proyecto puerto puerto de la cruz

MARINEIN PUERTODE LA CRUZ

A profitable and sustainableinvestment opportunity

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MARINE IN PUERTO DE LA CRUZ A profitable and sustainable investment opportunity

CONTENTS

1. VALUE PROPOSITION 7

1.1. A viable response 9

1.2. Data defining the bidding process 10

1.2.1. The Bidder 10

1.2.2. Location 10

1.2.3. Object of the bidding 10

1.2.4. Approximate investment 10

1.2.5. Main characteristics 11

1.2.6. Profile of the investor 11

2. CONTEXT 13

2.1. A shared dream 15

2.2. An attractive and varied offer 15

2.2.1. The Canary Island. The advantages of one of the leading destinations in the world 15

2.2.2. Tenerife and Puerto de la Cruz: much more than just sun and sand 16

2.2.3. Sailing and boating: an option with a future 19

2.3. A well-established demand for holidays 20

2.3.1. Tenerife. A holiday destination beyond all doubt 20

2.3.2. Puerto de la Cruz. A destination in evolution 23

3. SEVICES 27

3.1. An integrated, coherent and open space 29

3.2. Spatial distribution. A flexible design 29

3.3. Diversity of services. An ocean of possibilities 30

4. ECONOMIC VIABILITY 31

4.1. Realistically based hypotheses 33

4.1.1. General hypotheses 33

4.1.2. Hipotheses of distribution, mix of options and prices 34

4.1.3. Hipotheses of investments and costs 35

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4.2. A profitable and sustainable investment opportunity 37

4.2.1. Summary of profitability and break even point 37

4.2.2. Analysis of the investment 41

5. INVESTOR PROFILE 43

5.1. Capacities and resources 45

5.2. Commitments 45

5.2.1. Comunication and commercialisation plan 45

5.2.2. Maintenance plan and commitment to update 46

5.2.3. Environmetal sustainability plan 46

6. CONCLUSIONS 47

6.1. An opportune investment 49

6.2. A realistic investment 49

7. GLOSSARY 51


5


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1. VALUE PROPOSITION

PUERTO DEPORTIVO EN PUERTO DE LA CRUZ Una oportunidad de inversión rentable y sostenible

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Puerto de la Cruz is a holiday destination in the North of Tenerife. It was the first borough to be active in the development of the Canary Islands for tourism.

It has developed a tourism model based on the co-existence of traditions and respect for natural treasures, landscapes and local essence, with a wide-ranging set of options for holidaymakers.

The marina represents the final step that was lacking in order to complete the options for tourism. It is unquestionable that new tourism products and services will continue to appear to satisfy the demand with progressively more specific and segmented needs which will oblige the destination to continue to evolve. But Puerto de la Cruz, which is a well-established resort with a history of more than a century as a holiday resort, could not continue to ignore its main resource: the sea. It has a very full and diverse range of complementary options (sun and sand, nature, active tourism, golf, congresses, culture and traditions, to name but a few) but it lacked a port infrastructure which would enable it to display all its potential as a holiday destination.

The residents themselves have understood this demand and have always been in favour of this facility. Nobody doubts that it would have a multiplier effect on the economic activity of the town.

But it cannot be just any facility. In the first place, it is necessary that the marina should serve the objective of opening up the town to the sea. It cannot turn its back on the urban setting. For this reason, it has been conceived as an open space which is integrated with the town. In the second place, the marina must be coherent with the selected positioning as a quality destination and must be set up as a superior infrastructure element with the capacity to attract tourism of high purchasing power. Finally, thanks to its strategic nature, defining the town which it is desired to build, it must be a viable and responsible project, with the necessary solidity to prevent it from deteriorating and becoming a mistake which cannot be rectified.

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1. VALUE PROPOSITION

1.1. A viable response

1. VALUE PROPOSITIONMARINE IN PUERTO DE LA CRUZ A profitable and sustainable

investment opportunity

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1.2. Data defining the bidding process

1.2.1. The Bidder

1.2.2. Location

In the Canary Islands, in the borough of Puerto de la Cruz, on the island of Tenerife..

1.2.3. Object of the bidding

1.2.4. Approximate investment


Puertos Canarios is the organisation responsible for the management of the forty-nine port facilities that are under its aegis: seventeen ports of general interest, nineteen marinas and thirteen harbours and natural harbours.The number of passengers on scheduled services who travelled through the ports managed directly by the Canary Islands Government increased by 7% in 2011 in comparison with 2010, with a total of 3,457,663 passengers. The number of vehicles amounted to 665,695 up to December 2011, which was a slight increase (2%) on 2010.

