Returns

The returns for the investors depend on how fast the villas are sold and what the actual selling prices are. Faster sales and higher prices will make the early repayment of the loan possible. Repayment will occur for the first time in the 4th quarter of 2005. Both sales prices and the speed of the sales itself are based upon a realistic scenario in the projection. The fund is entitled to fixed returns of investment amounting to 8% on a yearly basis. In addition to that the investors are entitled to receive a bonus of €40,000 per villa sold. Whenever all 5 villas are sold, this arrangement will add another 4.1% over the remaining average sum of the loan. If all these projections are met, the average total returns on investment as expected for the investor will amount to 12% per year over the average remaining venture capital. (IRR method- 11.9% , before taxes)