Caribbean Development Partners


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Caribbean Development Partners

  1. 1. Caribbean Development Partners, LLC Strategic Resort Developers Investor Overview
  2. 2. Project Opportunities: Pan-Caribbean Region Orlando, FL Bahamas Turks & Caicos St. Croix Antigua Mayan Riviera St. Lucia Curaçao Aruba Bonaire Costa Rica Page 1 of 30
  3. 3. Caribbean Development Partners – Corporate Overview Caribbean Development Partners, LLC (CDP) is a real estate development company which is focused on the resort sector in the Pan-Caribbean region. We are seeking well-capitalized investment partners to form joint venture or strategic partnership to fund the acquisition & development of one or more resort projects offering limited risk with the potential of significant financial returns over a five year period. CDP was formed by (5) highly experienced professionals from diverse sectors of the real estate industry including global resort development, Caribbean economic development, commercial brokerage and architectural planning. Our managing partner, has had a distinguished 30 year career as a Institutional Fund Manager for Fixed Income and Real Estate. This unique collaboration of creative thinkers, real estate professionals & highly-respected business executives have collectively envisioned, planned, constructed and operated multi–billion dollar real estate assets for large public Companies and institutional pension funds. During the past 3 years, members of the CDP management team have traveled throughout the Pan Caribbean region to evaluate various resort project opportunities, undertake in depth research, perform economic analysis and establish a extensive network of influential relationships with key government officials, tourism officials and business leaders. CDP has already identified a number of fully-approved resort projects which have been made available to our team through our collective network throughout the region. In light of the current credit markets in the US, we have been offered premier land assets which can be acquired at prices well below appraised value, with the potential to produce extremely attractive yields. CDP has long term relationships with global entertainment, lodging and retail brands and seek to engage in new resort developments in the Pan Caribbean region. The scope & range of CDP partner’s project development experience includes large scale resorts in Europe, Asia, Los Angeles and the $4 billion (USD) 800 acre Universal Studios in Orlando, Florida. Page 2 of 30
  4. 4. Strategy - Development of World-Class Properties  Initial focus on the Southern Caribbean and Orlando  Identify significant value-added development opportunities  Analyze feasibility of an integrated, world class development including master planning  Identify capital investor(s) and appropriate resources  Provide on-the-ground expertise (entitlements, acquisition strategy, permitting, infrastructure support, project due diligence, etc.)  Develop a sustainable source of capital  Build a pan-Caribbean investment portfolio through careful execution of CDP strategy Page 3 of 30
  5. 5. The Mission  To identify properties with significant value-added opportunities realized through creative, cost-effective integrated development  To work, in a comprehensive fashion, with landowners, governments, and other local parties to analyze projects and provide pre-development planning, positioning, and packaging  To attract sufficient capital and other resources necessary to “execute”  To aggregate investment opportunities across the region into an investment portfolio that diversifies the risk while providing for significant long-term capital appreciation Page 4 of 30
  6. 6. Caribbean Tourism – Market Strengths  Proximity to most major North & South American population centers positions the Caribbean between markets.  Expanding European Travel Market with low cost fares from UK, Ireland Holland & Spain via Ryan Air, Virgin  Reliable and Affordable Airlift from international and U.S. hubs expands  Demographics of Tourists from North America, Europe & South America drive  Year round visitation  Exotic setting, Natural Beauty, sunshine with Tropical Climate with consistent weather throughout the year  Regionally diversified cultures, people, music, cuisine & products provides unique experiences established resort destinations Page 5 of 30
  7. 7. Caribbean Tourism – Economics  $40B economic activity (2004 total demand)  814,550 direct jobs (5.2%)  $8.7B direct contribution to GDP (4.5%)  Orlando has a $29.82B Hospitality/Tourism Sector (2006)  Adventure travel is a $200B industry in the US  Hotel occupancy has passed 85% on the islands of Curacao, Bonaire, and St. Lucia Page 6 of 30
  8. 8. Economic Outlook – Strong Growth in Resort Travel The Era of Global Baby Boom Travel is beginning to unfold:  78,000,000 adults about to turn 60 years of age  These Boomers have a robust sense of wanderlust, fueled by good health and more discretionary income  Between 2003 and 2004 alone, leisure travel among Boomers increased by 25% (AARP, 2005 Travel & Adventure Report) from AARP 2005 Travel & Adventure Report Page 7 of 30