Puertos Canarios is, on these figures, the third port authority in Spain in terms of passenger traffic and the fifth according to the number of vehicles transported each year.

Puertos Canarios handles the bidding processes for new infrastructure for extension and improvement of existing facilities and concessions, if applicable, of their management and/or operation.

Construction and operation as a concession for a period of thirty years of a marina with commercial, recreational and leisure options on the land side, in the borough of Puerto de la Cruz.

An approximate investment of 80 million euros, of which about thirteen million euros will be deducted during the thirty years that the concession lasts as a result of the construction of a fishing quay on the seaward side of the port facilities.

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1.2.5. Main characteristics

1.2.6. Profile of the investor

1. VALUE PROPOSITIONMARINE IN PUERTO DE LA CRUZ A profitable and sustainable


Investment: eighty million euros.

Period of time for the concession: 30 years

Estimated period of execution: eight years. Execution by phases is possible so as to bring income forward.

Useful area for activities: 77,000 usable square metres and 1,700 square metres of underground parking.

Basic offer for port users:

Berths (some 27,000 square metres for transfer or rental to private individuals or companies)

Suppliers of water, electricity, fuel.

Communications

Shower, toilet and changing room facilities

Dry dock

Dry stack boat storage

Mix of activities (attempted):

Recreational water park (up to 25,000 square metres available)

Commercial and leisure area (around 10,000 square metres of space available)

Parking: About 1,000 possible spaces.

Local, national, international or mixed investor or investment group.

Proven experience in the construction and operation of marinas and shopping and leisure projects.

Creative capacity and the ability to create unique projects.

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2. CONTEXT


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2. CONTEXT

2.1. A shared dream

2.2. An attractive and varied offer

2.2.1. The Canary Islands. The advantages of one of the leading destinations in the world

2. CONTEXTMARINE IN PUERTO DE LA CRUZ A profitable and sustainable


It is not unusual that the building of large infrastructure projects generates a rejection among

the resident population. Above all, in surroundings which are considered to be especially

vulnerable due to their ecological and landscape values.

This is most certainly not the case in Puerto de la Cruz. The majority of the population supports

the idea of the marina with enthusiasm. The port is a historical demand. Throughout the years,

there have been a succession of acts of support which have always had the backing of the

majority of the residents.

A strategic location. A site within arm's reach of three continents.Over twelve million tourists every yearA privileged climate.High-quality accommodationA powerful, diverse and attractive range of complementary optionsFirst-class communications facilities.A safe destinationAn ideal setting for sailing with many islands, both large and small Over twelve thousand boats come to the Canaries every year

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Un entorno ideal para la navegación en un espacio con múltiples islas e islotes

Más de 12.000 embarcaciones pasan al año por Canarias

2.2.2. Tenerife and Puerto de la Cruz: much more than just sun and sand

Tenerife.

A complete and accessible option.

Local Resources.

Connectivity and accessibility.

Holiday indicators on the Island of Tenerife in 2011 Variation from 2010

Occupation (%)

Total 5.160.203

Hotel 3.189.953

Non-Hotel 1.970.250

Nigths

Total 40.230.487

Hotel 23.545.131

Non-Hotel 16.685.356

Average stays (days)

Total 7,80

Hotel 7,38

Non-Hotel 8,47

Occupation (%)

Total 63,6

Hotel 73,8

Non-Hotel 53,1


Natural, landscape and cultural treasures. Tenerife is a continent in miniature. In a relatively small

space there is an enormous diversity of landscapes: luxuriant forests, desert landscapes,

volcanoes, cliffs, golden sands and exotic, black, volcanic beaches, a clear sky, full of stars,...

In Tenerife there are two airports with very intense passenger traffic making the island a highly

accessible holiday destination. The following table shows the total number of tourists who

entered through the airports in 2010 and 2011.

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Origin Destination 2010 2011 Variation %

Total

Canaries 10.536.385 11.916.428 13,10%

Tenerife 3.890.160 4.410.472 13,38%

% Tenerife/Canaries 36,92% 37,01% 0,25%

Spain

Canaries 1.927.407 1.733.431 -10,06%

Tenerife 869.162 751.782 -13,50%

% Tenerife/Canaries 45,09% 43,37% -3,83%

Foreign

Canaries 8.608.978 10.182.997 18,28%

Tenerife 3.020.995 3.658.689 21,11%

% Tenerife/Canaries 35,09% 35,93% 2,39%

Cruise traffic 2011 Visits 2011 Variation from 2010

Cruise passengers 607.343 13,24%

Number of cruise ships 288 13,83%

Safety.

