Tropical isolation at its purest, closed to Aruba’s east coast beach cove.
This elegant eco escape is an intimate hideaway
set in a ruggedly beautiful landscape.
Great deal of our inspiration is drawn from the island we live on; it’s exotic
colors and light, its flora and fauna, its history, culture and people.
www.cunucuarubiano.com
To
: Prospective Investors
Re
: Safe Investment Opportunity in a unique Hotel "Cunucu Arubiano"
Eco-and-Beach-Resort.
Date
: February 2011
Cunucu Arubiano (CA) is a new, ECO-reso rt 1 on Aruba. For a brief idea of the concept please visit
www.cunucuarubiano.com. We opened in February 2009, and since May 2009 are officially affiliated to
Small Luxury Hotels of the World (www.slh.com).
In 2009, for the third year in a row, SLH has been rated by high net-wo rth consumers 2 as “Best of the
Best” among 22 luxury hotel brands. This survey is conducted yearly by the Luxury Institute 3. SLH
outscored such renowned luxury brands as the Peninsula, and Ritz Carlton. A 2 pages copy of this
report is attached.
4
Based on the industry indicato rs, feedback from our guests , and visib le opportunities, I have decided
that the timing is right to move-on with the 2nd phase of the project. The first phase consists of 3 free
standing casita’s, with a swimming-pool, breakfast area and kitchen. Hence we are operating CA
currently as a Bed & Breakfast.
But industry experts, travel journalists and writers, leading periodicals such as Brides Magazine,
Caribbean Travel & Life, Flair Magazine of Canada, e.a., all of whom have already visited CA, are
encouraging us to complete the 2nd phase soonest, since “a full-fledged resort is more appealing to all
markets, thus much easier to sell”.
The expansion-plan: Convert Cunucu Arubi ano from a “ Bed & Breakast”, to a Full-Fl edged
Resort, with Beach Access!
(1). Purchase of the adjoining property land of approximately 25.000m2 from my parents. Family price
of Afl. 40-45,- m2. This will accordingly provide for immediate “equity” in the form of market
overvalue. Please see accordingly also the Balance Sheets of CA, attached. This property -land includes
the Aruban-Donkey-Sanctuary (www.arubandonkey.org).
(2). Construction of 12-15 additional casita's, and 1 pool, ready for operations 5. Currently there are 3
casita's in operation with 1 pool (first phase). In total the reso rt will have 3 swimming-pools (see point
3).
(3). Revamping of Sta. Lucia 4 into a lobby, small spa, and theme restaurant (to be outsourced). Sta.
Lucia 4 houses "Villa Nechi Klimpiek" whom was the "Boswachter" of Sta. Cruz. In short, an authentic,
turn of the century old-Aruban-style house with stunning views over half the island. There is also a
pool at Sta. Lucia 4. In essence, once completed Cunucu Arubiano will have a "luxury -ratio" of 1 pool
for every 5 casita's.
1
Dr. Sam Cole has recommended t he Aruban Government as far back as the early 1990’s to diversify the t ourism
portfolio towards “boutique hotels” – as these categories of hotels attract a much more affluent market.
2
North American consumers with average weighted household income of US$ 343,000.00, and US$ 3.2 million in
household net worth.
3
The Luxury Institute is the uniquely in dependent and impartial ratings and research institution that is the trusted
and respected voice of t he high net-worth consumer.
4
Please go to www.tripadvisor.com. Find Cunucu Arubiano. Some Reviews are attached herewith.
5
Maximum estimation.
The estimated to tal financing required to realize points 1-3 is Afl 6.0 million 6. This is inclusive of the Afl
650m loan currently on the first phase of Cunucu Arubiano. Also inclusive of the Afl 500m loan on Sta.
Lucia 4. Combined, both properties have an over-value today of about Afl 1 million.
