AIR GRAND PARADISE RESORT - INVESTMENT OPPORTUNITIES...

AirGrandParadiseResortSanur–Bali-Indonesia

Proposal

BY

Weturnyourdreamsandvisionsintolife.

Bali,knownasthelandoftheGods,describedassimplytheworld’sbestisland,enjoysanenviablereputation as one of the world’s most luxurious retreat destinations through its sheer naturalbeautyofloomingvolcanoesandlushterracedricefieldscombinedwithitsgolden,sundrenchedsandybeachesandlocalBalineseartisanculture,thatexudepeaceandserenity.

TraditionaldanceLegongBalinese

BalineseRiceTerraces


Baliwasastartingpointduring2016for4.9millionglobaltravelers,7.1millionIndonesiantourists,spendingUS$110trillionandwhoareconsistentlyreturning.Ofthe4.9millionglobaltravelers,thelargestwasAustralianwith1.1millionvisitors,followedbyEurope,China,America,JapanandIndia.ThefollowingchartswereextractedfromtheJanuary-July2017chartofactualforeigntouristarrivals.(BaliGovernment

TourismOfficewebsitehttp://www.disparda.baliprov.go.id/en/Statistics2)

JAN FEB MAR APR MAY JUNE JULY TOTAL

%

EXCLUDING ASEAN 315,095 312,384 258,056 281,756 281,924 325,555 366,360 2,141,130 62.91

Australian 91,515 90,058 80,540 90,068 84,203 100,354 106,777 643,515 18.91

Indian 17,520 17,386 17,571 18,444 27,232 31,574 25,534 155,261 4.56

Japanese 17,184 17,056 23,629 16,250 16,957 20,989 24,463 136,528 4.01

South Korean 14,652 14,429 10,958 15,443 14,601 17,065 19,382 106,530 3.13

Chinese 147,928 147,931 100,280 113,925 106,169 121,619 155,035 892,887 26.24

New Zealand 4,299 4,234 4,972 6,496 7,474 9,108 11,808 48,391 1.42

Taiwanese 12,055 11,847 11,964 11,043 13,121 13,911 11,179 85,120 2.50

ASEAN 30,041 29,598 38,608 39,277 38,021 43,600 33,126 252,271 7.41

Malaysian 12,134 12,107 15,186 13,882 14,183 16,518 12,437 96,447 2.83

Philipine 4,372 4,121 4,329 5,745 5,466 5,184 4,708 33,925 1.00

Singaporean 8,858 8,842 13,865 11,017 10,145 16,133 8,957 77,817 2.29

AFRICA 2,086 2,094 2,100 4,092 4,219 2,885 4,458 21,934 0.64

South African 1,331 1,304 1,299 2,832 1,711 2,180 2,659 13,316 0.39

AMERICA 25,113 24,409 27,925 30,077 40,099 28,292 28,848 204,763 6.02

American 14,704 14,442 16,381 18,484 15,628 19,030 19,192 117,861 3.46

Canadian 5,353 5,099 5,863 5,735 10,087 4,265 5,019 41,421 1.22

EUROPE 81,537 78,744 88,329 109,968 100,643 98,411 147,507 705,139 20.72

Dutch 6,960 6,546 5,707 8,874 7,367 7,417 16,739 59,610 1.75

British 14,373 14,003 17,357 23,732 20,857 23,091 24,257 137,670 4.05

German 7,981 7,435 13,754 15,377 14,089 15,286 18,388 92,310 2.71

French 7,570 7,243 10,189 16,316 14,999 12,950 25,294 94,561 2.78

Russian 12,427 12,121 8,304 7,529 5,652 5,598 5,831 57,462 1.69

Middle East 4,361 4,167 7,192 4,024 5,495 3,507 7,065 35,811 1.05

Other Nationalities 2,591 2,589 3,289 8,270 18,975 1,891 4,682 42,287 1.24

TOTAL 460,824 453,985 425,499 477,464 489,376 504,141 592,046 3,403,335 100.00


Thenumberofforeigndirectarrivalin2017increase23,50%comparedtothatof2016

THE BEST 20 DIRECT FOREIGN TOURIST ARRIVALS TO BALI

IN JANUARY - JULY 2017

NATIONALITY R 2016 SHARE (%) R 2017 +/- (%) SHARE (%)

TOTAL 2,448,162 2,951,089 20.54

307,677 452,246 46.99

TOTAL ARRIVAL 2,755,839 3,403,335 23.50

CHINESE II 566,447 20.55 I 892,887 57.63 26.24

AUSTRALIAN I 649,237 23.56 II 643,515 -0.88 18.91

INDIAN V 107,627 3.91 III 155,261 44.26 4.56

BRITISH IV 120,757 4.38 IV 137,670 14.01 4.05

JAPANESE III 127,569 4.63 V 136,528 7.02 4.01

AMERICAN VII 98,709 3.58 VI 117,861 19.40 3.46

SOUTH KOREAN IX 85,469 3.10 VII 106,530 24.64 3.13

MALAYSIAN VI 102,278 3.71 VIII 96,447 -5.70 2.83

FRENCH VIII 89,267 3.24 IX 94,561 5.93 2.78

GERMAN XI 77,824 2.82 X 92,310 18.61 2.71

TAIWANESE XII 77,790 2.82 XI 85,120 9.42 2.50

SINGAPOREAN X 78,084 2.83 XII 77,817 -0.34 2.29

DUTCH XIII 55,854 2.03 XIII 59,610 6.72 1.75

RUSSIAN XV 35,254 1.28 XIV 57,462 62.99 1.69

NEW ZEALAND XIV 47,240 1.71 XV 48,391 2.44 1.42

CANADIAN XVI 32,308 1.17 XVI 41,421 28.21 1.22

PHILIPINE XVII 27,391 0.99 XVII 33,925 23.85 1.00

HONGKONG XVIII 26,316 0.95 XVIII 25,327 -3.76 0.74

SWISS XIX 22,049 0.80 XIX 24,746 12.23 0.73

SWEDISH XX 20,692 0.75 XX 23,700 14.54 0.70

88.84 86.71

11.16 13.29

100.00 100.00OTHER NATIONALITIES

Foreign tourist Jan - July 2016 JAN FEB MAR APR MAY JUNE JULY TOTAL

2016 TOURISTS 350,592 375,744 364,113 380,767 394,557 405,835 484,231 2,755,839

2017 TOURISTS 460,824 453,985 425,499 477,464 489,376 504,141 592,046 3,403,335

+ (%) 31.44 20.82 16.86 25.40 24.03 24.22 22.27


TourismtoBali-TheIndonesianGovernmentaimstodoubletourismby2020:

• RemovalofVisaRestrictions(Alreadydone.)• IncreasingmarketingbudgetfortourismtoUS$75million.• Secondrunwaytocurrentairport.• Tosupportcontinuedgrowthinairtraffic,thegovernmentisinaprocessofderegulationto

makeiteasierforairlinestoaddmoreflightsinandoutofBali.• TheMinistryofTourismwantstravelagentstocomeupwith10newpackagetoursthat

theywillcallthe"NewBali’s"inordertoenticeinternationaltouriststovisittoBali.

NgurahRaiAirportBali:OneoftheWorld’sBestAirports

ItisnamedafterIGustiNgurahRai,anationalBalineseherowhodiedonthe20thofNovember1946inapuputanagainsttheDutch.


Touristareas-Bali–Indonesia

OntheislandofBalithereareseveraldistincttouristareas,wheretouristsstay,mostnotablyKutaarea,includingLegianandtheSeminyak,NusaDuaareaincludingthenearbyJimbaranBay(Airportonmap),SanurandUbud..

OftheforeigntouriststhatcometoBalieachyear,itisestimatedthat50%staywithintheKutaarea,25%withintheNusaDuaarea,15%Sanur/SanurBeachareaandtheremaining10%staywithinUbudandalltheothertouristlocations.DenpasaristhecapitalcityofBaliandSanurfallswithinitsvicinity.


Sanur,Bali’searliestbeachresort.

ThewatersofSanurareprotectedbyalongstringofoffshorereefs,creatinglarge,warmshallow,safelagoonsthatareperfectlyclearandexcellentforswimming,snorkelingandawholearrayofwater sports. Surferswill bepleased to know that the reefs aroundSanurproduce someof thebestwaves in theworld in the right conditionswhere there are reasonable breaks about 1 kmoffshoreduringthenorthwestwindseason(aboutOctober-March).Inthatperiodyouwillhavenoproblemlocatingthebreaks-justfollowthelocals.

Sanur is also the launching pad for visitorswhowant to dive and explore the splendors of thenearbyislandofNusaLembongan,themuchthelargerNusaPenidaandtinyNusaCeningan.

Manyareasaroundthe islandaregoodfordivingandsnorkeling,withabundantmarine lifeandhealthycorals.Surfingcangetabitcrowded,butthewavesaregood.Thereareseveralwhitesandbeachesawayfromthemaincentreswhicharevirtuallynevercrowded.

AsaplacewheretourismfirstflourishedinBali,SanurhassomeofBalis’historichotels.Therearealsonumerousrestaurantsandcafesalongitssandycoastline.

Sanur's splendidpavedbeachfront cycle-path stretches some5 km from JalanMertasari area insouthSanur,northtothemainbeachatJalanHangtuah.Thismakesforalovelyscenicbikeride,especiallyintheearlymorning.ThemoreactivecouldtryoneormoreofthemanywatersportsonofferatSanurBeachlikekitesurfing,windsurfing,wakeboarding,surfingorparagliding.Forthoselessactive,hireabananaboatandhitthecalmwaters.

GettingAround

JalanDanauTamblingan,themainstreetinSanur,hasanumberofoutletsforcar,motorbikeandbicyclerental.Alargenumberofmeteredtaxispatrolthestreetslookingforpassengerstogetherwithlocalbemosrunregularityupanddownthemainstreetareas.Sanurisalsoagreatplacetowalk.Distancesarenotfar,thestreetsarerelativelyquiet,comparedtothehustleandbustleofKutaandthereisasplendid,pavedbeachfrontpathwhichrunsthewholelengthofthedistrict.

BaliMandaraTollRoadwhichisjustsouthofSanuristheofficialnameofthefirsttollroadinBali,anditisalsothefirsttollroadinIndonesiabuiltacrossanocean.ItisuniquecomparedtoothertollroadsinIndonesiaasitalsoaccommodatesmotorbikeswithadedicatedlane.The12,7kmroadconnectsBenoaHarbour/NusaDua,NgurahRaiairportandJimbaranBaytoSanurmakingtravellingtotheseplacesveryquickandeasy.Themotorvehiclefareforusingthetollroadis11,000rupiah(US$0.84)


Sanur,thefamousfishingvillage(Onlythelocalsareallowedtofishcommercially)maintainsmostofitscharmandcontinuestoattractrepeatvisitors,especiallyfromAustralia,ChinaandEurope.

Sanur/SanurBeach-Relax,eatandshopping.

ThehotelsandvillasinSanurrangefrombudgetto5starluxuryandallowformorethanaplacetoeat,sleepandplayonBali’sfamoussundrenchedcoast,theyareirresistiblyinterwovenwithadiversemixofrestaurants,shops,bars,andanassortmentofinnovative,modernentertainmentvenues.


DevelopmentopportunitiesSanurBeach

Baliaresortdestinationthatappealstomanyseekinganescapefromtheworld’sstressfullifestyle.Peoplegenerallycometorelax,unwindandrechargetheirbatteries.TouristareaslikeKuta,withitshustleandbustle,NusaDuaanditsself-containedresortlifestylehavemanylargeparcelsofnewundevelopedland,unlikeexclusiveSanur,whichhasverylittleavailablelandandnegligibleopportunityforbeachfrontdevelopments,withonlytwonewbeachfrontdevelopments,theMayaResortandtheFairmontbeingbuiltinthelastfiveyears.

MayaSanurResortandSpa

Extractedfromtheirofficialwebsite“YourdaysatMayaSanurResort&Spaarefilledwithmagicalmoments.Fromyouridylliclocationbythewhitesandbeach.Starteachmorningwithcomplimentaryyogaatourmodernair-conditionedstudio.Takealeisurelyafternoonstrollorbicycleridealongthecoastalbeachboardwalk”


ThefollowingtableisextractedfromColliersInternationalQuarterlyreportBALIHOTELQ22016anddistinctlydemonstrateshowfewnewdevelopmentsarebeingplannedfortheexclusiveSanurarea.Theother regionscontinueto increasehotelconstruction, increasingcompetitionbetweenthemselvesthatmayresultintheoverallhoteloccupancyratesdeclining.

