Overview of Company

Mediterranean Ocean Properties S. L. is an Independent Estate Agency based in Spain. We promote the South East area and the Regions are South Valencia, Murcia and Almeria. The playa or coastal name for these regions is the Costa Blanca, Mar Menor and Costa Almeria.

Portfolio;

We have developed our business as a wholly Independent Group. We have licence agreements with all the main developers in the regions and currently are promoting over 43 New Developments. These range in size from small to large and are situated Inland, Beachside, Coastal and Golf Course to allow us offer every choice to our clients. We also offer a wide choice of Resale properties.

Residential:

Our prime aim is to identify the Best Properties in our Regions to enable our clients the opportunity to buy at a good price and achieve an excellent Capital Gain on their Holiday Home/Investment. A Bank Guarantee is available with all payments thus ensuring security and peace of mind.

We promote ourselves as providing you with -

• Top Locations
• Best Prices
• Quality Properties

and we set this as our Prime objective.

We feel to achieve this we will fulfil our other main objectives of providing a quality, personal service by looking after each of our client’s requirements from A to Z, such as, advice re a host of matters from Health Services to Schools, Legal to Taxation, and a myriad of other things.

Commercial Property:

We are constantly researching new Commercial Developments, both large and medium, which we consider offer our investor excellent potential. A Bankers Guarantee is available for all investment.

We have extensive expertise in investment in commercial developments. We have done extensive research on the optimum way to set up different types of investment and our advisors in this area are Deloitte & Touche. We promote individual investment in single or multiple commercial units, to group investment in same, to large investment in extensive projects.

From our knowledge of the regions and our contacts with legal and fiscal people and with developers, built over the last number of years, we source investment opportunities to allow our investors excellent entry cost at purchase with excellent Capital Gain prospects for medium to longer terms.

A brief description of these investments is as follows:

The Investment Property is bought off plan well in advance, usually with a run in time to completion of 9 months to 15 months. The investment can be in smaller towns with large expansion planned to coastal developments to large urban areas. The structure is to secure the unit or units or complete development by placing a deposit. This deposit amount will vary with size of investment and developer and can be 25% to 50%. This will be the only payment throughout the period.

The final payment on completion will be financed by mortgage and all running costs, mortgage interest etc. will be financed by lease income. This income will vary, dependant on the area, from €10/12 per sq. metre per month to €25/35 per sq. metre per month as will purchase price from €1300 per sq. metre to €3000/4000 per sq. metre.

The Investment offers excellent Return and Capital Gain. Our guideline is a 10% gross return on capital investment with considerable Capital Gain over a medium to long term period as seen from the figures below for the last 5 years.

An important point to consider in relation to the investment is that the return on capital can be optimised by applying the correct debt/equity ratio.

We organise in a similar way for:

• Small or large group
• Large Single investor
• Group or Investment Company buying for structured investors.

We cater for all sections of the investment, i.e. Purchase, Leasing, Accounting and Legal (via Independent Professionals) to eventual disposing of the company or the units individually, i.e. if group investment then each investor holds shares to value of each investment and if large investment an entity such as a specialist investment company or bank, or property fund, could be interested and acquire the company.

Property growth trends over the past 5 years

Commercial Property:

Commercial investors have experienced progressive growth trends over the past 5 years as outlined by the above example. Similar growth patterns are expected to continue over the next 5 years. There has been massive infrastructure put in place over the past few years in the form of 2 new motorways

to greatly improve access to and from South Valencia to Murcia and Almeria and also to facilitate access to new international airport at Corvera, Murcia. Further infrastructural improvements are scheduled for the foreseeable future. I attach an article re medium term plan of the Murcian government.

Residential Property:

Over the past 5 years Residential Investors experienced gains of between 15/20% per annum of the value of their property. Similar growth trends are expected for the next 5 to 10 years. Residential capital gain from Valencian Government figures is 143% from 2001/2005.

The availability of Spanish mortgages makes it a more straight forward task in buying and 80% finance is available if required. The rates are regulated by European Union and it is a competitive rate. There is a good Rental market in Spain and property in good locations will achieve good Holiday Rental Return if required.

Conclusion

In summary the South Valencian region over the past 5 years has seen huge value growth – please refer to the table above. The Murcian/Almerian region is at the level the South Valencian region was at in 2000 and similar growth trends are expected. The amount of infrastructure in the shape of new roads, railways and marina’s being developed is going to drive the Murcian/Almerian region for the next 10 + years. A new international airport will be located at Corvera, in the centre of the Province, and this has spurred huge planned developments in the form of golf courses and their associated residential aspect, to all other types of projects and consequently the associated commercial content. The region offers exceptional investment potential in both residential and commercial property.

If you would like to discuss an investment, call or drop me a mail and I will arrange to meet you. Alternately, come see the areas on a visit. We offer the inspection trip subsidised at €150/200 per person dependant on time of year, or you can organise your own flights and we will cater for all else, i.e. airport meet, accommodation etc.

Yours Sincerely,

Jim Whelehan