D CAPITAL PROSPECTUS June16.PDF

‘We identify promising investment opportunities,
while operating with transparency, efficiency
and effectiveness, in a regulated environment.’

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D Capital Investment Fund Fact Sheet
Towards the Opportunity
Our Concept
Investment Vehicle Considerations
The Cyprus Alternative Investment Fund (“AIF”)
What is an AIF
The main advantages of establishing an AIF in Cyprus
AIF Taxation
Foreign Investors Taxation
Eligibility of Investment for the Cyprus Naturalisation Scheme
Single Regulating Authority
The Regulating Authority – The Cyprus Securities and Exchange Commission (CySec)
The Regulating Authority
CySEC’s Vision and Mission
Responsibilities of the Regulating Authority
Choosing Cyprus to Establish and Operate the Fund
The Cyprus Economy
Setting New Standards
Fiscal Performance
Inflation
Economic Challenges
Current Credit Ratings
A Promising Long-Term Outlook
Key Statistics
Investing In and Through Cyprus
Tax System
Legal and Regulatory Framework
Macroeconomic Prospects and Opportunities
European Union (EU) and European Monetary Union (EMU)
D Capital Investment Fund
Governing Law and Fund Structure
Fund Strategy and Objectives
The Fund Investment Policy
Market Analysis and Review of the Targeted Sectors for Investment
The Real Estate Sector in Cyprus
Market Overview
Increasing Sales and New Incentives
Protecting Buyers
Moving Upmarket
Regaining Momentum
The Real Estate Sector in Southeast Europe
The Republic of Serbia
Market Overview
The Commercial Developments Market
CONTENTS
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The Retail Properties Market
The Residential Properties Market
The Industrial Buildings Market
Conclusion
Romania
Overview of the Economy
The Bucharest Office Market
The Romanian Shopping Centres Market
The Romanian Industrial Market
The Romanian Land Market
The Romanian Investment Market
The Bucharest New Residential Market
The Bucharest Hotel Market
The New Real Estate Related Romanian Tax Rules
The Healthcare and Medical Sector in Cyprus
Strong Vital Signs
Public and Private Excellence
Creating an Efficient NHS
Investing in Medical Tourism and e-Health
Doctors Across Borders
Innovative Education and Research
A Healthy Prognosis
The Tourism, Holiday and Leisure Sectors in Cyprus
Cruising to Growth
A Winning Package
Poised for Growth
Expanding Connections
Diversification to Boost Investment
Developing Niche Tourism
Game Changers
Challenges and the Future
The Education and Research Sectors in Cyprus
A Centre of Regional Excellence
Investing in Education
Excellent Universities
World-Class Research
An Expanding Knowledge Hub
Our First Call for Capital
The Real Estate Sub Fund(s)
An Overview of the Proposed Investment Approach
Tax Implications of Purchasing Immovable Property in Cyprus
Advantages in Following our Proposed Investment Approach
Expertise and Long-Standing Experience In the Real Estate Sector
Professional Network and Established Client Base
The Real Estate Sub-Fund(s) Risk Mitigation Strategy
The Real Estate Sub-Fund(s) Structure (Diagram)
Projects Development Lifecycle Cash Flow and ROI
Real Estate Inventory upon Acquisition of the Targeted Group (Completed Projects)
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Real Estate Inventory upon Acquisition of the Targeted Group (Planned Projects for Development)
Proposed Projects Development Timeline
Quantitative Analysis on the Proposed Projects Developments
Key Facts on Inventory after Acquisition of the Targeted Group
Key Graphical Representations of the Group Targeted For Acquisition
The Fund Manager
The Company and Governing Law
Members of the Board of Directors and Investment Committee
An Overview
The Board of Directors
The Investment Committee
The Fund Manager Structure
Professional Associates
External Auditors
Internal Auditors
Fund Administrator
International Legal Advisors
Local Legal Advisors
International Bankers
Local Bankers
Contact Us
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D Capital Investment Fund Limited
March 2016
Private company limited by shares
Republic of Cyprus
Republic of Cyprus
To serve as an umbrella Alternative Investment Fund
with a Limited Number of Persons (“AIFLNP”)
(i) Real Estate (Cyprus)
(ii) Real Estate (South-East Europe)
(iii) Health Care and Medical
(iv) Tourism, Holiday and Leisure
(v) Education and Research
The Cyprus Securities and Exchange Commission (“CySEC”)
SKDA Capital Limited
Physical and legal persons qualifying as well-Informed and/or professional investors
75 physical and/or legal persons maximum
€ 125.000 (One Hundred Twenty Five Thousand Euros)
€ 100.000.000 (One Hundred Million Euros)
€ 500.000.000 (Five Hundred Million Euros)
9%
1.5% p.a. of Net Asset Value
20% p.a. on the annual increase of NAV above the 9.0% hurdle rate
Four years from the date of subscription
Semi-annually
Annually, on an accrual basis
KPMG Limited
Treppides Fund Services Limited
Antis Triantafyllides & Sons LLC
Dracos & Efthymiou LLC
K. Treppides & Co Limited
Loucas Demetriou
Barclays plc
Bank of Cyprus plc
Company Name:
Incorporated:
Legal Form:
Established In:
Tax Residence:
Purpose of Incorporation:
Sector Sub-Funds:
Regulated By:
Fund Manager:
Unit Holders:
Unit Holders Restrictions:
Min. Contribution Per Unit Holder:
Max. Contribution Per Unit Holder:
Maximum AuM:
Hurdle Rate:
Management Fee:
Success Fee:
Lock-Up Period:
NAV Reporting:
Dividend Distribution:
Professional Associates
Statutory Auditor:
Administrator:
Legal Advisors:

Internal Auditor:
Risk Manager:
Bankers:
FACT SHEET

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Our Concept
The idea of D Capital Investment Fund came into being when its founders identified promising investment opportunities
within several sectors of the Cyprus economy. This was a result of the unprecedented financial crisis that hit the country in
the financial years 2009 to 2015. The enormous liquidity squeeze in the local economy that followed led to a significant
drop in prices over all asset classes.
Investment vehicle considerations
The diversified nature of investment opportunities in the market called for the establishment of an investment vehicle geared
towards a wide base of professional investors with varying risk and economic profiles.
At the same time, we kept as a priority the common expectation of investors for transparency, efficiency, effectiveness,
capital growth, wealth maximisation, a clear exit route as well as the distribution of profits in a manner that would ensure
the most beneficial tax treatment.
Taking all of the above into consideration, we reached the conclusion that our investment vehicle should operate under
a strictly regulated environment which would meet common investor expectations, while allowing investors to choose
tailor-made investment portfolios matching their unique individual profiles.
As the issues above are largely addressed by the Cyprus registered Alternative Investment Fund with a Limited Number of
Persons (“AIFLNP”) we incorporated D Capital Investment Fund under its regulatory framework.
The Cyprus Alternative Investment Fund (“AIF”)
What is an AIF?
An AIF is a collective investment undertaking (including its investment compartments) that raises external capital from
investors, with a view to investing it in accordance with a defined investment policy for the benefit of the investors.
The main advantages of establishing an AIF in Cyprus
(1) AIF taxation
• Bank and other interest received by open and closed end collective schemes is treated as business income, thus
no defence tax (currently at 30%) is imposed; instead, it is only subject to 12.5% Corporation Tax;
• Dividends, gains from the trading of securities, capital gains from sale of property abroad and the sale of shares of
foreign property companies are all tax exempt;
• There is no minimum participation on inbound dividends to qualify for tax exemption;
• There is no subscription tax on the net assets of the fund;
• Fund management services are not subject to VAT; and
• If the unit holder is not a tax resident in Cyprus, the liquidation of open and closed end collective schemes is
not taxable (restrictions to the exemption may apply).
(2) Foreign investors taxation
• No withholding tax on dividends;
• No taxation on redemption of units (restrictions to the exemption may apply);
• No deemed dividend distribution restrictions.
TOWARDS THE OPPORTUNITY

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(3) Eligibility of investment for the Cyprus Naturalisation Scheme
An additional advantage for an investor participating in a Cyprus AIF is the potential access to the naturalisation
programme. An investment of at least €2.500.000 in such a fund (based and investing exclusively in Cyprus as well as
being regulated by CySEC) can be, in principle, regarded as an approved financial investment for the foreign investors
Naturalisation Scheme.
(4) Single regulating authority
With the implementation of the new framework for AIFs, all regulations have been consolidated under CySEC.
The Regulating Authority - The Cyprus Securities and Exchange Commission (CySEC)
The Regulating Authority
CySEC was established under the Securities and Exchange Commission (Establishment and Responsibilities) Law of
2001 (section 5) as a public legal entity. The operation of CySEC is governed by the laws regulating the Structure,
Responsibilities, Powers, Organization of the Cyprus Securities and Exchange Commission and Other Related Matters
(N73(I)/1009).
CySEC’s vision and mission
The vision of CySEC is to establish the Cyprus securities market as one of the safest, most reliable and attractive
destinations for investment. Its mission is to exercise effective supervision to ensure investor protection and the healthy
development of the securities market.
Responsibilities of the Regulating Authority
Following the recent enactment of legislation, CySEC is the supervisory authority for AIFs.
The main duties and responsibilities of CySEC are set out under the Law which regulates the Structure, Duties, Powers,
Organisation of the Securities and Exchange Commission and Other Related Matters (L73(I)/2009, article 25) and may
be summarised as follows:
• To examine applications and grant operating licenses to entities under its supervision, as well as to suspend and
revoke such said licenses;
• To supervise and regulate the operation of the Cyprus Stock Exchange and of other organised markets in the Republic
as well as the transactions carried out in these markets;
• To supervise and regulate the agencies under its supervision in order to ensure their compliance with the laws governing
their operation;
• To carry out all necessary investigations during the exercise of its duties under the law as well as on behalf of other
foreign competent authorities;
• To request and collect information which is necessary or conducive to the exercising of its duties under the law,
including written requests for the provision of information from any relevant entity deemed to be in a position to
provide such required information;
• To impose administrative and disciplinary sanctions provided by the law;
• To require the cessation of practices which are contrary to the securities market law;
• To apply to a competent court for the issue of an order for detention, or charge or freezing or prevention of alienation
or transaction involving assets;