Hotel Name Starred Rating

Str Chain Scale Rate

Location Region Rooms Project Status

Projected Completion Time

Priemier Inn Hotel Benoa

3-star Economy Class

Jl. Pramata Tanjung Benoa

Tanjung Benoa 200 Deferred 2017

Harris Resort Benoa Bali

4-star Upscale Class Benoa Tanjung Benoa 275 Under Construction

Q1 2017

Grand Summit Pecatu

4-star Not Defined Yet

Pecatu Jimbaran 388 Under Construction

2017

Raddison BLU Bali Uluwatu

4-star Upper Midscale Class

Uluwatu Uluwatu 125 Under Construction

2017

Ramada Encore Bali Uluwatu

4-star Midscale Class

Uluwatu Jimbaran 200 Under construction

2017

Swiss-Belresort Kuta, Legian


Kuta Kuta 278 Under construction

2017

Andaz Hotel Bali formally Hyatt resort

5-star Luxury Class Jl. Danau Tamblingan

Sanur 144 Redevelopment o/exiting site

2017

There are an additional 22 Hotels and Villas earmarked for construction during 2017, none of which are within the Sanur area..





Aloft Bali Ubud 4-star Upscale Class Desa Padang

Ubud 148 DESIGN STAGE

2018

Four Points by Sheraton Bali Ubud

4-star Upscale Class Desa Payogan

Ubud 105 DESIGN STAGE

2018

Love Fashion Hotel


Seminyak Seminyak 250 CONCEPT STAGE

2018

Grand Orange Pandawa Beach


Pandawa Beach

Jimbaran 129 CONCEPT STAGE

2018

Langham Place Hotel

5-star Luxury Class Ungasan, Uluwatu

Jimbaran 117 DESIGN STAGE

2018

There are an additional 15 plus Hotels and Resorts earmarked for construction during

2018, none of which are within the Sanur area.





Bugatti Bali Villas and Resorts

5-star Luxury Class Pecatu Indah

Jimbaran 397 Deferred 2019

Yoo collection Zalakka Hotel


Lepang Beach

Lepang 175 Post Tender 2019

Edition Hotel & Residesidences

5-star Luxury Class Balangan Beach

Jimbaran 250 CONCEPT STAGE

2019

Seven Palm Bali Resort


Jl. Uluwatu Uluwatu 120 Deferred 2019

Satoria Resort Hotel Bali


Dreamland Beach

Badung 200 Permit Process 2019

There are an additional 6 plus Hotels and Resorts earmarked for construction during 2019, none of which are within the Sanur area.


PMA. AIR BLUE INT’L has been extremely fortuitous to have not only located a beach frontageparcel of land (“La Taverna Hotel”) in the heart of Sanur Beach, but one that also extendsthroughto thebusiest tourist street inSanur. Withbothbeach(pavedbeachfront)/mainstreet(JalanDanauTamblingan)frontageparceloflanditistrulyrare,uniqueandis127.5AREinsize(anARE is 100 sqm),onwhich the“AirGrandParadise Resort” is tobuilt. A4plus (Uppermiddleclass)with5staramenitiesHotel, (Apartment/Lagoon)/VillaResort,with tworestaurants,SportsBar and Nightclub, Rooftop Sky-lounge, Wellbeing Spa, 24 hour members only Gym,conference/weddingfacilities,andaKidsclub.

Google Map - Proposed site - Air Grand Paradise


WhatmakestheAirGrandParadiseResortdevelopment,unique?:

Weareproudtodeveloparesortthatwill,onceagain,raisethebarforhospitalityintheregionandcontributetothegrowthoftourisminIndonesia.

• Firstresort,combiningHotelroomswith(Apartments/Lagoon)andVillastobebuiltinSanur.

• FirsttwostoryresortRestaurantwithapavedbeachfrontage.(FreshBBQseafood)• FirstresortwithitsownSportsBarandNightclubwithnightlylivemusic.(mainstreet

frontage,JalanDanauTamblingan)• FirstresortwithaSky-LoungeandRooftopPool.(Wood-firedpizzaoven)• Firstresortswitha24hourGymfreetoguestsandalsoopentothepublic(membersonly).• FirstresortwithatwostoryWellbeingSpa.

##Booking.com–Sanur-Usedthefollowingsearchcriteriaforper(Breakfastincluded,Beach,4

star,Beachfront,24hourreception,Beachaccess,FitnessCentrespaandwellnessCentre)

ResultSanuris98%unavailableforthefiltersyouusedonoursite.Haveyouconsideredstayingnearby?

ArchitectsimpressionAirGrandParadise


ArchitectsimpressionAirGrandParadiseInteriors

ArchitectsimpressionAirGrandParadiseInteriors(GymandSpa)

ArchitectsimpressionAirGrandParadiseInteriors(SpaRooms)


5starfacilitiesbeingenvisagedfortheAirGrandParadiseResort

Swimmingpool/FreeWi-Fi/Beachfront/Airportshuttle(extrachargeapplies)/Privateoutdoorpool–villas/Familyrooms-(Apartments/Lagoon)/villas/Tea/coffeemakerinallroomsSportsbarandclub/Breakfastisserved.

General• Shuttleservice• Airportshuttle(additional

charge)• Airconditioning• Non-smokingthroughout• Wake-upservice• Hardwood/Parquetfloors• Tile/Marblefloor• Privateentrance• Safetydepositbox• Inroomsafe• Lifts(x4)• VIProomfacilities• Familyrooms• Freecribinfantbed(on

request)• Rollawaybeds(onrequest/

additionalcharge)• Barber/beautyshop• Facilitiesfordisabledguests• AllNon-smokingrooms• Newspapersinlobby(Free)• SafetyDepositBox• Roomservice24hour

(additionalsurcharge)

View

• Poolview• Gardenview• Seaview• View

Languagesspoken

• Indonesian• English• Chinese• Japanese• Korean

Pets

Petsarenotallowed

Receptionservices

• Conciergeservice• 24-hourfrontdesk• ATM/cashmachineon

site• Tourdesk• Currencyexchange

Businessfacilities

• Fax/photocopying(additionalcharge)

• Businesscentre(Additionalcharge)

• Meeting/banquetfacilities(additionalcharge)

Accessibility

• Wheelchairaccess• Upperfloorsaccessible

bystairsandlifts

InternetFree!!!

