Ebrochure Caponga

F o r t a l e z a - B r a z i l

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IntroductionThe Caponga Beach Resort is located

30 minutes south of the buzzing city of

Fortaleza in the North East of Brazil - the

“Land of the Sun”, just a few degrees

under the equator and enjoying year-

round sunshine and hundreds of

kilometres of the best beaches in the

world.

Caponga is a beautiful working fishing

village with a bustling harbour and

promenade, bordered by white, dreamy

beaches that stretch as far as the eye

can see. The town has several hotels

and shops and is a favourite location

for Fortaleza visitors and residents alike.

Caponga Beach Resort offers a choice of

opportunities ranging from the purchase

of single plots for resale or construction,

through to full development blocks

for constructing apartments and villa

condominiums.

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facts ÑÑÑÑÑ

This development is

fully completed with

infrastructure and

utilities, and comes

with full planning

licenses and legal

due diligence reports.

contents

2

About Brazil 3

The Economy 4

Life in Brazil 5

Fortaleza - Ceará 6

Host of the World Cup 7

Caponga Beach 8

Summary 9

CAPONGA OPTIONS 10

Single Plots 11 Detached Villas 12 Development Blocks 13

Exit Routes 14

The Purchase Process 15

FAQ 16

Caponga Beach

House Type ‘A’ 125 m2

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“Brazil is the most irresistible of the BRICs”President – Bank of America

Brazil Brazil is the largest country in South

America (occupying half of the entire

continent), and the fifth largest

country in the world, approaching

a population of 200 million and an

incredible 75,00 kilometres of coastline

incorporating 700 kilometres of white

sandy beaches.

Originally a colony of Portugal, Brazil

gained its independence in 1882 and

is now a federal republic. The largest

cities in Brazil are Sao Paulo, Rio de

Janiero, Salvador, Brasilia (capital) and

Fortaleza.

There has always been a strong

European and international influence

in Brazil – in fact Rio de Janeiro was

the official capital of Portugal for 7

years during the Peninsular War. Today,

Brazil has the largest population of

Italians, Japanese, and Germans in the

world, outside of their own respective

countries. There are numerous direct

flights from Europe, America, and Asia.

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emerging economy

Brazil is the B in the phrase ‘BRIC Economies’, a term first coined by Goldman Sachs in their report into emerging countries, originally published in 2001.

In short this report predicted that the 4 emerging economies of the future - Brazil, Russia, India, and China - would increase so significantly in the years to come that they would eclipse the combined economies of the current richest countries in the world. Brazil has an abundance of iron ore, soy and oil which will take it into the top ranks of world superpowers. They also predicted a large move in individual wealth and in particular the middle classes.

To date, all of these predictions have come true.

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facts ÑÑÑÑÑ

All of these factors, coupled with low inflation and a stable currency, point to Brazil being the best opportunity in the global market-place today.

Economy Brazil has only been marginally affected

by the global economic crisis and it

will be one of only 5 economies in

the world that will increase in 2009,

with a projected trade Surplus of 25

billion dollars. The country continues

to grow posting a 5% GDP growth in

2008. As only 3% of residential housing

has a mortgage, house prices did not

explode at the same level as most other

countries, and the banking crisis had

little affect. Mortgages are now readily

available to residents in Brazil and all the

major world banks are in every major

city, which is a sign that the coming

years will see an unprecedented rise in

land and housing. To further cement

that growth, the region of Ceará (where

Caponga is located) already has a

shortfall of 200,000 houses, due mainly

to the increases in middle classes.

To further increase demand, the official

government figures for summer 2009

showed that tourism to the Fortaleza

area was up 17% from 2008 and tourism

spend was an incredible 40% up from

last season.

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A recent report showed that the middle classes of Brazil now represent 53% of the population, and that the number of millionaires is increasing at a rate of 19% per year.

