Jamaica Business Plan by Vista Del Mar Estate

Shafston Royale: Luxury Community Development and Resort in Jamaica July 26th 2010

Table of Contents Executive Summary ................................................................................................................2 Introduction ....................................................................................................................................... 2 RJ Developments Ltd. ...................................................................................................................... 2 The Market.......................................................................................................................................... 3 Financial Considerations ............................................................................................................... 3 Mission ................................................................................................................................................. 5 Keys to Success .................................................................................................................................. 5 Objectives ............................................................................................................................................ 5 Company Summary .................................................................................................................6 Ownership........................................................................................................................................... 6 Location ............................................................................................................................................... 7 Start-up Summary ............................................................................................................................ 8 The Development.....................................................................................................................8 Investment Opportunity...............................................................................................................10 Costs Involved in Buying a Property in Jamaica...................................................................12 Market Analysis..................................................................................................................... 12 Environment Scan ..........................................................................................................................12 Technological Environment ...................................................................................................................... 12 Economic Environment............................................................................................................................... 13 Socio-cultural.................................................................................................................................................. 13 Political-legal Environment ...................................................................................................................... 14 TESP Summary............................................................................................................................................... 15 Industry Analysis............................................................................................................................15 Tourism Industry Overview....................................................................................................................... 15 Real Estate Industry Overview ................................................................................................................. 16 Strategy and Implementation........................................................................................... 17 Sales Strategies................................................................................................................................17 “The Company” Analysis ..............................................................................................................17 Corporate Level Strategy ........................................................................................................................... 18 Business Level Strategy............................................................................................................................... 18 Marketing Strategy.........................................................................................................................18 Competitive Analysis - Golf Courses in Jamaica ...................................................................19 Marketing Mix..................................................................................................................................20 Product.............................................................................................................................................................. 20 Place ................................................................................................................................................................... 21 Price.................................................................................................................................................................... 21 Promotion ........................................................................................................................................................ 21 Conclusion............................................................................................................................... 22 References............................................................................................................................... 23 Contact Information............................................................................................................. 24

Executive Summary Introduction RJ Developments Ltd. (RJDL) has been developing and managing properties on a large scale, internationally, for over twenty-‐five years; and the owner Robert Wong has resided in the B.V.I. for the last eighteen years. Robert has focused his attention primarily in the areas of real estate/property development (Vista Del Mar Estate, Tortola), contracting and constructing, restaurant/food and hospitality sectors and the automotive services sector (Tola Mitsubishi Motors, Tortola). RJDL, located in the B.V.I., has the sole mission to provide an exclusive, private community atmosphere that is host to the most exclusive luxury homes in the territory. RJDL provides all the necessary services required during the building processes to ensure that homeowners make the transition, enjoyable and uninterrupted. RJDL’s owners, Robert Wong (CEO) & Nathan Wong (GM), are teaming up with an American investor Edward R. Stroh. Ed Stroh is a managing partner of a hospitality business, located in the British Virgin Islands (“Virgin Queen”), and has resided in the B.V.I. since 1999. These three individuals, Robert Wong, Nathan Wong and Edward Stroh will create the company, that will kick-‐start this luxury development in Jamaica. The primary target market includes middle to high-‐income investors that share an interest in luxury homes and Caribbean living. The company has not yet complete registration therefore it will be referred to as simply “our company” or “the company” throughout this report.

RJ Developments Ltd. RJDL has established itself as a reputable residential development company in the B.V.I. and is currently seeking a greater international presence within the real estate industry, particularly in Jamaica. The company’s owners plan to gain a high level of interest through multiple international investors, regarding a development project that will earn its’ investors substantial returns long into the future. Currently the company’s main clientele (homeowners and business owners) consists of residents of the B.V.I. and expatriates, residents of the United States, United Kingdom, South Africa, and Egypt. These clients seek a community of individuals that demand the highest level of professionalism, and quality workmanship, as one would expect when making a significant lifetime investment. RJDL has successfully attracted these people and it is attributed to their ability to understand this specific demographic as well as the rapidly changing market trends in past years. For more information regarding RJDL and their most recently custom built homes visit www.vistadelmarbvi.com. There are only a few similar luxury community developments in the B.V.I. with the same level of security and exclusivity that are located within a private estate; some examples include Trunk Bay (Tortola), Little Bay (Virgin Gorda) and Oil Nut Bay (Virgin Gorda).

