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ZUMBI BEACH – NORTH EAST BRAZIL

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Why Invest In Brazil?

Real Estate offers far greater returns today than most stock market or other financial investments and never before has international property been as popular as a highly lucrative means to create wealth.

Worldwide property investors are now turning their attention to Brazil as it becomes a leader among emerging markets. Returns on investment are excellent and investors are increasingly aware of the high growth potential that Brazil offers as a stable though fresh, new investment market.

Advantages of investing in Brazil

Property capital appreciation of 20% per annum in some locations. Favourable currency exchange rates, making property transactions a

great value for foreign investors. President Lula‟s and now Dilma Rousseff‟s progressive policies, leading

to fast development to Brazil, including a decrease in inflation to an all-time low at 5.7%.

Active encouragement and incentives for foreign investment - you can own 100% of land and property.

Cost of living often 20% of that in the UK/Europe and property maintenance costs extremely low.

Some of the lowest property prices in the world. Increase of thriving manufacturing industries relocated to Brazil and

boosting the economy. Expected self sufficiency in oil reserves within the next year. Some economists believe Brazil is amongst the leaders of the future,

along with Russia, India and China (also known as „BRIC‟). Year-round sunshine, with average summer temperatures of 21°C (70º

Farenheit). Great natural beauty with fantastic scenery and 7,000km of beaches. Friendly nature of the Brazilian people. Vibrant cities with carnivals and music. Very low international risk of war, terrorism or SARS in Brazil. Easy access via direct flights from many international airports.

Property purchase specifically as an investment vehicle is a popular option amongst those aiming to capitalise on the excellent growth potential of property in Brazil. This type of investment can consist of an off-plan purchase for sale prior to project completion. Alternatively, a buy-to-let situation can provide reliable rental income from the property, along with substantial capital appreciation.

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According to independent investment experts, including many articles in international investment press, Brazil is now a highly profitable market. The economic climate and tourist infrastructure are currently undergoing major upheaval, while the country‟s economic strategy has caused much growth in the past 3 years. While Brazil remains on a steady growth, investors are urged to catch this promising market from the very start, while prices remain low and high returns on investment are inevitable in current hotspot locations.

Brazil has excellent direct flight communications with the UK and Europe, making it a convenient holiday destination. This accessibility increases potential investment yields and reinforces the promising future of Brazil. A low cost of living, great quality of life, a fantastic climate, tropical beaches and a rich and vibrant culture are all valuable contributing factors to Brazil's success.

Brazil Investment Growth

There are several reasons why Brazil has great potential as an emerging property market today. Below you will find out why Brazilian property offers you a such a promising new investment vehicle.

Investment property in Brazil is establishing itself firmly as a viable opportunity worldwide and recent years have seen an encouraging annual property price growth rate of 20% in some areas.

Since President Lula‟s progressive economic policies, Brazil has fast developed into a sound economy with a fiscal and political environment conducive to growth. Today the climate for investment property in Brazil has never been more promising.

Property in Brazil is already making a name for itself amongst the world‟s investors, while there has recently been much media coverage on the merits of this emerging market. Brazil‟s new property developments are of high quality and competitive prices mean that Brazil can boast top quality property for a fraction of the price of property of far less caliber elsewhere in the world (eg. 80,000 EUR for a luxury one bedroom beachfront apartment in 2008).With improved communications to the country and cheap direct flights now available from most European airports, Brazil is attracting growing numbers of tourists and short-term holiday rentals are generating excellent rental yields for investors. The Brazil Tourism and Culture Movement has great ambitions for Brazil and aims to transform it into one of the twenty most attractive tourist destinations of the world, attracting some 9 million visitors by 2007. This is set to have positive repercussions on an already thriving investment growth rate in Brazil.

Capital Growth Predictions

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Based on solid evidence, general opinion is that as an emerging market, Brazil offers some promising growth potential to all types of investor. While some areas of north eastern Brazil around Bahia are currently attracting as much as 20% annual capital growth, and other areas are also experiencing price rises at a healthy rate, Brazil undoubtedly represents a profitable opportunity to early investors aiming to gain the greatest returns possible on their investment.

