Appassionata Agents Presentation

Appassionata

Fractional Ownership Agency Opportunity

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Le Marche, Italy • • • •

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Situated halfway down the east coast of Italy.

A region incredibly unspoilt and full of classic Italian charm and culture.

Le Marche has over 180km of coastline with beautiful beaches and 26 medieval villages facing the turquoise Adriatic Sea. The hills and valleys of Le Marche are some of the most beautiful in Italy. More rolling than the north with a greater concentration of hilltop villages creating a magical patchwork quilt of colours throughout the year.

The extraordinary natural beauty of the hills is matched by the wonder of its medieval towns and villages. The true heart of this region is in the small historic centres. Here you will discover the real Le Marche and its people.

Each village has its own history which is reflected in its design and architecture, art, traditions, customs, cuisine, wine and festivals.

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Le Marche

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Montefiore dell’Aso • • • • •

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Montefiore is a beautiful hill top village overlooking the Aso and Menocchio river valleys, the Adriatic Sea and Sibillini mountains.

Montefiore is one of the most beautiful villages in Italy ‘I Borghi piu Belli d’Italia’ The stunning historical centre has managed to conserve aspects of its original medieval defensive walls and has several 17th century residences.

Among the cobbled streets you will find wonderful shops selling local produce, traditional butchers, bakers, delicatessen, cafe bars and restaurants.

Parts of the church of Santa Lucia in Piazza Della Repubblica dates back to the Romanesque period. A series of six painted panels by Carlo Crivelli, one of Italy’s most famous artists, hangs in the church. The finest of these, depicting Mary Magdalene, is thought to be among the artists most beautiful.

All a short 10 minute walk from Estate Giacomo Leopardi.

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Montefiore dell’Aso

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Estate Giacomo Leopardi This luxurious development consists of 3 beautiful properties sitting in 5 acres with stunning views of the sea and mountains. The facilities have been created for all seasons and truly reflect the wonderful Italian lifestyle.

A large swimming pool, all weather tennis court, private terraces, landscaped gardens, olive groves, lavender plantation and newly planted vineyard will offer something for everyone.

Our aim has been to create the perfect Italian country hideaway.

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Estate Giacomo Leopardi

NOT TIMESHARE

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Phase 1: Casa Giacomo Casa Giacomo has been built to an exceptionally high standard, using a combination of traditional building methods and modern technology.

Traditional materials used throughout the property include handmade terracotta floors, rich marbles, granite worktops and chestnut beams spanning the length of the entire ceiling. Blending these ancient materials with a modern under floor heating system, beautifully designed kitchen and bathroom amenities gives the perfect balance.

Handmade and antique furniture together with original pieces of artwork and elegant furnishings celebrate the pleasures of Italian life.

The 4 bedroom, 200m² (2150 sq ft) accommodation, is beautifully and thoughtfully designed.

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Casa Giacomo

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What is Fractional Ownership at Appassionata?

‘Shared Freehold Ownership in Perpetuity’ •

Fractional Ownership is a simple way to buy a share in a luxury holiday home. It is a tried and tested formula and our legal structure has been created by specialist law firm Howard Kennedy, based in London.

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Fractional Ownership is a growing market and now considered to be one of the most financially astute ways of purchasing overseas property.

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Fractional Ownership allows a number of buyers to collectively own a property, which is professionally managed and maintained.

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As a lifestyle investment, fractional ownership makes sense. Owners are investing in ‘bricks and mortar’ and an asset that can be passed on to family.

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On average, a traditional holiday home owner only uses their property for 40 separate nights – but pays for the whole year, whereas fractional owners don’t have the financial burden of maintaining the property all year round, as the running costs are shared between owners ­ making fractional ownership a truly affordable option.

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Estate Giacomo Leopardi is owned by its members, through a UK based non­trading limited company (Appassionata Giacomo Leopardi Limited), and is operated exclusively for owners enjoyment.

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Italian title to the estate is held in a wholly owned UK subsidiary of this company.

When owners wish to sell, gift or transfer their membership it is a simple and straight forward process and can be executed from overseas. It does not involve the complexity, or cost, of transferring property under the Italian legal and tax system.

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Owners buy a 1/10th interest in their residence of choice (e.g. Casa Giacomo) which incorporates a right over the common areas ­ the communal gardens, swimming pool, tennis court, olive groves and vineyard, and annual residency of five weeks each year.

In simple terms: ‘The Members own the Company ­ the Company owns the property.’

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Estate Giacomo Leopardi Ownership Structure Company Members ­

10 Members

Casa Leopardi 1

UK Company Limited

by Guarantee – Non­profit

Operating Company for the estate owned by the members.

Wholly Owned Subsidiary Italian Title sits here.­

The Property –

Owned by Members

10 Members

Casa Leopardi 2

10 Members Casa Giacomo

Appassionata Giacomo Leopardi Limited

Casa Giacomo Leopardi Limited

Estate Giacomo Leopardi

‘The Members own the Company ­ the Company owns the Property’ 11

Becoming an owner at Estate Giacomo Leopardi is ideal if the client: •

Wants to buy the weeks they are actually going to use each year.

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Wants to align their costs with their usage.

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Would love to make a lifestyle investment that they can share with family & friends.

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Would like to own a more luxurious home than perhaps they could otherwise afford.

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Are on a limited budget but would still like to own a home in Italy.

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Don’t want to pay the annual costs of running a full freehold property.

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Want a fully furnished luxurious property.

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Would like their holiday home to be managed and serviced for them.

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Would love to own a share in a vineyard, olive grove and lavender plantation.