The Market The real estate market in Jamaica has no restrictions on foreigners to buy land. Similarly, there are no foreign exchange restrictions either; therefore money can flow freely to and from the country. The real estate market in Jamaica has seen steady growth since 1998, specifically in the surrounding areas around Negril and Montego Bay. These two areas specifically have become the prime areas for all real estate developers in Jamaica. For example, “in areas like Negril and Montego Bay, villas and houses sell for at least JM$89 million (US$1 million). The north coast has the most expensive residential properties in Jamaica. Montego Bay, Discovery Bay, Negril and Portland are among the prime locations that have seen numerous developments in recent years. • Palmyra Resort and Spa –a development located in Rose Hall, Montego Bay, which offers 26 villas and 5 condo buildings. Prices range from JM$44.5 million (US$500,000) for studio units, to JM$311.5 million (US$3.5 million) for villas • The Colony – offers 18 new plantation houses at Half Moon, Montego Bay. Pre-‐ construction house prices start from JM$204.7 million (US$2.3 million). About three-‐quarters have been reserved. Construction is expected to finish in 2010 • Goldeneye Resort – an 18-‐acre seaside community in Oracabessa. Prices range from JM$66.8 million (US$750,000) for one-‐bedroom ‘Bond’ suites, to JM$284.8 million (US$3.2 million) four-‐bedroom lagoon villas • Richmond Development – a 500-‐acre resort residential community in St. Anne, on the northern coast. Two-‐bedroom apartments cost JM$14.7 million (US$165,000); three-‐bedroom apartments are priced at JM$17.4 million (US$195,000); and four-‐bedroom townhouses at JM$32 million (US$360,000) • Highlands -‐ a gated subdivision in Montego Bay. The development offers 100 lots for about JM$31.2 million (US$350,000) per lot”1

Financial Considerations The assumptions and start-‐up costs required are outlined in the table below, it shows the capital that will be required for start-‐up (Phase 1), and allow us to be well on our way to beginning other phases of the development. The capital that is required of outside investors will be used to support operations before revenues reach an acceptable level to maintain a positive cash flow, which will be generated from the resale of the various pieces of land. 1 Global Property Guide -‐ The state of Jamaica's real estate market

The company expects to become profitable within three years and see regular cash flows following the first sale of the various pieces of residential land planned for development. We expect to sell ten lots [presales], various sizes, prior to completing the registration process and this will be our break even point for marketing and advertising as well as partial loan repayments, in order to continue to sell land and to fund other developments, that will be included in the project from Zones A through D (See Figure 3). In year two we expect to sell 15-‐20 more lots, and start selling the commercial contracts for the hotel construction/management as well as the golf course and associated facilities. The following table below is based on the development of Phase 1, which is to include only Zone B (See Figure 3). Shafston Pen

Development Costs Assumptions Total Area for Service Lots No. Of Lots (¼

167.0

acre and larger)

668.0 4,175.0

Length of Roads

Expense Items Items 1

2 3

Description Professional Fees Architect Engineers Surveyors Quantity Surveyors Legal Fees

Acres Lots Meters

Costs (US$) $83,500 $190,857 $171,771 $155,071 $212,848

SUB TOTAL

$814,048

Infrastructure Government Application Fees Utilities (Electricity, Water, Sewage etc)

$2,701,471 $405,221

SUB TOTAL

$5,606,691

TOTAL EXPENSES

$6,420,739

$2,500,000

Mission Our company’s mission is to introduce a luxurious gated residential community with all the trimmings of a tropical lifestyle. This luxurious real estate development would include a signature golf course, over 1400 plots (¼ acre +) of land for sale, a one of a kind sporting complex and various facilities, a 200 room hotel and endless opportunities for investors, in the newest and most exclusive neighborhoods in this pristine section of Jamaica. Investors would enjoy immediate and consistent property value increases as the subsequent zones throughout the development progress.

Keys to Success Our keys to success over the next three years, to remain profitable and continue to grow exponentially as a company, are as follows:  Continue developing in current markets in which RJDL has been active in for last several years, maintaining these contacts and business relationships will prove beneficial for developing abroad in new markets. RJDL will use their own additional cash flows from their operations to filter into the Jamaican development to assist with start-‐up costs, until it becomes self-‐sufficient  Keeping close contact with local (Jamaican) business professionals in order to establish local ties and experience, while building a solid foundation and most importantly reputation for future business that our company is involved in, throughout Jamaica  Provide all investors from the beginning with a thorough and extremely professional service experience, with regards to consultations, appraisals of land and construction, sales information and meetings, take-‐away information including pamphlets, brochures, website etc.  Establish our team of industry professionals that we can come to expect the highest level of professionalism and productivity required for such a development. Examples of such industry professionals will include; Architects such as Millingen Architect, Land Surveyors such as Ivor Stewart and Associates, Marketing professionals such as Market Opportunities Unlimited (MOU-‐Jamaica) & Marketing Strategy Ltd. (MSL-‐Jamaica), Quantity Surveyor Robert Blankson and Associates, Civil Engineer Carl Chin and the list will continue to grow as the development stages begin to snowball and the ground breaking stages of construction begin

Objectives The three-‐year goals for our company are as follows:

 Establish a global marketing campaign in the first 3 months to increase our exposure and intentions regarding the development  Get plans for the development (including surveyors plans) approved to prepare land to be sold in smaller sub sections to investors in the first 12-‐15 months  Achieve break-‐even by year three, be well on our way towards developing Zone B 167 acres, 668 lots (See Figure 3) and have the provisions started for the next phase of the project (either the hotel or the golf course)  By year three pay off our initial investors, used to acquire the 764 acres and re-‐negotiate any new investment opportunities for them, if interested  Establish minimum 95% customer satisfaction rate to establish long-‐term relationships with our clients and create more word-‐of-‐mouth marketing

