Présentation OTC- INVEST

ODESA TRANSACTIONS & SERVICES

V2 - O.T.C. - Pierre-François BEUCHARD 02/2012

Plan

1)Due Diligence

2)Investment strategyShort term delivery

Mid term delivery

Long term delivery

3)Process

Due diligence

a) Project• Bizplan• Financial tables

b) O.T.C. documents• Statutes• Memo of the lawyer according to OTC

partnership contract• Office’s lease• Legal documents

c) Management• Work Permit• Residence Card• Propiska• Resume

d) Accounting & Bank• Tax administration reports• Bank’s address (Head manager of bank

agency)• OTC bank account contract

e) Specifications• To prospect• To make works & repairs

All those documents are at your disposal and it includes our partnership contract with foreign entities or individuals living outside Ukraine.

STATEMENT

Variable Geometry Strategy for a safe and profitable investment with a positive environment • Odessa : positive image thru the World• OTC specifications to observe : reach your aims and optimize IRR • Politics : a strategy which takes into account political changes• Take benefit from Tourism : increase year by year

INVESTMENT STRATEGY

Short term delivery: Deribasovkaya's opportunities or similar(available 2/3 months after acquisition)

Mid term delivery: Apartment’s acquisitions with renovation“.... from soviet's or out-fashion style to modern apartment.”(available in a half to one year after acquisition)

Long term delivery: Hostel's acquisitions (available in nearly one and half year after acquisition)

investment strategy

investment strategy

First step in Odesa

• 2/3 months from purchasing to delivery

• On this prestigious avenue, some good real estate opportunities exist according to the crash in the real estate market in Ukraine last Quarter 2008.

• Several (foreign) investors are stuck and today they need cash money. Others bought real estate and would like to sell some of them today.

• Deleveraging prompted real estate owners to sell some real estate already renovated for which just finishing works need to be done.

• Buying opportunities at attractive prices=> Real estate readily available=> Fast renovation (finishing works).

SHORT TERM DELIVERY Deribasovkaya's opportunities or similar

DERIBASOVKAYA short term investment project

investment strategy

Action Plan:

• From 1 to 3 apartments to purchase

• Negotiate prices

• From purchasing to end of works: 2/3 months

• Furnished Rental income per day: 150 / 200 $ high (& peak) season100 /150 $ low season

DERIBASOVKAYA short term investment project

investment strategy

Full step in Odesa

• Apartment’s acquisitions with renovation from soviet's or out-fashion style to modern's apartments.

• Prospect real estate to buy• Check ownership & occupancy• Check technical viability of the project• Negotiate price • Authorizations to start works & repairs• Supervising & monitoring works• Manage real estate assets.

• Acquisition to delivery – average estimate time: 6 to 10 months

MID TERM DELIVERY Apartment’s acquisitions with renovation

targets

• GAVANAYA'S LOCATION, Example of a large apartment (1,000 m²) in Gavanaya street

• VORONTSOVSKI PER'S LOCATION, Example of a standard apartment (190 m²) in Sovonaya street

investment strategy

GAVANAYA'S LOCATION Mid term investment projectExample of a large apartment (1 000 m²) in Gavanaya street

specifications

• Surface 1,000 m²

• Negotiated Price Package 900 /1,200 k$

Works & Repairs main costs: Heavy Works 200 / 250 US$ per m² Finishing Works 180 / 300 US$ per m²

1 - Apart2 - City garden3 – main street4 – Opera5 – Cathedral6 – Shopping Center7 – Shopping Center

investment strategy

investment strategy

GAVANAYA'S LOCATION Mid term investment projectExample of a large apartment (1,000 m²) in Gavanaya street

Gavanaya's top floor plan from our pre-study


Gavanaya's inside Design example

investment strategy

GAVANAYA'S LOCATION Mid term investment projectExample of a large apartment (1,000 m²) in Gavanaya street

Gavanaya's attic plan

investment strategy


Gavanaya's inside Design example

investment strategy

MID TERM DELIVERY large apartment (1 000 m²) in Gavanaya street

investment strategy

Project summary:

Acquisition / Surface bought: - Surface bought : 2 apartments of 250 m² each and 1 attic : 500 m²

- Negotiated Price for all: 800 / 900 k$

Works & Repairs (main costs):• Heavy Works 200 / 250 US$ per m²• Finishing Works 180 / 300 US$ per m²

Furnished rental Income per day:- 150 / 200 US$ high (& peak) season- 100 / 150 $ low season

Delivery • from purchasing to end of works: 7 / 9 months • Creation of 7 apartments from 1 bedroom apartment to 3 bedrooms apartments

investment strategy

VORONTSOVSKI PER'S LOCATION Mid term investment projectExample of a standard apartment (190 m²) in Sovonaya street

specifications

• Surface 190 m²

• Negotiated Price Package 120 /140 k$

• Works & Repairs main costs:Heavy Works 200 / 250 US$ per m²Finishing Works 180 / 300 US$ per m²

Action Plan:

• Prospection already started, a few apartments already targeted and preselected.