Wi-Fiisavailableinallareasandisfreeofcharge

ParkingFree!!

Freepublicparkingispossibleonsite(reservationisnotoftenneeded)

• Securebasementparking

Activities

• Beach

(Thefollowingactivitiesavailableatadditionalcharge)

• Tennisequipment• Kids'club• Watersportfacilities• Snorkeling• Diving• Cycling• Canoeing• Bicyclerental• Windsurfing• Golfcourse(1.6km)• Tenniscourt

CleaningservicesDailyHousekeepingTrouserpress(Free!)Ironingservice(additionalcharge)Iron/ironingboard(onrequest)

LaundryFacilities(additionalcharge)

Entertainmentandfamilyservices

• Indoorplayarea• Babysitting/child

services(additionalcharge)


LivingArea(Apartments/Lagoon)andVillas

• Diningarea• Sofa• SeatingArea• Individuallyfurnished

Kitchen

• Diningtable/chairs• Coffeemachine• Kitchenware• Dishwasher• Microwave• Refrigerator

Bathroom

• Toiletpaper• Linen• Towels• Slippers• Toilet• Freetoiletries• Bathrobe• Hairdryer• Villa-DeepSoakingBath• Shower–Rainfallshower

heads

Bedroom

• Wardrobe/Closet• Blackoutcurtains• PremiumBedding

Media&Technology

• LEDTV-42inch• VillaLEDTV50inch• CableChannels• SatelliteChannels• Telephone(Freelocalcalls)• IPoddockingstation• Villa/Apartment/lagoon

DVDPlayer

Outdoors

• Outdoorfurniture• Beachfront• Outdoordiningarea• Outdoorfurniture• Sky(rooftop)lounge• Privatebeacharea• Privatepool• BBQfacilities(additional

charge)• Balcony• Terrace• Garden

Food&Drink

• Fruits• Bottleofwater• Wine/champagne

(additionalcharge)• Kidmeals(additional

charge)• Specialdietmenus(on

request)• Snackbar• SportsBar• Rooftoplounge• woodfirepizza• Minibar• Restaurants(àlacarte

andbuffet)• Breakfast• Lunch• Dinner

PoolandFitnessandSpa

• Swimmingpool• Sunumbrellas• Sunloungersorbeach

chairs• RooftopPool• Pool/beachtowels• Outdoorpool• 24hourFitnesscentre• Memberonly-freeto

guests• KoreanSauna• Fitness/spalocker

rooms• Yogaclasses• Spaandwellbeing

centre(additionalchargesapply)

• Massage• Fullbodymassage• Couplesmassage• Footmassage• Backmassage• Spa/wellnesspackages• Jacuzzi• SpaFacilities• Bodyscrub• BodyTreatments• Hairstyling/

treatments• Haircut• Pedicurepolishand

shellac• Manicurepolishand

shellac• Makeupservices• BeautyServices


Bali’spopularlandmarkswithincloseproximitytoSanurThefollowingarethemostpopularlandmarkswithdistancestotheAirGrandParadiseresort.(PreviouslytheLaTavernahotel)

• SindhuMarket250m• LeMayeurMuseum1.5km• GrandBaliBeachGolfCourse1.6km• UdayanaUniversity6km• SanglaPublicHospital6km• SuryaHusadaHospitalDenpasar6km• SeranganTurtleIsland6km• BaliMuseum6km• KasihIbuHospitalDenpasar7km• BenoaHarbour8km• UbungBusStation9km• BaliMallGalleria10km• DewaRuciRoundabout10km• BajraSandhiMonument-PuputanParkRenon4km• AyungRiver4km• BaturMountain6km• BeratanLake8km

ClosestairportNgurahRaiInternationalAirport11km

BeratanLake-8kmfromResort


ProjectAirGrandParadiseStatus:

Thelandparcelhasbeenalreadynegotiatedonaleaseagreementof20millionRupiahperAREperyearfor32years(Firsttwoyearsfreeofchargewhilstunderconstruction)withanoptionofafurther20moreyears.Thepurchasepriceofthelandparcelis4,000millionRupiahperARE.

Includedintheleaseagreementforthelandparcelisitsclearancewhichisexpectedtotakeonemonthtocomplete,oncethelandparcelhasbeen“locked”

Tosecure(lock)thisrareanduniqueparcelofland:

• A10%depositoftheprojectedtotalcostisrequired.Atwhichpointallzoninganddevelopmentapplicationswillbesubmittedforapproval.Thisapprovalprocessisexpectedtotake3months.Thisshortperiodisachievedbyhavingtheappropriatecontactswithpeopleinthenecessarygovernmentdepartments.Ifforwhateverreason,unlikelyasitmaybe,theapplicationisrejectedallmoneyswithberefunded.

• Theclearingofthelandwilltakeplaceduringthisperiodandshallbeatthecostofthelandowner.

TheBuildCost&CompletionTime:

• Thefixedpriceddevelopmentcostofthebuildingandrefurbishingtheresorttoopeningstage,includingacontingencyamounttotals461,883,175,812Rupiahandshouldbecompletedwithin16monthsoftheactualconstructionworkcommencing.Thedetailsofthesecosting’sare:

Particulars Costs Rupiah TotalLandLeasingCostover30years(plus2yearsFOC) 76,500,000,000ConstructionCost(includingMechanical,Electrical,PlumbingandFurnishings.)Partoffixedprice/fixedtimecontract.