Company Summary Ownership The sales and marketing will be solely under the control of our company, which is a joint ownership between Robert Wong, Nathan Wong & Edward Stroh. Once the necessary steps of development are under way various contractors, management firms, suppliers, distributers, investors etc. will become part of the working partners to assist in developing the 764-‐acre development located in Westmoreland, Jamaica. Robert Wong has been an entrepreneur since graduating college in 1973. He has owned/managed over 4 different restaurants throughout Ontario, Canada as well as in the USVI. He was also a real estate developer in Canada for 16 years, before relocating to his original home in the British Virgin Islands back in 1995. Since 1995 he co-‐owned and turned Tola-‐Mitsubishi Motors with brother Bruce Wong into the largest car dealership in the B.V.I. and the dealership is still owned and managed by Bruce Wong today. Most recently Robert has reunited with his passion as a luxury property developer. In the last 7 years Robert has turned RJ Developments Ltd. (his contracting company) into a great success, with major contracts with Digicel Telecommunications in the B.V.I., but primarily Robert has focused his time and energy on his two community development projects, Vista Del Mar Estate and Island Villas, where he has built a total of 5 custom built luxury homes. Nathan Wong (Robert’s oldest son, 25) has been visiting the USVI and B.V.I. since 1995, and has worked alongside his father since 2003 building homes and working at the Mitsubishi car dealership during his summer vacations from University and College. Nathan graduated from Fanshawe College and obtained a two-‐year Marketing diploma with high honors. He then continued his post-‐secondary education at Carleton University in Ottawa, Canada. He also graduated with high honors from Carleton, obtaining a 4-‐year Bachelor of Commerce degree with a concentration in International Business, as he knew at an early age he wanted to work in the B.V.I. alongside his father, and one day become an entrepreneur himself.

Nathan has also obtained three years of professional sales training in Canada from the largest property maintenance company in the country, Spring Masters Canada Inc. Nathan was consecutively ranked within the top ten sales performers over his three years with the company, out of 1200 sales professionals. As mentioned previously Edward Stroh is a managing partner of a hospitality business, located in the British Virgin Islands (“Virgin Queen”), and has resided in the B.V.I. since 1999. Prior to his move Ed was an international marketing analyst with the Stroh Brewery Company in Detroit, Michigan from 1994 to 1999. Ed was also a board member of Stroh Companies and River Place Financial Corporation in the United States early in his career.

Location The proposed development (marked by flag) is located in Bluefields Bay in the parish (administrative district) of Westmoreland. Bluefields is the second largest city in the Westmoreland parish after Negril (to the West), along the Southwestern coast of Jamaica. Bluefields is 25-‐Miles (40 Km) south of Montego Bay (closest international airport), and 22-‐Miles (35 Km) East of Negril, and 6-‐Miles (10 Km) Northwest from Sandal’s Whitehouse Resort. Savanne-‐La-‐Mar, just 8.5-‐Miles (14 Km) Northwest from the development is the areas prominent commercial district. This can be seen on the map below. Figure 1

Start-‐up Summary In the first three months of the planning phase for the developments Zones B & D (See Figure 3) it will take roughly 3 months to complete the boundary and topographical surveys, structural designs, and legal transactions. It will take roughly 2 months to complete subdivision design and splinter titles. To get the government approvals roughly 6-‐9 months and setting out the lots will take 9 months to complete. Infrastructure works for zones B & D in the development will take roughly 12-‐24 months. This will consume a total area for service lots of 350 acres, however phase 1 of the development will only include Zone B (see Figure 3), which consists of 167 acres, 668 lots for resale, of various sizes (¼ acre and larger), and also, over 4000 meters of roads. There will also be an Environment Impact Assessment (EIA or EIS) that should take 2 months to complete. The length of time required to complete an EIA will depend to a great extent on the nature of the proposal and the availability of environmental information on the project and the geographic area in question. The table below summarizes this schedule of events, which are to take place immediately. Figure 2

The Development Nestled between Savanne-‐La-‐Mar and one of Sandals’ premier properties in the Caribbean lies over 764 acres of undisturbed real estate. This pristine property is further divided into four (4) zones: Zone A will consist of 300 acres where a signature golf course will be constructed on 150 acres and the remaining land will be used to develop a residential community of larger homes/lots in and around the golf course. All the homes in this zone will have direct access to fairways and or greens. This Zone will also include world-‐class tennis facilities, a breath taking Spa and Country Club, along with 40 luxury suites.