Rental Yield Predictions

Rental income from Brazil property is of great interest to investors as high rental yields are already achievable from property located in the current tourist hotspots of Brazil. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved during the peak season months alone (December to February).

Brazil Economy

Brazil‟s economy has experienced some excellent growth over the last 8 years since President Lula‟s office began. Currency exchange is at a favorable level for foreign investors and inflation is encouragingly low at only 5.7%. In addition, President Lula‟s (continued by newly elected president Dilma Rousseff) policies encompass strong internal investment as well as funding from the USA to improve the economic structure and entice tourism to Brazil, while continuing to encourage large foreign businesses to establish themselves in Brazil. Economists now predict that Brazil will be amongst the economic leaders of the future, along with Russia, India and China.

Reasons why Brazil is an intelligent property investment location:

Year-round sunshine, with average summer temperatures of 21°C (70º Farenheit). Some areas in the north east of Brazil saw property price returns of 20%+ since 2005.

Current favorable currency exchange, making it excellent value for foreigners to invest.

President Lula has brought great hope and improvements to Brazil, including a decrease in inflation to an all-time low.

Foreign investment is actively encouraged and you can own 100% of land and property.

Low cost of living compared with many areas of Europe. Property maintenance costs are low.

Inflation low at 5.7%. Increase of thriving manufacturing industries relocated to Brazil. Expected to produce all of its own oil within the next year. Great natural beauty with fantastic scenery and 7,000km of beaches. According to some economists, Brazil will be amongst the economic

leaders of the future, along with Russia, India and China.

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Friendly nature of the Brazilian people, along with rich culture, vibrant cities, carnivals and music.

Low international risk of war, terrorism or SARS.

Why to Invest in Natal

The state of Rio do Grande Norte is on the brink of being an emerging global tourist market. Unlike more traditional Brazilian tourist destinations, Natal is closer to Europe and North America and offers a cheaper option for flights, good food, restaurants and hotels. This added to its unspoilt beaches, average temperatures of 30 °C (86ºFarenheit) and the development of the world's future fourth largest airport. Which is designed to bring in five million travelers per year, it's no wonder that major airlines and travel companies are now offering direct flights and package holidays to the area.

Natal is famous for coconut palm trees dotted along the coastline and sapphire waters offering gentle sea breezes. Activities such as sand dune buggying and water activities are readily accessible.

Natal is the closest of Brazil's regions to Europe, with a rapidly increasing tourist demand from Europe and North America, thus the government is constructing the World's fourth largest airport

The bridge connecting Natal and the beach resorts to the north completed in 2007, thus having the journey time to 25 minutes.

Tourism and prices to the south are currently almost three times the price to the north!

Why invest in Rio do Grande Norte?

Lifestyle

Being 4000 km closer to Europe, Natal offers much cheaper and shorter flights (only 7 hours) from Europe and is becoming a favourite European destination. Natal also holds the accolade of being the safest capital city in Brazil.

The city of Natal, with an estimated population of almost one million, earns its nickname "The City of the Sun" from having an average temperature of 30°C (86ºFarenheit) and sunshine 360 days a year.

Beaches

Heading north from Natal, exploration along the endlessly stunning coast is one of the unique joys of Brazil. Famous spots such as the Genipabu Dunes or the pristine white sand beaches of Cabo de São Roque, are an ideal location for swimming, on endless varieties of water sports, dune buggies, and horse rides along the beach.

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In addition, windsurfing and kite-surfing are also popular, as well as more relaxing options such as world-class scuba-diving on the Maracajau Reef, only 10 km from ZUMBI BEACH.

Tourism and Infrastructure Development

European tourism levels (mainly from Portugal, Spain, Germany, Norway, Sweden & U.K.) are increasing at a rapid pace. American Airlines is expected to be the first US airline next year to operate direct flights to Natal via Miami (five hour flight time), whilst British Airways will fly direct from London. Large holiday companies, like Thomson, are now offering package holidays and charter flights to Natal, at incredibly attractive prices. It is fair to say this is the start of an enormous future global tourism market. As a result, resort demand, rental rates, and land prices are all increasing at similarly rapid rates.

