"Off Market" Opportunity: The Next Big Thing on the Caribbean Coast A Real Estate Trend Alert special research report

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1 "Off Market" Opportunity: The Next Big Thing on the Caribbean Coast A Real Estate Trend Alert special research report written by Ronan McMahon July 2012

2 Off Market" Opportunity: The Next Big Thing on the Caribbean Coast Copyright International Living Publishing Ltd., Elysium House, Ballytruckle, Waterford, Ireland. All rights reserved. No part of this report may be reproduced by any means without the express written consent of the publisher. The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. Transparency is important to us. So you should know that properties and development projects detailed here may be clients of Pathfinder Ltd., a real estate advertising company managed by Ronan McMahon and Margaret Summerfield and published by International Living Publishing Ltd. Should you purchase a property from one of the developers or real estate brokers you read about, Pathfinder Ltd. may receive an advertising fee from developers and real estate agents mentioned in these pages and International Living Publishing Ltd. may receive a portion of that fee. Legal Notice: Any in-country resources (such as real estate agents, lawyers, title companies, tax specialists, etc ) mentioned in this report are for your reference and further research. Readers should investigate any resource you wish to work with before committing yourself and your money to that business. International Living receives no financial benefit from the resources mentioned unless noted.

3 "Off Market" Opportunity: The Next Big Thing on the Caribbean Coast Forget the crowded beaches of Cancun the best beaches in Mexico are hiding just 65 miles down the coast on the southern edge of Mexico's Riviera Maya. These deserted beaches dotted with coconut palm trees, populated by curious iguanas and sea birds, with azure blue water and total silence but for the roar of the surf cannot be matched for tranquility and natural beauty. The pristine stretch of white-powder beach at the Sian Ka'an Biosphere is considered the most secluded beach in Mexico. The Sian Ka'an Biosphere is a nature preserve just outside Tulum, a small town at the southernmost tip of Mexico's Riviera Maya. Surrounded by untamed jungle, ancient forest cities, the protected biosphere reserve, and the Caribbean Sea, Tulum's beaches boast the same sugar-white powder sand and sparkling blue Caribbean waters as the biosphere. Twelve minutes from Tulum and within the Gran Bahia Principe Resort, you will find the project called Tao. This deal has my attention because: Rental yields will likely be strong...occupancy also. Even at 50% occupancy you could cover property costs and still net 6%, leaving you to enjoy the property for the rest of the time. There is the prospect of strong capital appreciation. Values could be 30% (or more) higher within two years. Mexico's Riviera Maya runs south of Cancun to Tulum. The sand is white...and the water, turquoise. The rich jungle interior reveals Mayan ruins and exotic wildlife. Offshore, the world's second-longest coral reef, teeming with brightly-colored tropical fish, hugs the coastline. Sterile, it ain't. This region is rich in culture and history. For Mayan archaeology at its best, head to the ruins at Chichen Itza and Tulum. Eco-buffs can check out the biosphere at Sian Ka'an, or sample Xcaret's mix of water sports and eco-park. The coral reef offshore attracts divers and snorkelers. Golf, hiking, pot holing in ancient caves...it's all here. Playa del Carmen, the jewel in the Riviera Maya, was a small village, with packed sand streets. In the last 10 years, it rapidly shed those fishing village roots, becoming a hip beach town. The streets are paved or cobbled now, and the stores more up market. The main street, 5th Avenue, is a cool place to hang out in the evenings. The restaurants and cafes serve everything from traditional Mexican to Thai food. The shops sell a mix of luxury goods, handcrafts, jewelry and textiles.

4 You won't see faceless chain hotels or mega-malls on Playa's streets. Instead, you'll find chic boutique hotels, and small family-run stores selling ornate silver jewelry, and locally produced earthenware and crafts. You can listen to live jazz over brunch at one of the beachfront restaurants, or just doze in front of a chilled out beach bar at sunset. Playa del Carmen has come a long way from a couple of dirt streets. If you bought here 10 years ago, you did well. Today, you will pay up to $600,000 for a 1,000-square-foot condo in Playa del Carmen. That's why now is the time to find the next Playa del Carmen. Tulum is 40 minutes south of Playa. Today Tulum is like Playa del Carmen was 10 years ago. Tulum is, and will stay, boutique. This is where you'll come for a yoga retreat, to learn a new skill, or just chill. The Sian Ka'an biosphere means that much of the land is protected. Development will be low rise, and low density (where permitted). Less than two hours on a modern highway from Cancun's international airport, Tulum is already easily accessible. A new fly-over road system at Playa del Carmen makes Tulum even more accessible to Cancun airport. Of course, getting to Tulum could become even easier if plans for an airport in Tulum get the go-ahead. Once open the airport will accommodate 3 million visitors. Tao and the Gran Bahia Principe Resort are 15 minutes away from the site for the proposed new airport. This stunning resort boasts all the amenities you would expect from a resort of this quality and size including 2,700 hotel rooms, 11 gourmet restaurants and 21 bars. The Robert Trent Jones golf course is truly world class. This is cenote country. These natural wells have mythical associations for the Mayan people. Dotted throughout the course, Robert Trent Jones made the most of these mythical formations. The new 7,600-square-meter clubhouse has amenities including tennis courts, a spa, and restaurants overlooking the cenotes and the golf course. A shuttle bus takes you to and from the beach and main hotel amenities every 10 minutes. Residents and visitors have full use of the entire resorts amenities...restaurants, the beach, the medical center, and the shops. The golf course is world class. It weaves its way through natural limestone rock outcrops and thick jungle. Gran Bahia Principe is owned by Spanish company, Grupo Pinero. They also own Europe's second biggest travel agency Soltour, which sells and runs 2.5 million vacations every year. They also own 18 other five-star resorts. This group is strong and solid. They have invested tens of millions in the golf course and infrastructure in this part of the resort. You can see the quality and the investment.