Zone B will consist of 167 acres of pedestrian village and multi-‐family housing on 1/4, 1/2, 3/4 & 1-‐acre lots (starting at $50,000 U.S.) that would be surrounded by vast recreational areas. Zone C will consist of a one of a kind sporting complex and a 200-‐room, 5 star boutique hotel facility. Zone D will be 200 acres of eco-‐homes and trails with great emphasis on total sustainable designs. The lot sizes here will be larger than other zones due to the grade/slope of the land. Lots in Zone D will vary from 2 to 3 acres in size, surrounded by vacant land used for hiking trails, rock climbing and lookout areas overlooking the ocean. It is important with any large project that there be an emphases placed on preserving the environment since the impacts associated with developing the land can sometimes be compromising for future generations. As mentioned earlier there will be an EIA performed within the first couple months of the development phases (See Figure 2). This will allow everyone involved with the project, and projects surrounding “Shafston Royale” to make efficient use of the land for many years to come. The EIA will aim to protect natural resources such as trees, water and land throughout the 764-‐acre development by reducing pollution levels during and after construction. Proper waste management will be another issue that will help maintain the natural ecosystem in the area. Following the construction phases and into maintaining the homes it will be important to encourage a green community development by offering renewable energy sources such as wind generated power or solar energy, that can save on the costs associated with maintaining a home. Some examples may include, solar water heaters, solar roof shingles, and solar panels or wind turbines for providing electricity to your home. When all these precautionary steps are put in place it minimizes the damage on the natural environment when developing the land in Westmoreland, Jamaica and makes for a more attractive long-‐term investment. Beach Access One mile from the entrance of the development there is a parcel of land with uninterrupted views of the ocean. Even though 70% of the development has views of the ocean, it is important to have direct access to a beautiful white sand beach as well. This is why there will be two acres of water front property entirely for the use of residents of this luxury gated community, as well as visitors staying at the hotel, using the golf course etc. The land will have direct access to a large white sand beach, an entertainment facility, outdoor/water sports and dining areas for all to enjoy. There will be permanent shuttles making it convenient for everyone to visit the beach when needed, while maintaining a secure and safe environment free of flooding at their home/property, something that is sometimes associated with Caribbean weather systems and coastal real estate. Essentially, this particular

situation saves investors, homeowners and developers money, and provides everyone looking to purchase land in Jamaica an opportunity for a piece of affordable Caribbean luxury. Lastly, Zone B would be the first part of this project to be developed and investors would not only have an opportunity to be a part of the newest and most exclusive neighborhoods in this pristine section of Jamaica, they would also enjoy immediate and consistent property value increases as the subsequent zones develop.

Investment Opportunity This entire property is located in close proximity (1000 ft) to a main highway and is accessible by paved roads with all the required utility services already located at the site boundary. Due to the high level of diversity within this development, each zone will have access to varying vistas that range from the stunning Caribbean Sea to the lush rolling mountains. In these recent years of global development, it is extremely rare that an investor gets this level of access to be an integral part of such an exclusive development at the inception, thus allowing them to have the ability to realize such short term and consistent value from their investment. Investors have varying levels of commitment and associated returns once getting involved in this development. For investors who are willing to invest $1.5 million U.S. they will earn 7% bi-‐annual interest payments from our company (repayment of loan to be received within 3 years). For those investors that would prefer land to develop (rather than interest payments) a large parcel of land, 40 acres in size, can be given in exchanged, with the assumption that the planning and communication is kept between the two parties involved to ensure that the development remains consistent. For long-‐term loans (greater than 3 years) associated with financing the infrastructure works, points will be given (as a percentage of the transaction) and a charge will be put on the 167-‐acres associated with Zone B; no land holding license is required for foreigners. For more information call Robert Wong, see contact information on page 23.

Figure 3

Figure 4

Costs Involved in Buying a Property in Jamaica Stamp duty: is equally shared between the buyer and the seller. Currently, stamp duty is charged at 5.5% Registration fee: a fixed multiplier, shared by the seller and buyer, 0.05% to 0.0025% from the selling price Agreement for Sale: Total for the preparation of agreement for sale, tax registration form and other miscellaneous costs are typically split evenly between buyer and seller. These costs are around 0.4% of property value. Transfer tax: 7.5% of property price, which is paid by the seller2

Market Analysis Environment Scan Technological Environment In any business environment organizational competitiveness can be directly correlated with a countries technological environment and capacity to operate efficiently alongside modern technology. Such technologies within the global business world may include, “quality management (QM) programs, traditional information systems (TIS), as well as two newly-‐emerging types of information systems (IS), e-‐commerce (E-‐C) and customer relationship management (CRM) systems, the organization's culture, and perceptions of organizational performance.”3 There have been studies performed specifically on Jamaica in these different areas of technology and the findings suggest that Jamaica has established “mature” relationships. This suggests that Jamaica adopts this new technology quicker than most of its competing Caribbean nations. There are several theories that have been tested and proven viable explanations as to why Jamaica can easily adopt new technologies and implement it into their business with little difficulty. One theory, “Hofstede's (1983) finding that Jamaica is notably low in uncertainty avoidance. Ronen (1986), compiling the results of several of Hofstede's studies, points out that Jamaica is the second lowest country [in the world] in uncertainty avoidance, with Singapore ranked in the lowest position.”4 This implies that many business owners and managers are not concerned with the level of risk associated with implementing new technologies; Jamaica is a risk-‐taking society. Another theory is that due to Jamaica’s culturally diverse population (more 2 Sharon (2010) -‐ Jamaica real estate and rentals 3 Hartman & Fok -‐ Exploring the use of various technologies 4 Hartman & Fok -‐ Exploring the use of various technologies

so than most other Caribbean and Latin American countries), Jamaica’s culture may in fact provide the kind of flexibility and openness to uncertainty necessary for adopting new business processes i.e. new technology.

