11   Sotogrande 76 Sotogrande is the setting for a whole new style of living, with its residential areas designed with quality of life and attention to the family in mind. Its values make it a unique point of reference within the tourist sector. For the first time, this singular concept is to be exported beyond its original frontiers. THE LA RESERVA DE SOTOGRANDE COMPLEX The La Reserva de Sotogrande complex, a little over a year since it was opened, has quickly become one of Spain’s leading golf courses. A private and exclusive golf club in a spectacular setting with wonderful views of the mountains and sea. The demanding 18 hole course, designed by Cabell B. Robinson, is 7,600 yards long and covers 180 acres, with four lakes and greens of the highest quality, designed by Tom Lamb. Plans for a second 18 hole course are also well under way. The Club House, occupying nearly 7,200 square yards, is built in the traditional Andalusian style, and, as one might expect from such an exclusive club house, has magnificently luxurious changing rooms and areas in which to relax. SALE OF PLOTS OF LAND AND ESTATE VILLAS WITHIN LA RESERVA La Reserva de Sotogrande is a luxury complex in one of the most sought after areas of the Sotogrande estate, stretching over more than 1,250 acres of land. This is a truly privileged location

77 with infrastructures and services of the highest quality. Allowing you to live the whole year round in an atmosphere of luxury, privacy and security. The La Reserva de Sotogrande complex offers a wide range of large plots of land for sale. Some actually overlook the golf course, and can be considered to be the finest plots of land to be put on the market in the 40 year history of Sotogrande. These exceptional sites enjoy truly magnificent views out over the golf course, the lakes, the lower part of the Sotogrande estate and the Mediterranean Sea. At the present moment, 187 plots have been sold out of a total of 274 which have been put on the market. Situated on either side of the avenue which leads to the La Reserva Club House are the “Los Cortijos de La Reserva” - the Estate Villas. These are 76 luxury villas and private estates which will be ready for occupation in the third quarter of 2006. 37 of the original 76 which were put on the market have been sold to date. LA MARINA AND OTHER DEVELOPMENTS Sotogrande also offers a product of the very highest quality at its La Marina development: •  Ribera del Marlin Sotogrande and Ponte Gadea formed a 50-50 Joint Partnership in August 2004 in order to undertake the Sotogrande La Marina project, to be known as Ribera del Marlin. The plot of land for this development was sold for €37M. Hotel Almenara - Sotogrande - San Roque - Cádiz (Spain)

78 Sotogrande The project, responsibility for which has been handed to the architectural studio Ramseyer Waisman, includes luxury housing in four main blocks, a pedestrianised sea front promenade with space set aside for 42 shops directly fronting the pavement and an underground public car park. Sotogrande has been responsible for the overall management of the project, as well as acting as promoter and marketing the venture. The development, situated at the entrance to the leisure port, is due to be finished in 2007. To date, 12 shops and 60 apartments have already been sold. •  Other Developments The Ribera del Obispo is a building development housing 29 apartments with spectacular views out over the leisure port, with the housing ready for occupation in September 2005. This is an ideal location, situated at the entrance to the Marina and only the shortest of walks from a wide selection of shops, bars and restaurants, as well as the beach and the entrance to the leisure port. It is worth highlighting that by March 2006, 24 of the 29 apartments placed on the market had already been sold. During the first six months of 2005, the second phase of Las Cimas de Almenara was also put on the market, through RESCO- Sotogrande (another 50-50 Joint Partnership). This is a development of housing with a cutting edge architectural design situated next to the Hotel Almenara’s golf course. SOTOGRANDE: A SUCCESS STORY READY TO BE EXPORTED FOR THE FIRST TIME The success of the Sotogrande concept as a reference point for the quality residential and hotel tourist sector has led the company to seek to export the model beyond the confines of the original estate, both in Spain, at Castellón, and further afield, in Italy (Sicily), the Dominican Republic (Cap Cana) and Mexico (Riviera Maya). SOTOGRANDE SANTA BÁRBARA (CASTELLÓN - SPAIN) Sotogrande has set up the Santa Bárbara Golf company in order to develop a tourist complex of the same name in the Spanish sea front location of Burriana, in the province of Castellón, with a shareholder structure which ensures the necessary technical and financial solvency. The future Santa Bárbara Golf residential complex, designed by Sotogrande and stretching over 887 acres, features the largest marina for leisure pursuits on the whole of the Spanish Mediterranean, with 2,691 moorings for boats between 32 and 115 feet, an 18 hole golf course, a hotel, a shopping centre and 3,200 public parking spaces. In addition to this, scattered around the golf course and the estate’s numerous islands, 5,289 apartments and houses are due to be built on spacious plots of land, providing housing for an expected population of 18,500 people. The Integrated Action Plan (known as the PAI in Spanish) is currently being finalised. Sotogrande is to be the company given the task of exploiting the leisure activity and tourist services potential of the estates, which will consist of nautical installations and a leisure marina, a golf club, a beach club, as well as all the corresponding hotel services one can expect. The state plans to create a large Beach Club area next to the sea, thus restoring more than a kilometer of beach to its former glory. Pedestrian and bicycle paths are also due to be built, thus improving access to the beach for visitors and residents alike. The project also envisages providing the whole area with an access infrastructure of the very highest quality. Ribera del Marlin - Sotogrande - San Roque - Cádiz (Spain)

