3. Investment Offer Summary
The investor purchases shares in Sunset Resort Waterpark
for €2,000 per share
The investor will receive the following per share:
• A yearly dividend from the waterpark of €273 per share
• Over a 3 year period, the investor will receive €820 in dividends
• On year 4 the investor will receive a dividend from the sale of
the apartments, commercial areas and Waterpark which will
amount to €4742 per share.
• In total the investor will receive €820 + €4,742 = €5,562
5. Bulgaria is the only country in the EU with a credit
rating upgrade by Moody’s since the beginning of
2010.
Bulgaria has the lowest government debt in the
European Union (18.9 % of GDP) and one of the lowest
budget deficits (-0.5%) as of 2012.
Substantial EU funding available following Bulgaria’s EU
accession.
Business Monitor
International
Customers of the Bulgarian companies are world
industry leaders such as BMW, Renault, Peugeot,
Ford, Audi.
For example, cylinder heads for 6-cylinder V-engine
Audi are produced exclusively by Montupet plant in
Bulgaria.
In 2010 Bulgaria became one of the six target
logistics centers if HP worldwide which provide
customer services and outsourcing of IT and
software operations.
Bulgaria General Information
6. …If you want first-class mathematicians, try looking in
Bulgaria.
William Fitzsimmons, Dean of Admissions and Financial Aid, Harvard
College
Bulgaria, Romania and other locations in the outskirts of
Europe are playing a new twist in the craze for sending
technology development offshore.
Business Week
Bulgaria Academic Update
7. If you're looking for a bargain break, you should head to Bulgaria, but avoid
Italy, according to the latest research.
1. Sunny Beach, Bulgaria
2. Marmaris, Turkey
3. Costa del Sol, Spain
4. Costa Blanca, Spain
5. Algarve, Portugal
6. Paphos, Cyprus
7. Crete, Greece
8. Istria, Croatia
9. Orlando, USA
10. Corfu, Greece
WHY BULGARIA? THE WORLDS TOP 10
CHEAPEST DETSINATIONS
Source: Daily Mail July 2014
8. Why invest at the Bulgarian Black Sea coast?
1
2
3
4
Value for money – Bulgaria is the cheapest destination in Europe and this attracts
tourists
High quality accommodation – most of the hotels on the Black Sea Coast have been
built within the last 5 years and so are of a good standard
Low labour costs – good value for the developer
The Bulgarian Black Sea coastline provides extremely attractive opportunity
for real estate investors for the following reasons:
A safe investment - The political crisis of the northern African countries and Ukraine
have seriously damaged the image of other desired second home markets such as
Egypt, Turkey, Morocco or Ukraine. The EU membership boosts tourism and second
home investment to existing summer destination countries such as Bulgaria, Spain,
Portugal and Croatia.
9. Sunset Resort Phases 1 & 2
Sunset Resort is a stunning five star frontline beach property located on the black sea coast in
Bulgaria. It is the largest development on the Black Sea Coast and is within 10 minutes’ drive
from Burgas Airport.
Sunset Resort has two phases both of which are fully operational and had over 250 000 bed
nights during the 2013 season. The resort is also fully booked for the 2014 season through
Europe’s largest operators, TUI, ITS etc.
Not only is Sunset Resort the best development in Bulgaria having won numerous awards, it has
a proven track record and the company also has a strong team in place which includes project
managers, hotel managers, sales network, back office support and customer care. This ‘ready to
go’ infrastructure will be an invaluable asset for the execution of Phase 3.
www.experiencesunset.com
Sunset Resort Waterpark will include 2 residential buildings and a new commercial area. The
development will be connected to Phase 1 and 2 via a footbridge. The waterpark & restaurants
will open in June 2015 and the 2 new buildings will be completed Q4 2017. They will include 502
apartments and 1800 sq.m of commercial space.
10. Why build Sunset Resort Waterpark ?
We at Sunset Resort have identified an opportunity to expand the resort to include a
further two apartment blocks together with a Waterpark and commercial areas including
shops, restaurants and reception areas. Sunset Resort Waterpark can piggy back on the
success of phase one & two. The resort has been accredited with the awards below.
• We have already secured a guaranteed income of €800, 000 for the use of the waterpark
from the management company
• We have a demand for more beds from Europe's largest tour operators
• We believe that there is a demand for high quality apartments in Sunset Resort based on the
current resale's in Sunset Resort Phase 1 & 2
• Sunset Resort is only 7 mins drive from Burgas airport giving us a competitive advantage over
our competitors who are located around 60mins from the airport
• The tour operators prefer to send a high number of tourists to one large resort than split
them into several smaller resorts. Better economy of scale for the operators, less staff
required to manage high volumes of people.