As Developer-owner I am committing accordingly Cunucu Arubiano, Sta. Lucia 4 as hard -equity. As
well as the p roperty land (point 1), which, at a purchase price of Afl. 40-45,- would have an immediate
overvalue (equity) when appraised.
As -temporary- security to ensure quality construction, and completion of the p roject within budget,
Banks require of Afl 2 million (approx. U$ 600-thousand). Upon satisfactory completion of phase 2 this
guarantee will be released . This period should take no longer than 18 months! The target is 1 year.
The risk fo r the Investor is minimum. The probability of a down -sid e scenario is close to zero. All that
the project needs is a temporary b ridge. Nevertheless, to help me realize this unique project, I am
prepared to grant you 40% shares in Cunucu Arubiano Development Co. N.V.
Post-completion of the construction I estimate that the reso rt will be appraised conservatively at
around Afl 10 million. Face value your shares would accordingly immediatel y be worth at least
Afl 4 million. And your investment, albeit you had no direct cash -outlays, will be backed by realestate!
The deal is sound. The timing fo r real-estate construction is very good. Contractors are seeking jobs.
Let’s take advantage of this recession wh ich in fact is a “b lessing in disguise” for real-estate
construction. The only “catch” is that I would appreciate agreeing on a 1 st option to buy-back (a
portion of) the shares within a time-frame of 3 years, and against a pre-determined price.
Yours faithfully,
CUNUCU ARUBIANO DEV. CO. N.V.
_____________________________
Edmond (Eddy) L. Paris, MA, MBA
Managing Director
www.slh.com
www.cunucuarubiano.com
6
The budget is taken on a “high-side” to ensure that unforeseen expenses or possible delays beyond control are
accounted for.
Budget Breakdown (estimations):
Afl 1.1m for the purchase of the propert y land of approx. 25.000m2. Including notary expenses and t ransfer taxes.
Afl 1.5m for the construction of 13 casita’s. Including all FF&E, 1 additional pool, and landscaping.
st
Afl 1.15m pay-off balances on Sta. Lucia 4 and Cunucu Arubiano 1 phase.
Afl 400-thousand to revamp Sta. Lu cia 4 int o a Luxury spa, lobby, restaurant, etc.
Afl 785-thousand overdraft-facility to guarantee 1-year repayment of the loan until the resort can generate it’s
own cash-lfo
Balance for Marketing! - bank fees, and “buffer” for pre-opening expenses, unforeseen, emergencies,
modifications, etc.
Current Balance Sheet of Cunucu Arubiano Development Co. N.V.
Cash
FF&E
Automobile
SLH
50.000,00
150.000,00
35.000,00
20.000,00
Long-term loan
Long-term loan
650.000,00
500.000,00
Total LT Liabilities
Land & Casita's
Sta. Lucia 4
Total Assets
1.150.000,00
1.590.000,00
950.000,00
2.795.000,00
EQUITY
1.645.000,00
Total Equity and Liab.
2.795.000,00
Note:
Value of Land & Casita's, and Sta. Lucia 4 (phase 1) are based on Appraisal repo rts
Cunucu Arubiano, Balance Sheet after completion of Phase 2: 16 Casita's, Lobby / Spa, etc.
Cash
50.000,00
Long-term loan
FF&E
Automobile
SLH
700.000,00
35.000,00
20.000,00
Land & Casita's (phase 1)
Sta. Lucia 4
1.590.000,00
950.000,00
Land (overwaarde)
Sta. Lucia 4 (overwaarde)
2.750.000,00
1.650.000,00
13 additional Casita's
2.500.000,00
6.000.000,00
Total LT Liabilities
3 EQUITY
Total Assets
10.245.000,00
Total Equity and Liab.
6.000.000,00
4.245.000,00
10.245.000,00
Notes:
1. Land of approx 25.000m2 will be purchased at approx Afl 40 p/m. But realistically speaking, it will be
appraised at around at least Afl 110, per m2 as that is the average price on Aruba, and for "greenfield"land. But this land will be developed: in principal the overwaarde will be worth more.
