Coratina Fund

Mexico

The Coratina Fund from Olive Tree allows individuals, pensions and companies to invest into Flamingo Lakes in Mexico.

RIGHT TO PURCHASE CONTRACTS
This is a contract that provides the right to purchase a completed property, built to a specified standard, in a specified timescale. The contract is tradable and the Fund looks to purchase at the first stage of construction and sell it at a profit as the building process is completed.

The Fund will only place a deposit of typically 30% to 50% of the agreed purchase price and has no borrowing. Therefore a small increase in the value of the property is exaggerated by the fact that we have only placed a
smaller deposit.

15% GROSS ENHANCEMENT

We have negotiated that an enhancement of a gross 15% of the amount invested into the right to purchase contract is paid to the Fund in the event of the contracts not being re-sold within two years. This is held in a deposit account and is affected by the annual management charge and Fund expenses.

INDICATIVE RETURNS

Playa Del Carmen, Mexicos Real Estate Group, predicts 25% growth in 2008. If this prediction is correct, this would provide returns in excess of 60% for the Fund because we only place a small deposit based upon the full value of the property. The Property Manager has also negotiated discounts from the original purchase prices and the developer is contractually obliged to re-sell the
Fund%u2019s properties prior to marketing any other units.

Channel Islands Stock Exchange (CISX)
The Coratina Fund is listed on the CISX.

AVAILABILITY

The Fund is available to pension funds, including protected rights, offshore bonds and ISA transfers as well as new direct personal or corporate investment.

OPENING PERIOD

The Fund is open for investment from 5 September 2008 until 5th June 2009 or when $80m is raised.

INVESTMENT LEVELS

The minimum investment is £20,000 or $40,000.

CHARGING STRUCTURE

0% initial charge, 1.5% annual management charge

Why invest in Mexico?

Mexico is the fourth largest foreign direct investment (FDI) recipient among developing countries. FDI in Mexico between 1999 and June of 2007 surpassed
165 billion dollars.

Mexico benefits from the largest network of Free Trade Agreements which grants preferential access to markets in North America, Western Europe (EU and EFTA), Asia, and to nine emerging markets in Latin America; and a skilled and competitive labour force.

Mexico provides security and legal protection for foreign investors through
Bilateral Investment Treaties (BITs) negotiated wit 24 countries.
The Mexico EU FTA encourages greater EU investment flows into Mexico. As at
June 2007, more than 8,000 firms with EU investment operated in Mexico, especially in the areas of service (44%) and manufacturing (40%).

According to Mexican and EU import figures, bilateral trade grew 122% during
the first six years of implementation of the Mexico EU FTA, rising from US$18.9
billion to US$ 42 billion.

Mexico is the host of most of Latin Americas major companies. Among the 500
major companies in Latin America, the vast majority have established their operations in Mexico.

Why the Yucatan area?

The Yucatan is an area steeped in history. Merida, the capital city of the Yucatan, has close to a million inhabitants. Remains of the ancient Mayan civilisation dating from the sixteenth century and colonial buildings with Spanish influences can be found alongside modern shopping malls, car dealerships, hotels, restaurants and leisure facilities.

Why the Flamingo Lakes development?

Flamingo Lakes is a 40 minute drive along an excellent and still improving road network, and is situated just a few miles inland from the coast, close to the small town of Dzemul.

The resort covers some 2,200 acres, with 840 acres of this being set aside for a private nature reserve. It will be a self-contained community, the size of a small town.

The villas and condominiums will be constructed around the 27 holes of golf (an
18-hole championship course in excess of 7,000 yards and a 9-hole executive
course) and will be complemented by a village square, shops, medical facilities,
church, guest lodge and other leisure and recreational facilities. The resort has its own Beach Club a short drive away with direct access onto the white sand beach whilst a couple of miles away is the resorts own Media Luna Marina.

There are direct flights to Merida from amongst others Miami, Houston, Cancun
and Mexico City. Merida International Airport is just 50 minutes away.