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• To issue regulatory directives and decisions;
• To cooperate and exchange data and information with other public authorities in the Republic, competent foreign
supervisory authorities and other organisations.
CySEC is also responsible for supervising operations of the following entities and ensuring their compliance with the
relevant legislation:
• Cyprus Investment Firms (CIFs);
• Cyprus branches of Investment Firms (IFs) of other EU Member States;
• Tied agents of CIFs;
• Undertakings for Collective Investment in Transferable Securities (UCITS);
• UCITS (Undertakings for Collective Investment in Transferable Securities) management companies;
• UCITS agents;
• Cyprus branches of UCITS management companies of other EU Member States;
• Administrative services companies - trustee and fiduciary service providers;
• Variable capital investment companies;
• Alternative Investment Fund Managers (AIFMs);
• Regulated markets;
• Central Counterparty Clearing House (CCPs) of over-the-counter (OTC) derivatives;
• Trade depositories of over-the-counter (OTC) derivatives.
Furthermore, the relevant legislation governs the supervision of the Central Securities Depositories (CSDs).
In addition to the above responsibilities, CySEC is also entrusted with powers and duties under the following laws:
• The Public Offer and Prospectus Law of 2005;
• The Insider Dealing and Market Manipulation (Market Abuse) Law of 2005;
• The Public Takeover Bids Law of 2007;
• The Transparency Requirements (Transferable Securities Admitted to Trading on a Regulated Market) Law of 2007.
Choosing Cyprus to establish and operate the Fund
Cyprus offers a range of legal, regulatory and tax solutions to address and meet the needs of AIF promoters and investors
alike.
Services such as setup and acquisition structuring, fund administration, legal, custody and audit are provided in a wide
and customised range and at a competitive rate in comparison to other reputable fund jurisdictions.
The investment sector consists of highly skilled and educated multilingual specialist teams.
Additionally, at 12.5%, Cyprus’ corporate income tax rate is one of the lowest in the EU and the Eurozone. Cyprus’
financial climate also offers many other incentives to investors, such as full exemption from tax on gains from trading in
securities and a generous participation exemption regime on foreign dividends, in conjunction with an extensive network
of double tax treaties for international tax planning both at a corporate and individual level.
Furthermore, the country has rigorous anti-money laundering regulations in place, in line with EU and international
standards.

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“The Head of the European Stability Mechanism (ESM), Klaus Regling, has called the end of the Cyprus adjustment
programme a great success”. Brussels, March 2016
Setting new standards
Exceeding international expectations with a return to growth in 2015, Cyprus is making steady progress in restructuring its
economy and regaining investor confidence.
Cyprus surpassed all expectations when it exited the recession in 2015 – a year earlier than first projected – and
continued towards economic growth in 2016. The country has proven to be remarkably resilient following the financial
crisis and has implemented tough austerity measures to restructure its economy.
Despite the challenges Cyprus faced as one the smallest EU member states, the economic adjustment remains on track,
with all key objectives set out by the country’s international lenders being met earlier than expected.
Hailed a success story by the Eurogroup, Cyprus’ target of exiting the programme in early 2016 was realised in March
2016 and the country has now reclaimed its status as a self-determining and thriving economy.
Fiscal performance
The primary balance for the government is forecast to reach a surplus of 2.1% of GDP in 2015, corresponding to a
headline deficit of 0.7% of GDP. The general government primary surplus is expected to increase to 2.6% of GDP in
2016 and to remain broadly unchanged in 2017, according to the European Commission. Cyprus’ debt-to-GDP ratio
peaked in 2014 and is projected to decline from about 107% in 2015 to 95% in 2017. Structural reforms are expected
to put long-term public finances on a more sustainable path while simultaneously improving competitiveness.
Inflation
The European Commission further declared that the inflation rate in Cyprus was recorded at -1.2% in December 2015
and was expected to rise to 0.6% in 2016 and to 1.3% in 2017. With unemployment still high and inflation
expectations still subdued, wage developments are expected to begin showing improvement slowly over the course of
2016 and 2017.
Economic challenges
The Cyprus economy is showing signs of bouncing back, yet serious challenges remain. The country continues to struggle
with non-performing loans (NPLs) and public debt. To achieve real recovery, NPLs must be substantially decreased and
moved away from the balance sheets of banks. A recently approved legal framework for foreclosures and insolvency is
a positive development and is expected to support banks with loan restructuring and in turn revive the economy. Although
there is much work to be done before the economy can reclaim its robustness, foreign investors are showing interest in the
country. Prospects are good for the Cypriot economy. With a strong tourism sector, a rapidly developing investment fund
sector and the discovery of significant quantities of natural gas in Cypriot waters, there is a positive outlook in the medium
to long term. The tourism and business services sectors have fared particularly well, despite the crisis, and the country has
continued to attract and retain business regardless of the overall downturn over the last few years.
Current credit ratings
Generally speaking, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the
creditworthiness of a country, thus having a significant impact on the country’s borrowing costs.
THE CYPRUS ECONOMY

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Standard & Poor’s credit rating for Cyprus stands at BB- with a Positive Outlook; Moody’s rating for Cyprus sovereign debt
is B1 with a Stable Outlook and Fitch’s credit rating for Cyprus is B+ with a Positive Outlook.
A promising long-term outlook
Cyprus has an open, free market, service-based economy with a long record of successful economic performance.
Though the economy is still tackling structural challenges, the strong business environment, highly educated workforce and
favourable tax regime remain in place. Looking ahead, measures have been put in place to reform public spending,
privatise major utilities, accelerate initiatives to boost investment, develop the investment fund sector and push forward
with natural gas exploitation. Taking all of this into account, with cautious optimism we can say that Cyprus is quickly
returning to the prosperity of former years.
Key statistics
Official key statistics which have recently been released by the Cyprus Ministry of Finance reflect the current prospects
and dynamic of the local economy:
Cyprus 10-Year Government Bond Yield
Source: Ministry of Finance; updated: 22/01/16
The substantial drop in the 10-Year Government Bond Yield reveals investor expectations for the Cyprus economy’s
long-term performance are high with minimized potential exposure to risk and thus a low return on government bonds.
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0
Jan12
Apr11
Jul11
Oct11
Jan12
Apr12
Jul12
Oct12
Jan13
Apr13
Jul13
Oct13
Jan14
Apr14
Jul14
Oct14
Jan15
Apr15
Jul15
Oct15
Jan16

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GDP Growth (% Change)
* Forecast
**Estimate
Source: Ministry of Finance; updated: 10/02/16
Looking at the graphic representation above, we can see that the Gross Domestic Product of Cyprus in 2014 was
estimated at -2.5%, or approximately half of the previous year’s deficit at the peak of the country’s financial crisis.
That being said, the GDP is forecasted to be on the increase from 2015-2018, signalling the return of Cyprus’
economy to a positive growth phase.
Main Economic Indicators for Cyprus
2012 2013 2014e 2015f 2016f
GDP at constant market price (% change) -2.4 -5.9 -2.5 1.2 1.4
Unemployment Rate LFS (%) 11.9 15.9 16.1 16.0 15.0
Harmonized Index of Consumer Prices (% change) 3.1 0.4 -0.3 -1.0 0.9
Fiscal Deficit / Surplus (% of GDP) -5.6 -4.5 -4.6 n/a n/a
Public Debt (% of GDP) 79.3 102.5 108.2 106.3 105.1
Source: Ministry of Finance
The table above shows an analysis of the main economic indicators of the Cyprus economy. We can observe that the
-6
-4
-2
0
2
4
6
5.1
3.6
1.3
0.4
*1.4 *1.5
*2 *2.2
-1.9
-2.4
-5.4
**-2.5
2007 2008 2010 2011 2015 2016 2017 20182009 2013 20142012

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forecasted figures in the Economic Year 2016 show that the Gross Domestic Product of Cyprus is expected to grow
by 1.4% compared to 2015, while the unemployment rate is expected to drop by 1.0% to its pre-crisis position. The
Harmonised Consumer Price Index is expected to be inflated by 0.9%, as opposed to the deflation of the economic year
2015, while the Public Debt figure as a percentage of the Gross Domestic Product is expected to drop by 3.1% from the
corresponding figure from the Economic Year 2014.
All of the above factors show an economy that has emerged from the recession and is steadily heading towards
achieving its long-term growth objective of a zero fiscal deficit.
The present economic environment in Cyprus offers a short window of opportunity for the realisation of exceptionally high
returns (“super-profits”). The current backdrop features a liquidity squeeze and the prevalence of non-performing loans
faced by financial institutions. These entities are currently negotiating with institutional investors willing to invest in the
economy with a view to capitalising on these investments in the future. This would be possible due to capital appreciation
in the short to medium term and further in the long-term through the generation of a steady flow of investment income.
D Capital Investment Fund is currently seeking to exploit this economic window of opportunity with the complete
dedication of its human capital and professional network in Cyprus.

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INVESTING IN
AND THROUGH
CYPRUS

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Tax system
The Cyprus tax system is one of the most attractive in Europe. The country provides a simple, effective and transparent tax
regime, fully compliant with EU laws and regulations.
The Organization for Economic Cooperation and Development (“OECD”) includes Cyprus on its ‘white list’ of 45
countries that have introduced and implemented high level and internationally agreed standards on what constitutes
harmful tax practices.
Many types of income in Cyprus are tax exempt, including most international transactions, dividend income, profits from
overseas permanent establishments as well as the sale of securities, while investors can also rely upon no withholding tax
on dividends, interest and royalties paid from Cyprus.
Internationally, Cyprus has a network of double taxation agreements with more than 50 countries and complies with EU
Directives that focus on reducing or eliminating foreign withholding tax, creating a beneficial tax environment for investors.
Legal and regulatory framework
Cyprus has a modern, comprehensive and progressive legal and regulatory framework based on English Common Law
principles. The country’s legal framework is widely recognized as business-friendly and effective, allowing reliable and
transparent business practices to thrive.
The Cyprus Investment Promotion Agency (“CIPA”) plays a leading role in developing and modernising the country’s legal
framework by promoting new and improved legislation in a number of areas, always aiming at improving the overall
investment environment. Naturally, as an EU member state, Cyprus’ legal framework is aligned with EU laws and
regulations (the acquis communautaire).
Macroeconomic prospects and opportunities
Despite the challenges in recent years, economic recovery in Cyprus has happened in record time. Thanks to the
government’s commitment to supporting economic recovery and growth, Cyprus has managed to turn the page,
successfully facing the island’s economic challenges and re-establishing itself as a thriving business centre.
Recent official economic statistics (see above) show the country’s rapid improvement and indicate the prospect of a
flourishing economy much sooner than expected:
• 10-year Government Bond Yield (page 15)
• GDP Growth (% change) (page 16)
• Main Economic Indicators for Cyprus (page 16)
European Union (EU) and the European Monetary Union (EMU)
The Republic of Cyprus became a full member of the EU on 1st May 2004. Accession to the EU was a natural step for
Cyprus, driven by its culture and history of progress and development, as well as its unwavering commitment to becoming
a true player on the European economic, social and political platform. Cyprus successfully assumed the EU Presidency
from July to December 2012.
Leveraging a robust economic performance recorded by key economic indicators, Cyprus adopted the Euro as its
national currency at the start of 2008. Joining the Eurozone meant that investors could take advantage of free access to
an EU market valued at 500 billion, while also benefiting from fewer risks, lower costs and increased price transparency
INVESTING IN AND THROUGH CYPRUS

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across the Eurozone.
Accession to the EU, and subsequently the Eurozone, launched a new era of commitment to quality and growth in
Cyprus. That growth continues with Cyprus’ commitment to Foreign Direct Investment opportunities in priority economic
growth sectors.
Today, Cyprus actively participates in EU programmes that focus on promoting growth in various economic sectors, as
well as entrepreneurship and innovation across sectors and processes.