Economic Environment Jamaica's economy is highly dependent on the services sector, in particular tourism, which accounts for about 65 percent of their GDP. As the largest among the 12 English-‐speaking Caribbean nations, Jamaica occupies a preeminent position in the region. However, Jamaica's economic performance has struggled compared to that of its neighbors in the past 2 years. Due to the global economic crisis, combined with the government’s high public debt, Jamaica has found itself struggling to achieve positive signs of economic growth.5 Since Jamaica’s economy is not as diversified as some other leading Caribbean economies, such as Trinidad & Tobago or the Dominican Republic, Jamaica must rely mainly on their tourism and mining industries to generate the majority of their annual GDP. Jamaica’s economic growth has been affected dramatically due to the struggling U.S. and European economies, where much of the tourists in Jamaica originate. “Although the island has proved one of the most resilient tourist destinations in the Caribbean, as demonstrated by the 3.6% increase in tourist arrivals in 2009 during the peak of the global economic downturn, the recent bout of violence in Kingston is likely to be a more significant test of the industry than the global downturn.”6 One thing to realize is that most countries have been affected by this global economic crisis in a similar way, if not worse, than Jamaica and growth is expected to return back to normal in coming years.7

Socio-‐cultural The island of Jamaica is home to the largest English-‐Speaking population in the entire Caribbean, with a population of over 2.7 million people. This attribute can be extremely beneficial in the tourism industry and save local business owners a lot of money, through satisfying their customer’s needs with a clear means of communication. “The capital, Kingston, is the largest English-‐speaking city in the Western Hemisphere south of Miami. Education in Jamaica is free and compulsory until the age of 14, and the country has a literacy rate of about 87.9 percent, according to recent estimates.”8 Throughout Jamaica’s history emigration into Canada, the United Kingdom and the U.S. has always been high. There is an 5 Country Watch Inc. -‐ Economic Overview - Jamaica 6 Latin America Monitor: Caribbean Monitor -‐ Risk Summary - Jamaica 7 Rosa, T. -‐ Caribbean Investor Report 8 Jamaica Country Review – People

estimated 20,000 Jamaican’s that immigrate into the United States annually9 and many of these immigrants contribute a significant portion towards Jamaica’s GDP through remittances, as well as purchasing land in their country of origin and this in turn continues to help Jamaica’s economic growth. Just thinking of a good dish of Jamaican food especially the jerk chicken and pork can make the mouth water and the stomach rumble. Jamaican food is traditionally very hot and spicy and a mixture of all the cultures, jerk meat (African), curry (Indian), Christmas pudding (European) and chop suey (Chinese). Reggae and its derivatives such as dance hall, rock steady is key for the development of Jamaican culture. This music has its origins in Jamaica and cannot be claimed by any other nation. The captivating type of music has led to a growing following around the world. People who visit the tiny island can enjoy an unforgettable vacation filled with friendship, hospitality, and insight into the Jamaican way of life. The unique aspects of Jamaica's rich endearing heritage can be seen in the people, culture, music, cuisine and natural landscape and it is one of a kind in Jamaica.

Political-‐legal Environment The political-‐legal environment has long been a risk for business owners in Jamaica, however with every business venture there are associated risks. Violence has always plagued the island of Jamaica (more notably Kingston) and for the current Prime Minister Bruce Golding, the story is no different. His administration’s lack of control over gang-‐controlled areas throughout Kingston has hindered their ability to implement several anti-‐crime bills that were first proposed in 2008. While these measures are likely to be viewed more favorably by investors, in comparison to the use of the armed forces to combat the rising crime rate, it is not likely that they will have a significant impact on reducing crime in the capital.10 It is expected however that the current administration will no longer be in power following the upcoming elections in 2012, due to their inability to make lasting security changes, not to mention that they have continued to put the country further and further into debt through excessive spending. This could be the dawn of a new era in politics for Jamaica, something everyone can look forward to in the coming years, residents and business owners alike.

