Montenegro Real Estate Partners No.

2 (GP)
Summary Document February 2013 Montenegro - The worlds fastest growing tourism market
Key Highlights
The Project The development will be located in Montenegro, which is predicted to have the fastest growing tourism market in the world over the next 10 years, according to the World Travel Tourism Council The development is for a 5-star branded hotel, with luxury residential apartments and a conference centre The site benefits from 100 metres of prime beach frontage and is located within a 15 minute drive of an international airport The 5-star hotel will have approximately 190 en-suite rooms that all benefit from large balconies and sea views A contract has been signed with a world renowned luxury hotel operator, for the 25 year management of the hotel All 161 luxury residential apartments will have access to all hotel facilites, including room service The development will benefit from the ongoing business generated from the world class conference centre that will be built on the site The resort will have an exclusive private beach club, casino, world class restaurants and entertainment facilities The apartments will be available for purchase off-plan by existing investors from January 2013 The Investment Opportunity The project will be of greatest interest to UK resident companies who are looking to invest in a fast growing property market with risked managed exposure The minimum investment is 50,000 The project will enable corporate partners to participate in the partnerships trade An opportunity for corporate investors to generate up to 2-4 times return on equity pre-tax over the life of the project Downside protection may be afforded in certain circumstances by the tax treatment of trading losses arising The profit calculation for purposes of Montenegro revenue excludes the purchase price of the land The Partnership (as defined in the structure plan overleaf) has been established to provide a range of services in relation to the project, including the: design and build of the conference centre management of the conference centre over a 25 year term acquisition of the beach restaurant on behalf of the land owner BPHS refurbishment of the beach restaurant to the standard required by BPHS upgrade and maintenance of the beach facilities to the required standard over a 25 year term fit-out of the casino and retail units to the required specification

Montenegro
Montenegro, located south of Croatia, is a country of approximately 650,000 people with 290 kilometres of undeveloped coastline, a narrow coastal plain, backed by the impressive black mountains from which Montenegro takes its name The country became independent in 2006 and has leadership with a vision to create the Monaco of the Balkans, with a focus on luxury tourism The first major international hotel chain to commit to the country is The Aman, which has opened on Sveti Stefan. Additionally, Six Senses, Four Seasons and Banyan Tree are also actively engaged on other development sites. Most visitors to Montenegro are from Russia and former Yugoslavian countries (in particulair Serbia) Montenegros base currency is the Euro According to the World Travel & Tourism Council, Montenegro is the fastest growing tourism market in the world, with travel and tourism investment estimated to rise by 13.2% per annum to reach 606.7m (or 57.8% of total investment) in 2022 The project will be the first 5-star resort on the beautiful Bay of Budva and we strongly believe will become a major international tourist attraction

Structure Step Plan

Corporate Partners ("Partners")

Montenegro Real Estate No.2 (Jersey) Ltd ("Corporate Founder")

1.5m 8.5m Co-Venture Agreement

Principal Works and Services Agreement ("PW&SA")

Montenegro Real Estate Partners No.2 (GP) ("Partnership") Profits Design and construction services relating to the conference centre, and further property related services in relation to the overall development Irrevocable payment to secure the services of IPCS 9.8m

Procyon Real Estate Partners ("Procyon") Profits Procyon provides services in return for revenue under the PW&SA Consultancy Fee 0.05m

Boka Adriatic Developments (Montenegro) Ltd ("BAD")

Commissioning Agreement

Profits

Future Design and Build Services Ltd ("FDBS")

Boka Property Holding Services Ltd ("BPHS")

Integrated Property Contractor Services Ltd (Montenegro) ("IPCS")

Multiple Sub-contractors (including Bouygues)

Luxury Hotel & Residential Apartments

Financial Illustrations
Commercial Assumptions

Montenegro Real Estate Partners No.2 (GP) commences trade in February 2013 Build completion by March 2016 Corporate Founder is entitled to receive the first 5% of Partnership profits

