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Asia Prospects vision is to provide exposure to maturing emerging markets with extraordinary growth potential Asia Prospects Asia Prospects is an advisory company specialising in property investment opportunities in emerging markets in South Asia. From identifying land, through to exit, our team of industry professionals deliver a step-by-step service to maximise profits from land price increases The Asia Prospects competitive advantage lies in our grassroots strategy, involving extensive due diligence and an unrivalled on-the-ground presence that has been nurtured since our launch in 2008 Our approach allows for minimum entry-level pricing, which in turn reduces risk and removes many of the obstacles and challenges faced by independent speculators Asia Prospects has a global network staffed by over 30 employees, with offices in Hong Kong, Singapore and across Indonesia Hong Kong Sri Lanka Singapore Indonesia Above Right: Aerial view of the Oberoi Hotel, Lombok Left: The striking views found within the Gili Islands Our Method An on-the-ground presence ensures foresight of prospective infrastructure projects and tourism developments. With this in-depth knowledge, Asia Prospects is ideally placed to locate undervalued land with the greatest potential for extraordinary growth and offering the very best investment outcomes With reference to our comprehensive bank of proprietary data on land values, supported by transactional evidence, acquisitions are made at base-cost and in partnership with local land-owners Working with full transparency, on a project-by-project basis, our team delivers a hands-on approach with its advice on investment, development, and land management Each opportunity undergoes a thorough due-diligence process carried out by local and international legal advisors Limcharoen Hughes & Glanville, prominent specialists in property markets across South East Asia Above Left: The Asia Prospects team survey potential land in Flores Above Right: Fisherman on the Northwest coast of Lombok Right: Selong Belanak Beach, South Lombok Asia Prospects partners with local land owners for minimum entry-level pricing Why Indonesia? Voted in 2010 as one of the top destinations for foreign investment by the United Nations Conference on Trade and Development (UNCTAD) Listed as a top ten country improving their investor protections by the International Finance Corporation (IFC) in 2010 Direct investment has grown to a record 175 trillion Indonesian Rupiah (19.3 billion USD), a rate that will see Indonesia outpace many of its neighbours in the battle to attract investors Fitch Ratings moved the country into investment grade by granting a long-term and local currency debt rating of Baa3 in Q1 2012 With a GDP growth of 6.4% in 2011, Indonesia has outperformed its regional neighbours to join China and India as the only G20 members posting growth during the Global Financial Crisis 2010A 2011A 2012E 2013E Real GDP (%YoY) Domestic Demand (% YoY) Inflation (CPI) (% YoY) Current Account, BoP (% of GDP) 6.1 5.7 5.1 0.9 6.4 6.0 5.4 0.7 5.6 4.9 5.0 1.0 6.5 6.9 5.5 0.8 Source: Morgan Stanley Global Forecast, Nov 2011 A country with vast economic potential Above: Jakarta is the administrative and business capital of Indonesia Left: Rice paddies in Bali; Indonesia is the 3rd largest exporter of rice globally Market Analysis Asia Prospects identifies plots of land in Lombok that are well below market value and where growth is predicted, influenced by: Beachfront land in South Lombok has seen prices for plots rise by 300-400% in the past 4-5 years, whilst remaining at 10% or less of equivalent sites in Bali. The recent opening of Lombok International Airport, which is expected to handle 2.4 million visitors per annum by 2015, a 300% increase over traffic at the old site Land Price Comparisons Predicted 1000.00 950.00 900.00 850.00 Growing domestic demand which accounted for 55.5% of GDP in 2011 Rising Asian affluence, driving demand for holiday destinations. Tourism authority ‘IPK International’ state that Asians account for 18% of the world travel market USD per 100 m2 (ARE, in millions IDR) The development of the government backed resort, Mandalika in Kuta Bay, South Lombok; due to include a selection of hotels, golf courses, an integrated theme park, and potentially an F1 race track 800.00 750.00 700.00 650.00 600.00 550.00 500.00 450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Above: A Garuda Indonesia Boeing 737-800 arriving at Lombok International Airport, overlooking Mount Rinjani Right: Kuta Bay, South Lombok at sunrise Gili Islands, Lombok Kuta Beach, South Lombok Selong Belanak, South Lombok North Lombok 2013 2014 2015 Seminyak, Bali Bukit, Bali Canggu, Bali Source: Ibu Retno, Notaris A region of remarkable and unspoilt natural beauty Emerging tourist destinations with unique potential Bali 4 6 5 Sumbawa Lombok 12 3 The Current Portfolio Asia Prospects has identified land within Indonesia’s Nusa Tenggara Province, and has subsequently overseen the acquisition of over 50 hectares (500,000 square metres) of beach front land in Lombok, Gili Trawangan and Sumbawa. Left: White sand beach on Gili Trawangan The team has also sourced a number of new plots that are significantly below comparable market value and show the same potential for significant growth. 