9 Jamaica Country Review – People 10 Latin America Monitor: Caribbean Monitor -‐ Risk Summary - Jamaica

TESP Summary The overall business environment in Jamaica has long been advantageous for investors both foreign and domestic. Many of the threats that exist in Jamaica’s business environment are directly associated with the country’s capital, Kingston. Since Kingston is hours away from the prosperous tourist destinations of Montego Bay (80 Miles) or Negril (103 Miles), many things such as crime, political disputes and/or protests, poor economic growth and a hefty public debt burden, become less relevant, but should still remain conscious in the minds of investors nonetheless. These obstacles will continue to set back social programs and human development throughout Jamaica, but have become less of an issue in the more prosperous western region of Jamaica. With that being said, Jamaica will continue to far exceed others expectations in future years, as well as continually improve their reputation in the global market place once showing their resilience following this global economic crisis. A crisis that is said to dramatically affect the real estate and tourism industries respectively on a global scale, yet Jamaica remains among one of the top Caribbean and Latin American leaders in both industries.

Industry Analysis Tourism Industry Overview A solid performance in 2009 from Jamaica’s tourism sector helped the island’s economy avert the worst of the downturn, but there are some serious threats to the sector’s short-‐ to medium-‐term outlook. Key among them is the opening up of Cuba to U.S. tourists, who comprise by far the largest segment of arrivals to Jamaica. The anticipated boost in Cuba’s tourism industry has kick started the construction of some 50,000 new hotel rooms.11 This is something that Jamaica must anticipate and plan for to remain competitive within the Caribbean tourism industry, and they have begun to do so by offering more affordable travel packages for the budget conscious travelers, increasing exponentially, following the global recession. Tourism revenues in Jamaica hit US$1.97bn in 2009, and the government projects gross revenues of US$2.06bn in 2010. This revenue forecast is premised on tourist arrivals climbing to 2mn.12 In the chart below it shows where Jamaican visitors originate from and the percentage of their contribution to the Jamaican tourism industry. 11 Business Monitor International Ltd. (2010) 12 Business Monitor International Ltd. (2010)

Figure 5

Real Estate Industry Overview The real estate industry in Jamaica has long been established but over the last sixty years much of the interest has spread towards the west. There is a large real estate market surround the capital Kingston, but it is not particularly for foreign interest. Today the most important, and most developed cities that have stimulated interest among foreigners are Ocho Rios, “where there were less formal communities of villas (more like private estates) sit above the town, and Montego Bay, where there are estates on the shorelines and hillsides on both sides of the town, such as Unity Hall and Great River Estate.” “At the Western tip of the island in Negril, there is such little available space (particularly on the narrow band between the beach and the lagoon) that there are relatively few houses to buy.”13 Along the South coast, there are small towns, old plantation estate houses, and villas in and around Treasure Beach and Bluefields. Prices range enormously across Jamaica and the more popular resort towns are generally more crowded and over priced. In comparison to other Caribbean destinations such as St. Barths, Barbados, or even the Cayman Islands, prices in Jamaica offer a much greater value in comparison. Jamaica also has a well-‐developed villa rental market and so it offers good opportunities to buy a house as a rental investment.14 13 Definitivecaribbean.com -‐ Real Estate 14 Definitivecaribbean.com -‐ Real Estate

“A four or five bedroom home set in an acre of gardens in an established villa resort such as Tryall will cost upwards of US$1.5 million and in the prestigious new developments, for instance in the Spring Garden area of Rose Hall (a gated community of 4000 acres set in rolling countryside east of Montego Bay), a large house might cost US$3.5 million. An empty lot in this development will set you back anything between US$200,000 and US$1.5 million for a prime spot. Silver Sands also offers good value, with a 5-‐bedroom/5-‐bathroom villa with pool going for around US$680,000. Or if the romantic dream of two centuries ago catches you, and you want to live in a plantation great house, you can find one with 4 or 5 bedrooms, a swimming pool and 15-‐20 acres of land for between US$500,000 and $900,000.”15

Strategy and Implementation Sales Strategies From the time when the land deal is closed up until the government and respective departments approve the plans (i.e. the registration process is complete) it will take roughly 12 months before individual lots can be sold to investors. Following the registration process and start-‐up steps (outlined in Figure 2), our company’s sales team and marketing professionals can start selling ¼ acre (and larger) residential lots as well as larger sections that can be subdivided for local developers. These developers can enter an agreement initially as investors and sell their piece of land once subdividing it into smaller lots, i.e. Build to sell. Obviously, the savings would allow them to sell the larger section of land in smaller pieces; the price they choose to sell at will determine their profits. The large parcel becomes their responsibility and the clientele that they have worked hard to establish through their own business ventures, over the years, can enjoy this business opportunity as well, at a more affordable price. Sections of the development (Zone B -‐ 167 acres) will be subdivided for resale of residential lots. The commercial lots will be developed and sold off at a later date, and are located in Zones B & C (See Figure 3). A sales office will be constructed on site with one staff member to answer inquiries and show interested people the land for sale.

