**RESPOND HELLAS KTEMATIKE EPE**

**KERI PANORAMA RESORTS**

__FINANCIAL STUDY - APRAISAL__

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

__1 EXECUTIVE SUMMARY__

The company ‘RESPOND HELLAS KTIMATIKI EPE’ was formed and registered in 2004 in Athens, Greece for the sole purposes of land development construction in Zante (Zakynthos).

The company intents to sell its shares to prospective strategic investors, at an amount of €3,500,000, who will got hold of company’s land and planned projects in order to develop and manage (based on different proposed income scenarios) the projects of Keri Panorama, Lithakia Hills, Laganas-Mouzaki and Lithakia 2. After the acquisition of the company, the buyer will have three ways to exploit the projects: 1. Build and sale 2. Build and rent on a long term basis (usually on an annually basis) 3. Build and rent on a short term basis (usually on a weekly or 15-day basis.

Details of projects’ funding structure, related costs and other elements based on different income scenarios are as follows:

Build and Sale

Build and long term rentals Build and short term rentals

Fully Equity

(A) Fully Equity

(B) Partial Equity

(A) Fully Equity

(B) Partial Equity

Development cost of projects

€4,025,571 €4,025,571 €4,025,571 €4,025,571 €4,025,571

Purchase consideration

€3,500,000 €3,500,000 €3,500,000 €3,500,000 €3,500,000

Funded by: Equity 100% 100% 30% 100% 30% Debt --- --- 70% --- 70%

Repayment of Debt

--- ---

8 years (96 monthly instalments)

---

8 years (96 monthly instalments)

Capitalization of interest

--- --- Annually --- Annually

Debt interest rate

--- --- 7% --- 7%

**Results of the Appraisal**

The results appear to be encouraging and it is anticipated that the projects (either income scenario) will generate adequate cash flows to cover the funding and the associated financing costs. They will also yield a satisfactory rate of return. The results of the projects’ appraisal based on different income scenarios are summarized below:

Built and Sale

Built and long tern rentals Built and short term rentals

Method

Fully Equity

(A) Fully Equity

(B) Partial Equity

(A) Fully Equity

(B) Partial Equity

Net Present Value (NPV) at 5.5% risk-free rate

€1,950,370 €17,371,868 €17,745,022 €45,918,758 €46,291,912

Internal Rate of Return-before Tax

45.5% 21.03% 33.87% 34.26% 59.60%

Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal

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**2 OVERVIEW OF PROJECTS**

Zante is one of the largest islands in the Ionian sea with a length of 40km and a width of a 20km. It has been praised by both Greek and foreign travelers alike for its stunningly beautiful landscape which captivates you with its beautiful flowers, turquoise waters and superb beaches.

Zakynthos town is situated approximately ten minutes from the airport, and offers a Venetian style, with local atmosphere. It sports a long esplanade, harbour, the square with its numerous coffee-shops and wide variety of shops.

On the south-east coast you will find the beautiful beaches of Laganas and Kalamaki combined with lively night life. To the north-west you will been trance by the small local villages and landscape of outstanding natural beauty. A particularly beautiful area for nature lovers with its steep cliffs, hidden beaches and numerous olive groves.

The company owns a number of plots in Zante, in which the company intent to proceed with the development of penthouse villas and houses. In some areas the development have already started.

The total construction cost of the project is estimated to be €3,946,639 (net of VAT and inflation). The total construction cost of the projects including inflation is estimated to be €4,025,571. 60% of the total costs of the projects will take place in the first year and 40% the year after.

The projects are described below together with an estimation of the construction cost for each project separately:

**Zante’s superb beaches and turquoise waters**

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

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2.1 Keri Panorama

The complex consist of 14 3-bedroom penthouse villas (with building government license and pool license) 135m2 inside area and swimming pool 4x8 m2 , for each villa. The complex is situated behind Keri Lake, which is one of the most beautiful areas of Zante. Each villa will be built in a plot of 1,200 m2 and each will include a 200 m2 patios, either with natural stone or stamped concrete, and 150 m2 green grass.

