Attractive commissions for agents, excellent, secure returns for investorsOur sales have increased each year for the last three years. If you’re looking for sellable product for todays investors consider market leading French leasebacks.

Unlike many companies who have struggled during the financial crisis Leapfrog Properties has taken advantage of this unique economic situation of low interest rates to present unique, highly attractive deals that are not only relatively easy to sell but also pay good commissions.

Leapfrog Properties are the market leader in sourcing safe and secure property investments in France which come with 9 or 11 year renewable commercial leases. Leaseback properties are residential serviced properties in highly sought after destinations in France such as the Alps, major cities and the south of France.

Why leasebacks are attracting investorsThese deals usually end up being cash-flow positive or having only a small amount to top-up each month using a capital repayment mortgage. This means that at the end of the mortgage term investors will end up with a property with no mortgage that will be worth significantly more than they paid for it usually by only investing a very small amount of money over the entire mortgage term. As such these leaseback investments are an excellent addition to a pension fund and help the client to build a property portfolio in a secure and hassle-free way.

The deals we put together generally have the following incentives for investors: - 100% finance (with rates from as little as 3.3% over 25 years) - VAT paid by the developer (19.6%) - All closing costs paid (worth around 6%) - Cash-back on completion (usually around 5% of the property price) NET guaranteed yields between 4 and 6% - Some weeks personal use/discounts available

For further information on becoming an agent please call us on +44 (0) 845 6066919 or email nick@leapfrog-properties.com

www.leapfrog-properties.com

p2-3_May.indd 2 28/4/11 12:40:18

MARKET SNAPSHOT: GREECE

OPP DIGITAL: GETTING ENGAGED

OPP AWARDS FOR EXCELLENCE 2010

05 EDITORIAL COMMENT Is Greece starting to bottom out?

07 LEADERSHIP AND VISION RCI boss Nick Turner looks ahead

08-09 INDUSTRY NEWS Florida hit with 1.6 million empty homes

10-11 INDUSTRY NEWS OPP launches the 2011 Awards scheme

12 FINANCE NEWS Cash buyers are dominating the USA

13 DEVELOPER NEWS Loophole could end Chinese exodus

14 FRACTIONAL NEWS Lifestyle launches new high-end fund

16 MEDIA NEWS Luxury brands are bursting into property

18 TRAVEL AND TOURISM NEWS Holiday favourites top the search rankings

20 PEOPLE: MOVERS & SHAKERS New developer consultancy from Assetz

24-25 YOUR SHOUT - LETTERS AND BLOGS New funding option for Brazilian developers

26-27 US VIEWPOINT A shortcut through US visa rules

28 AIPP ADVICE Has spring arrived or is tension mounting?

30-31 THE 55+ MARKET Margaret Wylde on the systematic approach

32 LEGAL LESSONS The thorny problem of inheriting property

34-35 FUNDING FIGURES Mortgage data analysis from the experts

37-38 ALTERNATIVE INVESTMENTS Why not branch out into forestry?

41 FRACTIONAL Mixing up fractional units and boutique hotels

43 SUSTAINABILITY Building materials can make all the di� erence

46-47 DIGITAL MEDIA Social media is here today, and tomorrow

48-50 OPP AWARDS FOR EXCELLENCE 2010 Meet the Best A� ordable Developers

51 OPP AWARDS FOR EXCELLENCE 2010 Who won the Best Financial Services title?

53-54 ADIT INVEST 2011PREVIEW What to expect at Brazil’s giant property event

56-57 GREECE AND CYPRUS REPORT One year on from the bailout ... what’s next?

58-59 KEEP THE FAITH - PORTO HELI Who is investing in serious Greek luxury?

60-61 MARKET SNAPSHOT - GREECE All the facts and � gures on a market in crisis

62-63 THE LAST WORD - LOUCAS KITROU Aphrodite Hills boss talks to OPP

64-65 TRADE DIRECTORY

66-67 CAREERS SECTION Find your next job in OPP

Contents

60 | All the facts and � gures on Greece, a troubled

economy that may be about to start bottoming out.

46 | Harvard Business Review Analytic Services reveals

how and why businesses are getting into social media.

GREECE AND CYPRUS REPORT. (Pages 56 to 63)At � rst glance, Greece and Cyprus are not doing too well. Riots, austerity packages and banking crashes have all taken their toll. Cyprus has been plagued with title deed rows and political inertia. But, if you pick the right location and target the right market, the Hellenic world still has plenty of sunshine, keenly priced land and a wealth of history and culture to o� er. Is that why world-class luxury developers like Aman Resorts and Dolphin Capital Partners are still investing, with plans to build a new luxury project in the Peloponnese? The fundamental are all still there. Is it time to look again?

ALTERNATIVE INVESTMENTS: FORESTRY

37 | Help your clients to branch out into an investment

class that is safe, solid and pro� table ... and very green.

48 | Find out who won the OPP 2010 Best A� ordable

Developer and Financial Services categories, and why.

Wealthy buyers ‘still

believe in Greece’

as an international

destination,” says Katerina Katopis, a

director at Dolphin Capital Partners,

which is building a luxury resort

development in the country.

