v 2.0 june 2015 page swiss golf resort bucharest
TRANSCRIPT
V 2.0 june 2015 Page
Swiss Golf Resort Bucharest
V 2.0 june 2015 Page 2
Companies
‘Swiss Golf & Leisure Development SA’ founded 2007 as a joint-stock company to develop, promote and realize the project and own the land.www.swissgolf.ro
‘Golf & Country Club Bucharest’ founded 2007 as a non profit organization to promote golf in Romania and offer a networking platform to interested circles and persons. www.golf-bucharest.ro
V 2.0 june 2015 Page 3
Golfsport is booming worldwide!
Golf courses in comparison to population.Golf Courses: Population:
• Switzerland: 100 7,5 mill. • Austria: 147 8,1 mill. • Germany: 658 82,5 mill.• France: 548 60,2 mill. • Great Britain: 1302 60,6 mill. • Czech Rep.: 52 10,2 mill. • Poland: 24 38,2 mill. • Hungary: 12 10,0 mill. • Romania: 3 22,5 mill.
Bucharest is at this moment the only European capital not offering a 18 hole golf course.
V 2.0 june 2015 Page 4
Romania (2013)
Population 22 mill.GDP $ 274 billion GDP per capitas $ 12’800Minimal salary Euro 210 / monthAverage salary Bucharest Euro 900 / monthTaxes (companies) 16% flat rateGrowth 2013 6.5 % (highest EU average)Companies with foreign capital 190’000
Since 2007 Romania is full EU member
V 2.0 june 2015 Page 5
Bucharest (2013)
Population 2.4 mill. (including suburbs: 3.2 mill.)
Expats total 32’000, 12’000 EU citizensCompanies with foreign capital 80’000 Country representations 121Crime rate rather low (average EU capitals)
Climate continental & subtropical
Golf season March-November (meanwhile also December)
Hotels / beds 500 hotels on booking.com, with 50’000 bedsTourism 800’000 visitors per year
Bucharest has an intense cultural, social and leisure offer, Romanians are very friendly and hospitable.
V 2.0 june 2015 Page 6
Location
Golf Bucharest
City of Bucharest
Airport
Buftea
ChitilaDragomiresti
V 2.0 june 2015 Page
Access
to the airport 20 min.
to the city 20 min.
Planned acces
planned ringroad
actual ring road
northScale:
= approx. 2‘000 m
7
Golf Bucharest site
V 2.0 june 2015 Page 8
Project overview
V 2.0 june 2015 Page 9
Part overview projects
6 Hole CoursePractice area
18 hole championship course
Residential
Hotel
Clubhouse
CommercialTennis
V 2.0 june 2015 Page 10
Facilities
• 18-holes championship golf course
• 6-holes beginners course
• Practice area (putting greens, pitching & chipping, driving range 70 pl., temp. clubhouse)
• Clubhouse (restaurant 200 seats, terrace 120 seats, shopping area 400 m2, conference area, wellness, administration, cloakrooms, annex spaces)
• Tennis courts (2-3 courts, tennis academy)
• Hotel 4**** (120-150 rooms, pool, SPA, conference rooms)Optional: Boarding House approx. 100 units or Hotel Extension
• Residential area (270-350 units, depending on the concept , maximum 66’000 m2 to be built)
• Commercial area and services (approx. 2’000 m2)
V 2.0 june 2015 Page 11
Virtual Overview
ForestPractice 6 Hole Course Residential
Clubhouse HotelCommercial
18 holecourse
V 2.0 june 2015 Page 12
Virtual panorama hole 1, 9, 18
V 2.0 june 2015 Page 13
Residential ConceptSwiss Golf Village
Twin-Houses
Commercial, Services, Studios Villa Apartments
Villas
ParkPark
Park
V 2.0 june 2015 Page 14
Investment
Golf & Country Club• Golf course 6‘640‘000• Club House (incl. infrastructure) 2’500‘000
Real Estate
• Residential (incl. land & infrastructure) 58‘000‘000for average 320 units, 66’000 m2 to be built
Hotel
• Hotel 4* plus (150 rooms, incl. land & infrastructure) 28’000’000
Required equity: minimum Euro 4’650’000 by realisation in steps (see page 16) or Euro 14’000’000 by realisation in one single step and financing by banks or funds.