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Governing law and fund structure
D Capital Investment Fund Limited is a private company limited by shares established under the Companies Law Cap.
113. It operates as an open-ended variable capital investment company.
The Company is authorised by CySEC to operate as an alternative investment fund with a limited number of persons
(Alternative Investment Funds Law no. 131(I) of 2014 or the “AIF Law”) and is addressed solely to a limited number of
professional and/or well-informed investors.
The sole object of the Company is the collective investment and management of its asset portfolio for the benefit of its
members. Accordingly, and in compliance with the law and any relevant regulations, it takes every necessary step to
achieve this goal.
The Fund is organized as an umbrella fund consisting of several investment compartments (“Sub-Funds”) (AIF Law, section
114(5)). A separate portfolio of assets is maintained under each Sub-Fund and will be invested in accordance with the
investment objective and policy applicable to that Sub-Fund. Within a Sub-Fund, subject to CySEC approval, the Directors
may decide to issue one or more classes of shares, the assets of which will be commonly invested but may be subject to
different fee structures, distributions, currency or other specific features.
The Company has appointed SKDA Capital Limited as its external manager.
Fund strategy and objectives
The Fund’s short to medium term objective is to create a portfolio of investments that will provide a steady flow of “active”
business income and “passive” investment income which will meet its target hurdle rate of 9%. This, in turn, will be
distributed to its investors annually, on an accrual basis.
To achieve its investment objective the Fund will be acquiring equity in companies in the real estate sector, with a focus on
high-profile real estate projects in prime locations in Cyprus and Southeast Europe.
These tasks will be executed respectively by the first two Sub-Funds, Real Estate Sector (Cyprus) and Real Estate Sector
(Southeast Europe). Investments held on behalf of these Sub-Funds will be owned by special purpose vehicles, which will
be wholly owned by the Fund.
The long-term investment strategy provides for the diversification of the Fund’s investment portfolio by investing in the
sectors of tourism, medicine and education in Cyprus. With the approval of the regulator, a corresponding number of
Sub-Funds will be created for this purpose.
The overall strategic target of the Fund is the maximisation of its unit holders’ wealth via:
(a) Providing a steady source of income for its unit holders through its dividend policy;
(b) Increasing its investment portfolio Net Assets Value through capital appreciation;
(c) Ensuring long-term viability through its carefully crafted investment policy; and
(d) Providing a clear exit route to any investors who may wish to liquidate their position.
The Fund investment policy
The Fund’s maximum allowed call for equity under its current license is €500.000.000 (Five hundred million Euros). The
Fund’s start-up equity has been set at a minimum of €12.500.000 (Twelve million five hundred thousand Euros), out of
which €10.000.000 (Ten million Euros) will be immediately utilised towards the acquisition of a Cyprus tax resident
real estate group of companies. The remaining €2.500.000 (Two million five hundred thousand Euros) will be used as
working capital. An additional call for another €12.500.000 (Twelve million five hundred thousand Euros) for working capital
D CAPITAL INVESTMENT FUND

21
purposes is anticipated to take place by the end of the financial year 2016. This will cover a four-year development plan in full.
The targeted return on investment (ROI) for the Fund’s unit holders has been set at 9% per annum (hurdle rate), and will be
paid out in the form of an annual dividend. The Fund’s lock-up period has been set at four years from the date of
investment by the respective unit holders.
Following the completion of the initial lock-up period, investors will be allowed to redeem their fund units in equivalent
properties developed / to be developed by the Fund at the applicable market rates.
The primary concern of the real estate Sub-Funds will be the development of high profile residential and commercial
developments in prime locations in Serbia and Cyprus in the short to medium term period of 1-4 years. Such development
is expected to yield an average return on investment after tax well above the pre-set hurdle rate of 9% per annum.
This will be partly paid out as dividends to the Fund unit holders and partly reinvested by the Fund in other investment opportunities.
Upon the successful development and sale of 65% of its fully owned real estate subsidiary’s inventory, and provided that
the additional capital call has been fully met, the Fund will start diversifying its investment portfolio. The diversification will
occur in the form of an expansion into other sectors of the economy, specifically, the fields of tourism, medical services
and education, because it is these areas that are expected to formulate the niche market sectors of the Cyprus economy
in the foreseeable future.
Assuming the maximum AuM of €500 million Euro is reached, we expect the spread of our capital investments to be
carried out through separate sub-funds on each sector, as follows:
Fund Capital Allocation In Investment Sectors
20%
Hotels and
Specialised
Holiday Centres
10%
Real Estate and
Development (Abroad)
25%
Real Estate and
Development (Cyprus)
7%
Cash at Bank and
in Hand
29%
Medical and
Rehabilitation Centres
9%
Private Higher Education Centres

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Expected % Contribution to the Fund’s Annual ROI by Sector of Investment
Market Weighted Average Return on Investment (ROI) Per Economic Sector
14%
Real Estate and
Development (Abroad)
27%
Real Estate
and Development
(Cyprus)
31%
Medical and
Rehabilitation Centres
17%
Hotels and
Specialised
Holiday Centres
10%
Private Higher Education Centres 1%
Cash at Bank and
in Hand
20.00%
15.00%
10.00%
5.00%
0.00%
Real Estate
and Development
(Cyprus)
Real Estate and
Development
(Abroad)
Hotels and
Specialized
Holiday
Centers
Medical and
Rehabilitation
Centers
Private Higher
Education
Centers
Cash at Hand
and in Bank
(Working Capital)

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MARKET ANALYSIS
AND REVIEW OF
THE TARGETED SECTORS
FOR INVESTMENT

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1.0 The real estate sector in Cyprus
Market overview
The Cyprus real estate market is more attractive to foreign buyers now than it has been in decades. A combination of
legislative changes and strategic planning by the construction industry mean this is the optimum time for overseas
investors to move into the local real estate market.
Cyprus, with its year-round sunshine, high quality of life, and convenient location between three continents, has long
been a magnet for international investors, expats, retirees and those looking to enjoy a second home in a mild and
hospitable climate. Despite the uncertainty of fluctuating global economic cycles, these factors continue to have enduring
appeal. The 2013 Knight Frank Global Lifestyle Review ranked Cyprus as the fifth best place in the world to relocate,
establishing the island as the only European location alongside Switzerland to make it into the top five – ahead of
London, Madrid and Monaco. Cyprus ranks highly due in part to its favourable tax regime for new residents, and
particularly for high-net-worth individuals. In May 2014, the island ranked 11th out of 40 countries in the Top of the
Props chart, which records the most searched for overseas destinations to buy property. Recent legislation, coupled with
a continuing fall in real estate prices, has triggered new interest in the middle to lower end of the market, while sales of
luxury, top-end developments have surpassed expectations.
Increasing sales and new incentives
Even as corrections to the overheated Cyprus property market continue, the numbers of completed sales are on the rise.
Transaction volume rose by around 9% in the first eleven months of 2015, compared to the same period in 2014, with
October 2015 seeing a 23% rise in property sales. Albeit a positive development, the volume was significantly lower
than the peak recorded before the recession. According to RICS (Cyprus) residential property prices continued to fall,
with the most resilient property types being residential houses, where prices have fallen 4% since 2014 and 30% since
the fourth quarter of 2009.
The island’s once-booming construction industry contributes around 2% to Cypriot GDP, and the sector has certainly felt
the chill winds of global economic austerity over recent years. During the first ten months of 2015 the number of building
permits authorised for both residential and non-residential projects fell by 0.5% compared to 2014. Nevertheless, their
value saw an increase of 18.3% to €846 million and their area increased by 14.2%. Although recovery in this sector
has been modest, there are signs of a possible stabilisation of construction activity in the short term. New legislation has
been enacted, providing additional benefits to investors in the property market, such as a 50% reduction in transfer fees
for all sales and a 100% exemption from capital gains tax for profits on properties purchased by 31st December 2016.
Prospective purchasers are also incentivised by recent changes to the rating bands for immoveable property tax (IPT).
Another advantage of the new legislation is that it exempts properties valued at less than €200.000 from taxation,
which constitutes around 54% of all properties on the island.
Perhaps unsurprisingly, local financiers remain cautious, but foreign investors are showing increasing interest in the
Cypriot real estate sector. The latest reduction in property prices on the island provides an ideal opportunity for the
foreign investor to enter the market, and the chance to acquire extraordinary properties at exceptional prices. Around
20% of sales are driven by foreign buyers, proving Cyprus remains on the list for investors, holiday-home seekers, expats
and retirees. This trend is likely to continue throughout 2016, when new legislation allowing banks to foreclose on
unserviced debts is expected to release a significant tranche of repossessed properties onto the market. There has
already been strong local interest in the asset sales by Bank of Cyprus and Hellenic Bank and analysts speculate that as
more properties become available, Cyprus will be an even more attractive proposition for the canny bargain hunter.
It is expected that transactions in the property market will remain concentrated on prime assets while overseas buyers,
encouraged by the government’s Naturalization Scheme, will focus almost exclusively on high-end residential properties
MARKET ANALYSIS AND REVIEW
OF THE TARGETED SECTORS FOR INVESTMENT