Land Planning of Keri Panorama project

There are two proposed types of villas, the two floor villas or the ground floor villas, that will be constructed with high standards technical specifications and high quality building materials. Both types include three (3) en-suite bedrooms, satellite antenna, alarm system with wireless cameras and other luxurious facilities.

**Two floor Villas**

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

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Ground floor Villas

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

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Each villa will have the following technical specifications:

• Skeleton structure o Reinforced concrete or metal, according to building license • Block walling o 20cm hollow clay block externally and 10cm same internally or prefabricated panel • Renderings o 3 coats plaster covered with emulsion paint internally and 3 coats smoothed plaster externally covered by weather resistant emulsion • Ceilings o Fair-faced concrete, 2 coats smooth acrylic filter, spatula applied and emulsion paint finish • Floors o All internal areas and ground floor, marble or veranda’s tiles • Doors o All internal doors are of MDF • Kitchen cabinets and wardrobes o Frame of melamine chipboard and doors of White MDF finished boards • Sanitary ware o All sanitary ware are complete with top quality fittings, croc her and accessories • Bathroom and kitchen wall finishing o Walls are covered up to 2.20 cm with ceramic tiles and the remainder to ceiling with acrylic paint • Electrical installation o All concealed with adequate points for light, telephone, TV and socket outlets • Air conditioning o There is a provision for the installation of 3-4 units per dwelling • Insulation o Floors are protected from rising damp with membranes. The roofs are made of reinforced concrete and covered by clay tiles. • Windows shutters

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The following table shows in detail the total construction of the Keri Panorama project.

Construction area per villa 135 m2 Estimated construction cost per m2 €1,550 including VAT Estimated construction cost per villa €209,250 including VAT No. of 3-bedroom penthouse villas 14 Total construction cost €2,929,500 including VAT Less: VAT at 19% €467,735 Total construction cost net of VAT €2,461,765 excluding VAT Total construction area 1,890 m2

2.2 Lithakia Hills

The complex consist of 3 2-bedroom villas (with building government license and pool license) 100 m2 inside area and swimming pool 4x8 m2 for each villa. Each villa has a panoramic view and will be built in a plot of 1,200 m2. Each villa will include a 200 m2 patios, either with natural stone or stamped concrete, and 150 m2 green grass.

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

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The villas will be built with the same technical characteristics and quality materials as Keri Panorama project.

The following table shows in detail the total construction of the Lithakia Hills project.

Construction area per villa 100 m2 Estimated construction cost per m2 €1,550 including VAT Estimated construction cost per villa €155,000 including VAT No. of 2-bedroom villas 3 Total construction cost €465,000 including VAT Less VAT at 19% €74,244 Total construction cost net of VAT €390,756 excluding VAT Total construction area 300 m2

.3 Laganas – Mouzaki

The complex consist of 2 3-bedroom penthouse villas (with building government license and pool license) 150m2 inside area, swimming pool 4x8 m2 and 200 m2 patios, either with natural stone or stamped concrete, each villa. The villas’ structure and arrangement will be the same as Keri Panorama project.

The villas will be built with the same technical characteristics and quality materials as Keri Panorama project.

The following table shows in detail the total construction of the Laganas - Mouzaki project.

Construction area per villa 150 m2 Estimated construction cost per m2 €1,550 including VAT Estimated construction cost per villa €232,500 including VAT No. of 3-bedroom penthouse villas 2 Total construction cost €465,000 including VAT Less VAT at 19% €74,244 Total construction cost net of VAT €390,756 excluding VAT Total construction area 300 m2

2.4 Lithakia 2

The project is situated behind the hills of Lagana beach and it consists of two court areas of 4,000 m2 each, with plans for the development of two (2) houses 135 m2 each. The total development will be four (4) houses of 135 m2 of construction area and 2,000 m2 court land area each. Each house will have a swimming pool 4x8 m2 and 200 m2 patios, either with natural stone or stamped concrete. Houses’ structure and arrangement will be the same as Keri Panorama project.

The houses will be built with the same technical characteristics and quality materials as Keri Panorama project.

The following table shows in detail the total construction of the Laganas - Mouzaki project.

Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal

Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal

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Construction area per house 135 m2 Estimated construction cost per m2 €1,550 including VAT Estimated construction cost per house €209,250 including VAT No. of houses 4 Total construction cost €837,000 including VAT Less VAT at 19% €133,639 Total construction cost net of VAT €703,361 excluding VAT Total construction area 540 m2

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**3 INCOME ANALYSIS BASED ON DIFFERENT PROPOSED SCENARIOS**

3.1 Scenario A – Built and Sale

The scenario considers the sale of villas and houses before or after the completion of the projects’ development. As shown in the following table the estimated total income from the sale of the projects is €9,610,000 including VAT but before taking into account inflation.

The total income of the projects including VAT is estimated to be €10,098,509. It is assumed that 33% of the total income of the projects will be generated at the year of the acquisition of the projects, 33% the next year and, 33% the year after.

1 Keri Panorama No. of 3-bedroom penthouse villas 14 x

Proposed Sale Price for each villa

€435,000 including 19%VAT

Total sales €6,090,000 including VAT 2 Lithakia Hills Project No. of 2-bedroom villas 3 x

Proposed Sale Price for each villa

€270,000 including 19%VAT

Total sales €810,000 including VAT 3 Laganas - Mouzaki No. of 3-bedroom penthouse villas 2 x

Proposed Sale Price for each villa

€435,000 including 19%VAT

Total sales €870,000 including VAT 4 Lithakia 2 No. of houses 4 x

Proposed Sale Price for each villa

€460,000 including 19%VAT

Total sales €1,840,000 including VAT

TOTAL SALES (based on prices net of inflation)

€9,610,000 including VAT

TOTAL SALES (After assumption that cash inflow will be generated on the first three years from the date of purchase plus inflation (set at 5%) for the consecutive three years) €10,098,508 including VAT

Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal

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The average proposed price (net of inflation) of each villa in the Keri Panorama project is estimated at €435,000 including VAT (19%). The total sales of the project after the sale of the 14 villas would be €6,090,000 including VAT.

The average proposed price (net of inflation) of each villa in the Lithakia Hills project is estimated at €270,000 including VAT (19%). The total sales of the project after the sale of the 3 villas would be €810,000 including VAT.

The average proposed price (net of inflation) of each villa in the Laganas – Mouzaki project is estimated at €435,000 including VAT (19%). The total sales of the project after the sale of the 2 villas would be €870,,000 including VAT.

The average proposed price (net of inflation) of each house in the Lithakia 2 project is estimated at €460,000 including VAT (19%). The total sales of the project after the sale of the 4 houses would be €1,840,000 including VAT.

**3.2 Scenario B – Built and Long term Rentals – Annually with contracts**

The scenario B proposes the long term rental of houses or villas, by the company, in cooperation with tour operators and agents. The rentals will be based on annual agreements. The estimated total income for year 2 (first year of operation after completion of projects’ development), as it analyzed in the following table, is €921,645.

The total annually estimated income was calculated based on an average rent price of €35,000 per house or villa at year 0, and an annual increase of the renting price of 7%. Therefore, in year 2 the average rent price per house or villa is estimated to be €40,072.

Projects Year 2 (first year of projects’ operation) 1 Keri Panorama No. of 3-bedroom penthouse villas 14 Average annually rent per villa €40,072 per villa Total income €561,001 2 Lithakia Hills Project No. of 2-bedroom penthouse villas 3 Average annually rent per villa €40,072 per villa Total sales €120,215 3 Laganas - Mouzaki No. of 3-bedroom penthouse villas 2 Average annually rent per villa €40,072 per villa Total income €80,143 4 Lithakia 2 No. of houses 4 Average annually rent per house €40,072 per house Total income €160,286 TOTAL INCOME €921,645

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**3.3 Scenario C – Built and Short term Rentals – Weekly or 15 days**

The scenario C proposes the short term rental of houses or villas, by the company, in cooperation with tour operators and agents on a weekly or 15-days rent. The rent prices are based on two different periods, summer and winter periods (6-months each).