This influx of tourists will be further enhanced in 2014 when Brazil hosts the FIFA world cup for the second time. The decision to allow Brazil to host the world cup indicates that FIFA are happy that local infrastructure is in place to welcome large volumes of visitors. Nineteen cities have expressed an interest in hosting games and Natal looks likely to be a recipient with the planned development of a new 51,000 capacity stadium to be constructed in the city.

Natal Weather

The graph below shows average temperature (orange line) and rainfall (blue bars) in Natal along the year.

Source: Brazilian Institute of Aerospace Research - INPE.

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The northeast of Brazil is the main “sun and beach” destination in the country and is also the area that is receiving most investment and attention on an international level. Two reasons for this could be the near perfect climate and the numerous semi-virgin beaches along its beautiful coastline. The weather in the northeast is the best in the entire country with a yearly average temperature of 27º (81ºFarenheit) and is stable and sunny virtually all year around. In addition, the northeast is the closest point to Europe from Latin America and flying time is approx. 7-8 hours. Further, compared to many tropical destinations, Brazil benefits from a complete lack of natural phenomena such as hurricanes and tropical storms nor is it affected by earthquakes.

The scenery and beaches in the northeast of Brazil are quite simply breathtaking, The cost of living is 20% of that in the UK, property prices are incredibly good value and the area is highly accessible with daily flights from most major European countries.

Even though the northeast of Brazil is considered an emerging tourist destination for foreigners, it does not mean that tourism is a something new in this part of the world. Brazil has a population of approximately 195 million people and when Brazilians plan their holidays, they don‟t have to look any further than their own border and they usually head to the northeast. As a result of this, Brazilian tourists have been coming to the northeast for decades and there is a vast range of tourist attractions at hand. Activities range from beach buggy tours along the beautiful nearly deserted beaches, diving and snorkeling, visiting historical sites and last but least, a very exciting night life.

With thousands of kilometers of beaches and over 300 days of sunshine per year, the Brazilian government is now promoting Brazil as the place to come for both tourism and investment. The government‟s commitment to opening up the country can be seen in the upgrading of several airports such as Joao Pessoa, Natal and Maceio, to international status, along with huge investment in new roads and general infrastructure.

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Its a plus to like the place you are investing in. This will not be a problem if your choice is Natal as it is a fantastic place to visit. It`s T-shirt and shorts weather 365 days a year with the most sunshine in Brazil and the purest, cleanest air in South America. You have more than 400kms of coastline to explore with some of the finest beaches in the country. There is plenty to see and do for the more adventurous types as well as the sunworshippers. The local Brazilians are really friendly, easy to smile and make an effort to understand and help the unfamiliar visitor. Other attractions include a modern, dynamic urban centre with state of the art shopping malls, good selection of water sports, high quality range of restaurants and great nightlife all infused with Brazilian colour and hospitality.

But what sets Natal apart from other cities in the North-East of Brazil? There are 3 big urban centers in the north-east of the country; Salvador, Recife and Fortaleza as well as the smaller city of J.Pessoa, in the neighbouring state of Paraiba. All of these places have their own special merits but we believe there are 4 attributes that make Natal a cut above the rest;

Climate; Undoubtedly the best weather in Brazil with most sunshine, cleanest air and driest, least humid climate.

Size; With a population of less than 1million inhabitants, the city is of a manageable size, easy to navigate and hugs the coastline so you are never more than 10 minutes away from a great beach.

Safety; Natal is certainly one of the safest cities in Brazil as you can personally testify. You can walk around in the daytime without running any risks.

Geographical location; Natal is strategically located on the most easterly point of South America and thus is the closest Brazilian city to Europe, Africa and one of the closest to North-America making it a continental hub for future commerce and travel.

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And the last but certainly not the least comparative advantage of Natal is the significant…. Investment potential!!!;

Along with the above attributes there are 2 major factors here that give Natal the edge and make it such a special place for property investment;

NEW INTERNATIONAL AIRPORT

Natal‟s new international airport to be complete and operational by 2013, is located in São Goncalo de Amarante, 15kms north of Natal city, 35 kms from ZUMBI BEACH and is set to become one of the biggest airport`s in South America. The airport will be for both cargo and commercial flights with capacity of 5million passengers per year (the current airport has 1.2million capacity which gives a good indication for growth potential in tourism and foreign investment)

The runway is now finished and the passenger terminal will be built by a private consortium 1 year ahead of the World Cup in 2014 to be hosted in nearby Natal. The project is part of the federal governments stratedgy to develop the North-East of Brazil and this airport will provide a hub for inter-continental trade and travel as well as having a major impact on the surrounding area and beaches north of the city. Take a look at the map to see the how close the northern coastline is in relation to this massive new airport! What does this mean for Natal? More direct flights from Europe and North America, more overseas tourists coming to Natal, more investors to capitalize on this growth, improved infrastructure, higher property prices and greater investment returns!!