5 We don't need to rely on the developer's promises to build the roads or infrastructure. It's already there. Construction and investment has been to the highest standard so it will stay there for a very long time. Benjamin Beja is the man behind this project. He's a serial developer and entrepreneur. He studied law in Mexico before completing Harvard's prestigious MBA program. Over the last 10 years, he has sold and/or developed more than 1,000 homes (mostly targeted at the North American market) in Mexico City, Puerto Vallarta, Riviera Nayarit, and Riviera Maya. He has brought this experience together in his new project at Tao. Benjamin's vision for Tao is a community where residents will engage with their neighbors and stay mentally and physically active. Construction and fit out standards won't be compromised but the price point will be kept affordable. The center piece of the Tao project is the Tao Wellness Center which opened in April This is the most peaceful and enchanting place in all of Tao. At the Tao Center residents can do yoga and Pilates on specially constructed glass platforms over caves...swim in the lap pools that weave their way through Tao... work out in the gym. A full time nutritionist will be onsite to help if you need to shave a couple of inches off your waist line or just increase energy levels. In the evenings there will be cooking lessons. The Tao Center will be as much about keeping your mind in shape as keeping your body in shape. Classes, activities, and guest speakers will see to that along with Dr. Jonathan Ellerby, the CEO of the Tao Center (and formerly the Spiritual Director for Canyon Ranch). The Gran Bahia Principe Resort is dotted with multi-million dollar homes. The finishes and materials are high-end. At Tao you won't sacrifice any of this luxury. Your home will cost a fraction of the price your neighbors have paid. Smaller homes, higher density, and clever use of outside space have allowed Benjamin to do this without sacrificing on high-end finishes. You don't have to worry about maintenance of the communal gardens. This is all taken care of. You can just lock the door and leave...hassle-free. Perfect for simplifying your life without compromising on those comforts! Benjamin has nailed the concept. Today's buyer is looking for something more. They expect their dollars to go further without sacrificing on quality. They want to have flexibility to travel and earn rental income when they aren't using their home. An Income Opportunity Right now, there is a shortage of rentals in the Gran Bahia Principe resort...a shortage even before the new airport lands 3 million visitors a year in the area. This resort is operating at 96% occupancy this year. That s nearly 3,000 rooms filled every night. The resort frequently has overflow. Many visitors to the resort who currently stay in one of the hotels would prefer the privacy and flexibility of a condo. For family or friends traveling together, a condo will be more

6 cost effective. Rent one of these condos and you will still have all the resort amenities on your doorstep. I ran some numbers... Rent your condo 50% of the time at pretty conservative nightly rates* and pay your management company 30% off the top, pay your condo fees and you would net in the region of 6%. I believe occupancy of substantially higher than 50% is achievable here. * Nightly rates: $110 for June-September $140 for March, May, and November $180 for January, February, and April $250 for December. The Prospect for Capital Appreciation This area is seriously on the up and I consider this to be the best opportunity in this area. I expect prices to rise rapidly as these units are released. Last year, members of our group bought condos at the neighboring condo hotel in the same resort for $199,000. Ten months later similar units were selling for $249,000. This is a similar early-in type deal (although the condos on offer now garden condos are smaller than the example I just gave). Benjamin is using our group to build sales momentum. In return we get special pricing and terms. Once these units go on general release prices will begin rising rapidly. I won t be surprised if values are 30% (or more) higher two years from now. RETA Members-only deal: Tao Condos Condo pricing starts from $182,000. You can buy here with as little as $30,000 down, and take advantage of developer financing, with monthly payments from $995. In addition, RETA members get two special bonuses: A 10-year membership to the Tao wellness center (a $15,000 value) Free appliance package (five items) or a $5,000 discount What Do You Do Now? Benjamin's team is standing by to send you a full information pack (including floor plans and renderings) and answer any questions you may have. reta@taoinspiredliving.com. The team will be delighted to schedule a one-on-one conversation to talk you through the opportunity. I strongly urge you to get in touch today. A Personal Invitation From Benjamin Visit and see this opportunity with your own eyes and meet the team behind the project. Benjamin believes in his project. He's willing to put his money where his mouth is. He asked me to pass on to you an invitation to visit the property for a weekend all expenses paid. This is a RETA members-only VIP Chill Invite.

7 Just get to the Cancun airport, and Benjamin will take care of the rest...not only the logistics, but he'll also pick up the tab. Remember, all you are risking is a weekend of your time along the stunning Riviera Maya and an airfare. This is an exclusive invite extended to members of Real Estate Trend Alert. Contact the Tao team (reta@taoinspiredliving.com) today to find out more about the memberonly price, terms, and Chill Weekend offer. Visit and see for yourself. You'll have a great time. I know I did when I went on one of these trips with your fellow RETA members.

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