The factors and parameters that affect the estimated income for each period are:

Summer period • The occupancy rate of houses or villas for this 6-month (180 days) period is estimated at 100%, therefore the number of occupied days is 180 days. • The rental price per house or villa for year 0 is estimated at €314/ day. • There is an annual increase in rentals at 7%.

Winter period • The occupancy rate of houses or villas for this 6-month (180 days) period is estimated at 60%, therefore the estimated number of occupied days is 108 days. • The rental price per house or villa for year 0 is estimated at €171/ day. • There is an annual increase in rentals at 7%.

As shown in the following table, the total annual income for year 2, which is the first year of projects’ operation after the completion of projects’ development, is estimated to be €1,974,637 (excluding VAT of 19%). The average charge price per day is net of maintenance and other operational costs.

**Projects**

Year 2 (first year of projects’ operation) 1 Keri Panorama Summer Period Available days in period 180 Occupancy rate 100% Total occupancy (no. of days) 180 Average charge per day €359 Rental income per villa €64,710 No. of 3-bedroom penthouse villas 14 Total income in period €905,936

Winter Period Available days in period 180

Occupancy rate 60% Total occupancy (no. of days) 108 Average charge per day €196 Rental income per villa €21,144 No. of 3-bedroom penthouse villas 14 Total income in period €296,016 Total Income €1,201,953 (excluding VAT of 19%)

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

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2 Lithakia Hills Project Summer Period Available days in period 180 Occupancy rate 100% Total occupancy (no. of days) 180 Average charge per day €359 Rental income per villa €64,710 No. of 3-bedroom penthouse villas 3 Total income in period €194,129

**Winter Period Available days in period 180**

Occupancy rate 60% Total occupancy (no. of days) 108 Average charge per day €196 Rental income per villa €21,144 No. of 3-bedroom penthouse villas 3 Total income in period €63,432 Total Income €257,561 (excluding VAT of 19%) 3 Laganas - Mouzaki Summer Period Available days in period 180 Occupancy rate 100% Total occupancy (no. of days) 180 Average charge per day €359 Rental income per villa €64,710 No. of 3-bedroom penthouse villas 2 Total income in period €129,419

**Winter Period Available days in period 180**

Occupancy rate 60% Total occupancy (no. of days) 108 Average charge per day €196 Rental income per villa €21,144 No. of 3-bedroom penthouse villas 2 Total income in period €42,288 Total Income €171,708 (excluding VAT of 19%)

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

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4 Lithakia 2 Summer Period Available days in period 180 Occupancy rate 100% Total occupancy (no. of days) 180 Average charge per day €359 Rental income per house €64,710 No. of houses 4 Total income in period €258,839

Winter Period Available days in period 180

Occupancy rate 60% Total occupancy (no. of days) 108 Average charge per day €196 Rental income per house €21,144 No. of houses 4 Total income in period €84,576 Total Income €343,415 (excluding VAT of 19%) TOTAL PROJECTS’ INCOME €1,974,637 (excluding VAT of 19%)

__Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal__

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**4 INVESTMENT APPRAISAL OF THE THREE DIFFERENT SCENARIOS OF PROJECTS’ OPERATIONS AND MANAGEMENT**

**4.1 PROJECTED CASH FLOWS, INTERNAL RATE OF RETURN (IRR) AND NET PRESENT VALUE (NPV)**

The most commonly used models for project appraisals are considered to be the ‘Internal Rate of Return’ and ‘Net Present Value’ models.

The Net Present Value (NPV) Method This method of investment appraisal uses discounted cash flows to evaluate capital investment projects. It uses a target rate of return or cost of capital to discount all cash inflows with the present value of all cash outflows. A positive net present value indicates that an investment project is expected to give a return in excess of the cost of capital and will therefore lead to an increase in shareholder wealth.

The Internal Rate of Return (IRR) Method If the cost of capital used to discount future cash flows is increased, the net present value of a conventional investment project will fall. Eventually, as the cost of capital continues to increase, the net present value will become zero, and then negative. The cost of capital or required rate of return which, when used to discount a project’s cash flows, produces a net present value of zero is called the internal rate of return (IRR) of that investment project. The internal rate of return method of investment appraisal involves the calculation of the IRR of a project and then comparing it with a target rate of return. The internal rate of return decision rule is to accept all independent investment projects with an IRR greater than the company’s cost of capital or target rate of return.