Currently Brazil is the eighth largest economy in the world, with a GPD of 2 trillion Dollars, putting it ahead of Canada, India, and most European countries. As well as its exports of natural resources, Brazil leads in manufactured exports including planes, cars, and parts. It also holds the position of being the only country to host the main assembly plants of the world’s top 10 car manufacturers at the same time.

steady growth

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Fortaleza City

Life in Brazil Brazil offers one of the best lifestyles in the

world. We have watched it getting better

every year as the new middle classes evolve

and demand higher and higher standards of

infrastructure and quality housing, numerous

five-star hotels, new resorts, spas and golf

courses. The North-east of Brazil sits just a

few degrees under the equator and offers

basically 52 weeks per year of sunshine with

temperatures rarely moving more than a few

points above or below 30 degrees. They have

no natural disasters nor traditional seasons

there, just a few months when it rains for an

hour or so some days – then normally returns

to beautiful sunshine. Dawn and dusk are at

the same time every day.

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The cost of living in Brazil is approximately one-third of the cost in Europe (some reports say 25%). A beer typically costs around 60 cents (50 pence) a nice meal out at a restaurant costs around 6 euros (5 pounds), and construction costs around 340 Euros per square metre (30 pounds per Square feet) for very high residential European standards. For many imported ‘luxury’ items such as high-end cars and plasma TVs the prices are actually similar in Brazil as they are in Europe. Caponga Beach plots (with full infrastructure and planning completed) cost from as little as 10,000 Pounds, which is approximately 11% of the equivalent average European prices. Caponga Beach Plots would need to TREBLE in price just to bring them in line with the “one-third” rule.

loving the planet

In a recent survey 78% of

International Travellers to Brazil’s

North-east voted it the best climate

in the world. When you couple this

with 700 Kms of the finest white

beaches and the warmest and

friendliest people you’re ever likely

to meet, you can appreciate why

international tourism has increased

by over 140% in the last 10 years.

There are now international direct

flights from practically every corner

of the world.

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In the North-east of Brazil over 65% of all energy comes from

renewable resources (48% nationally and rising) mostly hydro-

electricity and bio-diesels, making it the world pioneers in

caring for the environment. In addition, over 80% of cars run on

ethanol/alcohol. Brazil does not rely on the import of foreign oil

and is now a significant exporter of Ethanol and bio-diesel fuels

to the rest of the world. Where many countries pay lip-service

to ‘going green’ (US produces just 6% of energy from renewable

resources), Brazil has actually made the changes and indeed

the President has recently committed to Brazil being the world’s

largest producer of renewable energy.

Aguas Belas

• Natal

Fortaleza

• Recife

• Salvador

• Sao Luis

BRAZIL

CEARÁ

Fortaleza - Ceará

Fortaleza is the State Capital of Ceará

in the North-east of Brazil at the closest

points to both Europe and USA. It is a

buzzing metropolis of 2.5 million people,

and enjoys direct flights from Europe

and America, as well as many daily

internal flights from Rio de Janeiro, Sao

Paulo, Recife, Natal, and all major cities

throughout the country. The daily flight

from Lisbon to Fortaleza takes about 61/2

hours.

The Beira Mar promenade in Fortaleza

(the Boardwalk), is 4 kms long and follows

various bays and glamorous beaches on

one side, and a plethora of top hotels and

high-rise luxury apartments on the other.

The whole area is alive and bustling from

6 o’clock in the morning, right through

until the late night street market closes.

Here, you’ll also find some of the finest and

most exclusive restaurants in Fortaleza.

As you wander along the Boardwalk you

can’t help but to absorb the intriguing

scenery, energy and sheer volume and

quality of the visitors packing the streets

and beaches.

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facts ÑÑÑÑÑThe daily flight from Lisbon to Fortaleza takes about 61/2 hours.

The North-east of Brazil is the target region for investment, international tourism and local holidays, with the best climate, beaches and quality of life...

location

The majority of Brazil’s wealthiest population is concentrated around the areas in the South, in and around Sao Paulo and Rio. Unlike the North-east, the south of Brazil has a different climate, and frequently experiences frost and even snow and ice during the winter months. As a result, approximately 3 million people come to Fortaleza for a holiday from within Brazil, making it the preferred destination for locals looking for a second home or an urban-beach break in the sun.