• Technical and architectural pre-studies done for some of them.

• Depending on starting investments we plan to quickly buy 2/3 large top floors apartments with attics.

- purchase, cutting, transformation & remodelling, renovation, rental -

That's what we do!

MID TERM DELIVERY Apartment’s acquisitions with renovation

investment strategy

Rooms with view in Odesa

• available in nearly one and half year after acquisition

• Financial Objective: maximize gain with tourism while diversifying real estate portfolio by adding furnished rental units & apart-hotels.

• Take advantage of tourism increase (10/15% per year)

LONG TERM DELIVERY Hostel's acquisitions

targets

• ODESSA EXECUTIVE SUITES, a downtown hotel (2,500 m²) in Deribasovkaya street in order to build extensions.

• LANGERONSKAYA'S APART-HOTEL, top floor apartments with attic of 550 m² in Langeronskaya street transformed into 20 rooms of apart-hotel with of total surface of 1,000 m².

investment strategy

ODESSA EXECUTIVE SUITES Long term investment projecta downtown hotel (1,500 m²) in Deribasovkaya street

specifications

• Hotel http://www.odessaexecutivesuites.com/

Actually1,500 m² with 23 aparts480 k$ turnover per year100 k$ Expenses per year

In the same block, original hotel can beextended by adjunction with 2 adjacentexisting buildings.

Extension planed 1 :2,000 m² with 50 new aparts

Extension planed 2 :3,000 m² with about 60 to 70 new aparts

investment strategy

http://www.odessaexecutivesuites.com/

ODESSA EXECUTIVE SUITES Long term investmenta downtown hotel (1,500 m²) in Deribasovkaya street

Deribasovskaya's Extensions

investment strategy


Deribasovskaya's Extension 1 cross section plan from our pre-study

investment strategy


Deribasovskaya's Extension 2 (view of the hotel) from our pre-study

investment strategy

Extension 2

Extension 1


Deribasovskaya's Extension 2 - 2nd& 3rd and 4th& 5th floor project

2nd& 3rd

4th& 5th

investment strategy

LONG TERM DELIVERY ODESSA EXECUTIVE SUITES

investment strategy

Project summary:

Acquisition / Surface bought: - Original Hotel: 1,500 m²- extension 1: 2,000 m²- extension 2: 3,000 m²

• Negotiated Price for all: 220 / 240 k$


Delivery • 10 months per extension.• Creation of an apart-hotel of 130 / 140 apartments rooms).

LANGERONSKAYA'S APART-HOTEL Long term investment projectAparts and attic transformed into 20 rooms/apart-hotel in Langeronskaya street

investment strategy

specifications

• Surface 545 m²

Attic : 300 m² - 8 meters high→ With possibility to create 2 levels

Negotiated Price Package 240 / 280 k$

Works & Repairs main costs: Heavy Works 350 / 500 US$ per m² Finishing Works 180 / 300 US$ per m²

LANGERONSKAYA'S APART-HOTEL long term investment projectAparts and attic transformed into 20 rooms/apart-hotel in Langeronskaya street

Langeronskaya's apart-hotel project location

investment strategy

Project summary:

Acquisition • Surface bought: 2 apartments 235 m² and 1 attic: 300 m²• Negotiated Price for all: 220 / 240 k$


Delivery • 2 levels done in the attic's volume (2 X 300 m²) extended the total surface to 1,000 m².• Creation of an apart-hotel of 15 / 20 apartments.

Future extension: on the same floor one more apartment of 80 m² could be purchased.

LONG TERM DELIVERY LANGERONSKAYA'S APART-HOTEL

investment strategy

Action Plan:

• Contact and negotiation started with hotel's owner

• Technical and architectural pre-studies done.

• => Get 65% of hotel's owner company shares

• => Take immediate advantage of original hotel's turnover while building extension

1 and preparing extension 2 elevation.

• Depending on starting investments we plan to quickly invest in hote(ls) and buy 1/2 large top floors apartments with attics to transform in mini apart-hotels to take benefit of the insufficient number of hotels rooms in Odesa.

LONG TERM DELIVERY Hostel's acquisitions

investment strategy

Process

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