25
of at least €500.000, according to a report published by Resolute Asset Management. Meanwhile, institutional investors
are focused on yielding income from their investments, such as grade-A properties and sizeable plots of land with tourism
development potential.
Protecting buyers
New property legislation was passed in 2015, ramping up protection for buyers in Cyprus, allowing owners to apply for
their own title deeds. A contentious issue for years, the new property law is a welcome move, and aims to correct the
failures of previous years when title deeds were not issued to those who had purchased property either because the
property was mortgaged by the developer or the state could not go ahead with the transfer because of outstanding taxes.
The new law grants the head of the land registry department the authority to exempt, eliminate, transfer and cancel mortgages
and or other encumbrances, depending on the case and under certain conditions. Thanks to the new amendment, the
process is set to become more efficient while giving prospective buyers peace of mind and a sense of security.
Moving upmarket
Traditionally, Cypriot developers have provided holiday homes for British buyers, due to the historical ties between
Cyprus and the UK, and Cyprus’ strong tourist market and attractive tax treatment – particularly for expats and retirees
(5% tax on pensions). Today, the sector is pursuing a more innovative strategy, targeting top-end clients with a range of
exclusive villas in five-star gated complexes, golf course, seafront developments and luxury townhouses. Many buyers are
non-EU nationals who have taken advantage of Cyprus’ residency and citizenship programmes to relocate to a European
base. These programmes, which require the purchase of property, brought in over €2 billion in revenue over the past two
years, with most enquiries coming from Russia, China and the Middle East. Recent studies conducted by global
immigration experts rank the Cyprus’ Citizenship by Investment programme amongst the top ten worldwide. The scheme
was introduced by the Cypriot government two years ago to attract high-net-worth individuals, investors and entrepreneurs
with all the associated benefits available to Cyprus and EU nationals.
Regaining momentum
Although still recovering, the real estate and construction sectors are slowly making a comeback, with prestigious new
developments in the pipeline and corporations investing in new, ambitious projects. Landmark buildings are springing up,
such as the new global headquarters of Wargaming in the capital city, Nicosia.
Together with new investments in tourism infrastructure and hotels, oil and gas exploration in Cypriot waters has also
given the ailing sector a boost. Additionally, projects with a special focus on golf courses and marinas have spurred new
interest in large-scale projects in Cyprus. The country has seen a surge of investors looking into the acquisition of entire
complexes and projects that are both in the planning stages and already under construction. Cyprus’ on-going effort to
establish its first ever luxury casino resort is set to boost tourism and fuel demand for holiday rentals. These premier
developments will become the driving force behind the construction industry in years to come. The varied range of
exceptionally priced properties together with Cyprus’ 2016 growth prospects make this a golden opportunity to invest.
2.0 The real estate sector in Southeast Europe
2.1 Republic of Serbia
Market overview
2015 proved to be a very active year in Serbia, particularly the second half. A number of major projects were officially
announced by key international developers already established in the market, with others looking for an opportunity to

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enter. Considering all this, we couldn’t be more optimistic about the real estate industry in Serbia in 2016.
The Serbian property market, currently underdeveloped, is becoming increasingly attractive for developers. Though, given
the industry-wide absence of major construction activity in the last couple of years, companies making a timely move into
the real estate industry may expect a “first mover” advantage following the full recovery of the market.
The commercial developments market
At nearly 8%, the office segment presently marks the lowest vacancy rate in the past four years, which means almost no
or very limited choice of available modern office space. Put simply, the companies thinking of expansion in the
short-to-mid-term might be facing a real challenge in finding adequate space, as at the moment very few office buildings
can accommodate requests of 1,000+m2. As a result, tenants looking for larger and more sophisticated spaces are
starting to look to built-to-suit options or to anchor some of the announced pipeline projects.
The retail properties market
The retail market presents an immense investment opportunity for both retailers and property developers, being
comparatively one of the most underdeveloped segments in the Southeast Europe region overall. A city with a population
of 2 million and just 3 western-style shopping centres gives a clear indication of such opportunities. As a result of this
vacuum, a number of globally known brands are currently making strides in securing a position within the existing
shopping schemes, especially in larger cities like Belgrade, Nis and Novi Sad.
The residential properties market
The residential market has stabilized over the past two years, both in terms of sales prices and the demand vs. supply
ratio. Overall, the demand has been picking up since the second half of 2013, and the well-defined residential concepts
at key city locations sell out within a year of construction.
The industrial buildings market
The industrial sector in Serbia has long been off the radar of international companies in need of such facilities, but the
situation here is changing quarterly. Real activity with several large scale projects has been set to commence potentially as
early as next year. However, even with such development, Serbia would still be massively lagging behind other countries
in the region in the short-to-mid-term. Nevertheless, geographical position gives an advantage which is yet to
be exploited.
Conclusion
Some of the major foreign developers are confidently unfolding marketing and sales strategies for their long awaited
projects in Serbia, which inspires substantial confidence for the next year. The property market is being seriously
investigated by some of the developers that have not shown a presence in Serbia in the past decade, most of them coming
from the Middle East, Asia and the UK. Keeping all of the above in mind, we feel it is not too early to be optimistic.
2.2 Romania
Overview of the economy
The Romanian economy maintained one of the highest growth rates in Europe in 2015, for the fourth consecutive year
(+3.7% YOY according to the flash GDP release). Growth was driven mainly by ample private consumption, similar to the

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trends emerging in Europe where low oil prices boosted disposable income. In Romania, other than the lower oil price,
there were several factors which contributed to higher private consumption, namely:
• Repeated hikes to the minimum wage
• Wage increases for several categories of public sector employees
• Higher social benefits
• Lower VAT for food products (from 24% to 9%)
• Revitalized consumer confidence
• Surging new RON-denominated lending (totalling RON 25.1bn in 2015; +44% YOY)
The stock of RON-denominated mortgage loans doubled during 2015, while RON-denominated consumer credit
increased by 11% YOY. Driven by consumption, growth is expected to continue in 2016.
The Bucharest office market
Over 360,000m2 of leasable office space is scheduled for delivery in 2016. Approximately half of that is already
pre-leased and an additional quarter is known to be under advanced negotiations. 11 out of the 15 projects planned
for delivery in 2016 started construction works without having any pre-leases, but the majority secured tenants as the
construction works advanced. In 2016 we expect more cautious development. The construction start for new projects will
be subject to closed pre-lease transactions.
Over the last two years, the Bucharest office market welcomed more than 15,000m2 yearly from companies entering the
market. We expect the same level of activity from new entries in 2016. In addition, companies that entered the market in
the last two years are expected to generate additional new demand in the coming years.
Location-wise, future stock will be delivered in the already established office districts of Dimitrie Pompeiu and Floreasca –
Barbu Vacarescu as well as in the emerging Central Western area.
The Romanian shopping centres market
The shopping centres stock in Romania is expected to increase by 500,000m2 by 2020. Out of this stock, 95,000m2
is to be delivered in Bucharest by the end of 2016, with ParkLake Plaza (70,000m2 Gross Leasable Area or “GLA”)
being the largest future scheme announced. Timisoara, among the largest cities in Romania, is one of the most active in
terms of announced projects given the strong performance of the retailers already present in the city and their interest to
open new locations. Almost 200,000m2 of GLA is currently in varying stages of development in Timisoara and has been
announced for delivery in the next 2-3 years. At this time, one of the schemes is already under construction.
The Romanian economy shows promise to continue on an upward trajectory in 2016. With a 5% estimated increase in
household consumption for this year, we expect to see a further strengthening in retail sales. In all likelihood, the non-food
sector will also register an additional boost in sales due to the VAT reduction.
The Romanian industrial market
The industrial sector finished up a rewarding year, as the market became more and more appealing to developers,
investors, end users and tenants. Supported by a consumption upsurge over the past five years, the logistics sector
witnessed a year of strategic opportunity and has taken the lead. Production segment increase was triggered by stable
economic fundamentals, characteristic of Romania in the past few years.
More than 70% of the new developments announced to be delivered in 2016 in Bucharest are already leased or in
various stages of negotiation, while the remaining stock will most likely be leased by the end of the current year. Further-

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more, we foresee vibrant activity for the industrial market in the near future, a prediction generated by the intense focus of
new developers on opportunities in Romania who are interested in developing large projects of more than 100,000m2
.
Riding on the heels of the continuously expanding e-commerce and same/next day deliveries sector, demand in the
countryside from the production sector will continue to take the lead with logistics companies trying to catch up and
optimize transportation routes from different areas of the country. In the absence of highway infrastructure linking to
Bucharest or Targu Mures, the eastern part of the country remains an area of interest for manufacturers, with cheap labour
costs and a dearth of interest from logisticians.
The Romanian land market
Residential and retail players will remain the most active land buyers in 2016. A few new residential developers are
currently sizing the market for opportunities and a portion of these are likely to secure plots for future projects. However,
they are more cautious compared to existing, locally experienced players.
Regarding the office segment, most developers will target the few remaining opportunities available in key areas.
Eventually, we expect one or two notable acquisitions of office plots to be concluded in 2016 in Bucharest.
Securing sites with a valid zoning plan (PUZ) and building permits has become an important focus for the vast majority
of developers. This concern is due to the frequent blockages and lengthy permit processes which developers have been
burdened by in recent years. This in turn has increased development risks in the sector.
The Romanian investment market
2015 was the first year after the financial crisis that presented a real possibility of revival regarding the real estate
investment market. We saw the largest number of transactions since 2007, new investors completing transactions (GLL,
P3, and CTP) and generally an increased number of diverse investors looking at the Romanian market. Indeed, 2015
was a consolidating year, aligning both international and local influencing factors to create the right environment for an
active investment market: favourable international capital flow dynamics, a positive macroeconomic environment,
demonstrable market liquidity, growing investor appetite and, last but not least, an improved financing environment.
The Bucharest new residential market
In 2007, at the pinnacle of the residential market, Colliers International reported sales of over 7,000 new apartments per
annum, estimating around 30% of the absorption to have been due to investors both large and small. 2015 marked the
year when end user purchases exceeded peak market values, officially confirming the end of the recovery period of the
new residential segment in Bucharest.
2016 will bring substantial changes to the real estate taxation system, which may lead to an increase in investors in
coming years. However, financing is paramount to continuing market growth. Therefore, any changes, such as the oft
discussed debt discharge law, will significantly impact the segment.
The announced supply in the next 24 months should be able to find buyers if financing remains easily accessible. Prices
will increase, encouraged by the change in the 5% VAT law, but the growth in supply, particularly on the low-end
segment, will continue to hold them in check.
The Bucharest hotel market
Supported by positive developments in 2014, the Bucharest hotel market registered a good track record for all indicators
in 2015, revealing real prospective for future growth. With sustained national economic performance, the hospitality

