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CONTENTS
1
ABOUT US
2
Niche strategy
LEADING INVESTORS
IN LUXURY RESIDENTIAL
RESORTS
DOLPHIN CAPITAL
INVESTORS LIMITED
VANTERPOOL PLAZA,
2ND FLOOR,WICKHAMS CAY 1,
ROAD TOWN,TORTOLA,
BRITISH VIRGIN ISLANDS
ANNUAL REVIEW
YEAR ENDED 31 DECEMBER 2013
www.dolphinci.com
4
Residential portfolio
5
Portfolio breakdown
6
Our journey so far
8
Financial highlights
9
Chairman’s statement
10
INVESTMENT
MANAGER’S REPORT
11
Overview
12
Issue of preferred equity instrument,
asset sales, divestments and investments
18
Cash generation potential
20
Market dynamics
21
Strategic objectives
22
PORTFOLIO REVIEW
24
Project investment
and exit summary
25
Advanced Projects
42
Major Projects
50
Permitting status update
51
Aristo
52
Corporate social responsibility
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DOLPHIN ANNUAL REVIEW - OUTER
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1
5
6
7
OUR PORTFOLIO
14 major projects
8
LARGE-SCALE LEISURE-INTEGRATED RESIDENTIAL RESORTS
OUR PORTFOLIO AT A GLANCE
60 + residential projects
2
ARISTO PROJECTS
13
63 million m
1
M
6
14
5 9
10
E D
I T
E R
R A N
E A N
4 11 12
S E A
The Chedi and Jack Nicklaus
Signature Golf Course 59 kilometres
3
RESIDENTIAL CAPACITY
2
22 hotels
(12 PERMITTED, 2 CURRENTLY OPERATING)
B B
R I
A
C
E
A
N
S
E
A
(3 PERMITTED)
3
8 golf courses
Our portfolio currently comprises 14 large-scale
development projects in Cyprus, Greece, Croatia, Turkey,
the Dominican Republic and Panama, and more than
60 smaller residential holiday home projects in Cyprus
and Greece through Aristo, our largest subsidiary.
4
4 Venus Rock
Sub total MAJOR PROJECTS
5 Sitia Bay Golf Resort
6 The Aman at Kea 7 Scorpio Bay Resort
8 Lavender Bay Resort
9 Plaka Bay Resort
10 Triopetra 11 Eagle Pine Golf Resort
12 Apollo Heights Polo Resort
13 Livka Bay Resort
14 La Vanta – Mediterra Resorts
Zoniro Greece
Sub total 28078%
6567%
172100%
310100%
440100%
11100%
31950%
461100%
63100%
8
100%
27100%
2,156
Aristo Cyprus*
Total
392
6,281
*Excluding Eagle Pine and Venus Rock
14
These figures include Venus Rock, pending completion of the sale.
DOLPHIN ANNUAL REVIEW - INNER
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25%
950100%
1,44060%
1,00049.8%
3,733
3 Pearl Island
10,000 +
1
9
246100%
2 Playa Grande Club & Reserve
DIRECT COASTLINE
5 marinas
9686%
The Nikki Beach Resort & Spa at Porto Heli 7
DCI’s
stake
343
Amanzoe
2
LAND UNDER DEVELOPMENT
8
Land site
(hectares)
ADVANCED PROJECTS
1 The Porto Heli Collection 13
10
11
12
1
5
6
7
OUR PORTFOLIO
14 major projects
8
LARGE-SCALE LEISURE-INTEGRATED RESIDENTIAL RESORTS
OUR PORTFOLIO AT A GLANCE
60 + residential projects
2
ARISTO PROJECTS
13
63 million m
1
M
6
14
5 9
10
E D
I T
E R
R A N
E A N
4 11 12
S E A
Signature Golf Course 59 kilometres
3
RESIDENTIAL CAPACITY
2
22 hotels
B B
R I
A
C
E
A
N
S
E
A
(3 PERMITTED)
3
8 golf courses
Our portfolio currently comprises 14 large-scale
development projects in Cyprus, Greece, Croatia, Turkey,
the Dominican Republic and Panama, and more than
60 smaller residential holiday home projects in Cyprus
and Greece through Aristo, our largest subsidiary.
4
4 Venus Rock
Sub total MAJOR PROJECTS
6 The Aman at Kea 7 Scorpio Bay Resort
9 Plaka Bay Resort
10 Triopetra 11 Eagle Pine Golf Resort
13 Livka Bay Resort
Zoniro Greece
Sub total 28078%
6567%
172100%
310100%
440100%
11100%
31950%
461100%
63100%
8
100%
27100%
2,156
Aristo Cyprus*
Total
392
6,281
*Excluding Eagle Pine and Venus Rock
14
DOLPHIN ANNUAL REVIEW - INNER
DO NOT PRINT
25%
950100%
1,44060%
1,00049.8%
3,733
3 Pearl Island
10,000 +
1
9
246100%
DIRECT COASTLINE
5 marinas
9686%
The Nikki Beach Resort & Spa at Porto Heli 7
DCI’s
stake
343
Amanzoe
2
LAND UNDER DEVELOPMENT
8
Land site
(hectares)
ADVANCED PROJECTS
1 The Porto Heli Collection 13
10
11
12
CONTENTS
1
ABOUT US
2
Niche strategy
LEADING INVESTORS
RESORTS
DOLPHIN CAPITAL
INVESTORS LIMITED
VANTERPOOL PLAZA,
ROAD TOWN,TORTOLA,
ANNUAL REVIEW
www.dolphinci.com
4
5
Portfolio breakdown
6
Our journey so far
8
9
10
INVESTMENT
MANAGER’S REPORT
11
Overview
12
18
20
Market dynamics
21
22
PORTFOLIO REVIEW
24
Project investment
and exit summary
25
Advanced Projects
42
Major Projects
50
51
Aristo
52
DO NOT PRINT
www.boonedesign.com
1
A LEADING GLOBAL INVESTOR
We are a leading global investor in the residential resort
sector in emerging markets, acquiring large seafront sites
of striking natural beauty in the eastern Mediterranean,
Caribbean and Latin America. We develop sophisticated
leisure-integrated residential resorts, and partner with
some of the world’s most recognised architects, golf course
designers and hotel operators.
Dolphin is one of the largest real estate investment companies quoted on AIM in terms of net
assets, and seeks to generate strong capital growth and cash returns for its shareholders. Since
its inception in 2005, Dolphin has become one of the largest private seafront landowners in
Greece and Cyprus. Dolphin’s portfolio is currently spread over 63 million m² of prime coastal
developable land and comprises 14 large-scale, leisure-integrated residential resorts under
development in Greece, Cyprus, Croatia, Turkey, Panama and the Dominican Republic and a
49.8% strategic participation in Aristo Developers Ltd, the largest developer and private land
owner in Cyprus. Dolphin is managed by Dolphin Capital Partners, ‘DCP’ or the ‘Investment
Manager’, an independent real estate private equity firm.
Dolphin Capital Investors Limited Annual Review Year ended 31 December 2013
2
NICHE STRATEGY
INVESTMENT PRINCIPLES
•
•
•
•
•
•
•
Country selection criteria
Emerging economies with
significant tourist inflow
High barriers to entry for foreign
investors without local network
Beautiful coastlines, unspoilt
landscapes, pleasant climate
Wealth of outdoor activities,
safety, rich history and culture
Limited supply of serviced
residential resorts managed by
luxury international operators
Commitment and legislative
initiatives from local governments
to nurture sustainable luxury
tourism and second-home industry
Significant capital appreciation
potential as they converge with
mature economies
•
•
•
•
•
Investment parameters
Large coastal land sites of striking natural beauty
or completed/semi-completed luxury resorts
with residential development potential acquired
at attractive prices
Located near the sea and within driving distance
of an airport
Development capacity for residential units
(villas, townhouses and apartments) and leisure
components (such as a hotel, golf course, country
club, spa facility, marina or other sporting facilities)
Potential for comprehensive residential services
(such as food and beverage, concierge services,
health services, security, maintenance and property
management) and leisure experiences (such as
sports, adventure travel, excursions, spa, arts,
culture and nature-oriented activities)
Attractive locations for affluent holiday and
retirement home buyers, primarily from Europe,
Russia, the Middle East and North America
•
•
•
•
•
•
Risk mitigation
Land acquisition prices which
are at a big discount to southwest Europe and North America
Conservative phasing of the
projects
No speculative building of
homes
Financing of the residential
construction through pre-sales
Financing of the leisure
components mainly with
ring-fenced non-recourse
bank debt on a project-byproject basis
No or limited borrowings
at the corporate level
3
Dolphin acquires attractively priced seafront sites
of exceptional natural beauty and develops them
into high-end, premium-branded residential resorts,
capitalising on its in-house expertise.
VALUE CREATION STRATEGY
Acquisitions
Acquire large, exquisite,
developable sites with
strong capital appreciation
potential, or completed /
semi-completed luxury
residential resorts below
replacement cost and with
significant residential
capacity
• Use tax-efficient holding
structures to minimise
tax on development
and divestments
•
Design and branding
Appoint internationally
acclaimed masterplanners,
architects and designers
to create world-class
products
• Partner with luxury
operators and marketing
experts to create highest
quality branding
•
Development capability
Leverage on the expertise
of Dolphin, Aristo, Zoniro
and development partners
• Obtain construction
permits through a
well-planned process
• Appoint the most creditable
construction firms on
a turn-key basis
• Create portfolio synergies
through economies of
scale and expertise transfer
in design, management,
operations, marketing
and financing
•
Profit realisation
Sell entire projects or
strategic stakes at any
stage of development,
particularly upon
permits being obtained
• Develop and sell the
residential components,
land parcels and
ultimately the residual
leisure components
•
Nikki Beach Resort & Spa
4
RESIDENTIAL PORTFOLIO
UNITS CURRENTLY FOR SALE
We partner with the most experienced architects, golf designers and
hotel operators to create the ultimate combination of hospitality and
residential accommodation in exquisite seafront locations.
THE PORTO HELI COLLECTION, PELOPONNESE, GREECE
Amanzoe Villa
Amanzoe Villas The only Aman villas currently available for sale in Europe.
Synonymous with the highest level of service while offering an unforgettable
retreat in a stunning location; part of Amanzoe, probably the best resort in
the Mediterranean today. Each villa, although having the same architectural
language, is designed individually by the quintessential Amanresorts architect
Mr. Ed Tuttle, to the owner’s specifications. Ten villas sold or reserved to date.
The Nikki Beach Resort & Spa Due to open in the summer of 2014, the resort
comprises 17 hotel suites and 49 apartments & lofts for sale, alongside a yacht
club, restaurants, bars, beach club and a spa.