Experience and training.

Accommodation options.

The accommodation offered is highly varied and of high quality.

Complementary options.



Furthermore, there is also a port with numerous visits by cruise liners. Tenerife is on the routes

of the world's most important cruise companies.

Tenerife is a safe destination with standards of personal safety and medical attention above

the European average.

Tenerife has been a leading holiday destination for over twenty years. It has highly-trained human resources of great experience. The population recognises that tourism is the driving force behind the local economy and has a very positive attitude with regard to the holiday-making phenomenon.

n Tenerife's tourism strategy, the objective of diversifying our range of options is one of our fundamental challenges. Over the last few years, we have created and consolidated new holiday products and services which make Tenerife one of the world's most comprehensive and varied holiday destinations:Golf courses

Sailing and boatingAdventure and other sportsNature tourism: hill walking, volcanoes, the sky and so on … Theme and leisure parksCasinosCongress tourism Cultural tourism

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Puerto de la Cruz.

An indispensable achievement to reinforce the destination.

Local resources.

Accommodation options December 2011 Canaries Tenerife Puerto de la Cruz

Hotels

Total Categories 619 238 60

1, 2, 3 Stars 349 124 32

4, 5 Stars 270 114 28

Hotel places

Total Categories 238.629 88.217 17.266

1, 2, 3 Stars 81.557 24.748 4.117

4, 5 Stars 157.072 63.469 13.149

Non-hotel places 51.995 9.625

Total Places 432.001 140.212 26.891

Accommodation options.

Region Facilities % Facilities Berths % Berths

Balearic Islands 55 15,24% 22.141 16,96%

Galicia 52 14,40% 12.021 9,21%

Andalusia 51 14,13% 19.309 14,79%

Catalonia 50 13,85% 30.406 23,29%

Canaries 43 11,91% 8.080 6,19%

Valencia 41 11,36% 19.631 15,04%

Murcia 19 5,26% 6.521 4,99%

Basque Country 20 5,54% 5.647 4,33%

Asturias 17 4,71% 2.413 1,85%


Puerto de la Cruz is located in the impressive natural and landscape setting of the Orotava Valley. It has a superb climate almost for the entire year. It maintains a harmonious balance between the beauty of nature and its landscapes and the development of our activity in tourism in line with a long tradition as a holiday destination, which exceeds a century of history. It has a seafront full of natural swimming-pools and beaches of exotic black sand. This is a welcoming city which deeply values the importance of tourism as a source of wealth and wellbeing

Cantabria 11 3,05% 3.693 2,83%

Melilla 1 0,28% 393 0,30%

Ceuta 1 0,28% 300 0,23%

Total 361 100,00% 130.555 100,00%

Source: Spanish Federation of Associations of Marinas and Tourist Ports (FEAPDT) )Annual Report on Marinas in Spain (October 2011)

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Island Facilities % Facilities Berths % Berths

Tenerife 15 34,88% 2.419 29,94%

Gran Canaria 9 20,93% 2.504 30,99%

Fuerteventura 6 13,95% 543 6,72%

Lanzarote 6 13,95% 1.260 15,59%

La Palma 2 4,65% 521 6,45%

El Hierro 1 2,33% 125 1,55%

La Gomera 3 6,98% 498 6,16%

La Graciosa 1 2,33% 210 2,60%

Total 43 100,00% 8.080 100,00%

Source: Spanish Federation of Associations of Marinas and Tourist Ports (FEAPDT)

Annual Report on Marinas in Spain (October 201

2.2.3. Sailing and boating: an option with a future



Complementary options:

Golf courses

Casinos

Theme parks and leisure areas

Footpaths and astronomy tourism

Adventure tourism

Fiestas and traditions

The Canaries are located well below other Spanish regions in terms of the number of berths,

in the face of growing demand. The possibilities for developing this sector are still wide open.

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2.3. A well-established demand for holidays

2.3.1. Tenerife. A holiday destination beyond all doubt

Holiday Indicators Island of Tenerife total 2011 Variation 2010

Tourists accommodated

Total 5.160.203 6,8%

Hotels 3.189.953 8,6%

Non-hotels 1.970.250 4,1%

Nights

Total 40.230.487 11,0%

Hotels 23.545.131 14,6%

Non-hotels 16.685.356 6,4%

Average stays (days)

Total 7,80 0,30

Hotels 7,38 0,39

Non-hotels 8,47 0,18

Occupation (%)

Total 63,6 13,3%

Hotels 73,8 13,1%

Non-hotels 53,1 12,1%

Source: STDE Tenerife Island Authority


Over five million tourists stayed on Tenerife in 2011, 6.80% more than in 2010. In general, all the

indicators show positive progress with regard to the previous year.

