Sports Facilities for Sale and Investment Opportunities in Poti

1. Purchase of a 20 hectare plot of land on the Black Sea coast in Poti, Georgia, for the construction of a tennis academy and a commercial residential complex. 2. Registration of investment legal entity will take place with the beginning of confirmation of receipt of necessary financing. 3. The tennis academy has the potential to accumulate relevant audience from all over Georgia, Ukraine, Russia, Belarus, Kazakhstan, Uzbekistan, Armenia, Azerbaijan, Turkey, Latvia, Lithuania, Estonia, Poland, Czech Republic, Germany, Israel and other countries. 4. Revenue streams include: - residential property sales, commercial property sales and rentals. The construction and sale of flats is divided into 6 phases starting 2 years from now. In the parameters of the financial model, the price of selling flats at the initial stage of construction, from USD 1,500 per square metre, which gives the prospect of price growth in the future. The total area of residential real estate, according to the calculations will be 150,000 square metres. -Income from educational programmes in the tennis academy, rent of courts for training, tennis tournaments, training camps, as well as income from sports and health programmes. - Income from the hotel complex (room stock, restaurants, spa complex). The launch of the Academy is planned to start in the next 3 years. According to the calculations, 5 years from now, the revenue of the Academy including the hotel complex will be not less than 1.2 million dollars per year, from the next 7 years it is not less than USD 2 million per year. 5. According to the project plan, the investment timeline is as follows: Round 1 USD 4 million, end of this year. Registration of investment company in Georgia, purchase of land for the project, pre-project works. Round 2 USD 2 million, next year. Design work marketing. Start of construction, the construction will start. At the end of the second round, the owner has land and the project in assets, which we estimate will be USD 10 million or more. There is a window of opportunity to co-invest/exit the project at this point. Construction of a tennis academy with all infrastructure. Estimated investment cost of USD 15 million. Project financing opens for residential property construction during the same period. The time period of the development project will be more than 10 years. 6. According to the calculation, the full return on investment (USD 21 million) is planned in 5 years. 7. The total revenue budget for the development is USD 200 million.

1. Purchase of a 20 hectare plot of land on the Black Sea coast in Poti, Georgia, for the construction of a tennis academy and a commercial residential complex. 2. Registration of investment legal entity will take place with the beginning of confirmation of receipt of necessary financing. 3. The tennis academy has the potential to accumulate relevant audience from all over Georgia, Ukraine, Russia, Belarus, Kazakhstan, Uzbekistan, Armenia, Azerbaijan, Turkey, Latvia, Lithuania, Estonia, Poland, Czech Republic, Germany, Israel and other countries. 4. Revenue streams include: - residential property sales, commercial property sales and rentals. The construction and sale of flats is divided into 6 phases starting 2 years from now. In the parameters of the financial model, the price of selling flats at the initial stage of construction, from USD 1,500 per square metre, which gives the prospect of price growth in the future. The total area of residential real estate, according to the calculations will be 150,000 square metres. -Income from educational programmes in the tennis academy, rent of courts for training, tennis tournaments, training camps, as well as income from sports and health programmes. - Income from the hotel complex (room stock, restaurants, spa complex). The launch of the Academy is planned to start in the next 3 years. According to the calculations, 5 years from now, the revenue of the Academy including the hotel complex will be not less than 1.2 million dollars per year, from the next 7 years it is not less than USD 2 million per year. 5. According to the project plan, the investment timeline is as follows: Round 1 USD 4 million, end of this year. Registration of investment company in Georgia, purchase of land for the project, pre-project works. Round 2 USD 2 million, next year. Design work marketing. Start of construction, the construction will start. At the end of the second round, the owner has land and the project in assets, which we estimate will be USD 10 million or more. There is a window of opportunity to co-invest/exit the project at this point. Construction of a tennis academy with all infrastructure. Estimated investment cost of USD 15 million. Project financing opens for residential property construction during the same period. The time period of the development project will be more than 10 years. 6. According to the calculation, the full return on investment (USD 21 million) is planned in 5 years. 7. The total revenue budget for the development is USD 200 million.