Seafront Villa
The Seafront Villas The exceptional 11 Seafront Villas make up an exclusive
gated community that sits right on one of Greece's most spectacular shorelines.
Serviced and deeded, these four to seven bedroom homes offer bespoke design
and are crafted from prized native materials.
AMAN VILLAS AT PLAYA GRANDE, DOMINICAN REPUBLIC
Playa Grande Aman Villa
On a sublime cliff-side location, overlooking crescent shaped Playa Grande
beach, lies the Aman at Playa Grande, a private resort – currently under
construction. An exclusive group of only seven Aman Founders’ Villas is
currently available for sale with stunning golf and sea views – three have already
been sold or reserved.
PEARL ISLAND, ARCHIPELAGO DE LAS PERLAS, PANAMA
Over 60 homes already sold in the initial Founders’ Phase of the development:
La Peninsula. The second phase of the island involves the construction of a Ritz
Carlton Reserve Hotel starting in late 2014, and offers for sale only eight Founder
Ritz Carlton Reserve villas of three to four bedrooms, representing one of the
best residential offerings in Central America.
Pearl Island Villa
MEDITERRA RESORTS, LA VANTA & KALKAN, TURKEY
La Vanta is a development of over eight hectares comprising over 195 villas, townhouses and apartments. Phase 1 was completed in 2010 with 42 units already
delivered. Phase 2a is currently under construction including 10 additional units.
ARISTO, CYPRUS
Aristo sells residential units from a wide range of projects, of which the most high
profile are:
La Vanta House
Thalassea Residences, Polis Chrysochous
Aristo Plots Villas
Mersinia Hills, Ayia Napa
Pissouri Panorama Residences, Limassol
Rosemary Residences, Nicosia Town, Lakatamia
Sea Caves Residences, Paphos
Aristo Cyprus Villa
5
PORTFOLIO BREAKDOWN
BY COUNTRY AS AT 31 DECEMBER 2013
TOTAL
REAL ESTATE
BREAKDOWN BY REAL ESTATE VALUE
Greece Cyprus Croatia and Turkey
Americas*** Total €392m 52.5%
€223m 27.6%
€46m 6.2%
€146m 19.5%
€807m 100.0%
€807
million
BREAKDOWN BY LAND SIZE (hectares)
Greece 1,648 26.2%
Cyprus 2,172 34.6%
Croatia and Turkey 71 1.1%
Americas 2,390
38.1%
Total 6,281100.0%
TOTAL NET ASSET
VALUE BEFORE DITL
TOTAL
LAND SIZE
€604
6,281
BREAKDOWN BY NET ASSET VALUE***
Greece €263m 43.6%
Cyprus €201m 33.4%
Croatia and Turkey €43m 7.2%
Americas*** €96m 15.9%
Total €604m100.0%
million
hectares
TOTAL
NET INVESTMENT
EXPOSURE BY NET INVESTMENT
Greece €241m 40.8%
Cyprus €202m 34.2%
Croatia and Turkey €41m 6.9%
Americas*** €106m 18.1%
Total €590m 100.0%
€590
million
BREAKDOWN BY DEBT *
Greece Cyprus** Croatia and Turkey Americas Total *Does not include the €79 million DCI Corporate Bonds **Does not include Aristo Group which is reported in NAV basis
***Adjusted for Itacare shares value These figures include Venus Rock, pending completion of the sale.
€46m 51.7%
€20m 22.5%
€12m 13.5%
€11m 12.3%
€89m100.0%
6
OUR JOURNEY SO FAR
2005
2006
2007
2008
2009
July
Dolphin founded
with €5 million
of seed capital.
March
Dolphin executes first
investment in Greece
– Kilada Hills Golf
Resort.
January
Dolphin makes first
investment in Croatia –
Livka Bay Resort.
January
Minority buy-outs in
Livka Bay Resort, and
Mediterra Resorts.
April
Dolphin purchases
85% stake in Aristo.
March
€62.7 million invested
in the acquisition of
prime land in strategic
locations in Cyprus,
funded 100% by
Aristo’s operational
cash flow and credit
lines.
April
Sale of Amanmila,
Milos, Greece and
launch of Shares-ForAssets Programme.
December
Dolphin admitted
to trading on AIM,
raising €104 million.
June
Dolphin follows on
with first investment
in Cyprus – Apollo
Heights Polo Resort,
and an additional
acquisition in Greece
– Scorpio Bay Resort.
August
Continued investment
activity in Greece –
Amanmila and
Lavender Bay Resort.
November
Second AIM fundraise
of an additional
€300 million.
November
Dolphin completes
first acquisition in
Crete – Sitia Bay Golf
Resort, and partners
for a second time in
Greece with Aman for
Amanzoe at The Porto
Heli Collection.
June
Third AIM fundraise
of an additional
€450 million.
July
Dolphin invests for the
second time in Crete –
Plaka Bay Resort.
October
Dolphin acquires Kea
Resort, and executes
the first investment
in Turkey – Mediterra
Resorts.
July
Dolphin makes first
investment in Central
America – Pearl Island
in Panama.
August
Amanzoe Hotel
construction
permits obtained.
December
Dolphin makes first
investment outside
eastern Mediterranean
– Playa Grande Club
& Reserve in the
Dominican Republic.
June
Acquired remaining
15% of Aristo.
August
Commencement
of construction of
Amanzoe at Porto
Heli, Greece.
September
Commencement
of construction of
the first golf villa at
Playa Grande Club
& Reserve.
October
Final construction
permit for the hotel at
Sitia Bay Golf Resort.
December
Sale of 33% of Kea
Resort and signing
of management
agreement with
Aman Resorts.
7
We offer a luxury lifestyle in unique pristine natural
environments, combined with sublime architecture
and immaculate service from the top brands in the
world, addressing the needs of an international
discerning high net worth clientele.
2010
2011
2012
2013
2014
May
Venus Rock Golf Resort
obtains permits for
two golf courses and
related residential
reaching 450,000
buildable m2 of
real estate.
February
Commencement of
construction of the first
Aman Villa at Amanzoe.
January
Construction of
Pearl Island airport
runway begins.
March
Issue of €50 million
Bonds and
US$9 million Bonds.
March
Agreement for the sale
of Port Kundu is signed.
March
US$40 million issue
of Playa Grande
Convertible Bonds.
May
Aristo Exchange
takes place.
March
Aman Golf Resort
groundbreaking
ceremony at
Playa Grande.
May
€50 million assetbacked loan facility
arranged for Venus
Rock Golf Resort.
June
Management
agreement signed with
Nikki Beach to operate
the hotel at The Porto
Heli Collection.
April
Works for the
construction of the
36-hole golf course
commenced at Venus
Rock Golf Resort.
August
Commencement of
construction of the
Aman Beach Club
at Amanzoe.
June
Construction of first golf
villa completed at Playa
Grande Club & Reserve.
August
Amanzoe welcomes
its first guests. At opening,
five Aman Villas were
already sold.
September
Dolphin sells a 60%
shareholding in Pearl
Island’s Founders’ Phase,
after having sold over
20 Founder lots.
May
Agreement for the
sale of Venus Rock
is signed.
July
The construction
of the first Aman Villas
at Amanzoe is
completed.
October
Ritz Carlton announces
2016 resort opening at
Pearl Island.
October
€50 million issue of
new Dolphin shares.
8
FINANCIAL HIGHLIGHTS
TOTAL GROUP NET ASSET VALUE (‘NAV’),
AT 31 DECEMBER 2013
€604
€524
million
and
million
BEFORE AND AFTER DEFERRED
INCOME TAX LIABILITIES (‘DITL’) RESPECTIVELY.
STERLING NAV PER SHARE
AS AT 31 DECEMBER 2013
GBP
0.78
0.68
before DITL
and GBP
after DITL
THE COMPANY CONTINUES TO
HAVE A STRONG ASSET BASE
COUPLED WITH LOW LEVERAGE
GROSS ASSETS
€859
million
TOTAL DEBT REDUCED TO
€169
million
WITH A GROUP TOTAL DEBT TO
TOTAL ASSETS VALUE RATIO OF ONLY
20
%
€50 million and US$9.17 million
convertible bonds held at the Company level
The Company has provided corporate
guarantees US$31 million outstanding
Playa Grande Convertible Bonds and
US$19 million Playa Grande construction loan
9
CHAIRMAN’S STATEMENT
ANDREAS PAPAGEORGHIOU
I am pleased to report Dolphin’s preliminary annual results for the year ended
31 December 2013. Since the last annual report, significant progress has been made in
terms of development, operations and project exits that underpin the value of the portfolio.
The value of Amanzoe, Dolphin’s flagship project, has been demonstrated once again by
the recent Villa sales and the Archimedia profit sharing agreement signed during the
period, while the attractiveness of the Company’s Greek projects is underpinned by the
provisional Dolphin Capital Greek Collection (‘DCGC’) preferred equity raise of €100
million sponsored by Colony Capital, a highly respected international real estate investor.
The completion of the DCGC preferred equity raise would mark the establishment of a strategic
relationship with one of the world’s leading real estate investors, and will enable the Company to
commence the construction of the Jack Nicklaus Signature Golf course in Kilada and the Aman at
Kea (subject to the finalisation of the resort’s design and the issue of the final building permits), as
well as making further progress at Playa Grande and initiating the Ritz Carlton Phase of Pearl Island.
This development progress will significantly enhance Dolphin’s portfolio of completed leisure
projects, diversify its residential real estate product offering and result in Dolphin becoming a cash
flow positive company.
During the year, the portfolio has achieved important permitting advances, especially for Scorpio
Bay Resort and Kilada Hills Golf Resort. Kilada Hills Golf Resort has already been inducted under the
Strategic Investments scheme and Scorpio Bay is expected to also qualify under such scheme and
receive a significant increase in its total residential buildable area for sale.
The Company’s NAV before DITL, as at 31 December 2013, is reported at €604 million and the
NAV per share before DITL in Euro terms was €0.94, representing a 14.8% decrease from 31
December 2012. This drop was driven principally by the reduction in the value of the Venus Rock
project, the fair value of which has been adjusted to reflect the purchase price agreed with China
Glory Investment Group (‘CGIG’). The Venus Rock valuation adjustment resulted in a decrease in NAV
before DITL of €60 million (8.4%) from 31 December 2012.
In addition to the Venus Rock sale impact, underlying real estate values predominantly decreased
due to a valuation discount in the Aristo portfolio in the aftermath of the March 2013 Cyprus banking
crisis. Operating and permitting progress led to revaluation gains in Playa Grande Club & Reserve,
Pearl Island, The Porto Heli Collection components, Apollo Heights Polo Resort, Lavender Bay Resort
and Scorpio Bay resort.
