Estate & Country Club, Marlera Golf

PROJECT DESCRIPTION The Istria Estate & Country Club, Marlera Golf in provides a unique investment opportunity with the possibility to participate in a premier high-end integrated golf and real estate development, with direct access to the sea and in a truly fascinating natural environment. The current master plan for the overall envisioned development stretching over 126 hectares of land is to include:

Medulin Ližnjan • five star luxury hotel with 170 rooms, extensive spa & Marlera wellness facilities, conference facilities, restaurants, bars, and a casino, • 114 residential units: 87 apartments with two or three bedrooms and 27 luxury villas, • 27 hole golf course and amenities.

The golf course architect Graham Cooke & Associates from Canada has originally designed the golf course for the Among others, the unique selling points of the project Project, while Bull Stockwell Allen, a San Francisco based include the suitability of the site for the resort development, design firm was responsible for designing Marlera’s facility its excellent location and accessibility, the favorable architecture including clubhouse. GTC has also partnered building permits obtained, the freehold residential up with Mark Hamlin of the SE Group, responsible for ownership options and the owner’s development track landscape architecture, environmental and land planning. record. OWNERSHIP STRUCTURE GTC Group, headquartered in Poland, is a leading developer in Central and Eastern Europe. The company has a diverse experience in real estate development projects within the office, residential and commercial sectors, having played a major role in several large-scale projects. Marlera Golf LD Ltd. & Nova Istra Ideaus Ltd. are the entities that own the land where the Istria Estate & Country Club is to be developed. Ultimately, both subsidiaries are controlled by GTC Group. ESTIMATED VALUE Key investment highlights Golf component • 27 hole golf course 113 hectares Residential component − • Clubhouse – Total Gross Floor Area − 1,800 m2 • Total Gross Floor Area − 23,300 m2 • Estimated stabilised EBITDA − approx. 1 to 1.25 mil EUR • Total estimated sales proceeds − approx. 90 to 100 mil EUR Hotel component Total estimated development cost including land: 100 mil EUR • Total Gross Floor Area − 29,200 m2 Total development costs excluding land: approx. 70 to 75 • Estimated stabilised EBITDA − approx. 3.7 to 4 mil EUR mil EUR LOCATION DESCRIPTION The project is located on the southern tip of the Istria peninsula, with incredible views on the Adriatic Sea, where the tranquility of the countryside meets the untouched seashore, only a few kilometers from vibrant , the region’s administrative center. TRANSACTION MODEL Looking for strategic partner. This project, under the conditions stipulated by the Law on Investment Promotion (OG 102/15) can qualify for investment incentives. For more information, please refer to Section 5: Incentive Measures for Investments Projects.

Croatian Chamber of Economy, Rooseveltov trg 2, 10 000 , Croatia DISCLAIMER: Information contained in this document has been provided by Croatian Chamber of Economy. Purpose of this document is to give short information about companies 134 and/or investment possibilities to potential investors. The profile is for information purposes only. No responsibility or liability is accepted for the information in this document. Company name: Marlera Golf LD Ltd. Address: 10 000 Zagreb, Avenija 16

PROJECT STATUS

The project is in an advanced development stage. To date, the following project preparatory work has been completed:

Market assessment Concept and master plan development Financial feasibility studies Design and architectural planning Permits

For all zones, including infrastructure, building permits are in place except for the hotel for which there is a location permit in place.

ISTRIA COUNTY Population (2011): 208,055 were strongly developed). In the past decade, intensive GDP per capita (2014): 12,724 EUR investments in a construction of new and reconstruction of existing primarily high-class hotel facilities were made, Unemployment rate (2016): 8.4% resulting in a significant increase of five-star hotels (total of Average gross monthly salary: 1,026 EUR 5) and four-stars hotels (total of 43). Average gross salary in the sector (tourism): 1,167 EUR According to the Istria Tourist Board, in the structure of accommodation, from a total of 272,645 units, camps are the is located on the largest Croatian peninsula of most represented (43%), followed by private accommodation Istria, on an area of 2,820 km2 and has excellent transport (31%) and hotels (18%). Main markets in terms of overnight connections with main European motorways (Istrian “Y” stays are Germany (29.9%), Slovenia (12.8%), Austria (12.6%) motorway connects Istria with highways in Slovenia, Italy and Italy (8.9%). Strong domestic brands (Istraturist , and Austria) and by air (International Airport in Pula). Istria is Maistra and Valamar) prevail but international brands such one of the most developed Croatian regions with dominant as the Park Plaza, Kempinski Hotel and Sol Melia are present industry (shipbuilding, production of building materials, as well, primarily as management companies. The wide tobacco products, furniture, glass and electrical machinery and diversified range of facilities enables the development and parts for the automotive industry), trade sector and of various kinds of tourism: sports tourism (currently 2 out tourism (23.1 million overnights stays in 2016, or 29.6% of all of 4 golf courses in Croatia are in Istria - Umag and Brijuni, overnight stays in 2016). and the International ATP tournament takes place in Umag), cultural tourism ( Film Festival, performances by In recent years, great attention was paid to the revitalization world-renowned artists in Vespasian’s Roman amphitheatre of agriculture (especially olive growing and organic food - Pula Arena, Theatre Ulysses), nautical, convention, hunting, production) and the related development of enogastronomic fishing and diving tourism. tourism (autochthonous wines Malvasia, Teran, highly esteemed white truffle) and agro-tourism, particularly in Further development of tourism in this region will be ensured the hinterland of Istria, which is recognized as the “Tuscany with new projects, notably the Brijuni Riviera which is to be of Croatia”. There is a very long tradition of tourism that has developed on three locations (Pineta, Hidrobaza, Sv. Katarina been developing from the period of the Roman Empire and Monumenti), and should additionally profile the County through the Austro-Hungarian Empire (when tourist centres as a tourist destination with a wide range of capacities of the Umag, Poreč, , Pula, Rabac, including the Brijuni Islands highest category. CONTACTS Croatian Chamber of Economy, International and EU Affairs Sector, www.hgk.hr, www.investincroatia.hr, e-mail: [email protected], Ms Silva Stipić Kobali, Managing Director Marlera Golf LD Ltd., e-mail: [email protected], phone: +385 1 6659 400

Croatian Chamber of Economy, Rooseveltov trg 2, 10 000 Zagreb, Croatia DISCLAIMER: Information contained in this document has been provided by Croatian Chamber of Economy. Purpose of this document is to give short information about companies and/or investment possibilities to potential investors. The profile is for information purposes only. No responsibility or liability is accepted for the information in this document. 135