LA RESERVA OPENING OF THE LA CLUB HOUSE AND OFFICIAL INAUGURATION In October 2004, and following the opening of the Club House the previous August, Sotogrande officially inaugurated the “La Reserva Golf Club”. “La Reserva de Sotogrande” is a private and exclusive golf club in a privileged location with magnificent sea and mountain views. The 18-hole top of the range golf course designed by Cabell B. Robinson is 6,950 metres long, has 4 lakes and impressive greens designed by Tom Lamb on an area of 72 hectares. In addition, the construction of a second 18-hole course is planned. The Andalusian style Club House occupies a constructed area of 6,000 sqm, resembles a luxury country house, and boasts spectacular changing rooms and very comfortable recreational areas. SALE OF LA RESERVA PLOTS AND LUXURY VILLAS The “La Reserva” complex is located in one of Sotogrande’s most privileged settings and occupies an area of over 500 hectares. The district has all of the infrastructures and services required to live all year round in a quality, private and safe environment. “La Reserva de Sotogrande” offers a selection of large plots, some directly overlooking the golf course and which could be described as the best plots available in Sotogrande’s 40-year real estate development history. These spectacular plots have magnificent views of the golf course, lakes, lower Sotogrande and the Mediterranean Sea. Currently, 180 of the 274 plots that went on sale have already been sold. “Los Cortijos de La Reserva” line both sides of the avenue leading to the “La Reserva” Club House; these are a selection of 76 luxury villas and houses that will be completed by the third quarter of 2006.  Thirty- three of the 76 villas that went on the market have already been sold. La Reserva Golf Club - Sotogrande - San Roque - Cádiz (Spain) NH Sotogrande - San Roque - Cádiz (Spain) 69 SOTOGRANDE 14 With the recent opening of the NH Sotogrande hotel and the “La Reserva Golf Club”, Sotogrande has been firmly established as a unique landmark within the European tourism, residential and hotel sector. For the first time, this concept is to be exported beyond its original boundaries < NH Sotogrande - San Roque - Cádiz (Spain)
70 NH Almenara Golf Sotogrande San Roque - Cádiz (Spain) LA MARINA AND OTHER DEVELOPMENTS Sotogrande offers a wide variety of real estate products in La Marina: •  RIBERA DEL MARLIN In August 2004, Sotogrande and Ponte Gadea created a new company, each with a 50% stake, to undertake a project in “La Marina” at Sotogrande and known as “Ribera del Marlin”. The plot was sold for €37 million. The project, which has been commissioned to the Ramseyer Waisman architect studio, includes luxury housing in 4 buildings, a pedestrian promenade with retail outlets and an underground public car park. Sotogrande will be in charge of managing, developing and commercialising the project. The development, which is situated at the entrance to the marina, will be completed in 2007 and 20 housing units have already been sold. •  OTHER DEVELOPMENTS “La Ribera del Obispo” is an apartment block with 29 apartments directly overlooking the housing estate marina. The location is ideal; right at the entrance to the marina and just a short walk from the shopping, bar and restaurant district, as well as the beach and the marina’s main entrance. Construction works began in June 2003 and the property is expected to be completed for the third quarter of 2005. Twenty-two of the development’s 29 housing units have already been sold. During the first half of 2005, the second phase of the “Las Cimas de Almenara” development will go on the market through RESCO-Sotogrande (a 50% owned company). This consists of a group of houses of modern architecture on the Almenara hotel golf course. Likewise, in March 2004, Sotogrande sold the “A” plot of sub-sector 34 of the “La Reserva de Sotogrande” housing estate which consists of a 50,498 sqm buildable plot on “Avenida de la Reserva”. Sotogrande earned revenue of €21 million through this operation.