Further to the €339 million of sales and divestments agreed by the Group within 2013, we remain
committed to generating value through active management of operations, construction, retail sales
and divestments, while leveraging opportunities to expand the Company’s portfolio and revenue
sources, in order to maximise value for shareholders.
Andreas Papageorghiou, Chairman
Dolphin Capital Investors Limited
10
Dolphin Capital Partners Team
INVESTMENT MANAGER’S REPORT
We are particularly pleased with the performance of
Amanzoe, which was cashflow positive for Dolphin in
2013. We remain focused on delivering our other key
development projects, such Nikki Beach, Playa Grande,
Pearl Island, Kilada Golf Resort and Kea, on budget and
on time so that they also become cash generative for the
Company. We are confident that, following the completion
of a number of strategic transactions, including the
€100 million preferred equity investment announced
26 March 2014, we will be better placed than ever
before to unlock value for shareholders as we take
full advantage of the upturn in the global economy.
11
OVERVIEW
During the year, our team focused on executing divestments, while delivering tangible
progress in the permitting, operation and construction of all key portfolio projects. Since the
last annual report, €361 million of sales/divestments were signed including:
• Retail sales at Amanzoe, Aristo, Playa Grande and LaVanta;
• The sale of Venus Rock to CGIG; and
• The 50% profit participation agreement with regard to the
Amanzoe Villas.
Should the DCGC preferred equity issue to Colony be completed, the Company could have
six fully funded resorts (Amanzoe, Kilada Hills Golf Resort, the Aman at Kea, the Nikki
Beach, the first two phases of Playa Grande and the second phase of Pearl Island), which
are expected to generate returns of €917 million to the Company, after deducting the
DCGC Investor’s preferred return and the repayment of construction bank loans.
Although the overall economic conditions remain challenging in both Greece and
Cyprus, with the most notable effect on the Dolphin Group businesses being the scarcity
of senior bank debt to finance the construction of the development portfolio, the business
climate is slowly but steadily improving in both regions, assisted by the legislative reforms
implemented during the past year by both the Greek and the Cypriot governments.
In particular, the introduction of the Strategic Investment incentive
legislation in Greece, which should be applicable to most of our local
projects due to their quality, size and potential impact on the local
economy, speeds up and improves zoning entitlements and building
permits for Dolphin’s residential resort projects in the country. In
Cyprus, the decision by the Ministerial Council to reduce the
investment amount requirements for the award of Cypriot citizenship
to €2 million for buyers of real estate is expected to significantly
increase sales momentum and margins at Aristo and increase the
value and saleability of its larger projects, such as Venus Rock and
Eagle Pine. Significant value will also be unlocked through the expected
zoning of the Apollo Heights Resort, following the agreement reached
by the Cypriot and UK governments to permit development projects
falling within the Sovereign British Areas
In parallel, Dolphin Capital Americas, Dolphin’s wholly owned
subsidiary for the Americas region, has made significant progress
towards acquiring or merging with some of the top luxury
developments in that region to diversify the portfolio, following the
continued economic and real estate markets recovery in North and
Amanzoe main restaurant
Latin America.
12
ISSUE OF PREFERRED EQUITY INSTRUMENT,
ASSET SALES, DIVESTMENTS AND INVESTMENTS
€100 million preferred equity investment by Colony Capital in the Dolphin
Capital Greek Collection
•
On 25 March 2014, Dolphin signed a non-binding preliminary agreement (subject to final
due diligence, agreement of definitive documentation, certain other pre-conditions, and
conditional on Dolphin shareholders’ approval) with Colony Capital, acting on behalf of
managed and advised funds (‘Colony’ or the ‘Investor’), for the issue of a €100 million
preferred equity instrument in ‘DCGC’, a newly incorporated 100% owned Dolphin
holding company, which will own Dolphin’s shareholding interests in Amanzoe, The
Chedi and the Jack Nicklaus Signature Golf Course (‘Kilada Hills Golf Resort’), The
Nikki Beach Resort & Spa at Porto Heli (‘Nikki Beach’) and the Aman at Kea.
• Colony is a renowned global real estate investment firm, established in 1991 which has
invested US$52 billion since its inception across product types including hospitality,
residential, gaming, office and commercial, and currently has approximately US$20
billion of assets under management. Over the years Colony has invested in emblematic
properties and brands such as Costa Smeralda in Sardinia, Raffles and Fairmont hotels,
the Savoy hotel group, One & Only, Aman Resorts and the Hilton Waikoloa in Hawaii.
• The basic terms of the DCGC preferred equity investment are set out
below:
The
preferred equity funds could be drawn down in two equal tranches
°
(Tranche A within six months of closing and Tranche B within
18 months of closing). The proceeds will be partially invested in the
development of the DCGC projects and partially distributed to DCI.
° The preferred equity instrument that would be issued by DCGC would
entitle the Investor to a preferred return of 14% per annum on the
balance of its investment (i.e. the balance of the amounts actually
drawn down, minus any distributions received by the Investor from
DCGC) of which a substantial part can be accrued. In addition, the
Investor would receive 80% of the free cash flow available for
distributions generated by DCGC until the Investor has recouped
100% of its investment (including any accrued and unpaid preferred
return). Thereafter, the Investor would be entitled to 30% of the free
cash flow available for distributions generated by DCGC until the
Investor has generated a 2.5x multiple on its investment (including
the preferred return received) within six years, at which point the
The Chedi, Porto Heli Collection
profit sharing will cease.
° The Investor would be granted security over all of the DCGC common shares, and a put
option for an amount, if any, that would be required for the Investor to generate the
pre-agreed return by the eighth anniversary from closing. The real estate assets of
DCGC will not be encumbered by the Investor and DCGC will have the ability to raise
up to €130 million of additional senior bank loans for the development of its projects.
13
Nikki Beach Resort & Spa, Rooftop lounge
14
CONTINUED
° If
Amanzoe Villa 1
DCGC fails to make any preferred return cash payment or does not generate the
pre-agreed return multiple by the sixth anniversary from closing, the Investor will have
the ability to convert the outstanding balance into DCI shares at the lower of market
price or 20% discount to NAV per share. The Investor would also be awarded an amount
of four-year warrants giving the right to subscribe to 40 million DCI shares for each of
the two Tranches at a price per share of 50p (representing a total maximum potential
NAV per share dilution of circa 3%).
° DCGC has retained an option to repurchase the preferred equity instrument by returning
to the Investor an amount equal to a multiple of 1.5x its investment on the second
anniversary from closing or an amount linearly adjusted with time to 2.5x until the sixth
anniversary.
• The Board of Dolphin and the Investment Manager believe that this
is a milestone transaction for Dolphin as its completion would bring
the following benefits:
° Establishing a strategic relationship with Colony, one of the world’s
leading and most respected real estate investors, with significant
experience in large-scale luxury integrated resorts; and
°Providing additional capital to commence the development of the
Kilada Hills Golf Course, the Aman at Kea, and, through the DCGC
distributions to DCI, advance the second phase of Playa Grande, and
initiate the Ritz Carlton Reserve Phase of Pearl Island, thus potentially
unlocking €508 million of additional profit for the Company and its
shareholders, after the preferred return payment to the Investor.
Given that the non-binding preliminary agreement entails the award of
warrants and a provisional conversion right of the preferred equity
issue into DCI common shares at a price which would represent a
discount to the Company’s NAV per share on a conversion, if the
Company enters into a binding agreement with the Investor, it will
convene an Extraordinary General Meeting of its Shareholders in
order to approve the proposed DCGC transaction. The final detailed
terms and conditions of the DCGC preferred equity issue will be
included in a Circular, which will be circulated by the Company to its
Shareholders in due course.
15
CONTINUED
Profit Sharing Agreement for 50% of the net profits from Amanzoe Villas
future sales
•On 28 January 2014, Dolphin signed an agreement with Archimedia Holdings Corp.
(‘Archimedia’) – the company chaired by John Hunt, a strategic investor who has already
acquired three Villas at the Amanzoe Resort – whereby Archimedia was granted an
option to acquire a 50% profit share from future sales of Amanzoe Villas.
•Under the terms of the agreement, by making a refundable deposit of €10 million,
Archimedia was given the option to acquire a 50% entitlement in the net profits to be
realised from the sales of the unsold and unreserved Amanzoe Villas, which will be
constructed in the current and future development phases of the project, for a total
upfront consideration of €26 million in cash. Archimedia will also be contributing
50% to the expected cost for acquiring further land for the future phase villas.
•Dolphin will retain 100% of the receivables generated from the 10 Amanzoe Villa
reservations or sales concluded to date.
• Archimedia is considering the potential exercise of its investment option as well as the
respective documentation for the 50% profit sharing agreement which is currently under
preparation by the parties.
•The latest Dolphin valuation for 100% of the land corresponding to the unsold and
unreserved Amanzoe Villas plus the land cost of the future phase amounts to €24
million, which compares favourably to the transaction’s implied €52 million valuation.
• Under the terms of the profit participation agreement, Archimedia also has a call option
to acquire 100% ownership of the Amanzoe leisure facilities, including the Amanzoe
hotel and beach club, as well as the project land bank, exercisable within five years
after the second anniversary from closing, at an enterprise value, which implies a
significant premium to the NAV.
• Dolphin retains a call option to redeem Archimedia’s investment during the first two years
from closing at a 30% premium per annum.
Sale of Port Kundu, Turkey
• Dolphin signed a preliminary non-binding agreement for the sale of 100% of Pt. Kundu
with a local real estate development group on 24 June 2013. After the completion of
their due diligence on Pt. Kundu and the renewal of the Pt. Kundu building permits, the
parties entered into a final binding agreement on 12 March 2014 for the sale of 100%
of the Pt. Kundu project for a cash consideration equal to €9.82 million.
• Although the purchase price agreed represents a 16% discount to the project’s most
recent valuation of €11.4 million as at 30 June 2013 and a 37% discount to Dolphin’s
recorded investment cost of €15.7 million, the Company’s Board considered that it
was in the Company’s best interests to monetise this non-core and relatively small
portfolio asset, given that there was no intention to commence its development over
the short to medium term and in view of the deteriorating economic and investment
environment in Turkey.
16
Playa Grande Club & Reserve, Golf Villa
17
CONTINUED
Update on Venus Rock sale
• On 17 May 2013, Aristo (49.8% owned by Dolphin) entered into a binding agreement
with China Glory Investment Group (‘CGIG’) for the sale of the Venus Rock project for
€241.5 million fixed consideration, plus €48.5 million in conditional deferred
consideration.