The Porto Heli Collection, in the

Peloponnese region of Greece, is

a resort development being built

in conjunction with Aman Resorts.

With prices starting at €2m, the

development is clearly targeted at the

very wealthy ... and yet it has already

sold 7 units. Times are not so hard.

Katopis believes this indicates

that Greece is not being unduly

stigmatised by its economic troubles.

Speaking exclusively to OPP,

Katopis said “everybody knows that

Greece has experienced its fair share

of troubles recently. But the people

who are interested in Porto Heli

Collection do realise that this is an

international project, and so we’re

58 |

| 59

MAY 2011 | www.opp.org.uk

GREECE & CYPRUS

WORDS | Geoff Hadwick

www.opp.org.uk | MAY 2011

At first glance, Greece and Cyprus are not doing too well. But the Hellenic world still has plenty of sunshine,

keenly priced land and a wealth of history and culture to offer. Is that why world-class luxury developer Aman

Resorts has joined forces with Dolphin Capital Partners to build a new luxury project in the Peloponnese?

Could the scheme end up being a template for the country going forwards, and be an inspiration to others?Keeping the faith

Dolphin is a major investor in the residential resort sector in the eastern Mediterranean with over €1.8 billion worth of assets.

It’s portfolio is currently spread over 62 million square metres of prime coastal developable land and comprises 13 large-scale

leisure-integrated resorts under development in Greece, Cyprus, Croatia, Turkey, Panama and the Dominican Republic and

more than 60 smaller holiday home projects through its subsidiary Aristo Developers in Cyprus. The Porto Heli Collection

offers villas, golf and leisure activities. The first phase of the Porto Heli Collection is the Aman Resort and Villas, expected to

commence operation during 2012, managed by Aman Resorts. The company focuses on service, culture, design and environ-

ment. Founded in 1987 by hotelier Adrian Zecha, Aman currently operates 24 boutique hotels in Indonesia, French Polynesia,

India, France, the Philippines, Cambodia, Morocco and the Turks & Caicos Islands.

The Location: The Peloponnese peninsula is the southern part of mainland Greece, separated from the north by the Corinth

Isthmus. It has long been favoured as a weekend and holiday destination by Athenians due to its proximity to Athens, mild

climate, rich history and scenery. Porto Heli is a natural harbour on the eastern side of the Peloponnese, opposite the islands

of Hydra and Spetses. It has become an area of wealthy villas. Aman offers a 25-minute helicopter shuttle from Athens airport.

It is two hours by car from the capital city.

The Resort: Facilities include a restaurant, a lounge bar, a library, a spa, a swimming pool with poolside restaurant, a gym, a

yoga room and tennis courts. The hotel offers 38 guest pavilions arranged on different levels to maximize privacy. Villas come

in two types:

1) Type A consists of four to five bed villas on 10-hectare lots.

These bespoke villas can be designed and built to individual specification.

Total Land Area 10,010m²

Total Covered Space (conditioned & unconditioned) 811 m²

Pool: 24.67m x 6.00 m 148 m²

2) Type B consists of two bed villas on 4-hectare lots.

Total Land Area 4,000m²

Total Covered Space (conditional & unconditioned) 317 m²

Pool: 20.50m x 5.00 m 102 m²

Prices: Villas are available from €3 to €20 million with a 10% deposit expected on signing a reservations agreement, 30% pay-

able when the contractual documentation for the transfer is dispatched to the purchaser to signal the start of construction,

30% payable on completion of the hard shell and 30% on completion and transfer of the deeds.

Rental Programme: available to all villa owners. Participation in this scheme requires villa owners to agree to the terms of the

‘Aman at Porto Heli Management Programme’. Villas in the rental program will provide owners with a % of the gross revenues.

Involvement in the rental program is a good way for owners to offset a large portion of their maintenance costs says Aman.

Fact File: Aman at Porto Heli, Greece.

Owner / Developer: Dolphin Capital Investors (www.dolphinci.com)

REPORT

GREECE & CYPRUS

not offering any sort of discount

because of the troubles. Once people

see that this is a resort with a big

brand behind it and that the finances

are in place they understand that this

is a development of high calibre with

strong financial backing.”

The development is indicative of

how things might go in Greece for

the next few years because it is a

very high profile, major investment.

And for Katopis, the key to Greece’s

future is to move into the upmarket

sector where there are still buyers

“like international bankers” out there

willing to spend. Stay upmarket and

keep the faith she says. Indeed, the

country should concentrate on the

luxury end of things and forget the

pile it high, and sell it cheap model.

Porto Heli is

“Prices in Greece

will improve and we

expect resort prices

to increase when the

hotel opens”

getting interested potential buyers

from London, Russia and the Middle

East. The exclusive nature of the

resort is reflected in the marketing

and sales process, which is very low

key and handled in-house.

Another factor that will persuade

people to pay a premium for luxury

villas in a resort development,

according to Katopis, is that it

removes the hassle of building or

buying in Greece as an individual.

She said: “For €3m you could build

your own home just up the coast,

but a lot of people have been put off

because of the bureaucracy of dealing

with the Greek government.”

