E X E C U T I V E   S U M M A R Y

WHY VENEZUELA -

In the past couple of years, the country has had political problems, putting lots of companies out of business ... a big currency upheaval, slashing two-thirds of the exchange rate ... inflation ... hardships ... and plenty of investment opportunities as a result.
Almost every asset class in the country was all of a sudden available for pennies on the dollar.

WHY OCEANFRONT -

With so many good deals, we decided to focus on something which was more undervalued than anything else, and which had less downside potential than other investments.
What we found to offer most value for money was luxury beachfront real estate.
Here's why:
[1.] When cash is tight, most people sell off their vacation home first, before they sell their main residence. This creates a glut in vacation property with no buyers around, driving down prices even more.
[2.] If local buyers are unavailable, luxury beachfront real estate appeals to an international market, both for purchase and for holiday rental.
[3.] International rentals offer hard currency income, paid abroad.

WHY ISLA DE ORO -

Having decided on high-end oceanfront, we then decided to concentrate only on secure, gated communities within easy driving distance of a large metropolis. What we found and finally decided on was an exclusive Beach Club conceived 25 years ago as a presidential weekend getaway, designed by architect Jack Dornbush, a close associate of the Hilton Corporation and the man behind Embassy Suites in Venezuela.

WHAT THE CLUB OFFERS -

Isla de Oro (Island of Gold) is a self-contained, gated haven with its own water treatment system, backup water, backup electricity plant, and 24/7 security. It sits between a lagoon, canals and the Caribbean Ocean, and has an inhouse marina, inhouse restaurants and a bar, serviced apartments, villas, Internet access, satellite television, a gym, swimming pools and jacuzzi, a BBQ area, and waiter service on the beach with members-only deck chairs and shades. The Los Canales Golf Club is a mere five minutes away by the beach or by boat, through the canals.

LIMITED AVAILABILITY -

You've heard the best argument for investing in oceanfront property: They aren't making any more of it. In the case of Isla de Oro, this is true. Literally. Isla de Oro is the largest private gated resort complex in the area. Nothing like it will ever be built again: After Isla de Oro was completed, a new law ('Ley de Costas') was passed to prevent any other oceanfront highrises of this size to be built ... anywhere in the entire country!

UNLIMITED UPSIDE -

"Global real estate will be the only major asset class that could deliver double-digit returns over the next five years."
(Barton Biggs, Morgan Stanley's Chief Global Strategist)

LOWER-THAN-CONSTRUCTION COSTS -

During the current remodeling phase, anyone buying into Isla de Oro is acquiring property at less than construction costs.
The value of the complex is approximately USD 32 million, averaging $143,000 per apartment. However, original-grade units can currently be had for a fraction of that, and Premium Residences are priced below this value, too.

Availability is indeed limited, and more-so at the current prices. Later, construction may or may not begin on an additional two towers for which original permits have been granted and the Ley de Costas offers a grandfather clause -- but this decision has not yet been taken, and even if construction does go forward, most of these new units will a) have views only of the canals and the lagoon but not of the ocean, and b) will of course cost considerably more.
If you ever wanted to own a condo on the Caribbean Ocean, Isla de Oro offers an affordable way to make this a reality.