These indicators are similar to those of the best years of growth before the worldwide crisis began

in 2008, which continues to affect much of the planet. Tourism remains a solid sector with a good

future in these difficult times of great uncertainty.

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Total tourist spending, Island of Tenerife 2011 (euros) Variation 2010

Total spending per tourist 1.021,9 1,3%

Total in origin per tourist 673,0 3,0%

Total per tourist at destination 353,2 -1,9%

Total spending per tourist and per day 108,5 4,0%

Total in origin per tourist and per day 71,3 5,7%

Total at the destination per tourist 37,6 0,7%

Source: Survey to incoming tourism 2011 by the Tenerife Island Authority.



Total tourist spending also increased slightly in 2011 and remains above 1,000 euros per

holidaymaker.

and per day

Regarding the distribution of holidaymakers accommodated by nationalities, there has been a

reduction since 2011 in the numbers of Spanish tourists, who have been more deeply affected by

the crisis, accompanied by a very significant increase in foreign tourism, especially from certain

countries (Russia, Italy, France,...) together with a notable increase in the traditional markets

(United Kingdom, Germany).

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NationalityTourists

Variation 2010 Share 2011

Spain 1.302.302 -11,2% 25,2%

Holland 154.131 9,1% 3,0%

Belgium 140.759 11,0% 2,7%

Germany 589.284 9,9% 11,4%

France 161.409 45,5% 3,1%

United Kingdom 1.658.315 10,6% 32,1%

Ireland 74.083 9,2% 1,4%

Italy 117.723 30,2% 2,3%

Nordic countries 478.104 23,6% 9,3%

Sweden 155.732 28,8% 3,0%

Norway 95.462 20,2% 1,8%

Denmark 95.785 22,4% 1,9%

Finland 131.125 21,3% 2,5%

Switzerland 41.379 33,2% 0,8%

Austria 34.316 13,7% 0,7%

Russia 111.782 36,3% 2,2%

Eastern Europe 93.981 20,9% 1,8%

Remainder of Europe 109.247 18,5% 2,1%

Usa 13.158 3,7% 0,3%

Remainder of America 18.684 -2,2% 0,4%

Rest of the World 61.546 1,6% 1,2%

Total Overseas 3.857.901 14,6% 74,8%

Total 5.160.203 6,8% 100,0%



Tourists accommodated per

nationality 2011

accommodated

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2.3.2. Puerto de la Cruz. A destination in evolution

Tourist indicators Puerto de la Cruz 2011

Tourists accommodated

Total 727.752

Hotel 537.233

Non-hotel 190.519

Nights

Total 5.397.757

Hotel 3.903.935

Non-hotel 1.493.822

Average stay (days)

Total 7,42

Hotel 7,27

Non-hotel 7,84

Occupation (%)

Total 59,1

Hotel 65,3

Non-hotel 47,3

SOURCE: STDE Tenerife Island Authority



The tourists accommodated in Puerto de la Cruz represent slightly more than 14% of the total

number of holidaymakers accommodated on Tenerife.

Regarding the distribution by nationalities, Puerto de la Cruz, with a traditionally higher share of

Spanish tourists, has felt the economic crisis more strongly than Tenerife as a whole. However,

the percentage growth in foreign tourism has been greater than that of the island as a whole with

very significant increases from certain markets such as France, Russia and the Eastern European

countries. The marina could contribute decisively to attracting and maintaining the loyalty of

guests with greater purchasing power, who are less sensitive to the impact of the economic crisis.