367,055,050,000

ProjectManagementFee:Paidforco-ordinationofdesign,buildingcontractandconstruction

1,275,000,000

Consultantsfeespaidto:Architects,Engineers,QuantitySurveyors,LandscapeConsultants

5,022,682,500

Survey/LTOFeespaidtosurveyor,lawyers&LandTitlesOffice

Included Project Management Fee

ContingencyAllowanceforBuildingCosts/softopening 11,265,443,312LandTax 765,000,000 TotalCost:Rupiah 461,883,175,812 TotalCostUS$(@rate13,125Rupiahto$US1) US$35,057,546

Professionals/Consultants

PMA.AIRBLUEINT’L.hasalreadyengagedtheservicesofanArchitect,BuildingConsultant,Notaris/lawyer,buildingcompanyCVInovasiTataLaras,QuantitySurveyor,ProjectManager,SiteManagerMEP(Mechanical,Electrical,Plumbing)andLogisticManager,MarketingConsultants.


Theproposeddrawdownofthetotalcostoftheproject(461,883,175,812Rupiah)isasfollows:

• 10%tosecurethelandparcel• 10%oncedevelopmentapprovalhasbeengranted• 20%onemonthafterdevelopmentapprovalhasbeengranted–commencementof

constructionbegins.• 5%startingonemonthafterthecommencementofconstruction• 5%perconsecutivemonth(x11)thereafteruntilthetotalcosthasbeendrawdown

Thesoft-openingoftheresortwillcommencewithin90daysofthelastdrawdownamount.

• MasterPlancompletedbyPMA.AIRBLUEINT’L.• ArchitecturaldesignscompletedbyrenownedlocalarchitectPutuMadiraNatha• Accordingtothezoningplannotes,forwholebuildings,themaximumheightwillbe15m

consistingoffourfloors.Basementcanbeconstructedandarenotrequiredtobeincludedincalculationsofdensity.

• Allarchitecturaldesignplans,engineering,mechanicalandtechnicalplans,willbeco-ordinatedbytheconstructioncompanyCVInovasiTataLaras.

• ConstructionCompanyProfile:• ThefollowinglistofhotelsarejustsomeoftheprojectsthatCVInovasiTataLarashas

constructed,andbecauseoftheirextensiveknowledgeinbuildingsimilar,hotelsandvillastheyhavebeenabletousethosebillsofquantity(Theactualworkingsforthecostoftheproject.)toextrapolateaveryaccurateforecastoftheexpectedbuildingcostsoftheresort.

HotelName StarredRating StrChainScaleRate Location Region Rooms

legongkeratonHotel 4-star UpperscaleClass canggu Kuta 80WhiteRoseHotel 4-star UpperscaleClass Legian Kuta 155ParkRegisHotel 4-star UpperscaleClass Kuta Kuta 175KarmaKandara 5-star LuxuryClass Uluwatu NusaDua 10ParkRegisHotel 4-star UpperscaleClass Kuta Kuta 185

Legong Keraton Hotel

Park Regis Hotel


PMA.AIRBLUEINT’L:

This company, established to take advantage of the enormous possibilities of developmentsprimarily in Bali. Its first development is the Air Grand Paradise Resort; the main individualscomprisingthiscompanyareasfollows:

StephenJohnEdwards,PresidentCommissars.Accountantwithover30yearsofseniormanagementandconsultancyexperiencewithinavarietyofindustriesincludingandnotlimitedtohospitality,(5starhotels)foodandbeverage,(restaurants,clubs,wineries,functioncentre’s)propertydevelopment(officeandwarehousing)andIT.(hardwareplanningandinstallation,softwaretraining.)ThisexperiencewasacquiredbothinAustraliaandtheUK.Stephen isutilisinghisextensivemanagementand financial knowledge to liaisebetween thevariouscontractorsinBaliandtheinvestor/stofacilitateasmoothandtransparentprocessduringthebuildingphase andwill be actively involved in theday to day operationof the finished resort, thus ensuringmaximumprofitsfromtradingareaccomplished.

MaryciaFrank,Commissars.

Upon completing her university degree in South Korea, incidentally funded by the Indonesiangovernment, Marycia began working for them and was subsequently posted to several overseascountries, including South Korea, Taiwan, China and the USA. This employment resulted in heracquiringextensiveknowledge intheworkingsofthe lackoftransparencyandcorporategovernancewithin the government of Indonesia and her local knowledge helping navigate these minefields isenormous.

MARYCIAhonedhermarketingskillswhilstattheVenetianHotel,Macauasmarketingmanager.

ShewasalsoownerofaconstructionandDevelopmentCompanywhichhasalsoenabledhertohaveanintimateknowledgeoftheproposedresortconstruction,process.

MaryciacurrentlyownsandoperatestheverysuccessfulIslandParadisespa,thoseskillsbeingbroughttotheresortswellbeingspa.

The skill sets that she provides ensues that best practice is achieved in all areas of the constructionprocessandeventualassistinginthedaytodaymanagementoftheresort.

TaufikHidayatKusbandono,Director.

TaufikhasbeenowneroftwoseparatecontractorcompaniesplusarestaurantinSeminyak,Bali.


At PMA. AIR BLUE INT’L we are confident you will find the most comprehensive, cost-effective andcompletesolutionbasedonourproposedAirGrandParadise resortproject. Wehaveassembleda teamcomposed of individuals with a solid combination of professional capabilities, knowledge and long termexperiencebackedbyextensiveresourcestomeettheseneeds.Ourteamwillsuccessfullydeliverasuperiorfinished resort that will justify your investment.We are confident that youwill witness our unwaveringcommitmenttoconsistentlygoaboveandbeyondwhatittakestogetthejobdone

PMA.AIRBLUE INT’Lwillcontinuetoberesponsiblefortheoperationoftheresortonce ithasofficiallyopened.Theywilloperatetheresortautonomously.Theywillpaytheinvestor/saninterestrateof10%perannum payable every 6 months and share the profit with the investor/s on a 34/66 percent basis, theinvestor/sshareistoheldintrustforaperiodof6years.

Fortheforecastofthetrading&profitabilityoftheResortwehaveusedourpreviousexperienceinResortoperationscombinedwithconsultationwithother4starplusand5starResortmanagementteamsinSanur,Bali.

BudgetingAssumptions:

• HotelRoom,Apartment/LagoonandVillaincomeisnetofthetravelagentcommissions,websiteAgentcommissions/feesandadvertiseddiscounts.