Investors receive 75% of the remaining 95% of income at Partnership level until pre-tax ROE is 200% Once investors achieve pre-tax ROE of 200%, investors receive 25% of the remaining 95% of income at Partnership level The Partnership will receive a pro-rata share of the profits realised by Procyon (as defined in the structure plan on page 9) as follows:

Development Appraisal (28 Years)

Net Development value*: Land Purchase Price: Development costs (excluding land): Total costs including land: Gross profit: Assumed senior debt 50% LTC: Equity invested to date:
agreement and sale in 2040 at 9% yield

364.1m 28m 122.8m 150.8m 213.3m (141% Return on Cost) 75.4m 44m

Procyon's Share of Prots

Residential Development Hotel Operating Profits Conference Centre Beach Restaurant Casino and Retail Beach Facilities 10% 25% 50% 50% 25% 25%

*Assuming sale of apartments at 5528 per m2, 25 years hotel management

Forecast Returns
Assuming Sale of Hotel in 2020, Years 1-8
Investment of 1,000,000 (1.1m) Residential sales per m2: 5,528 Cap value at: Total MREP income Consultancy fee FDBS 4% Total Corporate Founder Total Corporate Partners Return on Equity Corporate Partners 8.0% 2,565,820 102,633 708,166 1,755,021 176% 8.5% 2,394,134 95,765 660,781 1,637,588 164% 9.0% 2,241,524 89,661 618,661 1,533,203 153% 9.5% 2,104,979 84,199 580,974 1,439,806 144% 10.0% 1,982,088 79,284 547,056 1,355,748 136%

Assuming Sale of Hotel in 2040, Years 1-28

Investment of 1,000,000 (1.1m) Residential sales per m2: 5,528 Cap value at: Total MREP income Consultancy fee FDBS 4% Total Corporate Founder Total Corporate Partners Return on Equity Corporate Partners Inputs: Development programme: Apr 2009 - May 2016 Sales programme: Jan 2013 - May 2017 8.0% 11,003,926 440,157 6,721,541 3,842,228 384% 8.5% 10,888,744 435,550 6,637,227 3,815,967 382% 9.0% 10,786,359 431,454 6,562,282 3,792,623 379% 9.5% 10,694,752 427,790 6,495,225 3,771,737 377% Build cost: 2,095/m2 Contingency: 1.9% 10.0% 10,612,306 424,492 6,434,874 3,752,939 375%

Construction programme: Oct 2013 - Mar 2016 Debt financing: 8% p.a. senior debt

Development Team
Boka Real Estate Managers (Boka) introduced this opportunity and have been involved in conceptualising other landmark development opportunities in the region, including the Porto Montenegro development. Boka provides local expertise, contacts and on the ground support to manage all aspects of the development Manly is an international development and project management consultancy operating in emerging and established markets. Manly has been appointed to advise on all aspects of the design and development process Atlas Group is one of Serbias largest private companies with business interests ranging from infrastructure, media, financial services, and real estate. Atlas is the vendor of the site and a potential future partner for the development of the on site conference centre An agreement was signed with Bouygues Batiment International, a subsidiary of Bouygues Construction, in September 2012 for the development of the project. This will guarantee the total construction cost and thereby ensure the development will be delivered on time and on budget FCP are contracted by the land owner to raise capital and by Montenegro to conduct adminstrative services. Montenegro contracts Future Design and Build services Limited to provide real estate expertise on the project Savills advises the owners of the site regarding valuation of the Development

For further information please contact:

info@futurecapitalpartners.com This should be read in conjunction with the Initial Business Plan (in particular the Important Information and Risk Management sections) and accompanying documents. Principal address: 10 Old Burlington Street, London W1S 3AG, United Kingdom Telephone: +44 (0) 20 7009 6600 Fax: +44 (0) 20 7009 6601 Email: info@futurecapitalpartners.com

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