For those who want to party all night, Fortaleza has some of the best nightclubs and bars in Brazil, mostly concentrated around the Iracema area, whilst just outside the city centre is Beach Park, the largest water park in Brazil.

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vacation spot for locals

Fortaleza - Beira Mar

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Previous host cities to the World Cup saw huge rises in property prices

World Cup Fortaleza – Host of the World Cup 2014

FIFA recently announced that Fortaleza

would be a host city for the 2014

World Cup. This has been an amazing

boost for the city, and was followed

by the announcement from the Mayor

Cid Gomes that they have a budget

approval to spend 9.6 Billion Reais (over

3 billion pounds) on improvements

to the city on the run up to the World

Cup. This includes an expansion to the

airport – more than doubling its existing

capacity to 13 million passengers per

year, new roads and connections, and

a new underground metro system.

They also revealed the plans for the

construction of the continent’s largest

visitor Aquarium – which will be located

on Iracema Beach. Fortaleza’s famous

football stadium (Castelão), is also being

completely redesigned.

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Previous host cities to the World Cup saw huge rises in property prices including Athens, Barcelona, Sydney, and Atlanta where they outperformed the rest of the property market by an average of 20% per annum.

In some cases property soared even more and in Barcelona for example properties increased 49% more on the run-up to the World Cup than other Spanish Cities. Other smaller host cities have seen rises of over 110% as new transport links and infrastructure opened up the local property market to international investment.

football boom

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Iracema Beach - Fortaleza

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The word Caponga is an old aboriginal word (caá-Ponga), which would roughly translate as“the jungle tamed”

Caponga Beach

Caponga Beach Village Resort is located

about 30 mins (48 kms) south-east of

Fortaleza and most of the journey is on

a new double carriageway motorway.

It is a popular location for commuters

and visitors alike due to its easy access

and proximity to Fortaleza. There are

regular day-trips to Caponga organized

from Fortaleza where visitors can go for

a day out of the busy city and enjoy the

beautiful beaches, seafood restaurants

and tranquility of Caponga Beach.

There are currently at least 3 new

developments which have been granted

full planning in the area. Adjacent to

our Caponga Beach Resort, there is the

Aguas Belas Golf Resort and Spa – an

inspiring design with 2 5-star hotels

and spa, along with a beautiful winding

golf course with elevated views of the

sea and beaches. There is also a new

Caponga/Aguas harbour project and a

Beach Club Resort. All in all, there will

be approximately 5,000 new properties

(villas, townhouses, and apartments) in

Caponga over the coming years.

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The Caponga harbour and promenade are quaint and tidy and lead directly on to the beach where fisherman in their Jacandas (Brazilian fishing boats) unload their daily catches, and the local restaurants stock up for the lunchtime trade. Life is slow in Caponga, and the people are warm and friendly, and always keen to exchange smiles and greetings.

The town has everything it needs to keep the locals and visitors self-sufficient. Many bars, restaurants, and Posadas, a few grocery stores, car repairs and clothes shops etc. The larger town of Cascavel is just 5 kms up the road and has many more facilities including schools, churches, and supermarkets.

the town

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Clearly, we were not the only ones to notice the area’s true potential...Aguas Belas Golf Resort

Caponga

Caponga Fishing Harbour

Summary ÑÑÑÑÑ

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brazil ÑÑÑÑÑ

...is where all the smart money is going in International property investment. It is a stable country with strong growth, low inflation and the potential to be one of the most affluent countries in the world.

the north-east ÑÑÑÑÑ

...of Brazil is the target region for investment, international tourism, and local holidays, with the best climate, beaches and quality of life.

fortaleza ÑÑÑÑÑ

...is the capital city of Ceará and the host of the World Cup 2014 with a 3+ billion pound improvement and tourism budget. Tourism spend increased an incredible 40% since 2008.