Before setting out the results and comments of such methods of project appraisal, it should be relevant and important to consider and comment on the element factors that have been used to calculate the results of each different income scenario. Thus apart from the quantitative and non quantitative factors described in previous sections some of the major element factors that needs to be taken into account with an element of prudence are as follows:

i. Cost of Capital – Risk Free Rate The risk-free rate of return used to appraised the project is set at 5.5%. This represent the most optimum government bonds return and reflects the return of an investor that would expect from an absolutely risk-free investment.

ii. Tax on company purchase consideration The tax payable by the potential buyer in purchasing the projects by buying the shares of the company is 5%.

iii. Income Taxes No effect on income taxes was taken into account.

iv. Growth No growth was taken into account. The number of houses or villas will remain unchanged over the life of the projects and the company.

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

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Scenario A: Built and Sale

Assumptions As mentioned earlier the following assumptions need to be taken into consideration:

• It is expected that revenues would be collected throughout the first three years including year 0.

• Yearly construction cost would be 60% for year 1 and 40% for year 2.

**Results**

Built and Sale Method Fully Equity Net Present Value (NPV) – before tax €1,950,370 Internal Rate of Return-before Tax 45.5% Payback Period 3 years

After considering all outflows and inflows of all the projects based on this scenario by the end of year 3 (see Annex 4), the project will show a positive Net Present Value (NPV) of approximately €1,950,370 and an Internal Rate of Return (IRR) at around 45.5%.

The cash flow statement shows in year 1 and 2 a positive inflow, which indicates that the company may not face any liquidity problems over future years. Additionally it will generate a considerable amount of cash, which will be used to payback the prospective buyers.

**Scenario B: Built and Long term Rentals**

Assumptions In addition to the major elements mentioned earlier the following assumptions need to be taken into consideration:

• As per income analysis in Annex 3, for the estimation of inflows until year 10, an annual increase of 7% was used, which represents the annual increase in rental prices. From year 10 and onwards it was assumed that net inflows will be the same for all future years following year 10, therefore after year 10 the concept of perpetuity was applied.

• The scenario was analyzed into two different sub-scenarios, the fully equity and the partial equity scenarios. For fully equity scenario the buyers of the projects will finance the investment using their own funds. For partial equity scenario it was considered that the 30% (€2,310,171) of the investment will be covered by buyers of the projects and the 70% (€5,390,400) will be financed by a loan for 8 years with 7% interest.

• The amount of financing costs will be based on a yearly interest rate agreement between the company and the prospective bank that will provide the loan. The cost of debt has been set at 7% and the duration of debt at 8 years (see Annex 5).

Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal

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**Results**

Built and long tern rentals Method (A) Fully Equity (B) Partial Equity Net Present Value (NPV) – before tax €17,371,868 €17,745,022 Internal Rate of Return-before Tax 21.03% 33.87%

After considering all outflows and inflows of all the projects, based on this scenario, see Annex 4, the projects, assuming fully equity, will show a positive Net Present Value (NPV) of approximately €17,371,868 and an Internal Rate of Return (IRR) at around 21.03%. The partial equity will show a positive Net Present Value (NPV) of approximately €17,745,022 and an Internal Rate of Return (IRR) at around 33.87%. Partial equity shows a higher internal rate of return (IRR) as the initial outflow from buyers will only be 30% (€2,310,171) of the investment.

The cash flow statement shows a positive inflow from year 2 and onwards, which indicates that the company may not face any liquidity problems over future years. Additionally it will generate a considerable amount of cash, which will be used to payback the prospective buyers.

**Scenario C: Built and Short term Rentals**

Assumptions In addition to the major elements mentioned earlier the following assumptions need to be taken into consideration:

• As per income analysis in Annex 3, for the estimation of inflows until year 10, an annual increase of 7% was used, which represents the annual increase in rental prices. From year 10 and onwards it was assumed that net inflows will be the same for all future years following year 10, therefore after year 10 the concept of perpetuity was applied.