71 El Cucurucho Beach Club - Sotogrande - San Roque - Cádiz (Spain) SOTOGRANDE: A SUCCESS THAT IS EXPORTED FOR THE FIRST TIME The success of the Sotogrande concept as a benchmark in the upmarket residential tourism and hotel sector led the company to export this model to other parts of Spain (Castellón) and abroad (Sicily/Italy). SOTOGRANDE SANTA BÁRBARA (CASTELLÓN-SPAIN) Sotogrande, together with Gesturbe, Medi Castellón, PGP Asociados and Lubasa’s subsidiary, Calviga, created the Santa Bárbara Golf company to develop a tourist complex with the same name in Burriana, Castellón (Spain). Santa Bárbara Golf was created with a shareholding structure that guarantees the required technical and financial necessities. The future Santa Bárbara Golf complex, designed by Sotogrande, will occupy an area of 3,588,980 sqm and will include the largest inland marina for sport’s use on Spain’s Mediterranean coast, with 2,691 moors between 10 and 35 metres long, a 700,000 sqm 18-hole golf course, a hotel, shopping area and 3,200 public parking spaces. Moreover, 5,289 high quality residential units, accommodating some 18,500 inhabitants in apartment blocks and detached houses, will be built around the different islands, river banks and golf course. Development works will begin at the end of 2006 approximately and will be completed in late 2008. Once the development work is finished, building work on the plots’ different real estate developments will begin. The Sotogrande company will be responsible for managing the tourist leisure facilities and services, which will consist of nautical facilities and a marina, golf club, beach club and hotel services.
72 The creation of a large beach club is also planned where one kilometre of beach will be regenerated. In addition, pedestrian and bicycle promenades will be created on the edges of the beach club to facilitate visitor and residents’ access to the coast. Likewise, the project aims to provide the district with a privileged road and communications infrastructure. The tourism-residential model proposed by “Santa Bárbara Golf”, modelled after the “La Marina de Sotogrande”, will be a true “lake city” on the islands and riverbanks of the inland marina and a landmark on the coast of Valencia. This will undoubtedly position Burriana at the forefront of upscale holiday and investment destinations. SOTOGRANDE DONNAFUGATA (SICILY-ITALY) Sotogrande will develop the Donnafugata project in Sicily, Italy. This is an estate consisting of 284 hectares on the south east of the island, near Ragusa and very close to the future Comiso airport and the sea. This new project will consist of a new 5-star hotel with 170 rooms, 20 junior suites and 10 senior suites, in addition to 2 restaurants, a cafeteria, poolroom, bodega bar and piano bar. On the other hand, the new Donnafugata complex will offer a 4,000 sqm indoor convention centre and 2,000 sqm of terraces with a capacity for 1,200 people. Sotogrande also plans to construct two 18-hole golf courses under the guidance of Aymerich Golf Management and a Spa offering all of the services that are characteristic of NH Hoteles’ Elysium Spas. Casa Club La Reserva de Sotogrande - San Roque - Cádiz (Spain)
The company has been invited to participate in this project because of its proven expertise in developing Sotogrande over 40 years. Sotogrande aims to make Donnafugata a holiday destination for Italian society and a landmark in the corporate convention sector. On the other hand, and following on the development’s tradition, Sotogrande hopes Donnafugata to become part of the international golf circuit. OPENING OF THE NEW NH SOTOGRANDE HOTEL In November 2004, NH Hoteles inaugurated the new NH Sotogrande hotel. In doing so, the company has restored a landmark and enhanced the resort's existing hotel offering. NH Hoteles, through Sotogrande S.A., had a 50% stake in the establishment. However, given the strong demand for the NH Almenara hotel, it was decided to purchase the remaining 50% in November 2003 with a view to restoring and opening it once again. This is an emblematic and historical hotel and the only one that existed in Sotogrande before the opening of the NH Almenara Golf, Hotel & Spa. With this new addition, the company offers a total of 256 rooms in the resort, which positions Sotogrande as a unique offer for tourism, as well as business meetings and golf tournaments. This new 4-star hotel offers 106 large size rooms, a swimming pool, outdoor restaurant, cocktail bar, solarium, two paddle courts and two multi-functional rooms with a capacity for 140 persons. The hotel is located in front of the “La Cabaña” restaurant and very close to the “La Reserva” golf club. Moreover, customers at the new NH Sotogrande hotel can enjoy all Sotogrande S.A. facilities, such as the NH Almenara and La Reserva golf courses, the “El Cucurucho” Beach Club and the Elysium Spa. Aerial view of La Marina de Sotogrande - San Roque - Cádiz (Spain) Riding Club Sotogrande - San Roque - Cádiz (Spain) 73