• Construction prices are reduced significantly from the highs of 2007 & 2008 so it’s a good
time to build
• High volume of skilled labour available due to the slow down in the construction sector, so it’s
a good time to hire skilled people
11. Project Description Buildings
35,000 sq.m plot size Sunset Resort Waterpark
BUILDINGS
10,000 sq.m of the plot will be used for the two
main buildings, landscaping and footpaths. The
footprint of the building will be 3800sq.m and
remaining 7,200sq.m will be used for landscaping
and parking
Each building will have 234 apartments and a total
built up area of 20,390sq.m
Total Built Up Area for both Buildings will be 40,780
sq.m and the buildings will measure over 60 meters
in height
1,800sq.m will be used for the reception area in the
main buildings
12. Project Description Waterpark
WATERPARK
25’000 sq.m of the plot will be used for the
Waterpark. The waterpark will include the below:
1,145 sq.m two level restaurant comprising of 5 fast
food restaurants and one al la cart restaurant on the
top floor
200 sq.m office building for administration
3,008 sq.m for the main building in the waterpark
which will house the 19 slides
The waterpark will have 8 pools (including 6 combined
pools) & 2 landing pools
The Splashers section(2-7 year old) will have 7 slides
The tots area will have 5 slides + 5 animations (15-
30cm dept)
Completion Dates: Waterpark and two level
restaurants– June 2015
Apartments and reception areas– Q4 2017
23. Total Cost to complete waterpark
SUNSET RESORT WATERPARK
area of the site sq.m 25,000
swimming pools number 8
slides, starting from the tower number 19
slides, in the pools number 12
cost of the slides euro no VAT 1,500,000
cost of the swimming pools euro no VAT 500,000
cost of the chairs and umbrellas euro no VAT 130,000
cost of the entrance building and the restaurant euro no VAT 220,000
cost of the tower euro no VAT 500,000
cost of the infrastructure euro no VAT 350,000
cost of the external infrastructure euro no VAT 200,000
total cost of the building works euro no VAT 3,400,000
architecture and documents euro no VAT 100,000
additional costs euro no VAT 50,000
total cost of the waterpark euro no VAT 3,550,000
Note: Construction of the Water Park will commence in Q3 2014 and the completion date is
set for Summer 2015. The developer is fully commited to the project.
24. ANNUAL INCOME FROM THE WATERPARK
Amount of "bed nights" in Sunset Resort number 160,000
Price per bed night for the waterpark euro no VAT 5
Income from Sunset Resort tourists euro no VAT 800,000
Expected number of external visitors number 100,000
Average price per external visitor euro no VAT 12
Income from external visitors euro no VAT 1,200,000
Income per visitor from additional services euro no VAT 6
Income from additional services euro no VAT 1,560,000
total income from the waterpark euro no VAT 3,560,000
Cost per visitor for the additional services euro no VAT 2
Cost of the additional services euro no VAT 520,000
Cost of Electricity euro no VAT 150,000
Cost of Water and surage euro no VAT 150,000
Staff cost euro no VAT 250,000
total cost for running the waterpark euro no VAT 1,070,000
gross profit euro no VAT 2,490,000
corporation tax euro no VAT 249,000
net profit per year euro no VAT 2,241,000
net profit per year per share euro no VAT 273
Annual Income from the Waterpark
The investor receives a yearly dividend of €273 per share
25. Cost of the buildings 20,606,200
Income from the sale of the residential units 48,576,000
Gross profit from the sale of the residential building 27,969,800
Net profit from the sale of the residential building 25,172,820
Cost of the waterpark 3,550,000
Selling price of the waterpark, based on a 8 year return from the profit 17,928,000
Gross profit from the sale of the waterpark 14,378,000
Net profit from the sale of the waterpark 12,940,200
Net profit from running the waterpark for 3 years 6,723,000
Cost of the reception building 855,000
Income from the sale of the reception building 1,710,000
Gross profit from the sale of the reception building 855,000
Net profit from the sale of the residential building 769,500
Total net profit for the shareholders in "SUNSET
AQUAPARK"
45,605,520
Total net profit for 10% shares in "SUNSET AQUAPARK" 4,560,552
Total net profit per 1 share in "SUNSET AQUAPARK" 5,562
Calculations: Profit per share €5,562
26. External Knowledge Links
http://www.investbg.government.bg/en/pages/general-presentation-and-
brochures-212.html
Very informative and well organized website describing in detail the
business climate and the investment opportunities in Bulgaria, providing
indebt analysis, presentations, newsletters and comprehensive investment
information
http://www.mi.government.bg/en/themes/broshuri-na-angliiski-ezik-857-
308.html
Government brochures promoting the Bulgarian tourism
http://wttc.org/site_media/uploads/downloads/bulgaria2014.pdf
Travel and tourism report on Bulgaria provided by the WTTC
27. Disclaimer
This presentation and its appendices (hereinafter referred to as the “Presentation”) have been prepared by the
Sunset Resort Water Park Investment exclusively for information purposes. This Presentation is confidential and
may not be reproduced or redistributed, in whole or in part, to any other person. The Presentation is solely
prepared for information purposes and does not constitute an offer or a solicitation of an offer to sell, buy,
subscribe for, or otherwise trade, any securities. The Presentation and its contents may be changed and revised at
any time based on available information. Sunset Resort Water Park Investment is not responsible for any
investment decisions taken based on the content of this presentation. This Presentation contains information
obtained from third parties and Sunset Resort Phase 3 & Sunset Resort Water Park Investment is not responsible
for any mistakes, errors or interpretations based on the data herein. No representation or warranty (expressed or
implied) is made as to, and no reliance should be placed on, any information, including projections, estimates,
targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or
misstatements contained herein, and, accordingly, none of Sunset Resort Water Park Investment’s employees or
any of Sunset Resort Water Park Investment’s parent or subsidiary undertakings or any such person’s officers or
employees accepts any liability whatsoever arising directly or indirectly from the use of this document. By
attending or receiving this Presentation you acknowledge that you will be solely responsible for your own
assessment of the market and the market position potentially described herein, and that you will conduct your own
analysis and be solely responsible for forming your own view of the potential future performance.