• The scenario was analyzed into two different sub-scenarios, the fully equity and the partial equity. For fully equity scenario the buyers of the projects will finance the investment using their own funds. For partial equity scenario it was considered that the 30% (2,310,171) of the investment will be covered by buyers of the projects own funds and the 70% (€5,390,400) will be financed by a loan for 8 years with 7% interest.

• The amount of financing costs will be based on a yearly interest rate agreement between the company and the prospective bank that will provide the loan. The cost of debt has been set at 7% and the duration of debt at 8 years (see Annex 5).

Results

Built and short term rentals Method (A) Fully Equity (B) Partial Equity Net Present Value (NPV) – before tax €45,918,758 €46,291,912 Internal Rate of Return-before Tax 34.26% 59.60%

Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal

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.After considering all outflows and inflows of all the projects, based on this scenario, see Annex 4, the projects assuming fully equity will show a positive Net Present Value (NPV) of approximately €45,918,758 and an Internal Rate of Return (IRR) at around 34.26%. The partial equity will show a positive Net Present Value (NPV) of approximately €46,291,912 and an Internal Rate of Return (IRR) at around 59.60%. Partial equity shows a higher internal rate of return (IRR) as the initial outflow from buyers will only be 30% (€2,310,171) of the investment.

The cash flow statement shows a positive inflow from year 2 and onwards, which indicates that the company may not face any liquidity problems over future years. Additionally it will generate a considerable amount of cash, which will be used to payback the prospective buyers.

**Respond Hellas Ktimatiki EPE Projects’ Description and Investment Appraisal**

**ANNEXES 1-5**

Annex 1 General information and assumptions used

General Assumptions Proposed consideration price€3,500,000 Purchase price is €3,500,000 if excluding company's borrowing costs or €3,200,000 if including company's borrowing costs Annually increase in rental charge price7%

Financing assumptions Equity 30%€2,310,171 Debt70%€5,390,400 €7,700,571 Rate (cost of debt)7% Duration of debt8 years

Other industry and market assumptions Discount rate (Risk free rate)5.5% Inflation rate5.0% Growth of project0.0% V.A.T. rate in Greece19% Tax on sale of project (5% on gross transaction)5%

Construction cost % at year 060% Construction cost % at year 140%

Scenario A Sales at year 033% Sales at year 133% Sales at year 233%

Company taxes, capital allowances etc have not been taken into consideration as the investment appraisal is calculated before any income taxes.

**Annex 2 Cost Analysis**

**Projects 1 Keri Panorama**

Construction area per villa 135 sq. mtr x Estimated construction cost per sq. mtr €1,550 including VAT Estimated construction cost per villa €209,250 including VAT x No. of 3-bedroom penthouse villas 14 Total construction cost €2,929,500 including VAT

Total construction area 1,890 sq. mtr

2 Lithakia Hills Project

Construction area per villa 100 sq. mtr x Estimated construction cost per sq. mtr €1,550 including VAT Estimated construction cost per villa €155,000 including VAT x No. of 2-bedroom penthouse villas 3 Total construction cost €465,000 including VAT

Total construction area 300 sq. mtr

**3 Laganas - Mouzaki**

Construction area per villa 150 sq. mtr x Estimated construction cost per sq. mtr €1,550 including VAT Estimated construction cost per villa €232,500 including VAT x No. of 3-bedroom penthouse villas 2 Total construction cost €465,000 including VAT

Total construction area 300 sq. mtr

**4 Lithakia 2**

Total construction area 540 sq. mtr

TOTAL CONSTRUCTION COST €4,696,500 including VAT

Less V.A.T. €749,861

NET OF V.A.T. TOTAL CONSTRUCTION COST €3,946,639

NET OF V.A.T. TOTAL CONSTRUCTION COST PLUS INFLATION (5%) €4,025,571 FOR THE CONSECUTIVE TWO YEARS

It is assumed that cash outflow will be generated as follows:

Estimated outflow Estimated outflow inc. inflation % spending at year 0 €2,367,983.19 €2,367,983.19 60% at year 1 €1,578,655.46 €1,657,588.24 40%

Annex 3 Income Analysis-Scenario A (Built and Sale)

Projects 1 Keri Panorama

No. of 3-bedroom penthouse villas 14 x Proposed Sales Price for each villa €435,000 including VAT Total sales €6,090,000 including VAT

2 Lithakia Hills Project

No. of 2-bedroom penthouse villas 3 x Proposed Sales Price for each villa €270,000 including VAT Total sales €810,000 including VAT

3 Laganas - Mouzaki

No. of 3-bedroom penthouse villas 2 x Proposed Sales Price for each villa €435,000 including VAT Total sales €870,000 including VAT

4 Lithakia 2

No. of houses 4 x Proposed Sales Price for each villa €460,000 including VAT Total sales €1,840,000 including VAT

TOTAL SALES €9,610,000 including VAT

TOTAL SALES PLUS INFLATION (5%) €10,098,508 including VAT FOR THE CONCECUTIVE 3 YEARS

It is assumed that cash inflow will be generated on the first three years from the date of purchase plus inflation for the years one and two i.e. Estimated inflow Estimated inflow incl inflation % received Year 0 3,203,333.33 3,203,333.33 33% Year 1 3,203,333.33 3,363,500.00 33% Year 2 3,203,333.33 3,531,675.00 33%

Annex 3 Income Analysis - Scenario B (Long term Rentals - Annually with contracts) 0 1 2 3 4 5 6 7 8 9 10 11 12 Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Projects 1 Keri Panorama No. of 3-bedroom penthouse villas 14 14 14 14 14 14 14 14 14 14 14 14 14 Average annually rent per villa €35,000 per villa €37,450 per villa €40,072 per villa €42,877 per villa €45,878 per villa €49,089 per villa €52,526 per villa €56,202 per villa €60,137 per villa €64,346 per villa €68,850 per villa €73,670 per villa €78,827 per villa Total income €490,000 €524,300 €561,001 €600,271 €642,290 €687,250 €735,358 €786,833 €841,911 €900,845 €963,904 €1,031,377 €1,103,574

2 Lithakia Hills Project

No. of 2-bedroom penthouse villas 3 3 3 3 3 3 3 3 3 3 3 3 3 Average annually rent per villa €35,000 per villa €37,450 per villa €40,072 per villa €42,877 per villa €45,878 per villa €49,089 per villa €52,526 per villa €56,202 per villa €60,137 per villa €64,346 per villa €68,850 per villa €73,670 per villa €78,827 per villa Total sales €105,000 €112,350 €120,215 €128,630 €137,634 €147,268 €157,577 €168,607 €180,410 €193,038 €206,551 €221,009 €236,480

3 Laganas - Mouzaki

No. of 3-bedroom penthouse villas 2 2 2 2 2 2 2 2 2 2 2 2 2 Average annually rent per villa €35,000 per villa €37,450 per villa €40,072 per villa €42,877 per villa €45,878 per villa €49,089 per villa €52,526 per villa €56,202 per villa €60,137 per villa €64,346 per villa €68,850 per villa €73,670 per villa €78,827 per villa Total income €70,000 €74,900 €80,143 €85,753 €91,756 €98,179 €105,051 €112,405 €120,273 €128,692 €137,701 €147,340 €157,653

4 Lithakia 2

No. of houses 4 4 4 4 4 4 4 4 4 4 4 4 4 Average annually rent per house €35,000 per house €37,450 per house €40,072 per house €42,877 per house €45,878 per house €49,089 per house €52,526 per house €56,202 per house €60,137 per house €64,346 per house €68,850 per house €73,670 per house €78,827 per house Total income €140,000 €149,800 €160,286 €171,506 €183,511 €196,357 €210,102 €224,809 €240,546 €257,384 €275,401 €294,679 €315,307

TOTAL INCOME €805,000 €861,350 €921,645 €986,160 €1,055,191 €1,129,054 €1,208,088 €1,292,654 €1,383,140

**RESPOND HELLAS KTEMATIKE EPE**