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80 Sotogrande As was the case with the Sotogrande Marina, the tourist – residential model envisaged for the Santa Bárbara Golf complex, is based around the idea of a “lakeside village” with the inner marina’s islands and waterways, making the complex a showcase for the whole Valencia region and situating Burriana at the very forefront of high class tourist destination investment opportunities.   SOTOGRANDE DONNAFUGATA (SICILY - ITALY) Sotogrande is also involved in the development of the Donnafugata project in Sicily, Italy. This is to be situated on an estate covering some 710 acres on the south eastern side of the island, near Ragusa as well as being very close to the future airport at Comiso and the sea. This new development, currently under construction, will feature a new 5 Star hotel with 170 rooms, 20 junior suites and 10 senior suites. The new Donnafugata complex will also include a 43,000 square foot conference centre and an additional 21,500 square feet of terrace bars and restaurants with capacity for up to 1200 people. Sotogrande plans to build two 18 hole golf courses at Donnafugata, benefiting from the vast experience gained over the years with Sotogrande Golf Services as well as a spa featuring all the services which characterise Elysium, NH Hoteles’ Spa. NH Sotogrande - San Roque - Cádiz (Spain)

81 Sotogrande seeks to turn Donnafugata into a prime tourist destination within Italian society as well as reference point for the business conventions sector. Similarly, and in keeping with the traditions of the estate, Sotogrande hopes and expects that Donnafugata will also become equally renowned within the international golfing world. SOTOGRANDE GOLF SERVICES Sotogrande Golf Services is a division of Sotogrande S.A. dedicated to the building, maintenance and management of high quality golf courses. The company is the first Spanish concern to be admitted to the GCBAA (Golf Course Builders American Association). Until this year, SGS had solely worked on projects related to the parent company; this is now set to change with Sotogrande Golf Services starting to undertake projects for third parties. SGS has set itself the target of building at least one golf course of the highest standard per year. From the outset, the company has been involved with the building of Spain’s finest courses, working with some of the world’s most prestigious course designers, including Robert Trent Jones, Dave Thomas and Gary Player. SGS is currently working on the course at Donnafugata in Sicily as well as designing the Santa Bárbara links in Castellón and the second course at La Reserva (Sotogrande) and renovating the Retamares (Madrid) and Almenara (Sotogrande) courses. Casa Club La Reserva de Sotogrande - San Roque - Cádiz (Spain)

82 Sotogrande SOTOGRANDE HEALTH EXPERIENCE (SHE) In collaboration with some of Europe’s finest leisure and health professionals, Sotogrande has created a unique combination of activities and workshops which allow our guests to learn how to take good care of their health whilst enjoying unforgettable holidays. With the help and guidance of professionals, our guests are able to choose those activities which most interest them and best suit their objectives and physical condition. They will also help the guest to adjust the level of intensity of these activities whilst never forgetting, of course, that our customers are on holiday. The Sotogrande Health Experience (SHE) is a ground breaking concept within the range of holidays aimed at improving our living habits and health. The stated aim of SHE is that the guest enjoys themself while at the same time discovering that it is possible to enjoy a healthy life by eating well and taking exercise. SHE has been developed within the unbeatable framework of Sotogrande and is based in the Hotel Almenara, recently awarded the Condé Nast Johansens Prize for the Best Hotel & Spa in Europe, as well as being selected as the Best Golf Resort in Spain at the Annual World Travel Awards.

83 COMPARATIVE EVOLUTION OF THE SOTOGRANDE SHARE PRICE ON THE IBEX 35 SOTOGRANDE RESULTS In 2005, the real estate side of the company showed sales of €83.4M, in line with forecasts. The drop in income, which stood at €98.44M, with respect to 2004, is the result of a decrease in the sale of plots of land as well as adjustment resulting from adaptation to the new International Financial Information Regulations (IFIR), which had a positive effect on 2004’s returns. The EBITDA for the real estate side of the company stood at €53.7M. By year end in December 2005, commitments for real estate deals which had been signed although not entered into company accounts reached €80M, with an estimated margin of €35M which will be included in accounts for 2006 and 2007. This represents an increase of 23.5% in comparison to 2004.