• Hotelroomnetrateswerecomparedto4starnetroomratesoflesserroomsizes.• Ourminimumroomsizeis40sqm,whilstthecomparablecompetitionminimumis32sqm.• Highseasonoccupancyminimum68%(182days)andlowseasonoccupancyminimum58%(183

days)• Lowseason(183days)anadditional15%deductedoffoftheincomeforextradiscounttoclients.• US$isused(rate13,125RupiahtoUS$1.00,September2017)asthisisrecognisedcurrencyfor

Hotels/ResortsetcinBaliandmakesforeasierinterpretationofthefigures.Allmoniespaidtotheinvestor/swillbeinRupiahandpayabletowhatevercurrencytheinvestorrequiresattheconversiondateofpayment.

• Tworestaurants,SportsBarandNightclub, RooftopSky-lounge,WellbeingSpa,24hourmembersonlyGymhasbeenforecastatagrossincomeof150,000,000Rupiah(US$11,428)perday.(Ourmaincompetitioninthenightclubfield(Casablanca)onaverageturnsover75,000,000Rupiah(US$5,714.)pernightwhilstourmaincompetitioninthesportsbarfield(BarbsBar),duringfootballseason,regularlyturnsover45,000,000Rupiah(US$3,429.)perday/night.

• Fourstarhotelsrecordedthehighestoccupancyrateaveraging78.16percent,followedbyfivestarthotelsaveraging77.31percent,onestarthotels64.96percent,threestarthotels58.55percentandtwostarhotelswithoccupancyratesaveraging56.31percent.Extractedfromarticle(http://www.antaranews.com/en/news/107283/hotel-occupancy-rates-increase-in-bali)forOctober2016,withtheofficialhoteloccupancyforthesameperiodcoveringall-starratedpropertieswas65.65%((BaliGovernmentTourismOfficewebsitehttp://www.disparda.baliprov.go.id/enStatistics2

• ***Thecostofsalesandoverheads,includingsalariesarebasedontheexpensesofa5starhotel,whichoperateat43%.

•


• Minimumwageiscalculatedasper40hoursperweek.TheseareregulatedonActNo13/2003

article77:undersubsection(2)asdescribedinfollowing:a.)7hoursadayand40hoursaweekfor6workdaysaweekorb.)8hoursadayand40hoursaweekfor5workdaysaweek.TheSalariesaremonthlypaidasshowninthechartbelow.

• TheIndonesianprovinceshavereleasedtheirminimumrequiredmonthlywagesfortheyear2017thesearecalledtheUMPIndonesiaandtheUMKBali.

• UMKstandsfor“UpahMinimumKabupaten/Kota”orRegency/CityMinimumWage.EveryprovincehasitsownregenciesforwhichBalihasnine.TheregenciesthatwearegovernedbyisDenpasar.

• TheUMPandUMKfortheyear2017arecalculatedbytheannualinflationandgrowthoftheeconomyandfor2017itisDenpasarRp2,173,000(US$166.00)(previouslyRp2,007,000–US$153.00)

Thesalariedpositionsidentifiedbelowandtheircorrespondingsalarieswereusedasaguideonlyasforourbudgetingpurposes.Weassumedastaffinglevelof280at100%occupancyincluding30traineejuniors

• R&Fortheso-calledRank&Filealiasstaff–• LevelDorSupervisor–• LevelCorAssistantManager–• LevelBorAssistantDept.HeadB–• LevelAorDept.HeadAaliasManager/HOD–• EXCOakaDirectorofRoom,DirectorofEngineering,etc.Butmanywhoservedwithsalaryandrank

asDept.Head–• EAMaliasAssistantGM–• GMorHotelManager

HotelClassification4/4+(plus)UMK/UMK+ US$equivalentsalaryPositionheld/salaryrangeRupiah1,000,000 rate13,125RupiahtoUS$1.00,September2017R&F+1.5–2.5Juta R&F+ US$114.00-US$190.00D2.8–4.5Juta D US$213.00-US$343.00C3.5–5.0Juta C US$267.00-US$380.00B4.5–8.0Juta B US$343.00-US$610.00A7.0–18Juta A US$534.00-US$1.372.00EAM10–20Juta EAM US$762.00-US$1,523.00GM20–45Juta GM US$1,523.00-US$3,428.00

ForourbudgetingpurposesthefollowingUS$rateshavebeenappliedtothevariouspositions.

HotelClassification4/4+(plus)UMK/UMK+ US$equivalentsalaryPositionheld/salaryrangeRupiah1,000,000 rate13,125RupiahtoUS$1.00,September2017Trainee-Junior US$190.00R&F+1.5–2.5Juta R&F+ US$350.00D2.8–4.5Juta D US$525.00C3.5–5.0Juta C US$775.00B4.5–8.0Juta B US$1,000.00A7.0–18Juta A US$1,750.00EAM10–20Juta EAM US$3,000.00GM20–45Juta GM US$6,000.00


ThefollowingistheprojectedprofitandLossstatementfortheAirGrandParadiseResortbasedontheassumptionsdetailedabove.

Theinvestor/sis/aretoreceiveinterestpaymentof10%oftheResortscostUS$35,057,546ofUS$3,505.754perannum.

Exitstrategyfortheinvestor/sis/aretoreceive66%ofthenetprofit(Netofallcostsandtaxesintoescrowaccount).Thismoneyistobeputintotrustfora6yearperiodforprinciplerepaymentastheexitstrategy.

Room Areasizesqm RoomSizesqm GroundFloor RoomRate 1stFloor RoomRate 2ndFloor RoomRate 3rdFloor RoomRate TotalRooms RoomRateRooms US$ Rooms US$ Rooms US$ Rooms US$ US$

