MB International Properties

ORCHID ISLAND PROJECT

• The only resort/commercial zoned island available in the Southern Rock Island Lagoon which is a UN World Heritage Site.

• Site is 70 acres (approx. 285,00 sq.m), prime location within the main reef system that rings Palau, so there is extensive protection from open ocean wave action.

• Pristine sunset, ocean and Rock Island views.

• Possible to construct two resorts.

• Marriott Hotel Group has already visited this site and approved for their boutique brands.

• Aman Resort Group has approved this site to operate one of their resorts.

• Peleliu airport under renovation and expansion.

• Price on application.

PALAU CONDOMINIUM PROJECT.

Our team’s mission here in Palau has been, from the start, to see and assist Palau to develop into a plentiful, successful and self-sustaining country.

We have seen the results of mass tourism on small developing nations and have spoken at length with your brother in his visits to Kaua’i and California on the direction we, and he, thinks the country should go.

We have brought quite a few of our high net worth clients here and all have expressed interest and a willingness to invest here. Our one client from Sacramento is the one that has been clearing up and developing Laughter Island.

We know that we need to attract the 1%’ers of the world.....low volume, high spending. This was the justification for my pitch to Blackstone NY. The team there wants the opinion of the Asian team, and their assessment was that Palau is an ‘untested’ market and before they will jump in they need to see a project succeed that is at the level of a high end Dubai or Singapore project.

The plan I came up with is the rendering below with a preliminary structural mock up.

I met with Tiger Gillam yesterday and he is very interested in being part of the team, and said he would bring in all his usual team on Guam for HVAC, fire suppression, electrical etc.

The building needs to be built to IBC 2018, which is the current standard all over the USA, including Hawai’i.

Our proposal is that we, our Kaua’i team, will be responsible for overseeing all the construction drawings, together with Tiger, and we will bring our Hawai’i based contractors in to train and consult on the finishes. Our team will also put the finish packages together and source them out of Vietnam, the Philippines or elsewhere in Asia or the US.

We will also be responsible for the marketing materials and sales of the units. We have broker in Taipei, Tokyo and Singapore standing by. What follows is a brief synopsis and breakdown of estimated sales.

I wanted to add as well, that these would offer an option that NO luxury development has ever offered - the option to add a boat slip, complete with a boat and Mercury motor and a new vehicle.....a complete package
.....a fully furnished condo, boat and vehicle......this optional upgrade I did not take into account with the numbers below but we think it would be a game changer!

PALAU CONDOMINIUM PROJECT CONT’D.

• Palau has NO luxury condominiums or apartments.

• Site is approx. 46,300 sq.ft (approx. 4,300 sq.m), prime waterfront location with engineered dock and located within the main reef system that rings Palau, so there is extensive protection from open ocean wave action.

• Water rights extend out another 30m or 100 feet beyond the end of the current pier.

• A private pier system could be constructed for the owners to keep their boats.

• Situated right next to the premier Palau resort - Palau Pacific Resort.

• Pristine sunset, ocean and Rock Island views.

• Once built, owners will be able utilize the facilities at PPR (beach, restaurant & bars).

• Forty (40) X 1,800 sq.ft, (167.225 sq.m) 2 bed/2 bath units, four (4) X 3,600 sq.ft (334.451 sq.m) 4 bed/4 bath units.

• Thirty (30) interior units have a 360 sq.ft (33.445 sq.m) exterior deck, the ten (10) end units have a wraparound deck of 1,080 sq.ft (100.335 sq.m).

• Total building cost (projected) - USD$ 50M.

• Sale price of 30 interior units (projected) - USD$ 2.75M each - USD$ 82.5M.

• Sale price of 10 end units (projected) - USD$ 3.75M each - USD$ 37.5M.

• Sale price of 4 penthouse units (projected) - USD$ 5.5M each - USD$ 22M.

• Total from sales (projected) - USD$ 142M.

• Net profit (projected) - USD$ 92M.

• Partnership agreement - Surangel Construction to complete the site work and build the concrete super structure. Our Palau Team will bring in the investor with the $35M to complete the finishes.

Please bear in mind that this is not just another construction project, but the launch pad for the entire Palau luxury condo market, which we believe could easily absorb another 4,000 units.