Other benefits include all the usual

perks of resort ownership, including

use of the hotel facilities and the

Aman beach club.

Asked if buyers could expect any

sort of return on their investment,

given the poor economic situation in

Greece, Katopis argues that “prices

in Greece will improve and once the

hotel is opened and we expect that

prices

will see a considerable increase

as experienced in previous Aman

resorts. For example, in the Turks

and Caicos and in our Thailand

developments, villas sold before

the hotel doubled in price when the

resort opened, and five to ten years

later were being sold for four times

the original price, so its good value

for money and a good investment.”

However, this is at odds with the

latest data from the country, which

shows house prices continuing to fall,

and transaction values plummeting

as well.

Aman Resorts are best known for

their work in Asian resort areas. The

Porto Heli Collection will be the first

Aman Resort in Europe to incorporate

villas for sale.

According to Katopis “The

Peloponnese region is pretty much The

Hampton’s of Greece. All the really

wealthy people have second homes

here, and it’s an understated and classy

destination close to nature. People

move from one house to the other

along the water and party on the nearby

islands. The daily activities

revolve around the water, and there are

small coves and protected bays.”

The resort is about a two-hour drive

from Athens. Katopis says that Aman

“chose the location because of its

proximity to Athens, and because the

area did not have a very good hotel and

had no opportunity to buy a good home

within a resort development.”

“We have amassed the largest land

bank in the area,’ she says, “and when

complete it will have a golf course, three

or four hotels as well as houses, lofts and

apartments and a ‘private’ beach.”

There are two projects for sale

at the moment currently under

development. A small development

of 11 seafront houses, with prices

starting at €2m is being sold off-

plan through the company’s in-house

sales team, with 2 completed and

one already sold. These villas will be

serviced by the hotel, but will not be

eligible for the rental pool. In addition

to this, the Aman Hotel is under

construction and is expected to open

in Spring 2012. And villas for sale

will be available to accompany the

hotel, designed as properties, which

the owners will be able to rent out.

No expense has been spared on

the scheme says Dolphin. It has

commissioned award-winning

architect Edward Tuttle to design the

development and local craftsmanship

and materials will be incorporated

wherever possible. The villas will

be offer elevated views out to the

sea and shaded bougainvillea timber

frame seating areas for mid-day

lounging. Each will have a terrace

next to its own private swimming

pool (some also featuring double

length lap pools.)

Opposite the scheme is the car-

free island of Spetses, famous for its

neoclassic mansions and horse-drawn

carriages.

All of the hotel facilities will be

available to owners, from a library to

a boutique shop, art gallery, gourmet

dining, tennis courts and an extensive

spa with six double treatment rooms.

Dolphin clearly hopes that style never

goes out of fashion and that the super-

rich will snap up Porto Heli for its

sense of place and all of its luxury

trimmings. Could it prove to be the

model for others in Greece and

Cyprus to follow?

“My money would go into mixed-use resorts in emerging hotspots like Sicily with its fantastic climate and beaches, Croatia and Montenegro for natural beauty and the way they attract Russian money, and high-end branded resorts.”Nick Turner,Vice President & Head of New Business Development for RCI /The Registry Collection: PAGE 7

“ADIT Invest 2011 will shed more light on the international investor experience and prove correct those who refer to Brazil’s current condition as the country’s Golden Age. Come to ADIT Invest 2011 and be introduced to the most reputable Brazilian companies in our real estate market today”Luiz Henrique Lessa, President of ADIT Brasil: PAGE 54

ON THE RECORD THIS MONTH...

| 3MAY 2011 | www.opp.org.uk ContentsCONTENTSAttractive commissions for agents, excellent, secure returns for investorsOur sales have increased each year for the last three years. If you’re looking for sellable product for todays investors consider market leading French leasebacks.

Unlike many companies who have struggled during the financial crisis Leapfrog Properties has taken advantage of this unique economic situation of low interest rates to present unique, highly attractive deals that are not only relatively easy to sell but also pay good commissions.

Leapfrog Properties are the market leader in sourcing safe and secure property investments in France which come with 9 or 11 year renewable commercial leases. Leaseback properties are residential serviced properties in highly sought after destinations in France such as the Alps, major cities and the south of France.

Why leasebacks are attracting investorsThese deals usually end up being cash-flow positive or having only a small amount to top-up each month using a capital repayment mortgage. This means that at the end of the mortgage term investors will end up with a property with no mortgage that will be worth significantly more than they paid for it usually by only investing a very small amount of money over the entire mortgage term. As such these leaseback investments are an excellent addition to a pension fund and help the client to build a property portfolio in a secure and hassle-free way.

The deals we put together generally have the following incentives for investors: - 100% finance (with rates from as little as 3.3% over 25 years) - VAT paid by the developer (19.6%) - All closing costs paid (worth around 6%) - Cash-back on completion (usually around 5% of the property price) NET guaranteed yields between 4 and 6% - Some weeks personal use/discounts available

For further information on becoming an agent please call us on +44 (0) 845 6066919 or email nick@leapfrog-properties.com

www.leapfrog-properties.com

p2-3_May.indd 3 28/4/11 12:40:37