Morceau del Ciel, Tagaytay

Morceau del Ciel

D.A. SILVESTRE & ASSOCIATESARCHITECTURE/PLANNING

SITE A

Morceau Del Ciel

SITE B

MASTER DEVELOPMENTPLAN

(SITE A)

Morceau Del Ciel

DEVELOPMENT NODES

Morceau del CielMorceau Del Ciel

ROAD NETWORK

MAJOR ROADSMINOR ROADS

Morceau Del Ciel

ZONING PLAN

RESIDENTIAL AREAPARKS AND GREENSCOMMUNITY FACILITIESCOMMERCIAL

Morceau Del Ciel

IMAGE MAP

Morceau Del Ciel

SLOPE MAP

Morceau Del Ciel

ROAD NETWORK

Morceau Del Ciel

Confidential ExecutiveSummary


Description of the Property

Composed of more than a dozen individualproperties with an

aggregate area of around 340 hectares,expandable by another 100-200 hectares

located in Tagaytay, Cavite and Talisay,Batangas

LOCATION - The property also has 3 primaryaccess points from the national highwaythrough currently existing roads.

CLIMATE - The property has a cool year-round climate because of its elevation, rangingfrom 160 to 560 meters above sea level..

VIEW - Most of the properties are all facing TaalLake on the ridge side and are adjacent to bothTagaytay Highlands and Tagaytay Midlands. Theproperty has a commanding view of TaalLake and its environs.

Morceau Del Ciel

Composed of more than a dozen individualproperties with an

aggregate area of around 340 hectares,expandable by another 100-200 hectares

located in Tagaytay, Cavite and Talisay,Batangas

LOCATION - The property also has 3 primaryaccess points from the national highwaythrough currently existing roads.

CLIMATE - The property has a cool year-round climate because of its elevation, rangingfrom 160 to 560 meters above sea level..

VIEW - Most of the properties are all facing TaalLake on the ridge side and are adjacent to bothTagaytay Highlands and Tagaytay Midlands. Theproperty has a commanding view of TaalLake and its environs.


Tagaytay is not only the new summer capital of thecountry; it has become, of late, the leisure capital of thecountry. The sales of high-end homes and second homes inthe area have grown rapidly in the past few years and with ahousing backlog of more than 4 million, and with mostbuyers being end users, the market shows no signs ofslowing down in spite of the current global economic crisis.Not only that, commercial development, particularly inhotels, restaurants, and other recreational facilities continueto boom without let up.

Morceau Del Ciel

Tagaytay is not only the new summer capital of thecountry; it has become, of late, the leisure capital of thecountry. The sales of high-end homes and second homes inthe area have grown rapidly in the past few years and with ahousing backlog of more than 4 million, and with mostbuyers being end users, the market shows no signs ofslowing down in spite of the current global economic crisis.Not only that, commercial development, particularly inhotels, restaurants, and other recreational facilities continueto boom without let up.


• The property is ideal for a high-end luxury residential projectsimilar to Tagaytay Highlands.

• In addition, a tourism-related development such as hotel-casinoscombined with time-share condominiums and retirement villages forvarious nationalities Eco-tourism medical tourism (geriatric clinics),and/or a leisure resort can also be done.

• One interesting concept being discussed is for a university townwhere a portion of the property will be donated to a premier universityor learning institution. This will give the area a population base thatwill make the surrounding areas attractive for future residentialand commercial development.

Morceau Del Ciel

• The property is ideal for a high-end luxury residential projectsimilar to Tagaytay Highlands.

• In addition, a tourism-related development such as hotel-casinoscombined with time-share condominiums and retirement villages forvarious nationalities Eco-tourism medical tourism (geriatric clinics),and/or a leisure resort can also be done.

• One interesting concept being discussed is for a university townwhere a portion of the property will be donated to a premier universityor learning institution. This will give the area a population base thatwill make the surrounding areas attractive for future residentialand commercial development.


Recent developments have made the Tagaytay area very attractivefor business investors and property developers.

– The Tourism Law was recently passed which allows for theestablishment of tourism ecozones that will enjoy tax incentives –Tagaytay will benefit immensely from this new law.

– There is a strong push now in Congress to allow 100% foreignownership of land. Should this Constitutional amendment come topass land prices will easily double or triple in value particularlythose properties with potential for development.

Morceau Del Ciel

Recent developments have made the Tagaytay area very attractivefor business investors and property developers.

– The Tourism Law was recently passed which allows for theestablishment of tourism ecozones that will enjoy tax incentives –Tagaytay will benefit immensely from this new law.

– There is a strong push now in Congress to allow 100% foreignownership of land. Should this Constitutional amendment come topass land prices will easily double or triple in value particularlythose properties with potential for development.