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...is strategically placed as a perfect location for commuting and holidaying near to the city. It is also being heavily invested in by other international and local developers.

caponga beach

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...is perfectly situated and offers real value for money with an option of plots, villas, and developments to produce a maximum return on investment.

Options ÑÑÑÑÑ

caponga beach village resort

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location

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The entrance and areas to the front of the development are bordered by sand-dunes and the rest of the area is bordered by protected dense forests.

The development is adjacent to the Aguas Belas Golf and Spa Resort.

Caponga Beach Resort is located at the edge of the town, and is currently sub-divided into 600 individual plots, in blocks of mostly 14 and 16 plots, and all infrastructure and full planning is completed.

There are currently several options for purchasers:

Single Plots Detached Villas Development Blocks

Ñ Ñ ÑCaponga Fishing Harbour

Beautiful Beaches

Aguas Belas Golf Resort & Spa

Aguas Belas Beach Resort

V i l l a g e R e s o r t

Google Earth

Plotscaponga beach village resort

Single Plots are an average of 250 m2 and come with full infrastructure and planning for a detached villa of up to 125 m2 (1,400 Sq ft).

For a full Information Pack on building plots, including prices and availability, please contact us.

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price

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Single Plots range in price from just 10,000 Stg (11,000€) up to 15,000 Stg (16,500€)* depending on size and location.

*Prices are agreed in Brazilian Reais and currency Prices are Shown as examples only, calculated at an exchange rate of 3.2 to Sterling

Villascaponga beach village resort

There are currently 3 approved house types for the individual plots. The houses range from 75 m2 up to 125 m2.

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Prices start from 69,000 Euros (65,000 Stg) including the plot for this stunning detached villa.

The developer will provide guaranteed non-status payment terms over 3 years.


price

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House Type ‘C’ Salon Villa Type ‘A’

Bathroom Villa Type ‘B’

Bedroom Villa Type ‘B’

For a full Information Pack on Villas including prices, payment options, detailed plans and images, please contact us.

Developmentscaponga beach village resort

Projects are available to take an entire block (currently split into 16 villa plots) and put a condominium style development of either apartments, or houses. Full plans and viability studies have already been prepared for existing clients.

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An entire block for the construction of up to 47 apartments can be purchased for as little as 155,000 Stg (165,000€). Full plans have already been prepared.


price

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Salon - 1 Bed

Bedroom - Penthouse

Bathroom - 2 Bed

Apartments - 1 Bed, 2 Bed and 3 Bed Penthouse

For a full Information Pack on Developments including designs, plans, and feasibilities, please contact us.

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Exit Routescaponga beach village resort

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hold and re-sell

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Buying a plot in Caponga Beach is a simple and inexpensive

investment starting from just 10,000 Stg. Total legal fees and

taxes will cost approximately 10% for single plots, and 7%

for multiple purchases. At this phase of the Development,

Caponga Beach plots are between 40% and 60% less than other

similar plots being marketed (i.e. plots with full infrastructure,

planning, and building licenses). Conservative estimates put

property increases at approximately 26% PA for the next 4

years. The most prudent exit would be in 2012/2013, therefore

allowing a purchaser time to develop a Villa ahead of the 2014

World cup.

Assuming just a 3 year hold, the accumulative effect of this

would value the plot at 30,000 Stg, producing a net return

of 200%. This still doesn’t take into account that plot prices

are already disproportionately low compared with other

commodities and services (see page 5). If this imbalance

corrects itself, the returns could actually be several times

higher again.

Capital Gains tax has several different layers, however in general

it is best to work on a total figure of around 15% of the profit.

You can further maximize the opportunity by constructing

a house on the plots. We have 3 approved designs of 75 m2,

95 m2, and 125 m2. The smaller for example are currently

selling for 69,000 Stg. Assuming similar rises in property over

the next 3 years would revalue this to 140,000 Stg in 3 year’s

time, well ahead of the world cup.