DeluxRoom 40 4 4 4 4 16NoView 4 175.00$ 4 175.00$ 4 175.00$ 4 175.00$ 2,800.00$SuiteRoom 41 21 25 25 21 92GardenVAccess 11 245.00$ 2,695.00$GV 13 225.00$ 13 225.00$ 11 225.00$ 8,325.00$PoolVAccess 10 275.00$ 2,750.00$PV 12 250.00$ 12 250.00$ 10 250.00$ 8,500.00$JuniorSuiteRoom 45 2 2 2 2 8PV 2 300.00$ 600.00$PV/LagoonV 2 275.00$ 2 275.00$ 2 275.00$ 1,650.00$SuperiorRoom 61 4 4 4 4 16GV 2 375.00$ 2 350.00$ 2 350.00$ 2 350.00$ 2,850.00$PV 2 375.00$ 2 350.00$ 2 350.00$ 2 350.00$ 2,850.00$PremiumSuiteRoom 60 4 4 4 4 16PV 4 375.00$ 1,500.00$LV 4 375.00$ 1,500.00$ResortV 4 375.00$ 1,500.00$OceanV 4 400.00$ 1,600.00$RoyalSuiteRoomsAPT) 76 4 4 8Apartment 4 450.00$ 4 450.00$ 3,600.00$ExecutiveRooms(APT) 150 2 1 3Apartment 2 550.00$ 1 550.00$ 1,650.00$PresidentialSuiteRooms(APT) 750 1 1Apartment 1 1,500.00$ 1,500.00$Villa/(Apartment/Lagoon)SuiteVilla(1BR) 160 100 4 450.00$ 1,800.00$JuniorsuiteVilla 200 150 5 600.00$ 3,000.00$PremiumSuiteVilla 220 165 4 660.00$ 2,640.00$RoyalSuiteVilla 250 200 5 800.00$ 4,000.00$PresidentialSuiteVilla 580 350 2 1,400.00$ 2,800.00$Apparments/Lagoon 55 45 18 360.00$ 6,480.00$

occupancy 100% 68% 58% Total 66,590.00$

occupancy 100% 68% 58%66,590.00$ 45,281.20$ 38,622.20$

HighSeason(182days) 8,241,178.40$ -$LowSeason(183days) 7,067,862.60$Lowseason15%less (1,060,179.39)$

6,007,683.21$14,248,862$

Rest/baretc 11,428.00$ 4,171,220$totalincome 18,420,082$

cos53%includingTAX10% 9,762,643$

NetProfit 8,657,438$

Interest10%ofcapitalinvestment 35,057,546 (3,505,755)$subtotal 5,151,684$Taxpayable10% (515,168)$subtotal 4,636,515$

66% 34%3,060,100$ 1,576,415$


SCOPEOFWORK:

I. Stage1Pre-Opening:(AllCovered)

a. ConstructionConsultingb. Constructionc. ResortConceptd. ConceptualConsultinge. ServiceConcept(SOP)

II. Stage2

Soft-Opening :(Allcovered)a. RecruitmentProcessb. TrainingandDevelopmentc. HotelSoftOpening


IStage1

Pre-Opening:(AllCovered)aCONSTRUCTIONCONSULTING:

Studyingtheplans,PMA.AIRBLUEINT’Lwillensurethattheagreeddevelopmentiskeptonscheduleandwithinbudget.Toenableustodoso,thefollowingisourtemplate:

A. FeasibilityStudyofSitePlantoensureallplanningandlegalrequirementsaremet.B. FeasibilityStudyfortheplanneddevelopmentmeetsitsobjectiveofauniquelydesignedresort

thatbecomesafocalpointofresortsinSanurincludingthingsrelatedtoPrivacy,Customer comfort, Practical easeofuse, etc. (PriorBill ofmaterials for similarworksused tocalculatethisproject)

C. FeasibilityStudyforMechanical,Electrical,Plumbing(MEP)ensuringthatweavoiduncontrolledoperationalcost.

D. Feasibility Study of Material/Equipment which will be utilized in the construction will beinvestigatedbasedontheagreedstandardofthecompletedproject.

E. Estimating Approximate Operational Cost for the completed resort, which enables us toaccuratelyforecastoperatingbudgets.

bCONSTRUCTION:

Duringtheconstructionperiod,PMA.AIRBLUEINT’Lwillliaisewithyouastheinvestor/stheongoingprogressofthepropertybuildthusmeetingtherequirementsoftheplanswhichincludesthedesign,size,buildingmaterial,layoutofthefollowings:

1. GuestAreasIn-Hotel/(Apartment/Lagoon)/Villaamenitiesandfacilities;swimmingpool,bedroom&bathroom,living&diningareas,kitchen,landscape,furniture&fixtures,lighting,etc.

2. Public/CommonAreasIn-resortpublicfacilities;lobby/lounge,parkingarea,toilets,pathway,gardenetc.

3. Service/StaffAreasOffices,pantry,workingtools&equipment

cRESORTCONCEPT:It is necessary to startwith formulatingaphilosophy for theHotel/(Apartment/Lagoon)/VillaResort. Thisphilosophyshouldbecomethebasicsoulandcharacteristicconceptstageoftheprojectasthemainvitalelement that complements the whole concept. The target customers, focusing on and how the resortshouldbepositionedtonotonlycompeteeffectivelywithotherhotelsandvillasinSanurandwithhotelsinotherpartsofBali,butbecomethenewstandard.TheResortphilosophyisbasedonadeepandenduringloveof thenatural environment and goes alonghand in handwith thenature as the soul of theprojectofferedtoguests.OurcommitmentistofillthesoulwithlastingmemoriesofaTropicalHolidayExperience.Theexclusiveness,uniquenessandthestrivingforexcellenceistheadvantagetheresorthas.


dCONCEPTUALCONSULTING

PMA. AIR BLUE INT’Lwill provide the appropriate interior decorations, furniture, linen and amenities ofeachResortroomlayout,speciallydesignedbyourexpertsindevelopingresorts.ThefacilitiesofthewholeResort should reflect the philosophy adopted and with the natural environment surrounding the entirearea,thisblendofnatureisofgreatadvantage,especiallywithintheSanurareathatisheavilyinfluencedbytradition.

PMA.AIRBLUEINT’Lwillmaintainthatspecial‘look’,‘style’and‘soul’oftheResortthatisidenticaltothedesign.Thisdogmamaintainsconsistencythroughrulesandregulations.Forexample,therearenoplasticinanyform,anywhere;freshflowersinlocalpottery;andsimplewood,naturalfabricsandrecycledpaperareusedthroughouttheResort.PMA.AIRBLUEINT’Lhascreatedthenameoftheresort“AirGrandParadise”,designeditslogo,whichwillbeimplementedonallMarketingTools,i.e.Businesscards,flyersandbrochures,websites,etc.

eSERVICECONCEPT(S.O.P),Thistakesaspecialrecruitmentandtrainingprogramtomeetthelevelofservicestandardsrequiredfora4starplusResort.Itrequiresthebestpersonneltocoverallareasofservice–fromthemomenttheguestsarrivetotheirdepartureandbeyond,includingthefollowuponaregularbasis–fullcoordinationMUSTbeestablishedamongstalldepartments toensure thebest levelof service isdeliveredtoallguestssomeofwhichcomefromverydiversecultures.Serviceisanart,andrequiresspecialskillsandcontinualtrainingtomaintaintothehighstandardthatweaimtoimplementthroughouttheResort.