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industry in Bucharest showed elevated volumes of both supply and demand.
The positive macroeconomic context is influencing both occupancy and ADR indicators, which are slowly mending their
previous crisis hikes. The hospitality sector will expand mainly due to the interest of big hotel groups in new markets and
the general development of tourism. Investors are likely to continue showing interest as they are more enthusiastic about
prospecting the market for new hospitality projects, including reputable brands such as Hilton, Kempinski and Hyatt.
Increasing competitiveness in the market will generate higher quality products that will be reflected in innovative hotel
concepts and improved benefits, interrelated with consumer needs.
The new real estate related Romanian tax rules
2016 brings a lot of positive changes to the tax regime applicable to real estate companies. The most important are:
• VAT reverse charge for transactions
• Reduced VAT rate for certain dwellings
• Gradual removal of construction tax
• Reduction in building tax rates
• Change of the building tax regime from the nature of the owner to the nature of the property.
3.0 The Healthcare and Medical Sectors in Cyprus
Strong vital signs
Internationally trained health professionals and rigorous adherence to high standards ensure that the quality of private
healthcare in Cyprus is second to none. Thanks to advances in medical research, Cyprus can legitimately claim to be a
world leader in certain fields of medical innovation.
The Cyprus healthcare sector is going through exciting times, with an imminent roll out of a new national health scheme
which will upgrade and automate facilities to offer better care and service to patients. Cyprus is also renowned for its
world-class medical research and is becoming a popular destination for medical tourists thanks to its top medical
professionals, most of whom are educated at reputable universities in the UK, Greece, Western Europe, Russia and the
US. In Cyprus, healthcare is provided by both the state and the private sector, with an impressive 74 private hospitals
and clinics. The presence of numerous prestigious private healthcare facilities significantly enhances the island’s reputation
as a centre for medical excellence and highlights the opportunities available to foreign investors. The island has also
introduced opportunities for foreign doctors to carry out procedures in the country, a move that is fostering cooperation in
the international medical field. The American Medical Center, which started out as a specialist cardiovascular institute, is
one such state-of-the-art facility and now offers a wide range of medical services.
Public and private excellence
The public sector is highly centralized and most planning, organisation, administration and regulation is under the
purview of the Ministry of Health. It is exclusively financed by the state budget, with services provided through a network
of hospitals and health centres directly controlled by the Ministry. Substantial investment in the state sector has meant that
procedures such as kidney transplants and open heart surgery, which once necessitated a journey overseas, are now
routinely carried out within Cyprus. The private system is financed mostly by out-of-pocket payments and partially by
voluntary health insurance (VHI). It largely consists of independent providers, the facilities being mostly physician-owned or
private companies in which doctors are usually shareholders. Cyprus has one of the highest shares in out-of-pocket
expenditure in Europe at 47.2%. The general government healthcare expenditure is 45.7% and the share of private
insurance enterprises expenditure is only 4.5%. Cyprus ranks 24th out of 36 in the Euro Health Consumer Index 2014,

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although it has gained 40 points since 2013. Health expenditure decreased from 6.8% of the GDP in 2011 to 6.6% in
2012 and increased to 6.7% in 2013. Although the total expenditure on health in Cyprus as a percentage of the GDP
(6.7%) in 2013 was lower than the OECD average, which was 8.9% in 2013, the healthcare statistics are in fact
performing better than the EU average and can be said to be on par with the large and developed EU member states.
This can attributed to Cypriot physicians’ qualifications and the combined efforts of the Ministry of Health, the Cyprus
Medical Association and the Cyprus Medical Council to keep the bar high in Cyprus.
Creating an efficient NHS
Plans to roll out the much-anticipated and necessary National Healthcare Scheme (NHS) are in the pipeline and aim to
upgrade public healthcare services and restructure health centres to make them autonomous. Cyprus has been working
overtime in a bid to reform the sector and create a system that provides affordable care by reducing the cost of
quality healthcare to all. A top priority for the government and the Ministry of Health in 2016 is to make healthcare more
patient-oriented, reliable and accessible. In the short term, steps have been taken to reduce patient waiting time through
the introduction of minor injuries units and an automated bed availability system. In a separate development, the Ministry
of Health has embarked on a seven-year programme to computerise medical provision and develop an integrated health
monitoring system. This will involve the introduction of digitised health records, the expansion of medical services to
remote areas via telemedicine and robotics, and access to international medical data banks.
Investing in medical tourism and e-health
On a global scale, the medical tourism industry is worth up to an estimated $40 billion and accounts for approximately
2.5% of international tourism revenue with very positive growth prospects. Cyprus’ excellent and sophisticated medical
infrastructure consisting of medical facilities, hospitals, laboratories and other diagnostic centres, as well as its highly
educated healthcare professionals and top-class health services, are rapidly establishing the island as a centre for health
tourism in the Mediterranean region. Coupled with the country’s ideal climate conditions throughout the year, this makes
Cyprus an attractive destination for patients to combine treatment with a holiday and recovery with relaxation. The
majority of medical tourists come from the UK, Germany, the Netherlands, Russia and the Middle East and most seek
either dental or cosmetic procedures. However, increasing numbers now visit Cyprus for other care, such as fertility
treatment. Meanwhile the island is gaining a reputation for other specialist procedures such as cancer surgery, minimally
invasive spinal surgery and facial reconstruction. Another investment opportunity is e-health solutions. A cornerstone for
the new NHS, health information systems and specialist ICT solutions will be in high demand over the next few years as
Cyprus builds up its unified national health system.
Doctors across borders
Since 2013 the Cyprus government has taken concrete measures to promote medical tourism as well as cross-border
medical cooperation by welcoming doctors worldwide to conduct procedures in Cyprus. Doctors from Israel, the United
States and other non-EU countries are now allowed to provide services in Cyprus under certain conditions with
procedures unhindered by bureaucracy and undue delays. This decision not only promotes medical tourism and helps
generate income mainly for private hospitals, but it also encourages further training and knowledge exchange for Cypriot
doctors, with a number of hospitals becoming centres of excellence in the eastern Mediterranean region, the Middle East
and Europe. Cyprus is also gaining a reputation for other specialist procedures. A vast array of quality medical treatments
for international patients is now offered, from basic check-ups and diagnostic tests to major surgery, including kidney
haemodialysis, transplants and cardiothoracic surgery procedures, and orthopaedic and musculoskeletal surgery.
Innovative education and research
The establishment of medical schools in Cyprus was a decisive step in the on-going effort to improve the health sector and
foster world-class research and innovation. Over the last five years, three medical schools, one public and two private,

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have been established in Cyprus, all affiliated with local hospitals. The sector recently received a significant boost with
the establishment of a four-year Bachelor of Medicine and Bachelor of Surgery (MBBS) graduate course at the University
of Nicosia (launched in the 2011 academic). The degree program combines the convenience of training within Cyprus
with all the advantages of world-class expertise. It arose from a unique collaboration between the University of Nicosia
and St George’s Hospital (University of London). It is expected that, in time, its graduates will make a significant
contribution to medical research on the island.
Over the past 25 years Cyprus has seen highly commendable achievements in the fields of medical research and
innovation. Pioneering research work has been undertaken at the Cyprus Institute of Neurology and Genetics, which
developed a ground-breaking, non-invasive prenatal test for Down’s Syndrome. Research in the biomedical field has seen
a tremendous increase, especially in the field of genetic diseases, hereditary cancer and biotechnology. These ambitious
research projects, funded by both local and foreign sources, resulted in findings and new knowledge that has benefited
the local population and the international community. The top-quality academic work in Cyprus is supported by important
European funding, including ten European Research Council (ERC) grants, hundreds of high-impact publications in
international peer-reviewed journals and invitations to present findings at major medical conferences around the world.
A healthy prognosis
To sum up, the calibre of healthcare in Cyprus is truly remarkable. The combination of internationally experienced
personnel, advanced technological capabilities, and cost-effective, world-class medical services mean that this sector will
continue to flourish and expand. The challenge of the current worldwide health workforce shortage may emerge as an
opportunity for Cyprus’ growing educational industry. The country’s geographic position and EU membership provides
opportunities for well-trained students originating from non-EU countries to acquire qualifications recognised by the EU.
All of this means that Cyprus has the definite potential to develop the sector even further and establish itself as a strong
player in the health and medical field in the wider region.
4.0 The Tourism, Holiday and Leisure Sectors in Cyprus
Cruising to growth
Tourism, the most resilient of Cyprus’ commercial sectors, spiked in 2015, with tourist arrivals hitting a decade high. With
efforts to diversify its tourism product, new foreign investment pouring into the sector and plans for a world-class casino
resort underway, the future of Cyprus’ tourism looks bright.
Tourism has been a key pillar of the Cyprus economy for decades. The sector has remained economically robust and is
the only commercial sector in Cyprus to see continuous growth throughout the global financial crisis. The number of tourists
visiting the island in 2015 reached almost 2.7 million, matching a previous record set in 2001. With a strong focus on
further developing niche tourism and extending the season, the country’s efforts to diversify its offerings are beginning to
bear fruit.
A winning package
Cyprus is well known for its hospitality and is renowned for its excellent quality of life, as evidenced by its award-winning
tourist industry (Sustainable Destinations Global Top 100, VISION on Sustainable Tourism, Totem Tourism and Green
Destination titles presented to Limassol and Paphos in December 2014). Cyprus ranks top amongst EU countries for clean
swimming waters and has been awarded a total of 53 Blue Flags, achieving three records: the most Blue Flags per
capita in the world, the densest concentration of Blue Flag beaches and the most Blue Flag beaches per coastline.
However, Cyprus is much more than just a ‘sun and sea’, package-tour destination. A new offering of niche segments
like sports and cultural tourism is on the rise. Although tourists are spoilt for choice in terms of accommodation - ranging