  9. 9. Economic Trends  U.S. $102B of economic activity by U.S. tourism spending projections in the Caribbean (in $U.S. billions) 2016 ($51.3B in 2006) 2016 102  4.8% growth in total demand in for 2007 51.3 tourism For Caribbean Region 0 20 40 60 80 100 120  3.9% annual growth forecast 2007- 2016 (KPMG)  Investment Capital is seeking quality Resort Investment Opportunities in the region as other markets are over priced and over developed  Strength of foreign currencies are attracting foreign investment to the Pan-Caribbean region at increasing rate Page 8 of 30
  10. 10. Regional Trends  The Caribbean is a diverse, fragmented, and geographically large region with different cultures, languages, and political sovereignty  There are few high quality, integrated resort-type developments  There is a lack of comprehensive pan- Caribbean development with the intent of establishing a geographically diverse investment portfolio  The Baby Boomer population and Y generation are seeking lifestyle experiences that are offered by select destinations within the region  There are still extremely attractive sites available for development located in desirable settings with stable settings Page 9 of 30
  11. 11. Identifying Opportunities  Properties are in the hands of land- owners without access to adequate capital or expertise necessary to develop  Existing resorts have been mismanaged or poorly developed by non-professional developers  Proper utilization and development of the resorts has been the victim of weak economic cycles  Many resorts have been encumbered by government policy but CDP has made established influential relationships with government leaders, tourist officials and utility/infrastructure executives Page 10 of 30
  12. 12. A Need for Hotels in the Caribbean “Hotel performance in the Caribbean has improved steadily since the rebound in 2003 from the downturn of 2001 – a year earlier than most markets. The growth is expected to continue over the medium term, with travel and tourism expected to rise by 3.9% per annum between 2007 and 2016 (according to the World Travel & Tourism Commission).” “The Caribbean has made progress in terms of regional stability and infrastructure, which has created an attractive destination for investment. Furthermore, the proliferation of renovations and the development of upper tier properties will continue to enhance the overall perception of the region, increase all-important airlift and boost average market rates.” – Source: Hotel Investment Outlook: Jones Lang LaSalle Hotels, 2007 Page 11 of 30
  13. 13. Timeshare and Vacation Club Timeshare sales will continue to grow: Preferred International Locations to  27% of timeshare buyers are looking to Which Interval International Members buy in the Caribbean (Interval Plan to T ravel, 2007-2008 International, Market Profile 2006) 70 66.5 60  Equal numbers of American and European investors are interested in purchasing 50 44.4 vacation time during the next two years as those who currently own vacation time 40 % 30 24.8  Escalating cost of resort real estate makes 20.4 both timeshares and longer fractional 20 ownership interests look more attractive 10.2 9.9 10 0  Two-thirds of Interval International’s Caribbean Mexico Canada Europe Americas Asia clients cite the Caribbean as their preferred international location (2006 U.S. Membership Profile) Page 12 of 30
  14. 14. Project Types: Hotel, Casino Redevelopment  Existing Hotel, Casino Acquisition, Redevelopment & Expansion w/ Timeshare development  Redevelopment and repositioning of large underperforming properties with potential to become fully integrated resorts Page 13 of 30
  15. 15. Project Types: Integrated Resort Developments  World class destination resorts  Integrated resort destinations drive integrate complimentary products repeat visitation and sustainable with “signature place making” market growth via a strategic product experiences where the whole is mix of lodging, residential and greater than the sum of it’s parts fractional components with first class amenities Page 14 of 30
  16. 16. Integrated Resort Components Page 15 of 30
  17. 17. Project Types: Greenfield Resort Developments  Greenfield development opportunities offering a signature development model that reinforces the brand of CDP to the investment community and delivers a unique, memorable experience for the tourist and individual buyer  CDP has identified land owners who are in need of capital and real estate development expertise to convert these underutilized assets to world- class resorts with a project range of $300M - $1B Page 16 of 30
  18. 18. Project Types: Eco & Cultural Tourism  Ecotourism is a nature based form of specialty travel defined by The International Ecotourism Society (TIES) as “responsible travel to natural areas which conserves the environment and sustains the well-being of local people.”  The World Resources Institute (1990) found that while tourism travel overall has been growing at an annual rate of 4%, nature travel is increasing at an annual rate between 10% and 30% (Reingold, 1993).  The Caribbean region offers exceptional diversity of land & sea based ecological nature parks, which attract incremental new & repeat visitation.  CDP partners are actively involved in planning $300M-$1B resort developments in Costa Rica focused on Eco Tourism. Page 17 of 30