(Euro, July 2013, amounts excl. VAT)
V 2.0 june 2015 Page 15
Returns
Golf & Country Club
• Golf Course : Profit before taxes per year after 3 years, including amortisation within 10 years 450’000
• Expected turnover in 3 rd year Euro 2’400’000• Club House 175’000
Income from rentals per year• Profit from selling golf course & club house 6’000’000
Real Estate• Profit from sales residential before taxes 22’000’000
ROI : 32%, ROE: 140%
Hotel
• Income from rentals, yearly 1’600’000or
• Profit from selling hotel 4’600’000 ROI: 28%, ROE: 130%
(Euro, July 2013, amounts excl. VAT)
V 2.0 june 2015 Page 16
Realisation by steps
• Purchase of approx. 78 ha land (Golf Course) 2’000’000(land price exempt VAT)
• Building of the access road 200’000
• Building of the 1st 9 holes 1’900’000(including watering, infrastructure, etc.)
• Provisory club house 200’000
• Additional costs 200’000(planning, taxes, unexpected, management)
• Option land residential 150’000
• Total equity required 4’650’000
The realisation of the 1st step will allow to operate the resort (9 holes, competitions). The next steps may be realised without interference of the parts in operation
(Euro, July 2013, amounts excl. VAT)
V 2.0 june 2015 Page 17
Status of the Project
• Swiss Golf & Leisure Development founded 2006 to develop various Projects of Golf Courses & Real Estate in Romania
• Golf & Country Club Bucharest founded 2006
• Contracts Concerning Land Use completed 2004
• Detailed Execution Plans Golf Course completed by K. Rossknecht
• Detailed Plans Clubhouse completed
• Urbanistic Project Real Estate completed
• Offers for Infrastructure existing
• General Plan (PUZ) approved by Authorities in 2007
• Business Plan Real Estate by Deloitte & Touche completed 2007-2008
• First Pro Shop opened in Bucharest (repr. Callaway, Paragon, Wilson)
• Driving Range & Swiss Mastery Golf Academy operational
V 2.0 june 2015 Page 18
Chances
• Romania is an EU land, the political risks are low.
• The ‘Swissness’ image of the project
• The 1st golf course in Bucharest will be an attractive & exclusive resort for the inhabitants & expats.
• The project is supported by the authorities
• There is no similar project around Bucharest.
• It is quite not possible to find the required land (approx. 100 ha) from one single owner for a second Golf Resort.
• Needed building permissions are existing
• Break even by approx. 400 members. (about 250-300 golfers from Bucharest drive regularly 4 hours to Bulgaria to play golf)
• Cheap labour costs
• Favourable exchange rate RON to Euro(2007: 1 Euro=3.6 RON, 2014: 1 Euro=4.4 RON)
• EU subsidies possible
V 2.0 june 2015 Page 19
Risks
• Romania is still a quite unknown land. Investors are still reserved
• Bureaucracy, high administrative expenditure
• Low productivity
• Missing know how and experience in similar projects on site
• VAT 24% (not for estate purchase and shares transactions)
• Need of an important controlling concept on site
• Acceptance of the facilities by the future clients and members
• Business in an foreign area
V 2.0 june 2015 Page 20
Overview
Facility Land area (m2)
Costs rent land p.y.
(Euro)
Price land purchase
(Euro)
Investment (Euro)
Status
planned realised
Planning over all 1‘400‘000 X
Driving range, infrastructure
60‘000 0 included 560‘000 X X
Club house prov. 600 0 included 210‘000 X
Club house 6‘000 14‘000 180‘000 2‘100‘000 X
Residential 150‘000 0 2‘200‘000 46‘000‘000 partially
Golf course 18+6 720‘000 100‘000 2‘000‘000 6‘500000 X
Commercial 2‘800 0 1‘800‘000 partially
Hotel 150 rooms 12‘000 3‘500‘000 25‘000‘000 partially
Infrastructure over all 7‘600‘000 partially
Total 7‘880‘000 91‘170‘000
V 2.0 june 2015 Page
21
Summary
Investors are planning the first golf resort in Romania. Located near Bucharest, fully completed, it will host a 18 hole golf Course, a 6 hole course residential, a hotel and leisure options.
Bucharest and Romania has a rising economical significance. Since it is the first and only golf course, the potential is nearly unlimited.
Investors are welcome to participate in different manners with the project.
V 2.0 june 2015 Page
22
Project Team
Mr. Fernando Mutti
lic. Oec, Head of Finance & Owner
mobile +41 78 617 17 69
Mr. Radu D. Chiriac,
Dipl. Arch. ETH/SIA,
Head of Planning & Owner
mobile +41 78 615 29 30
www.swissgolf.ro
www.golf-bucharest.ro
V 2.0 june 2015 Page 23
Driving Range
V 2.0 june 2015 Page
Thank for your attention!
Are there any questions?
24