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from budget two and three-star hotels to a growing range of upmarket hotels with four and five-star status - a key growth
segment is agrotourism, giving travellers a unique opportunity to enjoy and experience authentic Cyprus village life.
Poised for growth
Cyprus saw record-breaking arrivals in 2015, with indications that 2016 will build on this growth. There was an 8.9%
increase overall in 2015, bringing total arrivals up to 2,659,405, according to the Cyprus Tourism Organisation (CTO).
Cyprus attracted increasing numbers of visitors from Germany, Israel, Austria, France and the Netherlands as well as the
Middle East. Most notably, 2015 saw the total number of British tourists exceed the one-million mark for the first time since
2011, constituting a 20% rise. The significant rise in UK arrivals has been attributed to the favourable exchange rate
between the Pound Sterling (GBP) and the Euro, as well as lower fuel prices which have reduced airlines costs to Cyprus.
Efforts by the government and the CTO to ‘reinvest’ in traditional tourist markets such as Britain and Germany have also
helped introduce Cyprus to a new generation of tourists. The number of visitors from Greece and Germany rose 38% and
30% respectively in 2015 compared to 2014, while tourists from Sweden rose 1.8% and Israel 43%.
Russia, a traditionally strong market, has been a source of some concern with arrivals falling almost 18% to 524,853 in
2015 due to the devaluation of the rouble, making international travel unaffordable for many. However, Russian tourists
remain the second largest tourist market for Cyprus and the negative performance is considered to be a temporary lull by
Cyprus tourism experts. Long-term forecasts issued by the World Travel and Tourism Council, an authority on world
tourism, paint a positive picture for Cyprus. By 2025, international tourist arrivals are forecast to total 3,734,000,
generating an expenditure of €3.5bn – an increase of 4.2% per annum. Analysts are confident that Cyprus tourism will
continue on a path of steady growth by consolidating its core attractions and diversifying and developing niche areas in
response to changing consumer demand.
Expanding connections
Cyprus is forging ahead on multiple fronts under the ‘Open Skies’ policy, to extend both the number of originating airports
and aircraft operators. Cyprus has completed several new agreements with countries such as Bahrain and Oman, and is
in talks with various countries in Asia, Africa and South America. Although the demise of national carrier Cyprus Airways
in 2015 was an tremendous blow to the industry, over 70 airlines continue to operate in and out of Cyprus with many
expanding existing routes. Airlines such as British Airways, Emirates and Etihad have increased flying capacity to the
island, along with others like commercial carrier Germania, low-cost Austrian airline NIKI and Qatar Airways.
Diversification to boost investment
Efforts continue to maximise the commercial potential of the island’s mild winter climate and to develop the sector as a
year-round tourism destination, particularly for niche areas, like agrotourism, health and wellbeing, nautical, religious,
conference, sports and wedding tourism. In fact, 2015 saw increased interest in bookings for March and November, the
two months which have been identified as a first-stage priority in the plan to expand the season beyond the summer months.
The CTO supports external investment through numerous incentive schemes. At the same time opportunities abound for
investors looking to target tourists seeking special interest holidays.
Developing niche tourism
Cyprus enjoys a top position among Mediterranean and European wedding tourist destinations. 8,000 couples from
abroad tied the knot on the island in 2015 alone. In terms of promoting its wedding tourism product, Cyprus’ key markets
are the United Kingdom, Israel, Lebanon and Russia, with British holidaymakers constituting around half of the wedding
traffic in Cyprus. Destination wedding site MarryAbroad ranks Cyprus as one of the top ten wedding destinations in the
world for British couples planning to get married.

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The island is also a popular winter practice venue for international sports groups and athletes, a field with considerable
growth potential.
Diving tourism is another area where growth is confidently predicted. An estimated 50,000 divers visit the island each
year, many attracted by the opportunity to explore one of the top five dive sites in the world, the Swedish cargo vessel
MS Zenobia, which sank off the coast of Larnaca in 1980. The CTO acquired four ships in 2015 in order to create
more artificial diving reefs for tourists.
Golf tourism is also expanding rapidly and Cyprus boasts four 18-hole international standard courses, with plans to
construct an additional seven to establish the island as a year-round destination for golfers.
Other developing areas include health and wellbeing holidays, with the recent creation of several exclusive spa hotels as
well as a number of large-scale projects open for investment in the fields of rehabilitation and other wellness services.
Medical tourism is experiencing unprecedented growth due to Cyprus’ world-class reputation for high-quality private
health care in a technologically advanced environment. Cosmetic surgery, diagnostic tests and fertility treatment top the
list as the most popular procedures for medical tourists from the UK, Germany, the Netherlands, Middle East and Russia.
Game changers
The newly approved luxury casino resort offers particularly exciting investment potential. Legislation has been passed
to award the first and only casino licence, and preliminary studies by the CTO predict annual government revenues of
between €35 and €50 million. The licence has garnered much interest worldwide, with the winning bid expected to be
announced by mid-2016. At the time of writing, the names of the bidders have not been officially announced, but it has
been widely reported that the three frontrunners in the race are international hotel operator Hard Rock, resort hotel and
casino chain Sun International, which has extensive interests in South Africa, and French company Bouygues, specialists
in online gaming. The plan is to create a casino resort exceeding five-star requirements, including various leisure facilities
such as hotels, spas and conference centres. Following the success of Limassol Marina, new luxury marinas are in the
works for Larnaca, Ayia Napa and Paphos in a bid to boost nautical tourism.
Another potential game changer for the hospitality sector has been the deal with the Buena Vista Hospitality Group.
A leading player in the world of hospitality and golf management, Buena Vista has plans to construct Europe’s largest
integrated sports, health and wellness resort near Limassol. The company will also base its regional headquarters for the
eastern Mediterranean, Middle East, and Balkans on the island.
The Cyprus hotel industry has also seen a boost from foreign investment. The Limassol hotel Alexander the Great was sold
in a multi-million-euro deal, Le Meridien received a €20 million cash injection (75% investment), while the Amathus Hotel
sold for €71 million. Larnaca is also seeing its fair share of investment, with a new Radisson Blu set to be completed and
welcome its first guests by the summer of 2017. These deals have shown foreign investor confidence in the potential of
the sector and are helping it move further upmarket.
Challenges and the future
Cyprus tourism has emerged robustly from the recession and is ready to play a leading role in the country’s economic
renaissance. However, in order to reach its growth targets and stave off increasing competition, Cyprus must tackle
challenges head on in the short and long term. Relatively expensive compared to other Mediterranean holiday destina-
tions, Cyprus must push its initiatives through to upgrade and develop its infrastructure and product offering so that it can
meet the demands of visitors paying more for their holidays. Nevertheless, there are great opportunities and the potential
to develop the sector further thanks to its robust foundations and decades of experience in catering to tourists from around
the world. Maintaining and boosting the success of this formidable sector will continue to take Cyprus from strength to
strength.

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5.0 The Education and Research Sectors in Cyprus
A centre for regional excellence
Cyprus is well on its way to becoming a major educational hub in the Eastern Mediterranean, and is rapidly establishing
an international reputation as a centre of excellence for scientific research and development.
Cyprus spends an impressive 6.67% of its GDP on education, ranking the country 5th among the EU27, while almost
50% of Cypriots aged 30 to 34 have university degrees, putting the island well above the EU average of 40%. The
country’s educational institutions maintain consistently high academic standards and attract students from all over the
world.
Investing in education
Since joining the EU in 2004, the number of foreign students studying in Cyprus has doubled and the country has
ambitious plans to develop itself into a regional education centre. Today 30% of students (around 8,000) come from
abroad – a figure which highlights the great funding opportunities that exist in Cyprus for new international universities,
colleges and research institutes. The widespread use of English, the application of EU standards, a safe environment and
good weather, all make the island an ideal place for foreign students seeking a top-notch, value-for-money education.
Over the past year, Cypriot universities have been actively promoting themselves as providers of high-quality yet
affordable tertiary education. President Anastasiades underlined his government’s determination to build on this promise
by outlining plans to enable more tertiary courses to be offered in English and for the creation of an institutional
framework attractive to postgraduate students coming from abroad.
Excellent universities
The island has eight universities that offer a wide range of courses and degree programmes. The oldest of these is the
University of Cyprus, which teaches mainly in Greek. The University’s partner institution, the Cyprus University of
Technology, aims to bridge the gap between pure and applied research and to forge close ties with Cypriot commerce
and industry. The government also provides state funding for the Open University of Cyprus, as part of its commitment to
lifelong learning. Cyprus also boasts a number of private universities, the oldest of which are the University of Nicosia,
European University Cyprus and Frederick University. The University of Nicosia launched the island’s first degree
programme in medicine, the result of a unique collaboration with St George’s Medical School at the University of London.
In October 2012, the first British university to be established on the island, the University of Central Lancashire – Cyprus
(UCLAN), accepted its first students. UCLAN-Cyprus offers courses in business, law and the sciences and provides
students with a unique opportunity to study in both Cyprus and the UK. Another relatively new university is Neapolis,
located in Paphos, which attracts both foreign and local students.
World-class research
When it comes to science and technology, Cyprus punches far above its weight. This was dramatically highlighted in
2014 by an innovative new global ranking scale, which assesses nations by their contribution to the good of society and
humankind. According to the Good Country Index, compiled from UN and World Bank data, Cyprus ranks an
astonishing 3rd out of 125 countries for its contribution to science and technology relative to its GDP. The recent
discovery of offshore hydrocarbons in Cyprus has also prompted a collaboration between the University of Nicosia and
the Mediterranean Institute of Hydrocarbons Technology (MIHT). Plans are underway to develop a comprehensive training
programme designed to provide well-qualified personnel capable of filling the thousands of posts that are expected to
arise from the exploitation of the gas fields. Collaboration with international educational institutions is a priority to ensure
appropriate knowledge transfer and for Cyprus to develop into a hydrocarbon research base. Historically, research and
development (R&D) has been scarce in Cyprus compared to the rest of Europe. However, the economic challenges of

35
recent years have prompted an increased appreciation of ways in which research can generate new models of economic
development and its potential to cultivate a knowledge-based economy in Cyprus.
President Anastasiades recently underlined his commitment to maximising the commercial potential of research and
innovation and showed confidence in the ability of Cypriot enterprises to benefit from the knowledge transfer opportunities
provided by EU-funded research initiatives. There is a renewed impetus towards the development of such opportunities,
and employers’ organisations and research consultancies have agreed to collaborate in an effort to secure further EU
research funding. Over the past six years, Cyprus has already harnessed nearly €80 million in EU funding for Cypriot-led
research projects, but there is scope for this figure to increase if Cypriot funding bids are simplified and coordinated.
The highly regarded Cyprus Institute (CyI) a non-profit science and technology research and educational institution, is at
the forefront of much of the R&D conducted on the island today. CyI has close links with the renowned Massachusetts
Institute of Technology (MIT), a collaboration which has produced ground-breaking work on the production of
solar-generated electricity and methods of monitoring climate change. In recognition of its excellence, CyI was recently
selected to participate in a leading role on an ambitious 10-year international initiative on global sustainability called
Future Earth, which will attempt to co-ordinate new, interdisciplinary approaches to research sustainable development
and the management of the transition to sustainability. CyI will act as a regional hub, managing the participation of the
Middle East and North African scientists in the programme.
An expanding knowledge hub
Government and private sector investment, combined with careful strategic planning, has produced impressive results.
Renewed emphasis on research and development and the cultivation of a knowledge-based economy has resulted in the
production of innovative research across a range of disciplines and the consolidation of the island’s role as an expanding
knowledge hub for the eastern Mediterranean.