2. Because of the expertise of E. Paris, the Casita's can be built at attractive prices, but an Appraiser will
see the value of the physical plant and not what was paid (in labor) to build the Casita's.
3. Because of the positive Equity and total Assets value exceeding total Liabilities for a Loan to value ratio
of 59%, the lending-Bank can be reasonably persuaded to release the Pledge of the
Investor.
4. Further to point 3, once the resort is completed, and assuming that for whatever unforeseen reason the
lending Bank must foreclose, the Balance Sheet shows that there is ample collateral to
call upon before having to make any claim on the Pledge of the Investor.
DRAFT
CUNUCU ARUBIANO,
16 casita's
Profit & Loss Projections
Stated in Aruba florins
To show
Breakeven
Rate Days
Revenues (notes: 1-4)
5 Other income (restaurant)
6 Other income (spa)
Gross Profit
Year 1
US$ 270,0,40
TARGET
Year 2
US$315,0,60
Year 3
US$ 345,0,70
1.128.358,08 1.974.626,64 2.523.134,04
60.000,00
62.500,00
64.900,00
36.000,00
37.080,00
38.192,00
1.224.358,08 2.074.206,64 2.626.226,04
Year
US$ 375,80%
3.134.328,00
65.000,00
57.835,00
3.257.163,00
Expenses
7 Personnel
Marketing (SLH)
Sales (road-shows,
8 convention,etc.)
9 Utilities
Cable TV / Wi-fi Internet
Crystal Pool
Insurances
Netcor N.V. (Internet,
website)
ATCO (trash-container)
Office
Repairs & Maintenance,
Grounds
Vehicle and
Transportation
10 Depreciation
Estimated annual Amort
11 (note: 3)
325.000,00
26.000,00
335.000,00
26.000,00
345.000,00
26.000,00
325.000,00
26.000,00
24.000,00
95.000,00
18.500,00
10.400,00
15.000,00
22.000,00
97.850,00
18.750,00
10.700,00
15.500,00
18.000,00
100.785,00
19.000,00
11.020,00
15.850,00
10.000,00
100.785,00
18.500,00
11.020,00
15.000,00
1.500,00
2.160,00
12.000,00
1.500,00
2.225,00
12.360,00
1.500,00
2.292,00
12.730,00
1.500,00
2.292,00
12.730,00
19.500,00
58.500,00
97.500,00
97.500,00
7.500,00
7.750,00
9.000,00
7.000,00
783.900,00
783.900,00
783.900,00
783.900,00
Total Operating
Expenses
1.340.460,00 1.392.035,00 1.442.577,00
1.411.227,00
Earning From
Operations
-116.101,92
1.845.936,00
682.171,64
1.183.649,04
Notes:
(1). Revenues of year 1 is based on
a monthly rate of US$ 270,- and
40% occupancy
(3). Revenues of year 3 is based on
a monthly rate of US$ 345,- and
70% occupancy
(5-6). Rental is conservative.
Landlord can also opt for a percentage
of sales revenues in addition to fixed rent.
(7). 1 Manager, 1 Office Manager,
2 Housekeepers, 1 Handyman,
2-3 Stagiares, 1 Utility worker.
(7). Yearly attendance ofCaribbean Hotels
Hotels Marketplace, product-presentation
for wholesalers, sales calls, etc.
(8). Landscaping will be irrigated mostly
with "brakish"-water brought to the surface
by traditional windmills
(which fit with the concept of "Cunucu")
(10). Based on a 12 years mortgage-loan
of Afl 6 million and interest rate of 8.0%
(2). Revenues of year 2 is based on
a monthly rate of US$ 315,- and
60% occupancy
(4). Keeping in mind that:
→ Guests have paid in 2009 already
a rack rate of US$ 345,- and claim this to
be a "good value"
→ The average occupancy for Aruba
hotels is 72%
→ With only 15 rooms it's very reasonable
that occupancy percentages of
72% is achievable
→ An occupancy percentage of 80%, with
average rates of over US$ 375,- are
very reasonable.