• According to CGIG’s representations to the Aristo management, its delay in meeting the
payment deadlines set out under the Venus Rock sales contract was related to both the
Chinese regulatory framework imposing foreign investment control restrictions, as well
as the uncertainty with regard to the Cyprus citizenship programme for foreign investors,
which emerged as a cornerstone component of CGIG’s sales strategy for Venus Rock.
• The recent reported reduction in the average minimum investment amount needed for
the award of a Cypriot passport to €2 million for foreign investors acquiring collectively
a large number of real estate properties within the same project, such as Venus Rock, is
expected to accelerate the completion of the transaction.
•Aristo and CGIG are under negotiations to amend the Venus Rock sales contract
payment terms in order to award a final extension to the purchaser to complete the
transaction within a short time frame against the payment of a significant part of the
fixed consideration due on the date when the amendment to the contract is executed.
• In the case where CGIG fails to reach a revised agreement with Aristo and make the
first payment thereunder, Aristo intends to terminate the original sales contract with
CGIG, retain the deposit payments received from CGIG and market the project to
alternative investors.
Dolphin Capital Americas (‘DCA’)
DCA is Dolphin’s wholly owned subsidiary for investment in the Americas region, which
owns 100% of Playa Grande, 60% of Pearl Island and 10% of Itacare. DCA aims to further
expand its project platform in the region, which is expected to experience significant
growth in the coming years, and to realise increased synergies and economies of scale
with the existing projects and the regional Zoniro teams.
• Pursuant to the above strategy, DCA has signed a Letter of Intent to acquire one of the
largest privately owned islands in the Bahamas (the ‘Island’) through a corporate
merger transaction. The Island is spread over 320 hectares, and is situated less than
30 miles from Nassau and 150 miles from the United States. The island already has
basic infrastructure and utilities, a paved airstrip of 4,000 feet, 26 miles of roads and a
complex of historical buildings.
• Based on the Letter of Intent, DCA would repay circa US$8 million of outstanding loans
which encumber the Island and acquire a stake in the Island at a valuation representing
a 30% discount to its current asset value and then merge it with DCA, on a NAV for NAV
basis. The completion of this transaction would mean that the Island’s owners would
own approximately 15% of DCA and mark the expansion of the DCA asset base to
include a premier resort destination with proximity to the United States market.
• DCA is currently engaged in other discussions for the acquisition of, or merger with
additional projects that fit the Company’s strategy.
18
CASH GENERATION POTENTIAL OF THE DOLPHIN PORTFOLIO
1
The Porto Heli Collection: page 25
2
Playa Grande Club & Reserve: page 33
3
Pearl Island: page 37
The Advanced Projects, excluding Venus Rock due to the ongoing sale
process with CGIG, are spread over 2,733 hectares of land, of which
403 hectares represent the current phases of these developments. The
total unsold residential capacity of these projects is approximately
470,000 buildable m2, of which circa 110,000 m2 are planned for their
current phases.
The plans for the current phases of the Advanced Projects include the
development of five luxury hotels, such as the first Aman residential
resort in Europe (Amanzoe), the first Aman golf-integrated resort
worldwide (Playa Grande), the first Nikki Beach resort in the eastern
Mediterranean, and the first Ritz Carlton Reserve resort in Central
America (Pearl Island); as well as a golf course in Playa Grande
designed by Robert Trent Jones Snr. and renovated by his son Rees
Jones and the Jack Nicklaus Signature Golf Course at Kilada.
Dolphin’s remaining portfolio includes:
• 10 major leisure-integrated residential resort projects, spread over
2,156 hectares of land on which it is conservatively expected to build
and sell circa 689,000 residential buildable m2, representing only a
circa 3% building coefficient. These projects are expected to further
increase in value as they complete their permitting and design
phase and reach Advanced Project status.
• Residual developable land as, under the current plans, not all the
land of the Major Projects will be developed.
• Aristo Developers, the largest developer and private land owner in
Cyprus, which currently has circa 67,000 buildable m2 of residential
product in stock or under construction and circa 314,000 land m2
in the form of readily available land plots with a total listed sales
potential of over €140 million. In addition, Aristo holds an additional
vast portfolio of land assets with the potential to sell over 900,000
residential buildable m2 once fully developed. Dolphin retains a
strategic 49.8% shareholding in Aristo.
Based on the above, the Investment Manager estimates Dolphin’s total
project portfolio cash return potential to be approximately €3.9 billion,
or circa 512p per share. This excludes: (i) any dividends or divestment
revenues from Aristo due to its nature as a development company
with ongoing operations and a diverse portfolio of real estate projects
(as opposed to the other single-project Dolphin subsidiaries), as well as
(ii) the dividends expected to be received from the Venus Rock transaction
upon its completion.
The gross cash returns potential of each project is summarised in the
following table:
19
CASH GENERATION POTENTIAL OF THE DOLPHIN PORTFOLIO
CONTINUED
(€ million)
ADVANCED PROJECTS Residential
Leisure
Land
Total cash
DCIbuildablebuildable
plots
generation
stake
(m2)(m2)(m2)potential
24,150
439,190
738
1
The Porto Heli Collection
100%
213,702
2
Playa Grande 100%
67,720
28,894 1,377,633
406
3
Pearl Island 60%
190,680
43,353 1,838,466
309
4
Venus Rock Golf Resort 35
TOTAL 472,102
96,397 3,655,289
1,488
MAJOR PROJECTS & ARISTO GREECE
406,965
125,069
78%
133,449
67%
27,929
Scorpio Bay Resort
100%
50,800
Lavender Bay Resort
100%
Plaka Bay Resort
100%
5
Sitia Bay Resort
6
The Aman at Kea
7
8
9
10 Triopetra
–
977
22,000
–
284
10,063
–
130
14,600
–
160
96,280
24,526
–
194
70,087
32,000
–
156
100% 8,87010,430
–
21
27
Douneika
100%15,55011,450
–
Syros 100%
–
CYPRUS
11 Eagle Pine Golf Resort
13 Livka
-
5
238,883
11,124
–
277
50%
141,996
7,924
–
126
100%
96,887
3,200
–
151
32,944
29,287
–
48
–
48
CROATIA
4,000
100%32,94429,287
TURKEY
10,734––
33
14 Mediterra
100%
10,734––
33
TOTAL
689,526
165,480
–
Residual Land 21,160,000
1,335
1,149
PORTFOLIO GRAND TOTAL 1,161,628
261,877 24,815,289
3,972
• The cash generation potential
assumes the full development
of each project and its exit
through retail sales of the
residential portfolio and land
plots, as well as the sale of its
leisure components at a multiple
to their expected terminal NOI
and does not include inflation
assumptions or interim project
exits. Cost assumptions cover
future development, marketing,
sales, branding and agency
expenses and do not include
already incurred expenses
for land acquisition and
development as well as respective
financing costs, management
and performance fees, or
corporate income taxes.
• All statements are based on
future expectations rather
than on historical facts and are
forward looking statements that
involve a number of assumptions,
risks and uncertainties. The
Company and the Investment
Manager cannot give any
assurance that such statements
will prove to be correct. Any
forward looking statements made
by or on behalf of the Company
are made only on a best estimate
basis as at the date they are made
and they do not constitute future
earnings, revenues or profits
forecasts or guidance. Neither
the Company nor the Investment
Manager undertake to update
forward looking statements
to reflect any changes in
expectations, events, conditions
or circumstances upon which
such statements are made.
20
MARKET DYNAMICS
International tourist arrivals grew by 5% in 2013, reaching a record 1,087 million
arrivals, according to the latest UNWTO World Tourism Barometer. Despite global
economic challenges, international tourism results were well above expectations,
with an additional 52 million international tourists travelling the world in 2013.
According to the same report, Europe led this growth in absolute terms, welcoming an additional 29 million
international tourist arrivals in 2013, raising the total tourist arrivals to 563 million. This level of growth significantly
exceeded the forecast for 2013 and is double the region’s average for the period between 2005 and 2012. By
sub-region, Central and Eastern Europe and Southern Mediterranean Europe experienced the best results.
The key points for Dolphin’s markets are as follows:
•
In Greece, international tourist arrivals, according to the Tourism Research Institute, reached 17.9 million in
2013, representing a historical record and an increase of almost 15.4% compared to 2012. 2014 is expected
to set a new record.
•
In Cyprus, tourist arrivals during 2013 amounted to 2.4 million, representing a slight decrease compared
to 2012, as reported by the Statistical Service of the Republic of Cyprus. Nevertheless, it is encouraging to
note that, despite the banking crisis that occurred in early 2013, tourist arrivals remained broadly stable.
Tourist arrivals and receipts are expected to improve significantly in 2014, according to the Cyprus Tourism
Organisation (CTO).
•
In the Americas region, the Central Bank of the Dominican Republic reported that total tourist arrivals in the
country during 2013 recorded a 3.8% increase compared to 2012, reaching a total number of almost 5.6 million.
•
In Panama, based on the data provided by the National Institute of Statistic and Census, the total number of
visitors for 2013 was approximately 2.1 million, indicating a 2.6% increase compared to 2012.
•
The outlook for travel and tourism in the Dominican Republic and Panama in 2014 is very positive, with tourist
arrivals expected to grow by 3.0% and 4.0% respectively according to the World Travel & Tourism Council.
•
In Croatia, foreign tourist arrivals for 2013 reached 12.3 million, representing a 4% increase compared to
2012, according to the Croatian Bureau of Statistics. Due to the fact that the major markets within Europe
are experiencing improving domestic economic conditions, particularly Croatia’s top four countries for
arrivals (Germany, Slovenia, Italy and Austria), annual growth of around 5% is expected in 2014.
•
In Turkey, the country’s Statistical Institute reported that the number of foreign visitors rose by 9.8% from a
year earlier to 34.9 million in 2013. According to World Tourism Organization data, Turkey is ranked as the
sixth most visited country in the world. Provided that recent domestic tension fully settles, 2014 expectations
are optimistic.