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NationalityTourists

Variation 2010 Share 2011

Spain 394.467 -9,8% 54,2%

Germany 155.793 19,9% 21,4%

United Kingdom 53.982 25,6% 7,4%

Nordic countries 51.447 14,9% 7,1%

Finland 26.231 6,1% 3,6%

Sweden 12.837 34,7% 1,8%

Denmark 6.923 9,2% 1,0%

Norway 5.456 30,9% 0,7%

France 18.039 35,2% 2,5%

Italy 6.389 15,9% 0,9%

Russia 4.968 191,2% 0,7%

Austria 4.763 19,8% 0,7%

Eastern Europe 4.572 89,6% 0,6%

Holland 3.409 5,1% 0,5%

Switzerland 3.004 14,4% 0,4%

Belgium 2.080 -5,4% 0,3%

Ireland 1.842 20,4% 0,3%

Rest of Europe 12.131 38,5% 1,7%

USA 1.703 -21,4% 0,2%

Rest of America 4.361 -5,1% 0,6%

Rest of the

World4.802 1,4% 0,7%

Total Overseas 333.285 21,4% 45,8%

Total 727.752 2,3% 100,0%



Puerto de la

Cruz: Tourists

accommodated

by nationalities

2011

accommodated

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3. SERVICES


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3. SERVICES

3.1. An integrated, coherent and open space

3.2. Spatial distribution. A flexible design

3. SERVICESMARINE IN PUERTO DE LA CRUZ A profitable and sustainable


The future port is set in a holiday destination, right in the middle of town. It will be a far from remote infrastructure which is integrated within the urban layout and tourist and local services.

It will be a space that is open to the town and to the sea. An accessible and friendly space which will combine superb care of the users of the yachting facilities with the possibilities offered by a location which is totally integrated in the shopping and urban areas.

An space that is respectful to the environment, which harmoniously completes and enriches the holiday options in the town. A space that is coherent with the seagoing tradition of Puerto de la Cruz and with its character of a town for coexistence. A town where tourism is naturally integrated in the daily dynamic of its residents.

A place to stroll, enjoy, sail, shop...

A space of almost 80,000 square metres with approximately 27,000 metres on the seaward side and 50,000 square metres to the landward.A space to be laid out which leaves an ample margin for the creativity and imagination of the investors. To the seaward side, there is availability of over 250 berths for sale or hire; for private users or for companies offering nautical activities.

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3.3. Diversity of services. An ocean of possibilities


On the landward side, there will be a range of services to the users of the watercraft which

guarantees the performance of first-class facilities as well as the large remaining space (around

50,000 square metres) for sale or rental of premises for commercial and leisure activities or for

recreational facilities or a water park.

The possibility exists of carrying out the work by phases and bringing forward the start up of

certain services which will make it possible to create profitability within a relatively short time.

The investors will be able to define the catalogue of services with great flexibility. The future

concession holders will have the opportunity to apply their experience and creativity to building a

powerful and attractive mix of options.

4. ECONOMIC VIABILITY


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4. ECONOMIC VIABILITY

4.1. Realistically based hypotheses

4.1.1. General Hypotheses

General Hypotheses of the Model

Period of the licence 30 years

Period of building work 8 years

Total initial investment 80.500.191 euros

Total useful area 77.000,00 m2

Total sea area 35,00%

Total land area 65,00%

Concession fee 468.290,48 euros

Period of time till maturity 8 years

Growth of income 3%

Growth of costs 2%

Percentage of self-financing 25%

Interest rate of external finance 3,75%

Period of time for external finance 6 years

Rate of charge of tax on profit 30%

Tipo de descuento VAN 6%

The period of time for maturity refers to the space of time foreseen in order to complete the allocation of all the

4. ECONOMIC VIABILITYMARINE IN PUERTO DE LA CRUZ A profitable and sustainable


Many of the hypotheses set out below are tentative and deal with a possible scenario from among the many that may be designed. The prices are estimates based on reports and documentary sources on marinas.

berths and premises for commercialisation.

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4.1.2. Hypothesis of distribution, mix of options and prices

Products/

ServicesArea m2 Places Unit Euros Occupation

Transfer of

Ownership of

Berths

21.560,00 €/m2 1.900,00 100%

Locales

5.005,00 €/m2 2.388,50 100%

Chárter

2.695,00 €/m2 2.300,00 100%

Marina Seca

5.005,00 €/m2 1.200,00 100%

Use of berths 2.695,00 €/m2/day 0,45 100%

Use of premises 5.005,00 €/m2 120,50 90%

Leisure

activities

(water park)

25.025,00 €/year 1.000.000,00

Port services10.010,00 €/year 200.000,00

Fee for

of Berths

€/m2/year 45,00

of Marina

€/m2/year 20,00

of Premises

€/m2/year 12,00

of Charter

€/m2/year 45,00

Parking 1.000 places €/año/space 1.800,00 80%


Transfer of

Ownership of

Transfer of

Ownership of

Transfer of

Ownership of

maintenance

Fee for

maintenance

Fee for

maintenance

Fee for

maintenance

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4.1.3. Hypothesis of investments and costs

Investments and annual depreciation:

Investments Total AmountAnnual depreciation

Rate of depreciation Depreciation

Prior tasks 1.163.156,04 4,00% 46.526,24

Phase 1: Parking 9.000.000,00 4,00% 360.000,00

Phase 2: Commercial 12.000.000,00 4,00% 480.000,00

Phase 3: Fishing 13.000.000,00 4,00% 520.000,00

Phase 4: Sea area 45.000.000,00 4,00% 1.800.000,00

Other 337.035,37 4,00% 13.481,41

Total 80.500.191,41 4,00% 3.220.007,66

Calendar of execution of the investments:

Phases Fiscal year 1 Fiscal year 2 Fiscal year 3 Fiscal year 4

Prior tasks

Previas

80,00% 10,00% 5,00%

930.524,83 116.315,60 58.157,80

Phase 1:

Parking

80,00% 20,00%

7.200.000,00 1.800.000,00

Phase 2:

Commercial

70,00% 20,00% 10,00%

8.400.000,00 2.400.000,00 1.200.000,00

Phase 3:

Fishing

35,00% 45,00% 20,00%

4.550.000,00 5.850.000,00 2.600.000,00

Phase 4:

Sea area

10,00% 15,00% 15,00% 15,00%

4.500.000,00 6.750.000,00 6.750.000,00 6.750.000,00

Other10,00% 10,00% 10,00% 10,00%

33.703,54 33.703,54 33.703,54 33.703,54

Total31,82% 21,06% 13,22% 8,43%

25.614.228,37 16.950.019,14 10.641.861,34 6.783.703,54



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Phases Fiscal year 5 Fiscal year 6 Fiscal year 7 Fiscal year 8 Total

Prior tasks 5,00% 100,00%

58.157,80 1.163.156,04

Fase 1:

Parking

100,00%

9.000.000,00

Fase 2:

Commercial

100,00%

12.000.000,00

Fase 3:

Fishing

100,00%

13.000.000,00

Fase 4:

Sea area

15,00% 15,00% 15,00% 100,00%

6.750.000,00 6.750.000,00 6.750.000,00 45.000.000,00

Other10,00% 10,00% 10,00% 30,00% 100,00%

33.703,54 33.703,54 33.703,54 101.110,61 337.035,37

Total8,43% 8,43% 8,43% 0,20% 100,00%

6.783.703,54 6.783.703,54 6.783.703,54 159.268,41 80.500.191,41

Annual costs:

Concept Annual amount (euros)

Concession fee 468.290,48

Recovery of the Fee -433.333,33

Staff costs 292.500,00

Maintenance costs 805.001,91

Other operating costs 572.000,00

Total Fixed Costs 1.704.459,06


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4.2. A profitable and sustainable investment opportunity

4.2.1. Summary of profitability and break even point

Product /service Income EBITDA BAII

Transfer of Ownership

of Berths40.964.000,00 31.489.364,76 17.411.255,20


of Premises11.954.442,50 9.189.478,57 5.081.091,91


of Charter6.198.500,00 4.764.838,09 2.634.597,83


of Dry Stack Boat Storage 6.006.000,00 4.616.861,75 2.552.778,02

Use of Berths 14.697.380,98 11.297.998,02 6.246.944,90

Use of premises 20.437.693,46 15.710.623,58 8.686.795,64

Leisure activities

(water park)33.452.883,70 25.715.507,69 14.218.745,61

Port Services 6.690.576,74 5.143.101,54 2.843.749,12

Maintenance fee

for berths32.455.987,77 24.949.185,56 13.795.026,99

Maintenance fee

for Marina3.513.798,66 2.701.086,02 1.493.497,83

Maintenance fee

for Premises2.108.279,20 1.620.651,61 896.098,70

Maintenance fee

for Charter4.056.998,47 3.118.648,20 1.724.378,37

Parking 51.700.152,53 39.742.333,78 21.974.527,62

Total 234.236.694,02 180.059.679,16 99.559.487,75



With the hypotheses indicated, the profitability of the project at the end of the thirty-year

concession would be as expressed in the following table:

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Product/service Is Project BDI Project Final costs


of Berths5.223.376,56 12.187.878,64 1.248.766,90


of Premises1.524.327,57 3.556.764,34 364.425,16


of Charter790.379,35 1.844.218,48 188.958,15


of Dry Stack Boat Storage765.833,41 1.786.944,61 183.089,88

Use of Berths 1.874.083,47 4.372.861,43 448.042,25

Use of premises 2.606.038,69 6.080.756,95 623.032,79

Leisure activities

(water park)4.265.623,68 9.953.121,93 1.019.794,30

Port Services 853.124,74 1.990.624,39 203.958,86

Maintenance fee

for berths4.138.508,10 9.656.518,90 989.404,43

Maintenance fee

for Marina448.049,35 1.045.448,48 107.116,38

Maintenance fee

for Premises268.829,61 627.269,09 64.269,83

Maintenance fee

for Charter517.313,51 1.207.064,86 123.675,55

Parking 6.592.358,29 15.382.169,34 1.576.053,10

Total 29.867.846,33 69.691.641,43 7.140.587,59


39

Product/service BAI IS BDI

16.162.488,30 4.848.746,49 11.313.741,81

4.716.666,76 1.415.000,03 3.301.666,73

2.445.639,68 733.691,90 1.711.947,77

2.369.688,13 710.906,44 1.658.781,69

5.798.902,65 1.739.670,79 4.059.231,85

8.063.762,85 2.419.128,86 5.644.634,00

13.198.951,31 3.959.685,39 9.239.265,92

2.639.790,26 791.937,08 1.847.853,18

12.805.622,56 3.841.686,77 8.963.935,79

1.386.381,45 415.914,43 970.467,01

831.828,87 249.548,66 582.280,21

1.600.702,82 480.210,85 1.120.491,97

20.398.474,52 6.119.542,36 14.278.932,17

92.418.900,16 27.725.670,05 64.693.230,11




of Berths


of Premises


of Charter


of Dry Stack Boat Storage

Use of Berths

Use of premises

Leisure activities

(water park)

Port Services

Maintenance fee

for berths

Maintenance fee

for Marina

Maintenance fee

for Premises

Maintenance fee

for Charter

Parking

Total

40

The profitability threshold is as reflected in the following table:

Product/

service

Profitability threshold (income)

EBITDA BAII BAI

9.474.635,24 23.552.744,80 24.801.511,70

2.764.963,93 6.873.350,59 7.237.775,74

1.433.661,91 3.563.902,17 3.752.860,32

1.389.138,25 3.453.221,98 3.636.311,87

3.399.382,97 8.450.436,08 8.898.478,33

4.727.069,89 11.750.897,83 12.373.930,61

7.737.376,01 19.234.138,09 20.253.932,40

1.547.475,20 3.846.827,62 4.050.786,48

7.506.802,21 18.660.960,78 19.650.365,21

812.712,64 2.020.300,83 2.127.417,21

487.627,58 1.212.180,50 1.276.450,33

938.350,28 2.332.620,10 2.456.295,65

11.957.818,75 29.725.624,91 31.301.678,01

54.177.014,86 134.677.206,27 141.817.793,86







Leisure activities

Use of premises

Maintenance fee

Maintenance fee

Maintenance fee

Maintenance fee

Use of Berths

Port Services

for Premises

of Premises

(water park)

for Charter

of Charter

for berths

for Marina

of Berths

Parking

Total

41

Product/

service

Profitability threshold (income)

BDI Proyecto BDI

28.776.121,36 29.650.258,19

8.397.678,16 8.652.775,77

4.354.281,52 4.486.552,23

4.219.055,39 4.347.218,31

10.324.519,55 10.638.149,13

14.356.936,52 14.793.059,47

23.499.761,78 24.213.617,79

4.699.952,36 4.842.723,56

22.799.468,87 23.492.051,98

2.468.350,18 2.543.331,64

1.481.010,11 1.525.998,99

938.350,28 2.332.620,10

11.957.818,75 29.725.624,91

54.177.014,86 134.677.206,27

Margin

Security

180.059.679,16 99.559.487,75 92.418.900,16 69.691.641,43 64.693.230,11

76,87% 42,50% 39,46% 29,75% 27,62%

4.2.2. Analysis of the investment

Results VAN TIR Pay Back

Project 18.126.131,30 9% 10

Funded project 4.564.388,54 7% 17

Project Shareholder 21.569.679,07 15% 11








Leisure activities

Use of premises

Maintenance fee

Maintenance fee

Maintenance fee

Maintenance fee

Use of Berths

Port Services

for Premises

of Premises

(water park)

for Charter

of Charter

for berths

for Marina

of Berths

Parking

Total

42


5. INVESTOR PROFILE


44

45

5. INVESTOR PROFILE

5.1. Capacities and resources

5.2. Commitments

5.2.1. Communication and commercialisation plan

5. INVESTOR PROFILEMARINE IN PUERTO DE LA CRUZ A profitable and sustainable


local, Spanish, international or mixed investors or investment groups may take part in the bidding

process.

Experience in the construction and operation of similar infrastructure projects is required. The chosen investor must show solvency and financial capacity and must put a significant

percentage of its own funds into the project.