Status of the Property

Most of the property is covered by Land Management BureauApproved Survey Plans and are ready for titling once the funds tocover the titling costs are raised.Titling costs are primarily composed of unpaid real estate taxes and unpaidestate/inheritance taxes, which will have to be paid when applying for thetitle.Under the titling process, whether judicial or administrative, three documentsare required for a property to be titled. These are:

– A Land Management Bureau (LMB) Approved Survey Plan– A tax declaration– A LMB Approved Technical Description (part of the Approved

Survey Plan)

Morceau Del Ciel

Most of the property is covered by Land Management BureauApproved Survey Plans and are ready for titling once the funds tocover the titling costs are raised.Titling costs are primarily composed of unpaid real estate taxes and unpaidestate/inheritance taxes, which will have to be paid when applying for thetitle.Under the titling process, whether judicial or administrative, three documentsare required for a property to be titled. These are:

– A Land Management Bureau (LMB) Approved Survey Plan– A tax declaration– A LMB Approved Technical Description (part of the Approved

Survey Plan)


Under the Torrens titling system a title can be voided if it can be proven that the titleis not based on an LMB Approved Survey Plan - the submission of the LMBApproved Survey Plan was deemed as a statutory requirement of mandatorycharacter and cannot be waived either expressly or impliedly. In short, no LMB-Approved Survey Plan then no title.

The LMB Approved Survey Plan is a unique document because there can only be onesuch plan for each property and these plans are all in the records of the LMB. Ineffect, an LMB Approved Survey Plans is VIRTUAL OWNERSHIP for aproperty without a taitle. For the Tagaytay property, the untitled portions are allcovered by LMB Approved Survey Plans with the Approved TechnicalDescriptions and are ready for titling.

Morceau Del Ciel

Under the Torrens titling system a title can be voided if it can be proven that the titleis not based on an LMB Approved Survey Plan - the submission of the LMBApproved Survey Plan was deemed as a statutory requirement of mandatorycharacter and cannot be waived either expressly or impliedly. In short, no LMB-Approved Survey Plan then no title.

The LMB Approved Survey Plan is a unique document because there can only be onesuch plan for each property and these plans are all in the records of the LMB. Ineffect, an LMB Approved Survey Plans is VIRTUAL OWNERSHIP for aproperty without a taitle. For the Tagaytay property, the untitled portions are allcovered by LMB Approved Survey Plans with the Approved TechnicalDescriptions and are ready for titling.


• The entire titling process should take an estimated 4 to 6 months tocomplete and for the title to come out.

• Timing for titling the property is very opportune since the LRA andthe Bureau of Lands have now switched to a computerized system,ensuring that any new titles that come out are true, accurate, and theonly existing title on record. The final area will be determined later onafter the property is titled less any disputed areas. The property issufficiently large that it can absorb a 10 to 20 percent reduction in theland area.

Morceau Del Ciel

• The entire titling process should take an estimated 4 to 6 months tocomplete and for the title to come out.

• Timing for titling the property is very opportune since the LRA andthe Bureau of Lands have now switched to a computerized system,ensuring that any new titles that come out are true, accurate, and theonly existing title on record. The final area will be determined later onafter the property is titled less any disputed areas. The property issufficiently large that it can absorb a 10 to 20 percent reduction in theland area.

Opportunity

• Most of Tagaytay is already being developed, mostly as high-endresidential developments.

Land in Tagaytay is very scarce that most developers are already in Caviteand Batangas

Twin Lakes of Megaworld which is mostly Batangas, rather than Tagaytay,

Sandari in Batulao which sells lots for now, but is planning to sell high-end houseand lot packages in the near future.

Finally, Century Properties also has a joint venture for a 142-hectare high-endretirement community in the Batulao area which will be tied up with aninternational brand.

There are no more big properties in Tagaytay except for this property.

Morceau Del Ciel

• Most of Tagaytay is already being developed, mostly as high-endresidential developments.

Land in Tagaytay is very scarce that most developers are already in Caviteand Batangas

Twin Lakes of Megaworld which is mostly Batangas, rather than Tagaytay,

Sandari in Batulao which sells lots for now, but is planning to sell high-end houseand lot packages in the near future.

Finally, Century Properties also has a joint venture for a 142-hectare high-endretirement community in the Batulao area which will be tied up with aninternational brand.

There are no more big properties in Tagaytay except for this property.

Name of Property Description Price per square meter

Opportunity

The property represents a huge financial opportunity since the property can beacquired for a fraction of the current selling price of developed lots whichranges between P15,000 (US $366) to P20,000 (US $488) per square meter, on anuntitled basis. Current prices of developed properties are as follows:

Morceau Del Ciel

Name of Property Description Price per square meter

Tagaytay Highlands andTagaytay Midlands

Residential lots (preselling) P15,000 (US$366)

Developed areas P20,000 (US$488)

Tagaytay Crosswinds Condominiums P100,000 (US$2,439)

Other properties alongthe national road

Priced much higher

Other Matters

We are open to any of the following arrangements: Sale on an as is where is basis (untitled, but at a very low price) Investor to finance titling, consolidation and other costs for a consideration Joint Venture arrangements Investor willing to advance funds in exchange for an ownership share of the

property to be titled under a formula to be agreed upon Investor to become part owner/partner of the landowner Open to exchange deals against publicly listed shares or other acceptable

properties Any other arrangements mutually acceptable

The property and all documents are subject to appropriate duediligence.