Another relevant metric that has an impact on the purchase of luxury residential real estate is the continued
growth of wealth across the globe. The Wealth Report and the Wealth-X reports have published the following
findings, supporting this trend:
a. In 2013, the growth in the number of high and ultra-high net worth individuals (‘UHNWIs’, individuals with
US$30 million or more in net assets) across the globe reached all-time highs in terms of their wealth and
population. There are now circa 200,000 UHNWIs across the world, an increase of 6.3% since 2012, with a
combined wealth of US$27.8 trillion and with a desire to differentiate themselves in terms of lifestyle choices.
b.Property
is one of the most popular asset classes in which to invest, accounting for 24% of UHNWIs’
investment portfolios. Over 40% of survey respondents said their clients had increased their allocation to
property last year, with 47% expecting it to rise further in 2014. Just over a fifth of UHNWIs, on average, are
considering buying a new home in 2014, although the figure rises to almost a third of UHNWIs living in
Russia and the CIS. This is a positive indication for Dolphin’s core markets of Greece and Cyprus, where
new schemes are being implemented to grant long-term residence visas or citizenship to non-EU real
estate buyers or lessees who invest a certain amount of money in the purchase or lease of real estate.
21
STRATEGIC OBJECTIVES
THE STRATEGIC PRIORITIES OF THE COMPANY ARE AS FOLLOWS:
1
#
#
6
COMPLETE THE PREFERRED
EQUITY ISSUE IN THE DCGC
ASSIST ARISTO’S MANAGEMENT
IN INCREASING RETAIL SALES
that will enable the draw down of funds for the
development of Kilada Hills Golf Resort and the
Aman at Kea and speed up the development of
the next phases of other Advanced Projects.
during the current challenging period and
complete the Venus Rock transaction using the
sales proceeds generated to reduce Aristo’s
leverage and distribute dividends to Dolphin.
#
2
7
#
COMPLETE OTHER AGREED SALES OF PROJECTS
AND RESIDENTIAL UNITS.
3
#
INCREASE THE PACE OF SALES
OF AMANZOE VILLAS
and enhance the operational
performance of the resort.
#
4
#
8
OPPORTUNISTICALLY PURSUE ADD-ON
ACQUISITIONS TO EXISTING PROJECTS.
#
PROGRESS THE DEVELOPMENT
OF THE AMAN GOLF RESORT
and sell all the remaining Founder
Aman Villas at Playa Grande.
#
GROW DCA
and capitalise on the recovery and strong prospects
of the North and Latin American markets.
5
9
CONTINUE CAPITALISING ON THE
EXPERTISE OF ZONIRO AND ARISTO
coupled with the new immigration legislation
in Greece and Cyprus to expand the Company’s
portfolio and generate additional income.
10
#
LAUNCH OPERATIONS AND PURSUE SALES
AT THE NIKKI BEACH.
ADVANCE THE ZONING AND PERMITTING
OF DOLPHIN’S OTHER MAJOR PROJECTS
enabling the Company to sell them –
either partially or wholly – at a profit, or develop
them and realise their full cash return potential.
22
PORTFOLIO REVIEW
picturesque resorts...olive groves...decidedly stylish...
groundbreaking...exclusive destinations...private beaches...
fine-dining...cutting-edge technology...incredible swimming
pools...dramatic and magical landscapes...exquisitely
designed guest pavilions...retreats as an antidote to the high
stress...sublime experiences...designed masterpieces...soft
golden stone...gentle flowing pools...stylish...contemporary...
tailor-made...floor-to-ceiling glass doors...generous...idyllic
terraces...elegant...tranquil peninsulas...secluded coves...
breathtaking panoramic views...tempting dining options...
sought after destinations...dramatic cliffs...sun-drenched
coastlines...secluded pebbled beaches...crystal waters...
heavenly islands...natural beauty...warm weather...great
food...heaven on earth...for the discerning global traveler...
23
Dolphin’s portfolio is currently
spread over 63 million m² of prime
coastal developable land and
comprises 14 large-scale, leisureintegrated residential resorts under
development in Greece, Cyprus,
Croatia, Turkey, Panama and the
Dominican Republic and a 49.8%
strategic participation in Aristo
Developers Ltd, the largest
developer and private land
owner in Cyprus.
24
PROJECT INVESTMENT AND EXIT SUMMARY
A summary of Dolphin’s current investments is presented below.
As of 28 February 2014, the net invested amount is €590* million
PROJECT
ADVANCED PROJECTS
1 The Porto Heli Collection
• Amanzoe
• The Nikki Beach Resort & Spa
• The Chedi and Jack Nicklaus
Signature Golf Course
3 Pearl Island
4 Venus Rock
TOTAL
MAJOR PROJECTS
6 The Aman at Kea
7 Scorpio Bay Resort
9 Plaka Bay Resort
10 Triopetra
11 Eagle Pine Golf Resort – Aristo
13 Livka Bay Resort
Zoniro Greece
TOTAL
ARISTO CYPRUS*
Itacaré Investment
DCI Corporate Bonds
GRAND TOTAL
Land site
(hectares) DCI’s
stake
Investment cost*
(€m) 343
96
86%
1
25%
160
63
5
35
35
–
246
100%
950
100%
1,440
60%
1,000
50%
3,733
92
77
27
83
347
–
11
–
–
46
434
17
9
14
24
12
4
18
15
25
15
2
–
–
–
–
–
–
–
20
10
2
11
280
65
172
310
440
11
319
461
63
8
27
78%
67%
100%
100%
100%
100%
50%
100%
100%
100%
100%
Debt
(€m) Real estate value
(€m)
Loan to real estate
asset value (%)
12%
2,156
155
43
260
16%
392
50%86
–106
n/a
10%2–7
n/a
n/a
n/a
79
–
6,281
590
168
807
22%
*Including amounts paid in shares
Land site
(hectares) Investment cost*
(€m) Debt**
(€m) 1,648
2,172
71
2,390
241
202
41
106
46
20
12
11
Land site (hectares)
11
210
65
3.6
4
1,351
1
106
4
Real estate value
(€m)
Loan to real estate value (%)
Net asset
value
392
223
46
146
12%
9%
25%
8%
44%
34%
5%
17%
Dolphin
stake sold
Dolphin original investment (€m)
Dolphin exit
proceeds (€m)
100%
100%
33%
100%
100%
50%
75%
100%
100%
2
2.8
4
9
11
208
4
6
16
BY COUNTRY
A Greece
B Cyprus
C Croatia and Turkey
D Americas
GRAND TOTAL
6,281
590
89
807
11%
100%
*Including amounts paid in shares **Excluding DCI corporate bonds.
Dolphin return on
investment (times)
EXITS
Tsilivi – Aristo
Amanmila Kea Resort
Seafront Villas
Kings’ Avenue Mall
Aristo Developers Ltd The Nikki Beach Resort & Spa Pearl Island Founders’ Phase Pt Kundu TOTAL
1,756
262
7
5.4
4.1
14
15
375.5
6.9
10.6
10
488
3.50x
1.90x
1.00x
1.52x
1.36x
1.80x
1.83x
1.73x
0.63x
1.71x
25
1
THE PORTO HELI COLLECTION
PELOPONNESE, GREECE
Amanzoe Villa Pool
26
PORTFOLIO REVIEW: ADVANCED PROJECTS
1
INTRODUCTION
olive groves...decidedly stylish...gentle flowing pools...elegant dining...
Engulfed by azure waters and
protected coves, and in close
proximity to ancient sites of
cultural and archaeological
interest and picturesque islands,
The Porto Heli Collection is home
to Amanzoe and will include two
additional 5-star hotels, each one
offering its own unique style of
vacationing and amenities, as well
as a range of luxury residential
units, catering to a diverse range
of travellers and buyers.
C O R I NTH
CANAL
ATH E N S
I NTE R NAT I O NAL
AI R P O RT
MYC E NAE
E P I DAVR O S
GOLF
BEACH ACTIVITIES
NAF P LI O N
POROS
I S LAN D
BEACH CLUB
SKIING
MARINA
1
ARCHAEOLOGICAL SITE
PORT
HYD RA
I S LAN D
S P ETS E S
I S LAN D
27
1
AT A GLANCE
DOLPHIN STAKE
100%
AREA SIZE
347
3
hectares
5-star hotels
Probably the most
exclusive development in
Greece, to host a range of
high-end, masterplanned,
leisure-integrated
residential resorts, in a
serene environment, with
panoramic sea views.
In the region of Argolida,
near Porto Heli (one of the
most upmarket, secondhome residential areas in
Greece), within 2-hours’
driving distance from
Athens International
Airport and two hours by
ferry from Piraeus Port.
www.portohelicollection.com
COMPOSITION
First Phase
• Amanzoe, a 42-pavilion hotel
and spa designed by Ed Tuttle,
opened in August 2012
• The Aman Beach Club,
opened in August 2012
• The Aman Villas, serviced
by Amanzoe
• The Nikki Beach Resort
& Spa at Porto Heli, which
will include hotel suites as
well as apartments for sale
opening in 2014
• The Seafront Villas
Other Phases
• The Chedi with 100 hotel
rooms, spa and 88 club
suites and villas
• The Chedi Beach Club
and 13 cabanas
• Jack Nicklaus Signature
Golf Course
• Golf clubhouse, circa
260 golf residences and
100 hillside residences
COMPLETED
CONSTRUCTION TO DATE
PARTNERS
• Amanzoe 42-pavilion resort
• Amanzoe beach club, spa and
other leisure infrastructure
completed and four seafront
pavilions under construction
• All infrastructure
• Ten villas sold or reserved to
date, two delivered and three
currently under construction
www.amanresorts.com
www.nikkibeachhotels.com
DESIGN
•
Aman facilities masterplanned
and designed by Ed Tuttle
• Chedi Hotel and residences,
golf clubhouse and golf villas
masterplanned and designed
by Jean Michel Gathy
(Denniston International)
• Golf course designed by Jack
Nicklaus Signature Design
www.ghmhotels.com
www.denniston.com.my
www.nicklaus.com
www.zoniro.com
28
1
SHOWCASING OUR POTENTIAL
Progress since the last annual report
The Amanzoe hotel completed its first full year of operations, generating a small operating profit as
expected. The hotel closed for winter maintenance on 8 January 2014 and will reopen on 5 April 2014.
Both occupancy and average daily rate for the upcoming period are expected to be higher than 2013.
Two new reservation agreements have been signed for Amanzoe Villas, bringing the total
number of villas sold or reserved to 10, with a total sales value of €61 million. In parallel, continuing
interest in Aman Villas is being witnessed from potential buyers, many of whom have experienced
Amanzoe.
The construction of the four new hotel beach pavilions, adjacent to the Amanzoe Beach Club
with direct beach access, is progressing on time and on budget. The pavilions will be operational in
time for the 2014 season, further enhancing Amanzoe’s luxury offering.
In addition to two Amanzoe Villas that were added to Amanzoe’s rental programme in July 2013,
two more will be added during Q2 2014, whilst three more are currently under construction and due
to complete for the 2015 season. The designs for two additional villas have been completed and
construction is expected to begin by Q4 2014.