Finally, the provision of imaginative solutions and ideas which will generate synergies with the

environment and will amplify the multiplier effect of the port on the local economy will be

especially valued.

The investor must present a communication and commercialisation plan for the infrastructure

with his application. The objective is to ensure that all the effort necessary is made to achieve the

commercial success of the marina.

46

5.2.2. Maintenance plan and commitment to update

5.2.3. Environmental sustainability plan


Furthermore, the investor must develop a maintenance plan which will guarantee the future

quality of the infrastructure and which can be easily adapted to the technologies and innovations

which may be applicable and which will improve the provision of the services.

Finally, the investor must fulfil all the environmental demands and guarantee a sustainable and

eco-efficient use of the facilities.

6. CONCLUSIONS


48

49

6. CONCLUSIONS

6.1. An opportune investment

6.2. A realistic investment

6. CONCLUSIONSMARINE IN PUERTO DE LA CRUZ A profitable and sustainable


?A widely-welcomed and socially acceptable investment.

?An investment that is coherent with the strategy for the development of tourism and with

the characteristics of the setting and the specific nature of the destination.

?An investment which involves high added value for the town and with a large multiplying

potential for the local economy.

?Large potential income.

?A profitable and sustainable investment.

?Short period of time to recover the investment.

?A project with a high signalling effect for the investor.

50


7. GLOSSARY


52

53

7. GLOSSARY

7. GLOSSARY MARINE IN PUERTO DE LA CRUZ A profitable and sustainable


?Transfer of Ownersihp. This is a transfer for the period of time that the concession of the

right to use the berths or premises lasts. This right can be transferred in turn to a third party

by the original licensee. The transfer implies the payment of an initial sum plus the annual

payment of maintenance fees.

?Use. Use refers to the specific right for a certain period to use a set of business premises

or a berth or a port service.

?Port Services. These are services directly related with attention to watercraft: dry dock,

workshop, supplies to boats, etc.

?Maintenance fees. These are annual fees to defray the costs of maintenance of the

facilities which the holders of the rights have to pay.

?Charter. Services of sailing or boat trips made with sailing companies.

?EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This is profit

before interest, taxes on profits, depreciation and amortization.

?BAII. This is profit before interest and taxes on profits (EBIT).

?BDI Project. This is the profit obtained after taxes without taking into account the financial

expenses or interest (Project PAT - Profit After Tax).

?BAI . Is the Profit before corporation tax.

?BDI. This is the net profit or profit after tax. It is the profit which, at the discretion of the

company, will be distributed to the shareholders (dividends) or will be re-invested in the

company (reserves).

?Threshold of Profitability or Break Even Point. This is the level of sales at which the total

costs are equal to the income and therefore the profit is zero. It marks the point beyond which

additional income will generate profits. It can be calculated for EBITDA, BAII (EBIT), the

Profit After Tax (Project BDI); the Profit before corporation tax (BAI) and the net profit (BDI).

54


?Safety Margin. This is the difference expressed as a percentage between sales at break

even and sales calculated in accordance with the defined hypotheses or scenario. This

indicates the extent to which sales must drop in order not to have any profit.

?Cash flow. This is the net accumulation of liquid assets in one year. The cash flows can be

calculated without including the outgoings and income from funds deriving from financing by

third parties and shareholders (project or operational cash flows); including income and

outgoings due to funding from third parties (financial cash flows or those of the financed

project); and, including the contributions of shareholders or net equity (shareholder cash

flows).

?Discount rate. This is the rate at which the annual cash flows are updated over the thirty

years of the period of the concession to determine the Net Present Value (NPV).

?VAN (Valor actual Neto; in English NPV) .This is a method of valuation of investments which

consists of determining the equivalence at time 0 of the future cash flows which are generated

by the investment project discounted at a certain rate and comparing this equivalence with the

initial layout. When this equivalence is greater than the initial outlay, it may be advisable for the

project to be accepted.

?TIR (Tasa Interna de Retorno; Internal Rate of Return, IRR). This is the discount rate at

which the Net Present Value is equal to zero. It is used to decide on the acceptance or rejection

of an investment project. For this purpose the IRR is compared with a minimum rate or short

rate (cost of the investment opportunity). If the rate of performance of the project (IRR) is

greater than the short rate, the investment is accepted; otherwise, it is rejected.

?Pay-Back (period of time for recovery). This is the time that is taken for the future cash flows

to offset the investment made.

55


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Economy & Finance

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la cruz una oportunidad

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