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The Market In 2008 USA sales were 1.8 billion dollars THIS PRODUCT IS GOING TO SEE MAJOR GROWTH IN THE EUROPEAN MARKET PLACE. “Over the next five years, NorthCourse contends that there will be substantial growth in the fractional industry, on a global basis and in Europe. Despite the current economic situation, not everyone will give up their lifestyle. There is vast potential for many of those people who would have otherwise purchased a wholly­ owned vacation home, to turn to the alternative vacation home market, and fractional real estate can be a lucrative offer for themselves and their lifestyle. Many investors are also looking beyond the mainstream property sectors and alternative asset classes.”

“Astute spenders, who do not want the demands of a second home, therefore have the option to invest in a fractional real estate product and maintain their lifestyle at a fraction of the cost.”

“Currently there are approximately 90 fractional deeded products located across Europe in the form of Private Residence Clubs or fractional properties. The bulk of supply (85%) is located in England, France, Spain, Portugal, Italy, and Scotland.

There are many other areas within these regions as well as other destinations in Europe that still pose opportunities for development. Evidence from our primary research, illustrated that additional locations for fractional residences in Europe are still in demand.”

Extracts from an independent report, researched and developed, by NorthCourse Advisory Services in April 2009 titled – ‘ Trends in Fractional Real Estate 2009’ 13

Advantages and Benefits Why pay 100% of the cost for 10% of the time

when you can pay 10% of the cost for 100% of the time!

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Lifestyle purchase ­ Excellent alternative to outright ownership Economic sense ­ a fraction of the cost and upkeep Potential capital appreciation ­ bricks and mortar v. timeshare Asset ­ to pass on to future generations Simple re­sales ­ future flexibility to sell Property management ­ peace of mind Company management ­ security Year round community ­ lots to do Location ­ future selling point

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Financial Logic 4 bed freehold property, within 5 acres of landscaped gardens, sea and mountain views, fully furnished, with tennis court, swimming pool, vineyard, olive groves and lavender plantation.

Outright...12 months

Fractional... 5 weeks

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€850,000 purchase cost €27,000 maintenance p.a. €65,000 to furnish €25,500 agents fee €5,000 legal costs €93,000 Italian purchase tax

Total € 1,065,500

£99,000 purchase cost £2500 maintenance p.a. £ Comes fully furnished £ 0 Agents fee £0 legal costs £0 purchase tax

Total £ 101,500 or €111,650 (based on £1: €1.10...subject to change)

Saving = €953,850 15

Value for Money

March 2010 – this 3 bedroom villa in Le Marche is priced at €990,000 Euros on under one acre of land with no facilities.

Compare that cost with Casa Giacomo (5 acres of land with large swimming pool, pool, tennis court, vineyard, olive groves and lavender plantation) at an outright price, conservatively estimated at only €850,000 Euros.

Evidence web link: www.paradisepossible.com/country_homes_view.aspx?pk=1267 16

Ownership Comparison PROPERTY OWNERSHIP 52 weeks

FULL PRICE MAINTENANCE FULL COST HAS RESALE VALUE      

USE LEND GIFT SELL RENT BEQUEATH

PROPERTY OWNERSHIP 5 weeks

NOT PROPERTY ­ Time 5 weeks

FRACTION OF PRICE – 1/10th MAINTENANCE – 1/10th HAS RESALE VALUE

5 WEEKS – £50,000 MAINTENANCE £2,500 LOW RESALE VALUE Depreciating Asset  USE  LEND  GIFT  SELL  RENT  BEQUEATH

     

USE LEND GIFT SELL RENT BEQUEATH

Which one is best for you?

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The Residency Calendar is fair and equitable ensuring all owners have annual access to the peak months, it is simple to operate and provides flexibility for all owners.

Using the annual reservation system owners will reserve 2 weeks over the peak period (May to the end of September) and then reserve their remaining 3 weeks during October to April, in any combination, on a rotating priority basis.

There are 10 owners in the priority system for each residence. Priority is established on who became an owner first, then second etc. Each year the priority changes by owners moving up the priority list, so if you are fifth one year you are fourth the next and so on.....

To be even more equitable the owner who has first choice for the selection of peak weeks will have the tenth choice for non­peak weeks. This way the reservation process, for the two different periods of residency is fair and equitable.

Weeks can be exchanged with co­owners, used by friends and family or rented to a third party. Appassionata holds two weeks for maintenance purposes that can also be exchanged when necessary.

The reservation process will take place during September each year for the following year.

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Appassionata Ltd Responsibilities •

Company Administrator

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Registered office, Directors and Secretary ­ keeps the company in good standing i.e. filing returns, accounts etc.

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Manage Procedures ­ admittance of new members to the UK Company i.e. new

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Property Management:

sales, re­sales & transfers. Issue membership certificates.

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Based in Le Marche Manage & maintain houses & common grounds Pay bills & collect service charge Manage, maintain and harvest vines, olives & lavender Manage annual reservation system Manage internal exchange program, facilitate renting by owners

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Fractional Sales Process Client Introduction Initial Presentation

Via advertising/website/agents

Explanation of the fractional ownership system, and costs

Visit Estate Giacomo Leopardi Client would like to proceed

Contract and due diligence forms arranged

Contracts Issued Client liaises with London Lawyers

Contract signed

initial deposit paid, and balance on completion

Owner certificate issued 20

Owner Documentation •

Certificate of Incorporation ­ UK company

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Membership certificate ­ proof of Company ownership

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Title deeds of property proof of property ownership Legal Agreement Schedules: UK Company details – Articles Of Association Rules and Regulations (residency chart) Plans of Estate & Residence Inventory of Residence Property Management Agreement Details of Company Administrator and Officers

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The End

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