37
The Real Estate Sub-Fund(s)
An overview of the proposed investment approach
The Fund’s investment strategy implementation starts with the deployment of €12.500.000 (Twelve million five hundred
thousand Euros). 80% of this sum will be used for the acquisition of 99.99% of the OSC of a leading real estate group
of companies established in Cyprus and operating both in Cyprus and Southeastern Europe. The remaining 20% will
go towards the group’s working capital requirements for implementing its projects development plan. An additional
€12.500.000 call for capital for working capital purposes is anticipated to take place by the end of 2016, and will
cover all capital needs for a four-year period, fully developing the group’s existing real estate inventory.
This will create a number of strategic advantages for the Fund, which would not be in place if we undertook the option
of purchasing immovable property outright either directly from its owners or from institutional financiers who may have
foreclosed it.
An analysis of the reasons which led us to undertake the option of taking over a local real estate group of companies is
listed below:
(1) Tax Implications of purchasing immovable property in Cyprus
Although AIFs can offer a substantial number of benefits to an investor, other issues such as corporate taxation and
property-related taxes were considered when evaluating a substantial investment in immovable property.
The tax implications and their potential impact on the target return on investment and the future cash flow position of the
Fund were considered under both of the investment options at hand.
The outright purchase of immovable property directly from the property owners or from institutional financiers who may
have foreclosed such properties had the following inherent weaknesses from the point of view of tax implications:
(a) Land Transfer Fees would be applicable on all immovable property purchases performed after 31st December
2016*1
, on a progressive tax system basis, as follows*2
:
Up To €85.000 3%
€85.000 - €170.000 5%
Over €170.000 8%
*1
Up to 31st December 2016: (a) all purchases of immovable property which are excluded from Value Added Tax
(i.e. (i) land plots and (ii) housing or commercial units which have previously been inhabited by another person) will
be subject to 50% of the above rates; and (b) all purchases of immovable property which were subject to Value Added
Tax (i.e. everything excluding the items disclosed under (i) and (ii) above), will not be subject to Land Transfer Fees.
*2
Land Transfer Fees are payable on a unitary basis (unit-by-unit approach)
(b) The disposal of immovable property which has been purchased after 31st December 2016 by any person other than
a licensed real estate company would attract Capital Gains Taxation (CGT) chargeable at 20% on the
inflation adjusted profit, instead of the much lower Corporate Taxation of 12.5%, applicable on the taxable profits of
a real estate company;
(c) Purchasing the properties outright, at distressed prices directly from property owners or institutional financiers, would
not allow us to utilise the high historic cost of land and other expenses incurred on the property resulting in an
OUR FIRST CALL FOR CAPITAL

38
accelerated tax liability and effectively a lower available for dividend distribution profit after tax; and
(d) Purchasing a semi-concluded project outright, which may be a highly promising investment upon completion, would
be subject to the standard VAT rate (currently at 19%) resulting in additional tied-up working capital.
Deploying funds towards the acquisition of a real estate group of companies, instead of purchasing the properties
outright, will enable the Fund to overcome the potential tax implications which have been analysed above and secure the
immediate and unconditional ownership of all immovable property owned by the group, both in Cyprus and abroad. The
cost of investment of the Fund has been successfully negotiated by its management to be substantially lower than the open
market value of the assets being acquired.
(2) Advantages in Following our Proposed Investment Approach
(a) No Land Transfer Fees on the acquired immovable property, as the legal ownership remains the same;
(b) No Value Added Tax will be payable on any of the Company’s semi-completed development projects, as there will
be no sale of these properties to a new owner;
(c) We will be fully eligible to deduct, for corporation tax purposes, the high cost of immovable properties purchased at
very high prices at the peak of the economy, as the company will continue to carry the properties’ historic cost in its
books and records;
(d) Other capitalised expenses relating to the immovable properties, including capitalised bank interest on loans
received for the acquisition of the property will also form an allowable deduction for corporation tax purposes;
(e) Future taxable profits realised from development projects will be eligible for set-off against existing taxable losses
which can be carried forward for up to a five Financial Years;
(f) Group Loss Relief will be available to all Tax Group member companies, through which one company’s tax losses for
the year can be settled against another company’s tax profits for the same year. A Tax Group for Group Tax Loss
Relief purposes exists where one company holds >75% of one or more companies, directly or indirectly, for the
whole tax year. Members of the tax group can relieve any unutilized tax losses against their own future taxable profits
within a period of five years from the date that the tax loss has been incurred; and
(g) The acquisition of the company (or group of companies) will be made via the 99.99% dilution of the current
shareholder(s) interest, in order to avoid Capital Gains Tax that would otherwise be applicable at a rate of 20% on
the difference between the price offered for purchasing the shares of the company and the indexed and
adjusted-for-inflation cost of the Cyprus-situated properties being acquired.
(3) Expertise and long-standing experience in the real estate sector
Teaming up with one of Cyprus’s prime real estate group of companies offers the advantage of seeing the local property
market through the eyes of a large number of professional individuals who are experts in their field with solid experience
in the local real estate market.
The benefits we expect to receive from this acquisition are many, including direct access to the relevant competent au-
thorities, technical knowledge of country-specific requirements and co-operation with other well-established organisations
involved in the construction industry.

39
(4) Professional network and established client base
Being successful in the real estate sector is synonymous with having a strong local and international sales network, an
already established and strong client base in the country of reference and an excellent track record on project quality and
post-sales support services.
The group of companies forming the target for acquisition has a long-standing and strong presence in the field of property
development and in dealing with the demanding international private and corporate sector client base.
The group, which currently ranks among the top three development companies in the capital, established itself strongly in
the market mainly due to its unique architecture and the prime locations of its developments.
City Link, one of the group’s high profile commercial developments, has been hosting the Embassy of the State of Kuwait
in Cyprus since its establishment in the country. Most of the Embassy’s diplomats are also hosted in several of the group’s
high profile residential developments.
Other high profile corporate clients and/or business associates of the group include the Department of Public Relations of
the Cyprus Telecommunications Authority (CyTA), currently forming the largest corporation in the country, which has been
active in the group’s developments for a number of years, and EuroLife, the country’s largest insurance corporation.
The group’s physical persons client base consists of high-status individuals including personnel from foreign embassy
delegations, local and international business executives, medical doctors, artists and other high-calibre individuals.
The group currently has a fully operational presence in Cyprus, Romania, and Serbia and also operates a representation
office in Tianjin, China.
The Real Estate Sub Fund(s) Risk Mitigation Strategy
Stage 1 - Market study / research
(1) Information is gathered on the property (including costs and quality) from third-party market experts to ensure
independence and reliability of data.
(2) A market sensitivity analysis is carried out to ensure that, even if there are other projects which are currently under
development or in the pipeline for development (i.e. being fully licensed and expected to commence construction
within the next six months) in the identified areas, these will not fully cover the expected market demand.
(3) A thorough examination is made to assess the average profit return for the industry.
If a project is not determined to be of high quality or significantly profitable at this stage, it will be rejected.

Stage 2 – Identification of property
Negotiations to obtain the best possible price (at or below the market rate) will take place with respect to the identified
property. If it is determined that the best possible price cannot be obtained, and that the purchase cost shall exceed the
available budget or funds, the purchase will not be concluded.

40
Stage 3 – Conception of idea / costing
(1) Internal models used to assess the viability of a project have been developed over a number of years to consider any
factors and tackle any challenges that may arise during the evaluation of a project.
(2) An NPV (Net Present Value) analysis of the project is performed over a three-year period (this is the full project cycle,
starting from the market study stage and running through to the expected sale of the whole project). If the NPV
practice generates an IRR (Internal Rate of Return) that meets the minimum return expected for its development, the
project is approved for further consideration and moves on to the next stage of the evaluation cycle. If the expected
IRR is not met, the project is rejected.
(3) Once the project is deemed to be viable, funding is secured, either through banking finance, investor monies or a
combination of both, to ensure that the required capital is available to commence construction of the project.
Decisions about the funding of the project will take into consideration the immediate cost as well as long-term costs
(e.g. interest rate payments).
Stage 4 – Identification of capable professionals / setting up know-how team of experts
(1) The project team shall be assessed based on its reputation, quality of work, ethic, and previous collaborations. To
avoid conflict of interest, any such project team members will be independent professionals.
(2) If the actual cost of tenders received for the construction of the project is significantly different from the preliminary
cost as projected by the QS, the project is rejected.
Stage 5 – Project design
(1) In order to be in a position to determine the optimal method and way to design and construct a project, from both a
cost-effective and quality perspective, expert independent advice will be sought from third-party professionals.
Meetings may be held between any persons involved, and will be minuted. All recommendations and decisions will
be clearly documented and decisions reached at this stage will be fully supported.
Stage 6 – Licensing process
When applying to the relevant authorities for permits:
(1) All necessary documentation for permit or licence applications will be duly prepared, completed and signed.
(2) Queries made by any authority, with respect to the application or the project, will be addressed promptly and
effectively.
Stage 7 – Construction
We envisage continuous monitoring of the construction phase to ensure that the work is carried out in accordance with
the standards set both from a quality and cost-effectiveness perspective.
Stage 8 – Marketing and sales channels
Through affiliates and representative offices in the Gulf area, the Russian Federation and China, finished products and
specially designed structures will be presented to buyers with a mature interest in acquiring property.