As these villas are expected to be included in the hotel rental pool, there will be an additional
19 rooms for the 2014 summer season, and a further addition of 20 rooms in 2015, bringing the total
available rooms at Amanzoe, including the current 38 hotel pavilions, and the upcoming four beach
front rooms, to 81 rooms for the 2015 season.
Amanzoe continued to receive awards and be profiled in the most prestigious
publications of the US, UK, France and Russia. Notably, Amanzoe won the Best
European Resort, Best Hotel Spa and Best Small Hotel under 100 Rooms
awards of the acclaimed Gallivanter’s Guide, and was named as the hotel with
the Best Pool in the world by the prestigious Andrew Harper’s Hideaway
Report. Other publications that featured Amanzoe are the US Travel+Leisure,
The Times online and The Sunday Times, Town & Country, Centurion and Asia
Wealth magazines, all in articles that showcase the uniqueness of the resort.
At Nikki Beach Resort & Spa at Porto Heli, construction is progressing,
in line with budget, for the resort to make a soft opening during the 2014 season.
A number of marketing and PR activities are planned throughout spring 2014.
On 4 March 2014, the project company signed final agreements with a local
bank for a €2.7 million bridge facility to be used for the financing of the construction
cost input VAT until it is refunded from the Greek state and has started drawing
down from this facility. The same financial institution has provided a €4.6 million Letter of Guarantee,
which enabled the Company to draw down the approved €4.2 million government subsidies for the
project on 31 December 2013. In order to fund the remaining €5.1 million equity funds required for
the completion of the project, Dolphin has extended a corresponding one-year loan facility with an
11% interest charge to the respective project company which is collateralised against SDG’s
75% shares in the Nikki Beach. Dolphin has already funded €1 million under this facility.
As reported on 5 December 2013, the Chedi & Jack Nicklaus Signature Golf Course project
has qualified under the Strategic Investment Incentive legislation which applies to investments in
excess of €100 million and entitles the project to formal support from the Greek government for its
implementation. This should speed up the approval process for any outstanding entitlements,
significantly increase the total residential buildable area for sale and provide certain tax allowances to
the project company.
Since approval, the team has been preparing the respective Strategic Environmental Impact
Study in accordance with Strategic Investments approval requirements, and will submit it to the
relevant authorities in the next few weeks.
29
…our first completed luxury resort,
drawing its name from the Sanskritderived word for ‘peace’, ‘aman’, and
‘zoe’, the Greek word for ‘life’.
In the realm of Greek luxury
resorts lies a contemporary retreat
embracing Greece’s rich history
and culture. Amanzoe offers
travellers an ideal base from which
to explore the natural beauty,
coastal pleasures and ancient
heritage of the Peloponnese region.
30
1
AMANZOE
EXCELLENCE
CONDÉ NAST TRAVELLER 2013
(UK, US, Russia)
Hot List
TRAVEL+LEISURE 2013
IT List
The coolest new hotels of the year
ANDREW HARPER’S HIDEAWAY REPORT
Grand Awards 2014
1
#
Special Recognition Award: Best Pool
THE GALLIVANTER’S GUIDE
Awards for Excellence, January 2013
1
#
Best Hotel Spa Worldwide
Best European Resort
Best Small Hotel/Resort Under 100 Rooms
#
2
Best Leisure Resort Worldwide
Amanzoe in the Peloponnese, arrived amid the Greek
financial crisis, yet managed to achieve the highest rates
in Greece and the highest occupancy; so much so, that
many travellers could not secure a suite in peak season.
Is it expensive? Yes. Is it worth it? Definitely. Genuine
quality, it seems, overcomes just about anything.
The Gallivanter’s Guide, January 2014
31
1
AMANZOE
ADORED BY THE PRESS
AMANZOE, THE
PHENOMENON
Ethnos,
Issue 270, 2014
HOLIDAY LIKE
A GREEK GOD
Asian Wealth,
Autumn 2013
ODE TO A
GRECIAN RESORT
Departures,
January/February
2014
BEST LEISURE
RESORT
WORLDWIDE
Gallivanter's Guide,
January 2014
GREECE’S
PERENNIAL
APPEAL
Luxury Hunter,
January 2014
BEST POOL:
AMANZOE
Andrew Harper,
Grand Awards 2014
TAKING YOUR
INVESTMENT
TO THE BEACH
Moneymaker,
January 2014
AN EARLY HIT
OF SUMMER
MED SUN
Monocle,
December 2013
PARADISE
FOUND
The Player,
December 2013
REMOTE
CONTROL
Sunday Times Style,
December 2013
INVESTMENT
IN GREECE
The Times,
November 2013
THE NEW
RIVIERA
Centurion,
November 2013
A-LIST 2013
Travel + Leisure
(US),
October 2013
AMANZOE,
PORTO HELI
ELLE (Russia),
October 2013
HOT HOTELS
Harper’s Bazaar
September 2013,
SOMEWHERE FOR
THE WEEKEND?
Condé Nast
Traveller,
September 2013
AMAN FOR
ALL SEASONS
Vogue UK,
September 2013
VILLAS IN THE
OLIVE GROVES
Dom & Interior,
September 2013
32
Contemporary, refined and elegant,
this lifestyle urban resort is where
those ‘in the know’ aspire to be.
The resort’s ideal beachfront
location allows guests to enjoy the
crystal clear cobalt blue waters and
dramatic panoramic views from
almost every corner of the property.
33
2
PLAYA GRANDE CLUB & RESERVE
DOMINICAN REPUBLIC
Playa Grande Club & Reserve
34
2
INTRODUCTION
sublime panoramic views...sun-drenched coastlines...dramatic cliffs...
Spanning over 11 km of direct
coastline with stunning beaches,
dramatic 20m cliffs overlooking the
Atlantic Ocean, a legendary Robert
Trent Jones Snr. designed golf course
and an unspoiled nature reserve,
Playa Grande Club & Reserve is
situated only 1-hour’s drive from two
international airports. The project
has the capacity for three luxury
hotels, including the first Aman
resort of the Dominican Republic and
over 400 luxury residential units.
P U E RTO
P LATA
2
CABAR ETE
R I O SAN J UAN
CAB R E RA
SANTIAG O
NAG UA
SAMANA P E N I N S U LA
GOLF
BEACH ACTIVITIES
BEACH CLUB
SPA
POLO/HORSERIDING
35
2
AT A GLANCE
DOLPHIN STAKE
100%
AREA SIZE
circa
950
hectares
11
approximately
Playa Grande beach is one
of the most spectacular
beaches in the Caribbean,
on the northern coast of the
Dominican Republic. It is
situated between the towns
of Cabrera and Rio San
Juan, each approximately
8 km away from the site.
It is approximately 1-hour’s
drive from Puerto Plata
International Airport
and Nagua Airport, and
two hours to Santo Domingo.
It boasts the first Aman
Resort in the Dominican
Republic and only golfintegrated Aman Resort
in the world. Often referred
to as the ‘Pebble Beach of
the Caribbean’, it has the
only golf course in the
western hemisphere with
10 holes running alongside
20m-high cliffs bordering
the Atlantic Ocean.
COMPOSITION
First Phase
• A 30-room Aman hotel
designed by John Heah
• The Playa Grande Aman
Beach Club
• A new golf clubhouse, fitness,
spa and tennis facilities
• 37 Aman Villas serviced by
the Aman Hotel
• The renovation of the existing,
legendary Robert Trent Jones
Snr. golf course based on new
designs by his son Rees Jones
Other Phases
• Approximately 400 additional
residential units (beachfront,
hilltop and cliff villas)
• Tennis, spa, beach and
equestrian clubs
km of seafront
COMPLETED
PARTNERS
• Main site infrastructure
and utilities
• 18 hole golf course with
renovation of back nine
holes complete
• One golf villa
• Aman Resort infrastructure
www.amanresorts.com
DESIGN
Project masterplanned by
Hart Howerton. Golf course
renovation design undertaken
by Rees Jones, son of Robert
Trent Jones Snr., Aman resort
designed by Heah & Co led by
John Heah
www.harthowerton.com
www.reesjonesinc.com
www.zoniro.com
www.playagrande.com
36
2
CAPITALISING ON OUR EXPERTISE
Renovation works on the back nine holes of the Robert Trent Jones Snr. Golf Course have been
completed as scheduled by Rees Jones, the son of the original designer. The seeding and grassing
process is underway and marks the last stage of renovation of the back nine holes, which will be ready
for play by the summer of 2014.
The mock-up pavilion is almost complete and planned to be delivered with all fit-out and
furniture, fixtures and equipment in April 2014.
The construction contract for the Aman pavilions, the main resort lobby and the service buildings
has been awarded to local contractors, and vertical construction has been initiated with a view to
completing the Aman Resort by mid-2015.
The project has to date drawn down circa US$7 million from the US$19 million debt facility for
the development of the Aman Golf Resort. An amount of circa US$9 million of Dolphin equity has
been deposited with the financing bank which will be drawn down on a 40/60 basis with the debt
facility in order to complete the Aman hotel which is currently under construction.
Reflecting the improved macro and real estate recovery in the United States, two new sales of
Aman Villas have been executed. Based on the strong interest received to date from high net worth
individuals primarily from the East Coast of the United States, it is expected that the remaining four
Aman Founder Villas (out of the seven recently released for sale) will all be sold well before the
Aman hotel opening.
DR Beachfront, the investor group which previously owned the Playa Grande site, has completed
all the infrastructure works on its site adjacent to the Aman resort to enable the construction of
homes for its owners and is nearing completion of a 15-key luxury boutique hotel which will
complement the Aman resort offering. This development was featured in the Vogue April
2014 edition.
37
3
PEARL ISLAND
ARCHIPELAGO DE LAS PERLAS, PANAMA
Pearl Island, Ritz Carlton Reserve Beach
38
3
PEARL ISLAND
INTRODUCTION
crystal waters...secluded private beaches...heavenly natural beauty...
I S LA C O NTAD O RA
UT
4 0 NA
I L E S F R O M PA N A M A C I T Y
I CA L M
3
A private island, approximating the
size of St. Barths or Capri, with almost
30 km of coastline and 14 private
beaches in the heart of an untouched
archipelago of unique biodiversity,
approximately 40 nautical miles from
the skyscrapers of Panama City. With
at least three luxury 5-star hotels, a
marina, more than 1,000 luxury
residential units and a private natural
reserve comprising more than half of
the island, Pearl Island is set to become
one of the first exclusive integrated
ecological island resorts in the region.