A. ImagingtheAirGrandParadiseResort:- CreatingthephilosophyoftheHotel/(Apartment/Lagoon)/VillaResort.- EnsuringthelogoisusedtomaximumbenefitastheresortinSanurthatisre-

settingthebenchmarkofexcellenceasstandardthroughoutBali.- DesigningthecooperateId,ie.BusinessCards,LetterHead,Envelope,etc.- PreparingPressRelease.- Creatingdesignflyersandbrochures(copywritinginclusive)- ReviewingWEBSITE,developingSearchEnginePromotingSystem.- CreatingPromotionSystemthrough“Newsletter“Software.- Preparingdesignall“SalesKit”.

B. OperationSetUp:- PreparationofadetailedPre–OpeningBudget.- PreparationofOperationalManualaspartoftheHotelSystemDevelopment(StandardOperationProcedure&Policy,House,Roles,etc.)- PreparingDepartmentalBudget.- InstallationofefficientinternalcontrolsystemaswellasaManagement

InformationSystem.


C. MarketingStatement:- BrandPositioning.- MarketandCompetitorAnalysis.(Alreadycompletedasrequiredforthe

budgetingforecast)- RateStructure(Publish,Web,TravelAgents.)- ROIProjection.- SalesCallandTravelAgentContracting.(Alreadycommenced,SAMARA

Hospitality)- PreparingPackageforMediaPromotion.

D. PropertySetUp:- MockUproomintermsofamenities,facilitiesandequipmentsoitwillbein

linewithourexpectedset-up.- PropertySetUp:Ensuretherightandspecificinteriordecorations,furniture,linenandamenitiesofeach

accommodationwiththeirproperlayout.Thefacilitiesoftheentireareaofthepropertyreflectthephilosophyadoptedandwiththenaturalenvironmentsurroundingtheentireareas,thisblendofnatureisagreatadvantage.

1. Hotel/(Apartment/Lagoon)/VillaAssessment&SetUp.2. CommonAreaAssessment&SetUp.3. BackOfHouseAssessment&SetUp.


II Stage2SOFT–Opening

PMA.AIRBLUEINT’Lshallhavefullandexclusiverightstoimplementitswholeconcepts,settings,designs,standardoperatingproceduresandthusmanagingtheResortbasedontheinitialResortconcept.a RECRUITMENTPROCESS:

- PreparingOrganizationChart.- PreparingRecruitmentSystem.- MaintainingBudget.- StaffHiringContracting.-

PMA.AIRBLUEINT’Lwillcreateanorganisationchartofthepropertiesrequirementtoadequatelyprepareforthenumberofstaffneededtoberecruited,theirlevel,gradingandremunerationpackage.Thesalariesofthedifferentpositionsarecoveredbythechartwithinthe“Budgetingassumptions”andthishasbeenusedforbudgetingpurposestogetherwithanticipatedemployeenumbersinallareas.TheResortoperating24/7requiringinmostareas2fullystaffedshiftsandathirdreducedstaffinglevelshift.

PMA.AIRBLUEINT’Lwillstartitsrecruitmentprocesswiththetoplevelofmanagement,thentomidmanagement,supervisorsandfinallytotherankandfilestaff,byprocessingapplications,backgroundchecks,interviewingeitherbyphoneorinpersontoselectthebestpossiblestafftowhichatrialperiodofemploymentwillbeoffered.Thisprocesstobegin4monthsbeforethesoftopeningforseniormanagementpositions

b TRAININGANDDEVELOPMENT:- DepartmentalTraining:

1. RoomDivision(Housekeeping,LobbyandMaintenance.)2. Food&BeverageDivision(Kitchen,BarandRestaurant.)3. FinancialControlandAccounting.4. Marketing,Sales&Reservation(IncludingConferencing/Weddings.)5. FrontofHouseandBackofHouse.6. Security.7. SpaWellbeing.8. Gym

PMA.AIRBLUEINT’LwillsetupDepartmentalTrainingtime’stableforalllevelsofthepropertybasedontheStandardOperationProcedureswiththeaimthatallpersonnelunderstandthepolicy,objectiveanddetailsofeachtask.

HOTELSOFTOPENING:

TrailRun:DuringPre–Openingstage,atrialrunwilltakeplaceengaging,frontofhouseandbackofhouse,administration,financialsystemswherewewillanalysetheweaknessaswellasthestrengthofthepre-launchoperation.WewillcorrecttheweaknessestoenableasmoothandefficientlaunchandeventualsuccessfulmanagementofoperatingtheResort

SoftOpeningPMA.AIRBLUEINT’L,inBalinesetradition,SoftOpeningsshouldstartwithaspiritualceremonytobalancethebusinesslifeandenliventheauraoftheproperty.


PMA.AIRBLUEINT’LManagementFeeduringPre–Opening&SoftOpeningProject

ManagementFeeduringPre–Opening&SoftOpeningProjectwillbe125,000,000Rupiahpermonth.PaymentduringtheprogressofPre–Opening&SoftOpeningProjectandwillbemonthlyandcanbetakenfromthecontingencyallowancewhichisalreadyincludedthetotalcostfortheproject.AllphasesinPre–Opening&SoftOpeningProjectwillbeaccomplishedapproximatelywithin16months.Mr.StephenJEdwardsForandonBehalfofPMA.AIRBLUEINT’L

*Contact:

-MrRickGebbing: +61407357108/[email protected]

-MrTriNguyen: +61420468888/[email protected]

AIR GRAND PARADISE RESORT - INVESTMENT OPPORTUNITIES...

Documents

Transcript of AIR GRAND PARADISE RESORT - INVESTMENT OPPORTUNITIES...