(9). Depreciation will reduce the taxable income
but is not a source of cash
(11). Taxes. As incentive, the
Government allows for the
incorporation of an "Imputatie"
company, whereby hotels with an
average yearly rate of over US$ 200
pay less than 10% on profit tax
IntendedDISBURSEMENT Schedule:
1
2
3
4
Equity Recapture Sta. Lucia 4
Equity Recapture Cunucu Arubiano
Bank fees on loan of Afl 6m
Purchase of 25.000m2 property land
(including Notary and Transfer taxes)
5 Revamping of Sta Lucia 4
6 Architectural and General preconstruction
7 13 casita's (including land-prep)
8 Beach access, etc.
9 FF&E casita's
# Utilities (possib ly Trafo)
# General landscaping and infra
# Pre-opening marketing
# Unforeseen
# 1st year repayment of facility
6.000.000,00
500.000,00
650.000,00
50.000,00
1.100.000,00
400.000
50.000,00
1.500.000,00 Can be less
25.000,00
390.000,00
200.000,00 Can be less
300.000,00
100.000,00 Can be less
100.000,00 BUFFER
654.000,00 BUFFER
6.019.000,00
Mr. Edmond (Eddy) L. Paris, B.Sc., MA, MBA
Mr. Paris has extensive experience in Corporate Financing, Banking, Tourism
Development, Marketing, and General Management.
Mr. Paris wo rks fluently in English, Papiamento, Dutch, and Spanish. Date of birth:
September 26, 1969 (41 years of age). Nationality: Dutch. Home address: Marg rietstraat 1,
Oranjestad, Aruba. Tel: (297) 739.3339.
E-mail: eparis@cunucuarubiano.com, or, edmond.paris@bancodicaribe.com.
From 1988 to 1996 Mr. Paris wo rked in all divisions of the Hospitality and tourism industry, on Aruba
and in the US. After completing his Bachelor of Science at the Florida International University in No rth
Miami, FL in 1993, Mr. Paris was hired as acting sales-manager for the Aruba Sonesta Ho tels (today the
Aruba Renaissance Hotels). Stationed in Coral Gables, FL, M r. Paris travelled to more than 13 States
in the US conducting product presentations to wholesalers, travel agents, attending road -shows, salescalls, IATA conventions, etc. together with the Aruba Tourism Authority offices in the US (FL and NJ),
and also the Aruba Hotels and Tourism Association member hotels.
In 1995 M r. Paris obtained a graduate d egree in Business Communications and Public Relations at the
European University (EU) in Europe. From 1995 to 1996 Mr. Paris was the sales-manager and acting
director of sales for Latin America and Europe, fo r the then newly opened, 400- rooms Aruba Marriott
Hotel, travelling to Colombia and Venezuela to contract with tour-operato rs e.a.
From 1996 to 2002 M r. Paris was in banking, where he set-up various marketing departments for the
ABC-islands. In early 1999 M r. Paris returned to EU to complete a second graduate degree; an MBA in
International Business and Financing. From late 1999 to late 2002 M r. Paris was a corporate finance
manager, and member of the bank’s credit-committee. From 2002 to 2003 M r. Paris lead the
complete architectural planning, financing, and construction supervision of the new dealership fac ility
of Aruba’s largest car importer-distributor, and successively was it’s general managing directo r from
2004 to 2006. See also www:cordiaaruba.com.
In late 2006 M r. Paris started the construction of a p lan he had d rafted in 1992; develop Aruba’s first
eco-cultural boutique reso rt. Cunucu Arubiano Eco-Resort (CA) was accordingly opened in 2009.