41
Communication with such affiliates and representative offices shall be constant and efficient so as to ensure the compiling
of a secure and steady pipeline of sales. This will be in place in order to generate consistent cash flows and returns for
the Sub-Fund.
A graphical representation of the risk management process as described above can be observed in a diagrammatic
format below:
Market Study / Research
Identification of
appropriate property
Conception of
idea and costing
Setting up
team of experts
Project DesignLicensing process
Commencement of
construction
Marketing for sale
of property
Completion of
project and Sale
2.5 Years
1
2
3
4
56
7
8
9

42
The Real Estate Sub-Fund(s) Structure
Projects Development Lifecycle, Cash Flow and ROI
30th June
2016
1st January
2017
1st January
2018
1st January
2019
1st January
2020
30th June
2020
F.Y. 2016 F.Y. 2017 F.Y. 2018 F.Y. 2019 F.Y. 2020
1st Call For
Capital
€12,500,000
2nd Call For
Capital
€12,500,000
End of the
4 - year
Lock-Up Period
Cash Outflow: €10,340,000 €19,266,000 €12,631,500 €10,552,500 €2,360,000 Units Holders
Position can be
LiquidatedCash Inflow: €1,210,000 €18,418,000 €28,597,000 €25,015,000 €14,545,000
Net Cash Flow: €-9,130,000 €-848,000 €15,965,500 €14,462,500 €12,185,00
Return on
Investment
62.56%
R.E. Projects
Cumulative Cash
Flows:
€-9,130,000 €-9,978,000 €5,987,500 €20,450,000 €32,635,000 Net Cash Position
following on
Capital Pepayment
(Excl. Dividents)
€39,964,500
R.E. Sub-Fund
Cash Position:
€3,370,000 €5,892,000 €11,879,500 €32,329,500 €64,964,500
Real Estate
Company No 1 (CY)
Real Estate
Company No 2 (CY)
Other Shareholders
D Capital Investment
Fund Limited
(CY)
SKDA Capital Limited
Management Company
(CY)
Real Estate
Sub-Fund
(Cyprus)
Real Estate
Sub-Fund
(S.E. Europe)
Subsidiary Real Estate
Company No 1 (SRB)
Other Shareholders
Company No 1 (CY)
Company No 2 (CY)
Group Parent Real Estate Company
No 1 (CY)
100%100%
99.99%00.01%
99.99% 00.01%
99.99% 87.5%
100%

43
Real Estate Inventory upon Aquisition of the Targeted Group (Completed Projects)
I/N Project Name Country City 1 Bed 2 Bed 3 Bed 4 Bed Sh. Room Offices Villas Plots
Business Units Available For Sale
1 Alexion Business Centre Cyprus Nicosia 1
Housing Units Available For Sale
1 Amalthia Cyprus Nicosia 1 2
2 Belvedere Cyprus Nicosia 1
3 Plazza Cyprus Nicosia 1
4 Venetian Residences Cyprus Nicosia 1
Land Plots Available For Sale
1 Ayia Varvara Cyprus Nicosia 1
2 Kalliopi Sfika Cyprus Nicosia 1
3 Macheriotis Cyprus Nicosia 1
4 Paliometocho Cyprus Nicosia 1
5 Pera Orinis - Phase A Cyprus Nicosia 5
6 Pera Orinis - Phase B Cyprus Nicosia 1
Total 1 4 0 1 0 1 0 10
Real Estate Inventory upon Aquisition of the Targeted Group (Planned Projects for Development)
I/N Project Name Country City 1 Bed 2 Bed 3 Bed 4 Bed Sh. Room Offices Villas Plots
Residential Development Projects
1 Acropol Residences Cyprus Nicosia 4
2 Apollo Tower Cyprus Nicosia 8 2 2
3 Centrum Cyprus Nicosia 12
4 Cosmopolis Park - Phase B Cyprus Nicosia 4
5 Dedinje Blu Residences Serbia Belgrade 9
6 Levande Hills Cyprus Nicosia 2 8 1
7 Makedonias Residences Cyprus Nicosia 5
8 Nicosia Skyline Life Expirience Cyprus Nicosia 15
9 Ostria Residences Cyprus Nicosia 4
10 Platys Gialos Residences Cyprus Larnaca 24
11 Scorpios Residences Cyprus Paphos 31
Total 2 28 8 23 2 0 68 0

44
Real Estate Projects To Be Developed
Housing Inventory Available For Sale
Land Plots Inventory Available For Sale
Office Inventory Available For Sale
Proposed Projects Development Timeline
I/N Project Name City 2016 2017 2018 2019 2020
1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half
1 Dedinje Blu Residences Belgrade
2 Nicosia Skyline Life Expirience Nicosia
3 Platys Gialos Residences Larnaca
4 Apollo Tower Nicosia
5 Cosmopolis Park - Phase B Nicosia
6 Makedonias Residences Nicosia
7 Levande Hills Nicosia
8 Scorpios Residences Paphos
9 Centrum Nicosia
10 Ostria Residences Nicosia
11 Acropol Residences Nicosia
12 Plazza Nicosia
13 Belvedere Nicosia
14 Amalthia Nicosia
15 Venetian Residences Nicosia
16 Alexion Business Centre Nicosia
17 Kalliopi Sfika Nicosia
18 Paliometocho Nicosia
19 Macheriotis Nicosia
20 Ayia Varvara Nicosia
21 Pera Orinis - Phase B Nicosia
22 Pera Orinis - Phase A Nicosia

45
Project Name City
Initial
Investment
Open
M.V.
Entry Level
Profit
Additional
Land Cost
Construcion
Cost
Development
Profit
Estimated
Sales T/O
Return On
Investment
€ € € € € € € %
Platys Gialos Larnaca 1,208,600 1,650,000 441,400 1,100,000 5,100,000 4,591,000 12,000,000 61.97
Acropol Residences Nicosia 493,000 550,000 57,000 1,400,000 907,000 2,800,000 47.91
Alexion Business
Centre
Nicosia 280,300 400,000 119,700 120,000 400,000 42.70
Amalthia Nicosia 250,000 350,000 100,000 100,000 350,000 40.00
Apollo Tower Nicosia 593,800 840,000 246,200 1,200,000 606,000 2,400,000 33.79
Belvedere Nicosia 104,800 130,000 25,200 25,000 130,000 24.05
Centrum Nicosia 442,400 640,000 197,600 1,450,000 408,000 2,300,000 21.54
Cosmopolis Park -
Phase B
Nicosia 115,200 157,000 41,800 960,000 325,000 1,400,000 30.21
Kalliopi Sfika Nicosia 410,000 600,000 190,000 190,000 600,000 46.34
Ayia Varvara Nicosia 250,000 430,000 180,000 180,000 430,000 72.00
Levande Hills Nicosia 323,300 560,000 236,700 1,250,000 607,000 2,180,000 38.56
Macheriotis Nicosia 450,000 480,000 30,000 30,000 480,000 6.67
Makedonias
Residences
Nicosia 518,600 710,000 191,400 1,300,000 681,000 2,500,000 37.47
Nicosia Skyline Life
Expirience
Nicosia 9,500,000 12,000,000 15,500,000 37,000,000 72.09
Ostria Residences Nicosia 433,800 573,000 139,200 1,250,000 716,000 2,400,000 42.53
Paliometocho Nicosia 198,400 300,000 101,600 102,000 300,000 51.21
Pera Orinis -
Phase A
Nicosia 293,000 430,000 137,000 137,000 430,000 46.76
Pera Orinis -
Phase B
Nicosia 527,400 740,000 212,600 213,000 740,000 40.31
Plazza Nicosia 148,500 215,000 66,500 67,000 215,000 44.78
Venetian Residences Nicosia 369,200 630,000 260,800 261,000 630,000 70.64
Scorpios Residences Paphos 7,300,000 2,800,000 10,100,000 38.36
Dedinje Blu
Residences
Belgrade 1,329,700 1,980,000 650,300 2,600,000 4,070,000 8,000,000 103.58
Total 8,740,000 12,365,000 3,625,000 10,600,000 35,810,000 32,636,000 87,785,000 59.18
Quantitative Analysis on the Proposed Projects Developments

46
Investment Phase / Description Nicosia Larnaca Paphos
Total In
Cyprus
Belgrade
Total In
Serbia
Total
Worldwide
Company Acquisition Phase (Year 0)
Open Market Value Of Properties To Be Released 8,735,000 1,650,000 - 10,385,000 1,980,000 1,980,000 12,365,000
Cost For Releasing The Properties From Lenders 6,201,700 1,208,600 - 7,410,300 1,329,700 1,329,700 8,740,000
Unrealised Profit Upon Releasing Of The Properties 2,533,300 441,400 - 2,974,700 650,300 650,300 3,625,000
Unrealised ROI % Upon Releasing Of The
Properties
40.85% 36.52% - 40.14% 48.91% 48.91% 41.48%
Projects Development Phase (Years 1-4)
Estimated Sales Turnover 57,685,000 12,000,000 10,100,000 79,785,000 8,000,000 8,000,000 87,785,000
Total Estimated Sales Turnover 57,685,000 12,000,000 10,100,000 79,785,000 8,000,000 8,000,000 87,785,000
Investment In “Available For Sale” Inventory
(a) Housing Units For Resale 872,500 - - 872,500 - - 872,500
(b) Commercial Units For Resale 280,300 - 280,300 - - 280,300
(c) Plots Of Land For Resale 2,128,800 - - 2,128,800 - - 2,128,800
Sub Total - Available For Sale Inventory 3,281,600 - - 3,281,600 - - 3,281,600
Investment For The Acq’n Of Land For Development 10,420,100 2,308,600 - 12,728,700 1,329,700 1,329,700 14,058,400
Investment to cover the Cost Of Construction 22,810,000 5,100,000 7,300,000 35,210,000 2,600,000 2,600,000 37,810,000
Total Estimated Cost of Development 36,511,700 7,408,600 7,300,000 51,220,300 3,929,700 3,929,700 55,150,000
Total Estimated Gross Development Profit 21,173,300 4,591,400 2,800,000 28,564,700 4,070,300 4,070,300 32,635,000
Total Estimated Gross Profit Margin 36.71% 38.26% 27.72% 35.80% 50.88% 50.88% 37.18%
Total Estimated Return On Investment 57.99% 61.97% 38.36% 55.77% 103.58% 103.58% 59.17%
Key Facts on Inventory After Aquisition of the Targeted Group

47
Key Graphical Representations of the Group Targeted for Acquisition
Upon acquisition of the local real estate group, we will gain immediate access to debt-free immovable property licenced
for development as per the above product mix chart.
The end product mix to be developed and sold in Cyprus will take the following form:
3
One Bedroom
Apartments
32
Two Bedroom
Apartments
8
Three Bedroom
Apartments
10
Plots for Resale
59
Villas
24
Four Bedroom
Apartments
2
Showrooms
1
Office
63%
Plots For Residential
Development And WIP
10%
Housing Units
(Inventory) 24%
Plots for Resale
(Inventory)
3%
Business Units
(Inventory)

48
The final product mix in Serbia will take the following form:
The working capital deployment for the full immovable property assets portfolio of the group under acquisition will be
as follows:
9
Villas
€7,408,600
Larnaca
€36,511,700
Nicosia
€3,929,700
Belgrade
€7,300,000
Paphos

49
The estimated sales turnover spread upon the full deployment of the group’s projects development plan with respect to its
existing immovable property inventory will be as follows:
The final profits spread following the full execution of the group’s projects development plan with respect to its existing
immovable property inventory is expected to be as follows:
€57,685,000
Nicosia
€12,000,000
Larnaca
€8,000,000
Belgrade
€10,100,000
Paphos
€4,591,000
Larnaca
€21,174,000
Nicosia
€4,070,000
Belgrade
€2,800,000
Paphos

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