2104 FOOTBALL WORLD CUP

Natal was selected in May 2009 as one of the 12 cities in Brazil to co-host the football World Cup in 2014. It was picked due to it`s strategic location (closest to Europe and N. America) current hotel capacity of over 40,000 rooms, great weather and obvious touristic appeal. It is the smallest Brazilian city to host the tournament and so will likely receive the greatest impact in terms of infrastuctural improvements and worldwide media exposure. New world cup investments include a 45,000 seater stadium and business park to be built in the heart of the city, metro lines, improvements in the cities road network and a host of social projects to benefit the local population. It will be the biggest event ever hosted in Natal and the city has a massive opportunity to project itself onto the world stage. This can only be good news for property investors who buy into the Natal property market now, to achieve ever increasing gains over the coming years.

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WHY INVEST IN THE NORTH OF NATAL?

Quieter Beaches, less infrastructure?

ANSWER; New airport. Great access. Lots of beachfront land for sale. Lower prices. Higher investment returns.

The beach resorts south of Natal such as Ponta Negra and Pipa have already experienced rapid development over the past 10 years and are now fully fledged international tourist destinations with package holiday makers, hotel chains and luxury developments. Prices have risen accordingly and property per square foot has become a lot more expensive as the local market has reached saturation level

If however you are in the market for beachfront property, oceanfront homes or beach land at reasonable prices in the south of Natal you may have already missed out I`m afraid.

LOOK TO THE NORTH FOR INVESTMENT GROWTH

The north coastline of Rio Grande do Norte is dotted with little fishing villages and lots of wide open nature as well as long stretches of pristine tropical beachfront.

The possibility of buying and owning beachfront property at an affordable price is a still alive and kicking on this north coast of Natal and this is where your investment choice will pay dividends in 3-5 years time! Land prices here per square foot are currently 4-5times lower than in the more built up southern coastline with many more oceanfront, oceanview landparcels and vacation homes available for sale.

The northern beaches of Natal, such as ZUMBI BEACH, have better road access into Natal city, equally beautiful beaches and authentic brazilian beach communities with little commercialization.

The key investment potential factor here is proximity to the new international airport.

The airport is being built on the north side of Natal, closest to the northern beaches and the impact is likely to be immediate and substantial on opening in 20133.

Future development will be selective and concentrated in certain beach towns. ZUMBI BEACH is among the main beaches to look out for due to their beauty,

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natural characteristics, current attractions, approved resorts and available beach space.

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Location of our projects – ZUMBI BEACH - North of Natal, Brazil

ZUMBI BEACH is a peaceful coastal village with around 2,500 residents. Located 606 km north from Natal, ZUMBI BEACH is synonymous with peace and quietness. The small fishing village still retains its original charm, with sailing rafts anchored on the sea shore. The people are very welcoming and their main source of income comes from artesian fishing.

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ZUMBI BEACH´s never ending beaches with crystalline water and white sand dunes, sea-front coconut groves and Brazil‟s largest coral reef only a few miles from the coastline, make it place of stunning natural beauty. Thanks to the extensive coral reefs in Maracajaú, 5 miles from ZUMBI BEACH has become a divers paradise and not surprisingly, is also known as the “Caribbean of Brazil”. Other Important Facts

Brazil is currently on the brink of a property boom - Property prices in the past couple of years have already increased by a staggering 20% per annum in many locations, and inflation sits at an all-time low at around 5%.

Brazilian Real Nears Record High Against Dollar

The Brazilian Real has been the world‟s best-performing currency against the Dollar in the year-to-date, having risen 32% through the beginning of October. At this point, a mere 8% rise would send it crashing through the high that it touched last summer, prior to the collapse of Lehman Brothers.