Small Luxury Hotels of the World (www.slh.com), which is perhaps the lead ing luxury hotel group in
the world, soon welcomed affiliation of CA (www.cunucuarubiano.com) to it’s coveted line-up of
unique hotels around the world. During the development of CA Mr. Paris also was a consultant to a
South-American bank which successfully incorporated it’s off-shore operations on Aruba in late 2009.
In medio 2009 Mr. Paris returned to banking, in the capacity of Manager Corporate Accounts.
Integrity and loyalty are core personal virtues of Mr. Paris, yet Mr. Paris considers balanced change
essential for personal and professional gro wth.
Resume of Mr. Edmond (Eddy) L. Paris, MBA
Date of birth: Sep tember 26, 1969 (40 years of age). Nationality: Dutch.
Management Positions
Owner –Managing Director of Cunucu Arubiano Development Company N.V. – owner of Cunucu
Arubiano Eco-Resort (www.cunucuarubiano.com), which is affiliated to Small Luxury Hotels of the
World (www.slh.com). 2006-Current.
General Managing Dir ector – GCA Auto Sales N.V., GCA Store & Lock N.V., and GCA Aruba N.V.: Jan.
2004 - July 2006. GCA stands for Garage Cordia Aruba N.V, and is the largest dealer on Aruba, fo r
Toyota and Lexus automobiles. Established in 1968, employ ing over 75 persons, with yearly group
sales exceeding Afl 45 million (US$25 million).
Manager / Staff Positions:
Manager Corporate Accounts – Banco di Caribe Aruba N.V. – 2009 - Current.
Member of the bank’s credit committee.
 Project and Finance Manager for GCA Aruba N.V., 2002-2003.
Negotiated a substantial and single digit loan (then a first on Aruba), for the construction of
GCA’s new auto-dealership facility. Complete planning of the new facility, supervision of the
construction and proper funds allocation (Afl millions) thereof.
 Corporate Financing Manager – Interbank Aruba N.V., 1999- 2002. New loans development,
supervision of an assigned credit-portfolio. Member of the Bank’s Credit Committee.
 Marketing and Public Relations Officer – Interbank Aruba N.V., 1996-1999 (planned
interruption of 6 months in 1999 to complete MBA-degree)
 Marketing Manager – Europe and Latin American– Aruba Marriott Reso rt, 1995- 1996.
 Acting North-American Sales Manager – Aruba Sonesta Hotels, Miami, Flo rida, 1993.
Academic Education:
 Master of Business Administration (MBA) in International Business Management.
 Degree obtained in 1999 from the European University in Europe (www.eu runi.edu).
 Master of Arts (M A) in Business Communication and Public Relations.
 Degree obtained in 1995 from the European University in Europe.
 Bachelor of Science in Hotel and Tourism Management.
 Degree obtained in 1993 from the Florida International University in Miami, Florida.
 NIBE Diploma’s (Dutch Institute for Banking): Rechtwijzer, Inleiding Bankbedrijf en Organisatie.
Other interests: Golf (16 hdcp.). Studying Dutch-law. Member, past Treasurer of Aruba LIONS Club.
Professional referenc es:
Mr. Angel Bermudez, tax-attorney, Partner and managing director of Ernst and Young Aruba and
Curacao, Board-Member GCA Aruba NV (angelb@cura.net).
Mr. Richard S. Arends, Senior Advisor to the Minister of Finance and Prime Minister of Aruba. Mr.
Oswaldo A. Armitano, Managing Directo r BBA-Bank Aruba NV. Mr. Hans Schnog, Owner-Managing
Director Co rdia Aruba Group NV.
More references availab le upon request.
The right way to the future!
For further information please contact the broker-office on Aruba:
Mr. John Brinkhaus
HCE – Advisor Real Estate,-Investment - Appraisal-Mortgage-Pension & Insurance.
Office Aruba
Facsimile
Cell phone
Skype name
+31 850020555
+31 848328615
+297 7374809
john-brinkhaus
info@caribbeanestate.nl
www.caribbeanestate.nl