  19. 19. Project Types: Marina-Oriented Projects  Mega yacht (100+ length) industry is multi-billion dollar sector of the marina industry  Mega yacht production exceeds available marina facilities in the Caribbean (Most current mega marinas are fully occupied & located in ‘Hurricane Belt’  The islands of Curacao, Bonaire & Aruba are south of the ‘Hurricane Belt’ and are considered the safest berths for mega yachts in the Caribbean  Mega yacht owners & cruise ships drive significant demand for lodging, retail, and residential development  CDP has identified prime waterfront sites for world-class mega yacht facilities for development Page 18 of 30
  20. 20. Project Types: Residential/Hotel Golf Resorts  Strategic alliances with the global leader in golf course development & management will deliver world-class golf destinations.  This would also provide opportunities for an international client base as well as including the PGA tour programs. Page 19 of 30
  21. 21. Resort Site Selection Expertise  Industry trends indicate that the Bahamas, Turks and Caicos, Aruba, Bonaire, Curacao, have the most potential for growth.  CDP’s extensive travel and research to the Caribbean region has created an ongoing source of resort projects opportunities Page 20 of 30
  22. 22. Two-Tier Business Model Capital Sustainable Funding Capital Partners Pan-Caribbean Development Strategy and Portfolio Carefully Selected Projects Creative Integrated Developments Professional Management Strategic Stake holders Partners Page 21 of 30
  23. 23. Business Model Build a balanced Pan- Caribbean Investment Caribbean Development Portfolio of complementary integrated resort destinations Partners that differentiate themselves in their respective markets Phase I Phase II Project A Projects B, C, D, etc. Locations should leverage CDP’s strategic economic (Curaçao & Orlando) (select Caribbean sites) development relationships and specific location investment benefits Phase I Phase II Gov’t Gov’t Design Design Approvals Approvals Team Team Sustain Landowner Seed Capital Landowner able CDP CDP Capital Hotel Flag Hotel Flag Contractor Contractor Project Project Financing Financing Page 22 of 30
  24. 24. A Multifaceted Development Team Mark Towery Robert Ward Hugh Magee John Somers Thomas Degnan Page 23 of 30
  25. 25. A Multifaceted Development Team Strategic Planning Local Market Knowledge Brand Alliances Site/Property Selection Project Development Feasibility Analysis & Implementation Mark Towery Robert Ward Enterprise Management Financial Expertise Capital Development Administration Portfolio Management John Somers Acquisition Strategy Project Design & Negotiation & Management Valuation Market Research Property Management Site/Property Selection Tom Degnan Hugh Magee Page 24 of 30
  26. 26. Robert Ward  Strategic Planning and Brand Alliances Creative Visioning and Master Planning High Level Concept Design Building the Creative Team Added value Brand Alliances  Managing the Development and Implementation process  25 years experience as a Senior Executive with Universal Studios Parks and Resorts, Head of Universal’s Planning and Development Team with extensive international experience. Member of Imagineering team at Disney Page 25 of 30
  27. 27. Mark Towery  Economic Development Expertise and Local Market Knowledge  Site/Property Selection  Managing local Resources Consultants, Lawyers, Accountants  Government Relations Zoning, Building Permits, Regulatory, Infrastructure  Feasibility Analysis  24 years experience as Managing Director with International Strategic Consulting Firm, extensive international experience in Economic Development, Government Relations, and Strategic Analysis. Significant experience on several Caribbean islands Page 26 of 30
  28. 28. Hugh Magee  Real Estate Expertise  Valuation  Acquisition Strategy and Negotiations  Property Management  35 Years Experience  Site Selection and Marketing Development  New and Redevelopment Property Expertise  Environmentally-Sensitive Project Management Page 27 of 30
  29. 29. Tom Degnan  Project Design and Management  Directing/Contributing to the Product/Facility Design Effort  Project Management of the Implementation Process  Principal of an Architectural Firm with extensive Top Tier Residential Market Experience  Marina, Lodging and Residential Conceptual Development Experience (Costa Rica…)  Market Research  Tracking Market Trends & Project marketing focus  Identifying and Investigating Unique Opportunities  Evaluating Competitive Products Page 28 of 30
  30. 30. John Somers  Enterprise Management  Administration  Accessing Capital Markets  Project Finance  Portfolio Management  Greater Pan-Caribbean portfolio oversight  34 years Investment portfolio experience • Institutional Fund Management for Fixed Income and Real Estate  VP Development, Prudential  SVP Commercial Mortgages and Real Estate, TIAA  EVP, Head of Fixed-Income and Real Estate, TIAA Page 29 of 30
  31. 31. CDP Representation Legal (U.S. & International) Accounting Goodwin Proctor LLP PricewaterhouseCoopers Counselors at Law Julianaplein 38 599 Lexington Ave PO Box 360 New York, NY 10022 Willemstad T: 212.813.8800 Curaçao, Netherlands Antilles F: 212.355.3333 T: +599 (9) 430 0000 F: +599 (9) 465 5152 Christopher B. Price Ivan de Windt RA 212.813.8951 Tax Consultant (Caribbean) Gregory Elias, Managing Director Intertrust (Curaçao) NV Landhuis Joonchi Curacao, Netherlands Antilles T: +599 (9) 736 6277 F: +599 (9) 736 6161 Page 30 of 30
  32. 32. Caribbean Development Partners, LLC 514 Lakeview Street, Orlando, Fl. 32804 For more information on marketing, please contact: Thomas Degnan Partner NJ: 732-974-8600 NY: 212-691-6085 CELL: 732-539-8173