1. Serangan Beach, South Lombok 2. Selong Belanak Beach, South Lombok 3. Kuta Beach, South Lombok 4. Gili Trawangan Development, Lombok 5. Gangga Waterfall, Lombok 6. Moyo Island, Sumbawa Serangan Beach, South Lombok 155,000m² beach front land Accessibility: 30 minutes from Lombok International Airport The access point to one of the best surfing breaks in Indonesia, Serangan Beach is a mecca for surf enthusiasts from around the world. Considered as one of Lombok’s most iconic headlands, the beach has dramatic views across the bay and has retained an unspoilt and tranquil atmosphere. Above Left: Sunrise from top of Serangan headland Above Right: The legendary Mawi surf break Left: Inland view of Serangan beach Selong Belanak Beach, South Lombok 58,200m² beach front land Accessibility: 25 minutes from Lombok International Airport Selong Belanak Beach is a utopia for discerning travellers searching for tropical perfection and is regarded as one of Lombok’s most beautiful beaches. This is an area of exquisite natural beauty and serenity, boasting white powder sand and a calm turquoise sea, protected by a teeming coral reef. Offering the best views of the headland, Selong Belanak Beach enchants all who visit. Above Left: The picture perfect white sand of Selong Belanak Beach Above Right: Magnificent sunset viewed from the bay Right: Selong Belanak Bay, South Lombok Kuta Beach, South Lombok 20,000 m² beach front land Accessibility: 20 minute drive from Lombok International Airport Kuta Bay is South Lombok’s main area for tourism, especially now with the recent commencement of the nearby government backed Mandalika tourism project. Kuta Beach is one of only two beach front plots available in Kuta Bay, aside from those owned by the resort, and as such is particularly unique. Further tourists are anticipated to flock to this popular holiday destination to take advantage of the excellent surfing, sailing and golfing facilities. Above Left: The Kuta Bay Novotel, adjacent to the plot Above Right: Surfers at Kuta Bay Left: Sunset over Kuta Bay Gili Trawangan Development, Lombok 18,200 m² beach front land Accessibility: 1.5 hour drive from Lombok International Airport to North Lombok, followed by a ten minute boat ride. Or, a 1 hour boat ride from Bali Voted by Lonely Planet as one of the ‘Top Ten Destinations to Visit in 2011’, Gili Trawangan is the most popular of the Gili islands. The allures are abundant with no motorised vehicles on the island, charming architecture, a vibrant coral reef and friendly multilingual locals. With it’s flawless sandy beaches and turquoise waters Gili Trawangan is an idyllic tourist destination. Above Left: World class diving found off Gili Trawangan Above Right: Gili Trawangan overlooking Mount Agung, Bali Left: Show villa on site Gangga Waterfall, Lombok 44,000 m² land Accessibility: 2 hours drive from Lombok International Airport The Gangga waterfall plot is positioned in the foothills of the renowned Mount Rinjani. This luscious and secluded parcel of land is a tropical paradise only accessible through private roads, where one can enjoy stunning sunrise views of Mount Rinjani and sunset views over the Bali basin. Above Left: View from Gangga Waterfall plot Above Right: Aerial view of majestic Mount Rinjani Right: Mountain waterfalls on the land at Gangga Moyo Island, Sumbawa 60,000 m² beach front land Accessibility: Flight or ferry from Bali Moyo Island is a forested nature reserve overflowing with flora and fauna, with wonderful views of volcanic peaks on nearby islands. Immaculate white sanded beach front leads onto some of the best scuba diving and snorkeling in Indonesia, with pristine reefs bursting with a colourful display of sea life. Above Left: Moyo Beach Above Right: View onto the untouched land from sea Right: Limestone waterfalls on Moyo Island Community Having earned the trust and support of the communities we work within, Asia Prospects is committed to giving back in a long-term and meaningful way. At the heart of all our business practices and policies is a promise to make a positive impact to the societies that we work alongside. Everyone in the company regularly participates in volunteer educational and environmental programmes, and the business has brought