I S LA VIVE R O S
BEACH ACTIVITIES
BEACH CLUB
SPA
POLO/HORSERIDING
HISTORICAL PLACE
I S LA
D E L R EY
I S LA
SAN
J O SÉ
39
3
PEARL ISLAND
AT A GLANCE
DOLPHIN STAKE
60%
AREA SIZE
1,440
14
Set in the Archipelago
de las Perlas, this private
island is set to become
one of the first exclusive
integrated ecological
island residential resorts
in the region.
70% of the island is
retained as a natural
reserve park, with a unique
ecosystem, marine and
bird sanctuary. It has a
natural harbour, which
is set to become one of
the largest marinas in
Central America.
Pearl Island is accessible
by boat in 1 hour and by
air in 20 minutes, and is
approximately 40 nautical
miles south of Panama
City. The Project has a
completed airstrip, with
potential to expand to
an international airport.
www.pearlisland.com
hectares
private sandy beaches
COMPOSITION
Founders’ Phase
(7% of the island) – sold
• Beach club, spa and
other leisure facilities
• A 40-berth and
30 dry-dock marina
• Approximately 200 residential
units (villas and plots)
• Private landing strip
First Phase – Ritz Carlton Reserve
(3% of the island)
• 80-key Ritz Carlton Reserve
hotel with beach club and
related amenities
• Approximately 120 branded
residential units
Other Phases (90% of the island)
• Development potential for
over 425,000 m2 of buildable
residential space or
approximately 945 residential
units and lots for sale
• Up to four additional luxury
5-star hotels
• Marina with up to 500 berths
and retail facilities
• Recreational and sports
facilities, including scuba
diving, whale watching, fishing,
equestrian centre and over
40 km of natural biking and
hiking trails
• International airport
COMPLETED
PARTNERS
• Basic infrastructure works
including 26 km of roads
• Irrigation/drainage/erosion
control systems, nursery
and agro-farm
• Modular utilities (water and
electricity) and workers’
housing that can accommodate
up to 300 workers
• Airstrip runway of 1 km, now
being expanded to 1.5 km to
enable business jets access
• Beachclub, marina with
40 berths and service pier in
advanced stages of construction
www.ritzcarlton.com
DESIGN
Masterplan and design by
Hart Howerton
www.zoniro.com
40
3
PEARL ISLAND
LARGEST PRIVATE ISLAND DEVELOPMENT IN CENTRAL AMERICA
The design and value-engineering process is advancing for the construction of an 80-room resort in
order to reach the target budget. Discussions are ongoing with potential equity joint venture
partners for this phase of the Pearl Island project. Execution of final facility agreements with a
regional bank is pending finalisation of the resort budget, which is planned for the end of April 2014.
The regional investor group that acquired the Founders’ Phase has completed the beach club and
is advancing the marina and the final phases of infrastructure of that phase. The first group of lots
has been delivered to their purchasers, and construction of the turn-key villas and condos is
underway. The sale of lots and turn-key product continues to maintain momentum, demonstrating
the ongoing strength of demand for luxury residential product in Panama.
41
With almost 30 kilometers of
coastline, 14 private beaches and
one of the richest marine and bird
sanctuaries on the planet, Pearl
Island breaks new ground,
environmentally, economically and
socially for the region. A world all
its own, that feels so far away, and
that is yet so very close.
42
PORTFOLIO REVIEW: MAJOR PROJECTS
5
GREECE
SITIA BAY GOLF RESORT
CRETE, GREECE
DOLPHIN STAKE
78%
stunning landscapes...
AREA SIZE
280
2.5
GRE ECE
8
hectares
km of seafront
7
6
5
10
9
CRETE
Greece offers to the discerning
traveller not only luxury and
stunning landscapes, but also
adventure, serenity, culinary
experiences, a bustling nightlife
and a number of outdoor
activities. Tourism accounts
for 18% of GDP, and is poised
for growth as a number of highend international brands are
developing properties in the
market.
LOCATION
The island of Crete
ACCESS
A 10-minute drive from
Sitia International
Airport, a 1.5-hour drive
east from Heraklion
and a 15-minute drive
from Sitia Harbour
SPECIAL FEATURES
A secluded peninsula of
unspoilt natural beauty
on the largest of the
Greek islands and the
most popular Greek
tourist destination with
3 million visitors in 2011
www.sitiabayresort.com
COMPOSITION
•
Over 130,000m2 of
buildable residential
units
• A 200-room Waldorf
Astoria resort
• A convention centre
• An 18-hole championship
golf course
• A golf clubhouse
• A 32-berth marina
• A beach and country
club and other
leisure facilities
DESIGN
Masterplan and hotel
design by WATG.
Nicklaus Design has
been appointed as the
golf course architect
43
6
7
THE AMAN AT KEA
SCORPIO BAY RESORT
CYCLADES, GREECE
VIOTIA, GREECE
DOLPHIN STAKE
DOLPHIN STAKE
67%
100%
AREA SIZE
AREA SIZE
65
172
2
hectares
PARTNERS
www.waldorfastoria.com
hectares
Private beach
Approximately
www.watg.com
km of seafront
www.nicklaus.com
www.amanresorts.com
www.oberoihotels.com
LOCATION
The island of Tzia (Kea)
ACCESS
A 1-hour ferry ride from
Lavrio Harbour and a
15-minute drive from
Airport. Regular ferry
services from Lavrio all
year round
COMPOSITION
• Aman hotel and
residences
• Beach club
DESIGN
Designed by Heah & Co
led by John Heah
LOCATION
COMPOSITION
Skorponeri, Viotia region,
making this probably the
closest luxury seaside
residential resort to
Athens
Luxury Oberoi operated
hotel and full service
spa, integrated with a
residential development
and sea-related leisure
facilities
ACCESS
A 1-hour drive from
Airport
SPECIAL FEATURES
SPECIAL FEATURES
Dramatic sea views and
a spectacular sandy
beach offering a natural
harbour and a safe
shelter from the Aegean
winds
A mountainous peninsula
of unspoilt natural beauty
overlooking a secluded
bay and the island of
Evoia, and within a 1-hour
drive from the ski resort
of Mount Parnassus
www.zoniro.com
DESIGN
Hotel and villa designed
by Heah & Co led by
John Heah
GOLF
BEACH ACTIVITIES
BEACH CLUB
SPA
SKIING
MARINA
HOTEL
ARCHAEOLOGICAL SITE
DRAMATIC LOCATION
44
8
GREECE
LAVENDER BAY RESORT
CONTINUED
MAGNESIA, GREECE
PARTNERS
DOLPHIN STAKE
100%
www.edsaplan.com
AREA SIZE
310
2
www.garyplayer.com
hectares
km of seafront
www.oppenoffice.com
www.zoniro.com
LOCATION
GRE ECE
8
7
6
5
10
9
CRETE
GOLF
BEACH ACTIVITIES
BEACH CLUB
SPA
SKIING
COMPOSITION
Near the town of
Volos, in the region of
Thessalia, at the mouth
of Pagasitikos Gulf
• A 180-room Kempinski
ACCESS
•
Approximately 2.5-hours’
drive from both Athens
and Thessaloniki
International Airports,
also 20-minute drive
from new Aghialos
SPECIAL FEATURES
Unspoilt, undulating hills
fronted by a 2 km beach
and surrounded by forest
operated hotel
• More than 220 branded
residential units
More than 390 nonbranded residential units
• An 18-hole Gary Player
Signature golf course
• Beach club and other
leisure facilities
DESIGN
Masterplan by EDSA,
golf design by Gary
Player and hotel and
residences design
by Chad Oppenheim
(Oppenoffice)
MARINA
HOTEL
ARCHAEOLOGICAL SITE
DRAMATIC LOCATION
45
9
10
PLAKA BAY RESORT
TRIOPETRA
CRETE, GREECE
CRETE, GREECE
DOLPHIN STAKE
DOLPHIN STAKE
100%
100%
AREA SIZE
AREA SIZE
440
7
km of seafront
LOCATION
The island of Crete
ACCESS
A 40-minute drive east
from Sitia International
Airport, a 2-hour drive
east from Heraklion
and in close proximity
to Sitia Harbour
SPECIAL FEATURES
Easternmost point
of Crete
11
hectares
280
COMPOSITION
•
A residential
development of
over 70,000m2
• One or more 5-star
hotels
• Other supporting
recreational facilities
and potentially an
18-hole golf course
DESIGN
Masterplan prepared
by Hart Howerton
m façade along a scenic beach
LOCATION
On the southern side of
Rethymno Prefecture,
Crete
ACCESS
Approximately 54 km
from Rethymno, the
Prefecture’s capital
and main port. The
International Airports of
Heraklion and Chania fall
within a distance of
approximately 104 km
and 124 km, respectively
SPECIAL FEATURES
Dramatic sea views and a
spectacular sandy beach
hectares
COMPOSITION
• A 60-room luxury 5-star
hotel with restaurant,
retail, spa and fitness,
watersports, outdoor
activities and nature
treks
• Approximately 8,870m2
of residential buildable
non-branded villas
DESIGN
Permit design prepared
by Aristo Developers’
Architectural team
46
11
CYPRUS
EAGLE PINE
GOLF RESORT
CYPRUS
DOLPHIN STAKE
49.8%
healthy living...
AREA SIZE
319
CYPRUS
hectares
11 12
Cyprus is a deeply enjoyable
holiday island that boasts myriad
charms year round. The rich
history of the island can be traced
back 10,000 years and, as a
destination, Cyprus is not only
about attractive and impressively
clean beaches, but offers skiing,
hiking and several other outdoor
activities, always combined with
a unique culinary experience.
LOCATION
COMPOSITION
Inland, with stunning sea
views, overlooking the
Episkopi and Akrotiri
regions near Limassol
Golf facilities and
a residential development
component of up
to 150,000m2 of
residential units
ACCESS
Less than 1-hour’s
drive from both of the
island’s international
airports
SPECIAL FEATURES
A few kilometres from
Apollo Heights Polo
Resort and a 15-minute
drive from Venus Rock
Golf Resort
DESIGN
Masterplanning by
EDSA, golf design
by Graham Marsh
in association with
Hans-Georg Erhardt,
resort design by
Porphyrios &
Associates
47
12
APOLLO HEIGHTS
POLO RESORT
CYPRUS
PARTNERS
DOLPHIN STAKE
100%
www.edsaplan.com
AREA SIZE
461
hectares
www.gmgd.com.au
PORPHYRIOS
A
S
S
O
C
I
A T
E
S
www.porphyrios.co.uk
www.tonyjacklin.com
www.zoniro.com
LOCATION
Near the town
of Limassol
ACCESS
Less than 1-hour’s drive
from both of the island’s
international airports
SPECIAL FEATURES
With excellent views of
the sea, the mountains
and neighbouring
villages, the site also lies
adjacent to a number of
polo fields and an 18-hole
golf course, and is 500m
away from the beach
COMPOSITION
•
Hotel facilities
• Residential units
• Polo fields
• 18-hole golf course
DESIGN
Masterplan by EDSA
and golf course design
by Tony Jacklin Design
GOLF
BEACH ACTIVITIES
BEACH CLUB
SPA
POLO/HORSERIDING
HOTEL
ARCHAEOLOGICAL SITE
DRAMATIC LOCATION
48
CROATIA
13
LIVKA BAY RESORT
SOLTA, CROATIA
DOLPHIN STAKE
100%
spectacular coastline...