*Attached are the estimates for development costs and projected revenues

Morceau Del Ciel

We are open to any of the following arrangements: Sale on an as is where is basis (untitled, but at a very low price) Investor to finance titling, consolidation and other costs for a consideration Joint Venture arrangements Investor willing to advance funds in exchange for an ownership share of the

property to be titled under a formula to be agreed upon Investor to become part owner/partner of the landowner Open to exchange deals against publicly listed shares or other acceptable

properties Any other arrangements mutually acceptable

The property and all documents are subject to appropriate duediligence.

*Attached are the estimates for development costs and projected revenues

Financial EstimatesDated 26 June 2012

Revenue In Philippine Peso In US Dollars

Sale of condominium units PHP 6,488,040,000 $150,884,651Sale of residential lots only PHP 17,100,360,000 $397,682,791Sale of house and lots PHP 72,200,000,000 $1,679,069,767Lease income of commercial spaces PHP 1,171,980,237 $27,255,354

Total Revenue PHP 96,960,380,237 $2,254,892,564

Expenses

VAT PHP 7,320,100,525 $170,234,896Creditable withholding tax PHP 1,473,903,012 $34,276,814Construction and development cost PHP 28,639,442,000 $666,033,535Depreciation and Amortization PHP 14,319,721,000 $333,016,767Marketing Costs PHP 11,635,245,628 $270,587,108Administrative costs PHP 1,848,019,012 $42,977,186

Total Expenses PHP 32,236,431,178 $749,684,446

NET PROFIT BEFORE TAX PHP 28,723,949,060 $667,998,815

Financial EstimatesAs of 26 June 2012Income Statement

Morceau Del Ciel

ASSUMPTIONS:1. Lease income is based on the first 10 years of operations and assumes leases start on Year

4 with a 5% annual increase and 85% occupancy.2. Selling price of condominiums is estimated at P130,000 ($3,170) per square meter.3. Lots are sold at P15,000 ($266) per square meter. Estimated 7,600 lots for sale4. House and lot packages are sold at P9.5 million each($231,707) for a 120 sqm house on a

150 sqm lot. Estimated number of units at 7,6005. Construction and development costs is inclusive of cost of titling

Revenue In Philippine Peso In US Dollars

Sale of condominium units PHP 6,488,040,000 $150,884,651Sale of residential lots only PHP 17,100,360,000 $397,682,791Sale of house and lots PHP 72,200,000,000 $1,679,069,767Lease income of commercial spaces PHP 1,171,980,237 $27,255,354

Total Revenue PHP 96,960,380,237 $2,254,892,564

Expenses

VAT PHP 7,320,100,525 $170,234,896Creditable withholding tax PHP 1,473,903,012 $34,276,814Construction and development cost PHP 28,639,442,000 $666,033,535Depreciation and Amortization PHP 14,319,721,000 $333,016,767Marketing Costs PHP 11,635,245,628 $270,587,108Administrative costs PHP 1,848,019,012 $42,977,186

Total Expenses PHP 32,236,431,178 $749,684,446

NET PROFIT BEFORE TAX PHP 28,723,949,060 $667,998,815

Financial EstimatesAs of 26 June 2012Income Statement

Note:Exchange rate used:1 US $ = Php43

YIELD

Project: SALAS - TagaytaySubject: Yield (Site A) Scheme 1Date: 16-Apr-12

(in sqm.) Percentage (%)Gross Area: 3,599,151.00

Roads 549,219.00 15.26%Parks and greens 566,317.00 15.74%Comm facilities/village center 149,134.00 4.14%Saleable are 2,334,374.00 64.86%

commercial 28,224.00 0.78%condo 26,104.00 0.73%lots 2,280,046.00 63.35%

Efficiency 64.86%100%

Morceau Del Ciel

Project: SALAS - TagaytaySubject: Yield (Site A) Scheme 1Date: 16-Apr-12

(in sqm.) Percentage (%)Gross Area: 3,599,151.00

Roads 549,219.00 15.26%Parks and greens 566,317.00 15.74%Comm facilities/village center 149,134.00 4.14%Saleable are 2,334,374.00 64.86%

commercial 28,224.00 0.78%condo 26,104.00 0.73%lots 2,280,046.00 63.35%

Efficiency 64.86%100%

Costing for Morceau Del Ciel Tagaytay / As of 20 June 2012Sports Club

Morceau Del Ciel


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Costing for Morceau Del Ciel Tagaytay / As of 20 June 2012Condo Buildings

Morceau Del Ciel


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Costing for Morceau Del Ciel Tagaytay / As of 20 June 2012Common Facilities


Morceau Del Ciel

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Real Estate

Morceau del Ciel, Tagaytay