN IMPORTANT NOTICE FOR POTENTIAL PURCHASERS The content of this document is provided for the sole purpose of considering the purchase of the real estate project. The content of this document may not be used for any other purpose or be copied, distributed, disclosed or made available to a third party without explicit prior written consent of the owner of the project. The content of this document is based on information assembled from sources which we deem reliable. We bear no responsibility for and do not guarantee the completeness, accuracy and correctness of data contained in this document. Potential purchasers must carry out their own investigations, projections and reach their own conclusions. If the owner decides to proceed with the sale, potential purchasers will be expected to carry out their own due diligence in relation to the subject of sale, which includes any such inspections as they deem necessary to determine the state of the object of sale and the existence of any circumstances which could have an adverse effect on the object of sale in terms of its value or potential for the development of the real estate project. In relation to the foregoing the companies we do not provide any explicit or implicit guarantees.

13