Assuming the cost of the plot as 10,000 Stg, and the build

costs of 32,000 Stg (based on current estimates, plus project

management), this would produce a net return of 235% on

the assumption that you built and completed the house

before selling it. In reality it could be sold pre-construction

/ off-plan therefore producing a much healthier cash return

on investment.

Again, this doesn’t take into consideration that plot prices

are already underpriced, and also that property prices are

likely to increase dramatically before the world cup, as has

happened in the locations of all the previous world cups.

By taking a whole block you can fully exploit the opportunity

at Caponga Beach Resort. Several investors have already

secured multiple blocks and have developed the plans

for the construction of condominium style villas and a

development of 47 low-rise apartments.

To summarise, the apartments would be sold off-plan with a

20% Deposit and the balance payable over 3 years.

The initial investment would be approximately 250,000 Stg –

which includes the land cost, and all preliminaries (including

perimetre walls and entrance), taxes and marketing etc.

ÑÑÑÑÑbuild house and sell ÑÑÑÑÑdeveloper off-plan

up to 200% ROI over 3 years 235% ROI over 3 years 410% ROI over 3 years

For further details about exit routes including details about each option and full plans and feasibilities, please contact us.

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Purchase processcaponga beach village resort

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Caponga Beach have worked hard to streamline the

Purchase Process. We have recommended a firm of lawyers

in Fortaleza (Magno Pintos), who have already completed

a full due diligence report on Caponga Beach Village and

handled the purchase of dozens of clients in the Caponga

Beach development.

When you decide that you want to purchase plots with us,

we will send you a reservation form which you will sign and

return. Our currency agency GCEN will contact you and take

a 10% deposit.

The reservation contract is then emailed to your lawyer in

Brazil, who will make direct contact with you, providing you

with details of their fees and property transfer taxes, and a

copy of the Private Purchase Agreement (In Portuguese

and English) and also a Power of Attorney so that they can

execute the deed in Brazil on your behalf and apply for your

CPF number (this is a fiscal reference that everyone buying

property in Brazil must have).

When the Powers have been signed and the Private Purchase

Contract executed, a further balance of 40% of the purchase

price will be paid to your account in GCEN (normally 2 weeks

after the reservation).

Caponga Beach is a freehold purchase, and therefore when

your deeds (Escritura) are registered in Brazil, you pay the final

50%. This normally takes another 4 weeks.

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FAQcaponga beach village resort

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How are my Payments Protected?

All payments are made through an agent called GCEN where

you will open up your account (in your own name). Payments

are held by GCEN in your account at each stage until the

documents are completed. Payments are then transferred

from your currency account to Brazil, where you have one of

the strictest banking systems in the world. The funds will not

be credited to our account until we physically present all the

signed documents, including Notarised Powers, the signed

Private Purchase Contract, and proof of clear title etc. to the

Central Bank of Brazil in Fortaleza.

What Legal due diligence has been carried out?

Two separate Due Diligence reports have been prepared on

the Development. One by Manzanares International Lawyers,

and a second by our recommended lawyers Magno Pinto’s.

Each report covers the title of the land (to verify that it is in the

name of the vendors), that the land is free of encumbrances

and has clear title, and that all planning, building, and

environmental licenses are in place.

What Planning restrictions are there?

The full planning documents are included within the due

diligence. In summary each plot has planning for a detached

villa of 50% of the land size, over a maximum of 21/2 floors

up to a height of 10 mtrs. The construction cannot go within

1 metre of the boundaries to neighbouring plots, and must

come 3 Metres in from the main entrance. So, for a typical

250 m2 plot, a 100 m2 house would have a footprint of 50

m2, leaving 80% free for gardens and pool. All planning in

Caponga Beach is limited to a maximum of 10m therefore all

construction of Villas, townhouses, hotels, or apartments will

be low-rise.

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contact:

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Ebrochure Caponga

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