Bolivia Avenue Project Arbitraging the Building Code: Preconstruction Opportunity in Uruguay

1. Bolivia Avenue ProjectArbitraging the Building Code: Preconstruction Opportunity in Uruguay John Tidd Director Horizon DEVCO www.horizon.vg February 20, 2007

2. Executive Summary • The Concept • Affordable Units in a Secure Green environment for young families and empty nesters. • The Opportunity • A truly unique product given the size and location of our project • Unique Building code gives strategic advantage • The Potential • 20%+ annual returns • Priority for Phase II investing

3. What We’ll Cover Today • About us • Background on Uruguay • Montevideo Neighborhoods • Location, location, location • Design, design, design • Building Code Arbitrage • Potential Returns • Terms and conditions • Time table • Questions and answers

4. About Us • Our background is Investment Management with a focus on property through the Horizon Growth Fund N.V. • 21% annualized returns over the last 7 years • Participated in property development companies in Indonesia, Philippines, Malaysia. • Operating in Uruguay since 2003 • Managing and Administering Capital in attractive risk adjusted investments is our strength. • Visit our website www.horizon.vg

5. Background on Uruguay • The Switzerland of Latin America • 3 Million population, 1.4 Million in Montevideo • Democratic Government • Capital of the Mercosur regional group • Experienced deep crisis in 2002-2003 with property falling up to 50% in USD. • Property emerging from crisis - Banks starting to lend again (still 80%+ properties paid in cash) • Estimated positive cycle for up to 5 years • Export growth – Agro related • Tax-free zones in several areas creating call center/IT jobs. • Per the Economist Magazine “the next Chile”

6. Montevideo Neighborhoods

7. Montevideo Neighborhoods • Carrasco • Premium Residential suburb 8 mi from city center • Mostly single family housing and small high end multi-unit complexes. • Land values at 300 USD/m2 - higher end multi-unit projects at 2000 USD/m2 of new construction area. • Pocitos • Generally 10 storey buildings with only front and limited back visibility – long narrow and dark apartments • Safe and secure environment • Close to the coast and boardwalk • Land values at 800/1000 USD/m2 and at 1200 USD/m2 of area in new construction apartments.

8. Montevideo Neighborhoods • Generally Growth has been Eastward along the coast. • In the late-90s the Coast city saw explosive growth but increases in property taxes, poor infrastructure (roads and sewerage) and high gas prices (4.5 USD/gallon) have curtailed growth • Growth has been generally eastward. The World Trade Center Business Park has moved the city center substantially eastward.

9. What our research says Home Buyers Want

10. Why Smaller Units in Multi-unit • Smaller size units is now preferred after • the economic crisis • limited bank lending • Separation and divorce leads to smaller units • down-sizing of older residents • Short-term residents • Demand for 2 Bedrooms is the highest. • Security is a key driver away from single family homes. • Gated communities are not permitted in single family developments – only limited access points.

11. Location Location Location • Next to the 40 ha Rivera Park on one side • 40 ha of Natural environment for walking, jogging, biking, horse back riding. • Permanent “Green areas” with cul de sac occupy approx. 35% of opposing side • 0.3 Miles to Portones Shopping Center • The major shopping center in Eastern Montevideo • Short Drive to all the best schools • American School (.6Mi), British School (0.8 Mi), Anglo School (0.3 Mi), Italian School • Police station in the park • 6 Miles to the city center via Italia Avenue (.15 Mi)

12. Next to the Park, close to shopping & the best schools

13. The Park lane separating our project and the Rivera Park (i.e. not a major avenue)

14. Arbitraging the Building Code • Carrasco suburb has the highest property values in Montevideo (2000 USD/m2) due to strict building code • 2 Floor maximum with 40% Land Occupancy • 200 m2 of land per unit minimum • With land at 300/400 USD per m2 land value becomes 60k to 80k per unit forcing larger units to amortize land cost. • Our project is across the street from Carrasco • 4 story height • 4 Floor Maximum with 60% land Occupancy

15. Arbitraging the building code – why we can create a better product at a very motivating price

16. Size, Size, Size • Most Competing projects are built on 1000 – 4000 meters of land with no park next door • We have over 20,000 m2 of land our project is problably the largest “private” multi-unit project in Montevideo • Size creates cost effective opportunity to provide: • Security • Entertainment: • Gym, • Kids Club, • Pool, • Tennis, • Playground • Services (Maid, Laundry, Delivery) • Plus all the advantages of the park

17. Design, Design, Design • Our Architect, Carlos Ott, has arguably the best local name recognition and international background • More info at www.carlosott.com • Modern Open Design Concept • Small units – efficient design • Low Density Land Occupancy to ensure Green surroundings

18. Master Plan

19. Master Plan (not updated)

20. View from the Park (not updated)

21. 3D View

22. Small, Open and Efficient Design Building 1- 2 and 3 Bedroom

23. Building 2- 1 and 2 Bedroom Units

24. Phase I Summary

25. Amenities (preliminary) • Clubhouse for mixed use • Kids Club • Playground • Gym • 2 Swimming Pools • Tennis • Golf Corner • Bike Racks

26. Individual: Heat by AirConditioning Parking Storage Bin Common Laundry room with washer/dryers Maid changing room with lockers Maid service (optional) 24 hour security Features

27. Environment • Condominium rules will be strict to ensure an attractive environment. (a/c on in designated installation areas) • Pet Friendly buy must maintain clean and noise free environment • The directors of the co-owners will be empowered to fine non-abiders including: • Noise abuse • Lack of care in common areas • Lack of presence on building façade. • Co-owners agreement to be reviewed with buyers committee prior to finalization

28. Strategy and Schedule • Phase I • First 3 Buildings • Club House and Pool • Schedule Construction Permit 2Q07 Pre-construction2H07 Construction 2008 & 1Q09 Delivery 2Q09

29. Competition • BILU is probably our most direct and recent competitor • Located almost 4 miles further east away from the city center on a small artificial lake • More upscale focus with much larger units • In our opinion, they are direct competition with single family houses with too many large units • Located in Canelones the next province but still a strict building code • Our product is much more affordable and avoids competing with single family houses.

30. Investor Terms and Conditions • 2 Unit Minimum • Restriction on selling until 3 months before delivery (we want investors not speculators) • Discount of 23% to Delivery Selling Price • Reservation Requests to be accepted starting June 1st at 10 am on a first come first serve basis. • Payment Schedule • 10% deposit • 20% at start of construction • 50% during construction • 20% on Delivery

31. IRR- Return on Investment

32. Investor Returns • Rising Property Values have the potential to substantially increase returns • A 10% increase in estimated selling price moves the IRR from 38% to 55% • Given the novelty of our project, premium prices per m2 will probably prevail upon completion. • An easy way to have leveraged returns on Uruguayan property • Staged Capital Contribution creates attractive return while limiting risk

33. Investor Services • Payments as construction progress • Monthly Construction Updates • On-site sales office for Selling to end users • Administration for renting if desired – estimated 8% Gross Yield + appreciation • Possibility to finance end user as mortgage provider at 10% USD interest rate • Priority in Phase II Construction

34. How to submit Priority Reservation Request • Prior to June 1st complete reservation form • Submit or fax form on June 1st • 3 Business days to provide deposit 2000 USD/unit. • Form available at www.horizon.vg/devco/bolivia/ • Reservations are non-binding to the buyer meaning can recind at any time up to the 10% deposit. • Priority to choose specific unit in order or receipt • We reserve the right to disqualify applications for any grounds. • Reservation requests are non-transferable except immediate family members.

35. Questions and Answers