“The Company” Analysis For the purpose of this report these are the definitions being used for the following terms: Corporate-‐Level Strategy (The Company-‐wide Strategy) Business-‐Level Strategy (The Competitive Strategy)

15 Definitivecaribbean.com -‐ Real Estate

Corporate Level Strategy This involves the actions we plan to take in order to achieve or gain a competitive advantage by selecting and managing a group of different businesses competing in several industries and product markets. Our corporate level strategy will indirectly be involved in a couple different industries, such as hotels and tourism/leisure activities (including the golf course), residential and commercial development (real estate) and the upscale restaurant industry. Due to the large scope of the project this diversification will greatly improve our chance of success as well as favorable returns for all our investors.

Business Level Strategy Our company will be involved primarily in the marketing and sales part of the value chain. All of the development contracts will be sold to the winning companies that bid on the contracts, and similarly with all management of the various facilities once construction is complete. Our company will not be involved in the supply chain activities, day-‐to-‐day operations, and distribution of products, HR, or research and development decisions. Our company’s sole mission is to put the right people in place to buy the land that is made available, hire the best available contractors for the construction of the buildings, and hire the most competent management teams to operate our facilities, offices, golf course, hotel and restaurants etc. We feel that this is the best possible scenario for everyone involved, our sales staff, management staff, contractors, homeowners, investors, etc.

Marketing Strategy Our primary target market includes middle to high-‐income investors, which share an interest in luxurious villas and being a part of a Caribbean resort community that will provide endless opportunity for everyone involved. Since there are no restrictions in Jamaica regarding foreigners buying land or sending money to and from the country there is no geographical limit for our investing community. These consumers can either invest for their own personal use, for resale, or to provide an additional income in the form of a rental property. Our secondary target market is [primarily, but not exclusively] the Jamaican construction industry that will include large companies, organizations, developers, that will bid on contracts as well as commercial land set aside intended for direct use in producing other facilities and buildings, a golf course, a hotel etc. These investments/acquisitions can then be used in their day-‐to-‐day operations to grow their respective corporate portfolios, and their investment will continue to appreciate as the surrounding residential community progresses.

Competitive Analysis -‐ Golf Courses in Jamaica “There are around a dozen golf courses altogether, but the highest concentration and the best are centered on Montego Bay in the North West, where you will find six within easy driving distance. Some of the others courses are around the other main resort towns -‐ Negril, Rio Bueno, Runaway Bay, Ocho Rios and Port Antonio (nine holes) -‐ but many Jamaicans like to play golf too and so there are also a couple of courses around Kingston and one near Mandeville (nine holes). If you want a golfing holiday, then your best bet is really to go to Montego Bay, because of the concentration of courses there, as well as the levels of comfort. There are courses attached to the following hotels -‐ Half Moon, the Ritz-‐Carlton, Rose Hall Resort & Country Club (all to the east of the town) and Tryall (twenty minutes to the west) and of course if you are staying there you will be offered preferential tee-‐off times (though they do allow outsiders). These courses are mostly set inland and so they are all fairly hilly, but they are all close enough to the sea to get views of the coast and for them to be affected by sea breezes. They also have pros attached that can offer instruction of course.”16 Since there are very few golf courses in Jamaica, most of which are centered in and around Montego Bay and the North coast (See Figure 6) this provides a great opportunity for our company. Other benefits to this location is that, not only is it located along the gently sloping Buddles Mountain range (as well as the base) but it is a short drive (10 Km) from on of Jamaica’s larger Sandals’ locations, Sandals Whitehouse Resort. This Sandal’s resort currently does not have a golf course to cater to its thousands of visitors annually, and this location could service the needs of those visitors. 16 Definitivecaribbean.com -‐ Real Estate

Figure 6 – Golf Courses in Jamaica (West of Kingston)

** Blue flag marks the 764-acre development (150 acres set aside for a golf course)

Marketing Mix Product Positioning Statement Our company will aim to deliver the most sought out ultra-‐exclusive residential community development in Jamaica. By offering the best expertise and service in the international property development industry, our experience and network of international investors, management professionals, and contractors will provide a profitable scenario for everyone involved. Branding Statement Our company will constantly seek to improve our search for Jamaica’s most reputable, trustworthy and reliable contractors, so that the highest of building standards are maintained throughout the development, year after year. Hiring the most competent management firms so that our businesses are operating efficiently and earning a profit, and other developers to ensure that our brand remains strong throughout the country, as well as around the world. This will allow us to

differentiate ourselves from the competition and maintain a competitive advantage in both the Jamaican real estate market, as well as the Jamaican tourism industry.

Place In order to reach our intended target markets we will begin our global marketing campaign in a lot of the major cities throughout the United State, Canada, the Caribbean, Europe, and South America. As more interest is generated we will be able to cater to a larger target market, and in multiple languages and dialects around the world. Our company will have a global online presence, as the popularity of the Internet has grown and is expected to continue growing. This will provide us the opportunity to utilize this Internet growth to ensure that our potential and current customers have the latest information available at their fingertips.