value through employment and education in addition to donating a percentage of annual net profits to local Non-Governmental Organisations (NGO). An official Asia Prospects sponsored foundation is due to be launched in 2013 that will channel funds directly to support the region on a micro and macro level. In addition, Asia Prospects is proud to support: Left: Children at the local school in Serangan village, South Lombok Directors Adam Murray Michael Davies Esmond Baring Peter Hunt Tim Watson CEO Managing Director Investment Director Real Estate Director Operations Director Asia Prospects Advisory Committee (A.P.A.C) Asia Prospects Advisory Committee has been set up to seek additional advice from influential Indonesian and Sri Lankan figureheads as well as a Non Exec Board from the real estate and investment / fund management industry. To date, Asia Prospects has a number of consultants on its committee who add value on the markets we are doing business in as well as on the exit strategy of individual assets we manage. Adam has successfully founded and exited a number of business over the past 12 years, including the sale of Media Run in 2006, a leading advertising network with offices across Europe and Australia. Adam chose to move to Asia to examine alternate investment opportunities and discovered the unique potential of acquiring land at ground level on Lombok. Subsequently he founded Asia Prospects in 2008, which now has offices in Indonesia, Singapore and Hong Kong to support the rapid growth of the business. It is Adam’s ambition to see Asia Prospects interests expand into Sri Lanka, Burma, Vietnam and Cambodia. Previously a Director with Savills in Hong Kong, Mike has over 15 years real estate experience across Hong Kong, Sri Lanka and Indonesia. Michael has been involved in Asia Prospects since 2010 and his role is to oversee the management of all assets within the portfolio, advising on both entry and exit strategies. As owner and developer of the luxury Wallawwa hotel in Sri Lanka, Michael has a strong familiarity with this region and one of his focuses will be to grow Asia Prospects pipeline of opportunities in the burgeoning Sri Lankan market. Michael graduated from Cass Business School in London with a Masters in Property Law and Valuation. Originally an investment banker, Esmond worked at UBS in New York and London. Capitalising on the frontier opportunities in Asia, Esmond moved to Vietnam in 2009 to set up and build a boutique investment bank. Esmond joined Asia Prospects in 2011 to provide advice on corporate and product structuring, and is based in Singapore. Esmond will be managing the investment side of the business from Singapore. He has a BA in Economics and French from the University of Virginia. Peter has ten years of property related experience in a diverse range of markets, with an impressive track record. A qualified member of the Royal Institution of Chartered Surveyors, Peter has worked for Knight Frank and Merrill Lynch in London and CBRE in Hong Kong representing Investment Banks in acquisitions of their Asian Head Quarters. Peter subsequently relocated to Indonesia at the start of 2011 to manage Asia Prospects portfolio of investments from acquisition through to the exit of each individual asset. Tim joined Adam at Asia Prospects in 2009 when its Indonesian subsidiary was founded. Tim acts as mediator and coordinator for Asia Prospects in Indonesia, developing and managing relationships at ground level to facilitate current and prospective projects. Having worked for 3 years on disaster relief, construction and development projects across the Indonesian archipelago he has gained vital knowledge and understanding of Indonesian customs, dialects, culture and religious differences, as well as each island’s infrastructure. Partners Accountants Indonesian Solicitors Travel Partners International Lawyers Bankers Right: Aerial view of Kuta Bay, South Lombok Asia Prospects Limited www.asiaprospects.com info@asiaprospects.com Singapore 33 Pekin Street 02-01A Far East Square Singapore 048763 Tel: +65 6536 0403 Hong Kong 8/F Kaliey Tower 16 Stanley Street Central, Hong Kong Tel: +852 8170 3716 Indonesia Jalan Taman Wisata Tibubeneng Komplek Canggu Plaza Canggu, Kuta Utara Bali, Indonesia Tel: +62 361 844 6599 Disclaimer: In accordance with the Misrepresentation Act 1967 and the Mis-description Act 1991, these details have been prepared in good faith, they are not intended to constitute part of an offer or contract. No description or information given about the land assets or their value may be relied upon as a statement of representation or fact. All of the photographs and artist’s impressions shown are indicative and cannot be guaranteed. All images copyrighted Asia Prospects © 2012 Singapore Hong Kong Indonesia Sri Lanka