74 La Marina de Sotogrande - San Roque - Cádiz (Spain) AYMERICH GOLF MANAGEMENT AND GRUPO ESPIRITO SANTO Americh Golf Management (AGM), which is majority owned by Sotogrande S.A. with a 57% stake, entered Portugal with the aid of Grupo Espirito Santo (GES), the business arm of the bank with the same name. AGM and GES have together created a joint company called ESAY in which GES has a 51% stake and AGM 49%. ESAY was created with the objective of managing and developing the golf courses owned by the Grupo Espirito Santo in Portugal, in addition to providing planning, development and management services for other developers’ golf projects. ESAY is currently managing three GES golf courses; two in Algarve, one in Lisbon and another course, owned by a third developer, in the Lisbon area. In addition to these management contracts, ESAY is also involved in planning and developing additional eight projects in different parts of Portugal. The company plans to manage 12 golf courses within the next 3 years and to continue participating in the previous stages of other projects. With this step into Portugal, AGM reinforces its leadership position in the development and management of golf projects on the Iberian Peninsula. AGM currently manages 18 golf courses, three of which are owned by Sotogrande, in Madrid, Valladolid, Valencia and Murcia, the Costa del Sol, the Canary Islands and Seville, among others, and is working on the planning and development of 35 new projects in different parts of Spain.
75 La Reserva de Sotogrande Club House - San Roque - Cádiz (Spain) NH Sotogrande room NEW SOTOGRANDE WEBSITE AND RESERVATIONS CENTRE In July 2004, Sotogrande launched the complex’s new website with the aim of making it more dynamic and accessible for users. Pictures and views are the main subject of this new website (www.sotogrande.es) which contains comprehensive information on Sotogrande. Another Sotogrande innovation in 2004 was the creation of a new Information and Reservations Centre (or C.I.R.) to improve communication with the customer. All customer services and reservations are now centralised in a single physical location that can be contacted by telephoning 902 181 836 or e-mailing info@sotogrande.com. SOTOGRANDE RESULTS Real estate activity at Sotogrande reached record figures in 2004. Revenue rose 73% to €98.44 million and EBITDA grew 122% to €70.2 million. In addition to generating revenue of €34.43 million through the sale of plots in the second quarter of 2004, a sizeable plot of 25,249 buildable sqm was sold and in the last quarter of the year, another large sale corresponding to “La Ribera del Marlin”, a project equally owned by Sotogrande and Ponte Gadea, was closed. These two operations generated revenue of €39.5 million and EBITDA of €34.4 million. Likewise, committed sales yet to be booked at December 31, 2004 totalled €64.80 million. 71% of this revenue was generated through the sale of apartments and houses, a further 13% from the sale of piers, 10% from plots at the La Reserva de Sotogrande and 5% through the sale of commercial plots. The profit margin on these sales is estimated at €39 million between 2005 and the two subsequent years.  
NH Sotogrande restaurant - San Roque - Cádiz (Spain) NH Almenara Golf, Hotel & Spa - Sotogrande - San Roque - Cádiz (Spain) 76 0 50 100 150 200 250 300 350 400 450 500 abril-01abril-02abril-03abril-04abril-05 Sotogrande (base 100) Madrid Stock Market Financial and Real Estate Services Sector Index (base 100) SOTOGRANDE’S STOCK MARKET PERFORMANCE COMPARED TO THE MADRID STOCK MARKET FINANCIAL AND REAL ESTATE SERVICES SECTOR INDEX FROM APRIL 2001 TO APRIL 2005
La Reserva de Sotogrande - San Roque - Cádiz (Spain) 77 SOTOGRANDE – BREAKDOWN OF SALES 2004 2003 2004/03 %VAR Moors and parking spaces 3.35 0.88 Shopping Centre 1.53 0.00 Apartments 15.00 0.90 Houses 0.00 14.76 Plots 73.93 35.02 Total Real estate sales 93.81 51.56 81.9% Other Income 4.64 5.31 Total Sales 98.44 56.88 73.1% Figures in € million
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