AREA SIZE
CROATIA
63
hectares
3
km of seafront
13
With a spectacular coastline
that stretches across the Adriatic,
more than 1,000 offshore islands,
dozens of medieval towns and
villages, Croatia’s appeal is
obvious. A heaven for yachters
and sun worshippers alike,
Croatia is quickly emerging as
an adventure and gastronomy
destination to boot.
LOCATION
The bay of Livka on the
south end of the island of
Solta, off the Dalmatian
Coast
ACCESS
20 km boat ride from
Split International Airport
SPECIAL FEATURES
One of the first luxury
residential resorts
on the Dalmatian coast
COMPOSITION
•
Luxury hotel
with 130 rooms
and suites
•Approximately
200 private, serviced
residences
• 120-berth marina
• Other supporting
recreational,sports
and retail facilities
DESIGN
WATG
www.livkabay.com
49
14
TURKEY
MEDITERRA RESORTS
ANTALYA, TURKEY
PARTNERS
DOLPHIN STAKE
100%
cultural wonders...
www.watg.com
AREA SIZE
8
hectares
5
TURKEY
cm
M İ M A R L I K
www.cemalmutlu.com
www.cemalmutlu.com
-minute drive to the beach
14
www.xavierbohl.com
Turkey’s archaeological and
cultural wonders, and its lush
and twirling Mediterranean
coastline, are a Mecca for tourists,
attracting millions of European
holidaymakers each year. From
hikers and adventurers, to
yachters and history enthusiasts,
Turkey can cater to anyone.
LOCATION
The Antalya region
of southern Turkey
ACCESS
A 1.5-hour drive from
Dalaman International
Airport to La Vanta
DESIGN
Cemal Mutlu
& Xavier Bohl
SPECIAL FEATURES
• La Vanta development
is very close to the
well-known beaches of
Kaputas and Patara and
within walking distance
from Kalkan beach
• 5-minute drive to the
beach
COMPOSITION
• La Vanta is a development
of over 25,000m2,
comprising over 120 villas
and townhouses. Phase 1
was completed in 2009
with 41 units already
delivered. Phase 2
is currently under
construction
BEACH ACTIVITIES
BEACH CLUB
SPA
MARINA
HOTEL
HISTORICAL PLACE
ARCHAEOLOGICAL SITE
www.mediterraresorts.com
DRAMATIC LOCATION
50
PERMITTING STATUS UPDATE
GREECE
1 The Porto Heli Collection
Amanzoe
Hotel
Residential development
The Nikki Beach Resort &Spa The Seafront Villas
Signature Golf Course
Hotel
Residential
Golf
Hotel
Golf Marina
Residential
6 The Aman at Kea
7 Scorpio Bay Resort
Hotel
Golf Residential
9 Plaka Bay Resort
10 Triopetra
LC
A
MP
PEIS
GNTO S
EIS
AD
GNTO A
CP
UC
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KEY
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l
l
l
l
l
N/A
GREECE
LC Land characterisation
A
Archaeology
MP Masterplan
PEIS Preliminary
environmental impact
study
GNTO S Greek National Tourism
Organisation suitability
EIS Environmental impact
study
AD Architectural designs
GNTO A Greek National Tourism
Organisation approval
CP Construction permit
UC Under construction
CYPRUS
IMP
MPA
EIS
AD
BP
CP
UC
4 Venus Rock Golf Resort
Golf coursel
Golf residential developments
l
Residential developmentl
Retaill
Hotell
11 Eagle Pine Golf Resortl
12 Apollo Heights Polo Resortl
l
l
l
N/A
l
l
l
N/A
N/A
l
N/A
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
CROATIA
IMPEA TZ UPEIS LP CPUC
13 Livka Bay Resort
Phase 1
Phase 2
l
l
l
l
l
l
l
l
l
l
l
l
TURKEYLCMP Z CPUC
14 Mediterra Resorts
La Vanta
Phase 1l
Phase 2l
Future phasesl
l
l
l
l
l
l
l
l
l
l
DOMINICAN REPUBLIC
EAMPAPBPUC
Golf course (renovation)l
Aman Hotell
Aman residentiall
l
l
l
l
l
l
l
l
l
l
PANAMA
EAMPAPBPUC
3 Pearl Island
Project levell
Founders’ Phasel
Ritz Carlton Reservel
l
l
l
l
l
l
N/A
Completed
In progress
To be initiated
Not applicable
l
CYPRUS
IMP Initial masterplan
MPA Masterplan approved
EIS Environmental impact
study
AD Architectural design
BP Building permit
CROATIA
IMP Initial masterplan
EA Environmental
assessment
TZ Tourist zoning
UP Urbanistic plan
EIS Environmental
impact study
LP Location permit
TURKEY
LC Land characterisation
MP Masterplan
Z
Zoning
DOMINICAN REPUBLIC
EA Environmental
assessment
MP Masterplan
AP Architectural plans
BP Building permit
PANAMA
EA Environmental
assessment
MP Masterplan
AP Architectural plans
BP Building permit
51
ARISTO
(a 49% subsidiary of DCI)
The reduction in real estate market activity triggered by the March
2013 banking crisis in Cyprus persisted over the whole of 2013 and
significantly affected the appetite of both international (primarily
Chinese and Russian) and local buyers. During 2013, Aristo generated
€20 million in sales, 61% lower than the corresponding €52 million
of sales realised during 2012, with Chinese buyers representing over
74%, Russian buyers 16% and others 10%.
The 2013 sales performance – which was also severely impacted by the fact that
Aristo stopped making sales in its best-selling Venus Rock project in view of
its sale agreement with CGIG – is the lowest since 2007, when Dolphin initially
acquired a shareholding interest in the company, and has significantly impacted
Aristo’s operating cash flow. However, this may be counterbalanced by the
collection of payments due under the Venus Rock transaction.
The recently reported change in policy, setting the average minimum
investment amount needed for the award of a Cypriot passport to €2 million for
foreign investors acquiring collectively a large number of properties within the
same project, such as Venus Rock, also presents a significant opportunity for
Aristo to boost its sales performance by promoting its numerous large-sized
projects, which are expected to attract affluent non-EU buyers who would like to
obtain a European passport.
In a further effort to generate additional liquidity, leveraging its extensive
portfolio of readily developed properties, projects under construction and land
holdings, Aristo has recently completed a strategic review of its operations and
organisational structure and is implementing a specific actions programme in
order to:
1.Improve
the company’s internal and external sales networks, marketing
collateral and sales teams, with the target of increasing sales velocity,
volume and efficiency.
2.Divest
Aristo’s larger assets through a formal process undertaken by the
Citi EMEA Real Estate group, which was engaged by Dolphin Capital Holdings
Two Ltd (the company that owns a 49.8% stake in Aristo Group) to run a
competitive process to attract investors to invest in a platform that would
include Venus Rock (in the case where the sale to CGIG is not completed),
Eagle Pine, and other large real estate projects owned by both Aristo and
third parties.
www.aristodevelopers.com
52
SUPPORTING COMMUNITIES
CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility (‘CSR’) is embedded in Dolphin’s culture. As such, Dolphin
and its Investment Manager consider it their responsibility to mindfully coexist with, and
support, the societies and environments where we invest.
DOLPHIN CAPITAL FOUNDATION
Dolphin Capital Foundation (‘DCF’) is a non-profit charitable entity set up on 12 December 2007,
dedicated to helping the surrounding regional communities and the natural environments where
Dolphin invests, by donating to various charitable endeavours.
PEARL ISLAND
The Pearl Island Foundation, backed by Dolphin, Grupo Eleta, the Inter-American
Development Bank and other local and regional participants, has continued to
pursue its mission of improving the standard of living of the local community
through innovative environmental and social initiatives on the island. Pearl
Island is already widely regarded as a regional model for engaging public and
private sector co-operation and for working with the local community
towards achieving pre-identified environmental and socio-economic goals. In
keeping with the exceptional work performed since 2008, this year (2013) has
seen the accomplishment of several milestones:
1. Improving the standard of local education: The project donated new schooling
facilities and delivered audio visual equipment and other supplies that
otherwise would be unavailable to a remote island school. We completed the
construction of a new pavilion for the school of Jose Dolores Luna and
two new classrooms for the middle school. We funded English language
programmes for children in the community and built a new community centre.
2.Professional
training of the local community: To support the economic
advancement of the community, we are providing basic training and education
to prepare them for vocations in the field of tourism and hospitality, as well
as start-up ventures, that could support the resort offering of Pearl Island.
3.Developing
community-based organic agricultural programmes: Education
and training to encourage the adoption of organic farming technologies. We
donated 25 hectares to the community for a local organic farm project that
will employ nine individuals and benefit the entire community.
4.Improving sanitation and living standards: We completed the first sewage system and aqueduct
on the island, providing the local population with access to clean water and disposal of sewage
in a hygienic manner. We continue to improve the system with further water treatment plants
and placement of communal taps.
5.Providing
medical care to the community: We are organising medical tours to attend the
community and workers of the resort. For most people in the community this is the only access
point they have to healthcare and treatment options.
6. Developing programmes to promote fitness and physical activity, environmental awareness, and
maintaining and developing the community parks.
www.boonedesign.com
CONTENTS
1
ABOUT US
2
Niche strategy
LEADING INVESTORS
RESORTS
DOLPHIN CAPITAL
INVESTORS LIMITED
VANTERPOOL PLAZA,
ROAD TOWN,TORTOLA,
ANNUAL REVIEW
www.dolphinci.com
4
5
Portfolio breakdown
6
Our journey so far
8
9
10
INVESTMENT
MANAGER’S REPORT
11
Overview
12
18
20
Market dynamics
21
22
PORTFOLIO REVIEW
24
Project investment
and exit summary
25
Advanced Projects
42
Major Projects
50
51
Aristo
52
DO NOT PRINT
www.boonedesign.com

View PDF - Dolphin Capital Investors

Transcription

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