Price Our company will offer extremely competitive pricing for ¼ lots and larger (depending on aspect and location) starting at $50,000 U.S. Our intentions are to develop this land consistently over the next 10-‐15 years, and with over 1400 hundred lots this is an ambitious goal, but with the help of other local developers, investors and contractors it is possible. Commercial contracts (i.e. the golf course and hotel), and larger parcels of land to be developed will be negotiated in person upon request. For pre-‐sold residential lots only, $25,000 U.S. can act as a deposit, then over the next 3 years the remaining $25,000+ U.S. will be repaid at 5% interest. Once the registration process is complete and construction has begun, this pre-‐sale financing offer will no longer be available; all lots will be paid for up front or upon delivery of land title.

Promotion Corporate/Commercial Promotion Our corporate/commercial promotion plan will include trade shows (industrial, corporate, tourism, realtor etc.); direct personal selling, advertising in newspapers, magazines and trade publications, as well as web-‐site advertising. The advertising campaign will focus on creating brand awareness throughout Jamaica, the rest of the Caribbean, North and South America, and Europe. Industrial trade shows will be used to promote our international business expertise to future clients in the leading industries (real estate, tourism etc.) in Jamaica. In order to keep in line with the Jamaican culture, we will also use direct personal selling managers to establish personal relationships with key members of these target industries.

Consumer Promotion Our promotional plan for our consumers interested in purchasing land and/or building a home/villa in the resort community development will include newspapers, travel and real estate magazines, trade fairs, and most definitely online. As mentioned previously an office with an accompanied sales professional will be on site to answer any questions, show interested people the land, and help spread by word of mouth along the South coast of Jamaica. Also, as visitors on their way to the near by Sandals resort travel back and forth we will be sure to attract their attention and offer some incentive for them to stop and read up on our plans for development. Many of the visitors staying at the Sandal’s resort, especially the regulars, will be interested in the construction of the golf course, and quite possible the land that is available in and around the fairways and greens.

Conclusion We know that all investors will be in the best of hands when becoming part of this unique investment opportunity since our team of professionals exhibits an exceptionally high level of combined knowledge, experience and contacts within both the tourism industry and the international property development industry. Combine this security with a low-‐level of foreign investment restrictions, the largest English-‐speaking population in the entire Caribbean that boasts a resilient economy, and you have yourself an extremely low-‐risk opportunity at your fingertips that would allow for immediate and consistent value increases year after year. Due to the large scale of the project and subsequent zones that would continue to develop long into the future, this type of scenario allows everyone involved to earn their own additional piece of wealth, and with wealth many things are possible, even during impossible times.

References Business Monitor International Ltd. (2010). Key sector outlook -‐ Jamaica., 27. Retrieved from West Caribbean Business Forecast Report database. Country Watch Inc. (2010). Economic overview -‐ Jamaica. Retrieved from Business Source Complete database. Global Property Guide. The state of Jamaica's real estate market. http://www.nuwireinvestor.com/articles/the-‐state-‐of-‐jamaicas-‐real-‐estate-‐ market-‐53111.aspx Hartman, Sandra J. & Fok, Lillian Y. (2009). Exploring the use of various technologies, perceptions of success and organizational culture in jamaica.19(3), 224. Retrieved from Business Source Complete via Competitiveness Review. Jamaica Country Review. (2010). People., 80. Retrieved from Business Source Complete database. Latin America Monitor: Caribbean Monitor. (July 2010). Risk summary -‐ Jamaica.27(7), 5. Retrieved from Business Source Complete database. Rosa, T. (June 2010). Caribbean investor report: Striving for growth.(212), 19. Retrieved from Latin Finance database. Sharon. (2010). Jamaica real estate and rentals. http://www.expats-‐moving-‐and-‐ relocation-‐guide.com/jamaica-‐real-‐estate.html Unknown. Real estate. http://www.definitivecaribbean.com/guide/Jamaica.aspx?group=5#Real%20 Estate

Contact Information Robert Wong

Nathan Wong

Edward R. Stroh

Ivor Stewart

Robert Blankson

Millingen Architects Carl Chin

AF Engineering

RJ Developments Ltd. (CEO) Road Town, Tortola, B.V.I. +1 (284) 499 2998 robertwong@vistadelmarbvi.com www.vistadelmarbvi.com RJ Developments Ltd. (GM) Road Town, Tortola, B.V.I. +1 (284) 340 2998 nathanwong@vistadelmarbvi.com www.vistadelmarbvi.com Virgin Queen (Proprietor) Road Town, Tortola, B.V.I. +1 (284) 494 2310 compassrose@surfbvi.com Ivor Stewart & Associates Commissioned Land Surveyors, Chartered Surveyors St. Ann, Jamaica +1 (876) 795 1978 ivorstewart@ymail.com Quantity surveyor Robert Blankson & Associates 15 Tangerine Place Kingston 10, Jamaica +1 (876) 754 4976 Architect 43 Old Hope Road Kingston 5, Jamaica +1 (876) 929 9230 Civil Engineer Carl Chin & Associates 18 Kew Road Kingston 10, Jamaica Civil Engineer Unit 7A Seymour Park 2 Seymour Avenue, Kingston 6, Jamaica +1 (876) 927 5924