The road show organised by Groupe Fadesa Maroc (GFM) this week covered visits to all GFM projects currently under way in Morocco (Mediterrania Saidia, Alkudia Smir, Atlas Golf), one of their proposed projects (Laguna Smir) and a selection of Adohha projects (Tanja Beach, Bouskoura Golf City and a golf project in the Hivernage district of Marrakech). We also had an opportunity to meet the senior management of both Adohha and GFM, and the director of the Exchange Office.

When Adohha entered into partnership with Martensa Fadesa, the arrangements were for Adohha to manage the construction and site work. With Martensa Fadesa continuing to manage the commercial aspects, including ongoing sales. When Martensa Fadesa entered administration earlier this year these functions were no longer being covered, and therefore our ability to work with commercial queries has been severely limited. Adohha have now established a customer services group and a commercial team and were using this week to discuss re-launching Groupe Fadesa Maroc to the international market.

Groupe Fadesa Maroc Projects

Mediterrania Saidia

Our first day was a visit to Mediterrania Saidia, visiting the Magnum apartments and AP-4. Our first impressions were positive. I had not visited the site for over 12 months, and while there were certainly issues still to be resolved, my impression of the resort was that it was proceeding in the right direction. As the resort is still a construction site there were obviously many areas where concerns (for example John Lancaster’s comment on Eye on World about the dog family) could be raised that one must assume will be easily resolved once the properties are made ready for hand over.

RT-1 Magnum

Accepting that we only saw apartments made ready by Adohha, the overall impression gained by all those on the tour was generally positive. None of the properties we visited were completed, and there was still a significant amount of work still to be done on the grounds and pool area. There were, of course, some problems still evident including such things as the condition of the external wood and metal work. We were assured that solutions are in place (the woodwork for example will be refinished with marine varnish rather than standard varnish) and time will tell whether these fixes are implemented properly.

One of the major issues was regarding the kitchens with many concerns having been raised regarding the quality of the kitchens originally installed. We viewed a selection of proposed kitchens for Magnum, ranging from dark and light wood to high quality gloss laminate finishes. The high gloss units installed were a dark red (which I personally liked a lot), and while we liked this finish, and the worktops installed with this option, we felt the red would probably be a little personal. The general consensus was that the high gloss finish in white would suit best, as this would be a neutral option, while the white finish would create a feeling of space. We understand that this option is being taken forward.

The furniture that was available for viewing (none of the apartments were yet fully furnished) appeared of high quality, though at present the TVs in place were CRTs. Adohha have been strongly advised to replace these with flat screens and this is being evaluated as we speak. The reaction to the suggestion was positive, but we will have to wait and see. The garden furniture is certainly an improvement on the original plastic items, with the new items being wrought iron with stone topped tables, and meets both stylistic and quality requirements for these apartments.

The interiors, while not yet completed, were of a generally high standard, with small issues that need to be addressed at the snagging phase. In this respect, and remembering the snagging difficulties experienced by those clients who completed on properties at the end of last year, the approach that is being suggested by many clients of delaying signature of the final documents until snagging is complete would appear sensible. Clients may wish to undertake a preliminary visit themselves to define their snagging requirements, or engage the services of a local contractor.

The exteriors also need to be brought up to the standard expected of this part of the resort, with significant repainting being required as well as paint and other debris being cleaned from the stonework. Gardens need to be completed and the pool area needs to be completed and cleaned. These issues will be addressed much closer to handover, as any work done now risks being undone during completion and furnishing. An issue has been identified with the open top level of the stairwell, and this is being addressed in order to reduce the effects of rainfall on the stairwell.

AP-4

We were taken to an apartment furnished by Comforts on AP-4, which was laid out and finished well as one would expect from a “show” apartment. We also took the opportunity to visit an apartment belonging to one of the members of the visiting party. The apartment was a North facing penthouse apartment overlooking the golf course and the edge of VVT-4. Whilst many of the problems originally identified (including damp in the walls) appeared to have been corrected, there were still many issues still outstanding. The overall impression of the apartment did however remain positive, but reinforced the need to ensure the snagging was completed before finalising the purchase. The common stairwell showed the same problems as those in RT-1, and the pool was dirty and stagnant (unsurprising as the site was not yet handed over). Purchasers will need to ensure these areas are “snagged” as well.

Marina

The original marina is complete, and welcomed a good number of day berthings during 2008. The surrounding facilities are also complete, and a number of the restaurants are operational. The marina extension is well under way.

Golf Courses

Golf course 1 is complete and ready to play. A decision has been made to redesign the remaining 2 courses with a major name signature attached, Negotiations are under way with regards the name and further details will be provided when they are available. The redesign will result in one 27-hole course of a higher quality than the original 2 courses planned.  We believe that this will increase rather than diminish the resort by providing improved golf facilities.

Sports Centre

There is still no definitive plan for the sports centre, and GFM have requested input from their European agency network in this respect. It is known that David Lloyd Leisure has acquired one plot (VVT-12) with the intention of operating a worldwide fractional ownership club (alongside a confirmed site in the Caribbean and proposed sites in many other locations, including Dubai Sports City). David Lloyd is in discussion with GFM over a tennis academy on the sports centre.

Ongoing Management

Once the properties are handed over to owners, responsibility for the services and communal areas will pass to the owners. It is therefore important to establish an active committee of owners. This will ensure that issues are addressed as quickly as possible. A web site is available for owners on AP-4 (unfortunately in Spanish only) (www.saidiaap4.com) to establish the committee, and we recommend owners on the other areas actively look to establish their committees.

Hotels

To date only 2 hotels have confirmed their management of the beachfront hotels in Saidia, though many more hotel groups are involved through their management of the various Apart Hotel and Villas Hotel sites on Saidia. The 2 hotels, Barcello and Iberostar, have contracted to open their hotels in June, and it is hoped that this will encourage airlines to confirm their intentions to serve Oujda Airport.

Hotel sites 2 & 3 will now be combined to provide a larger, 5+star hotel. Negotiations are on progress with operators to manage this hotel.

General Progress

Progress on Saidia is beginning to pick up after the huge delays of the past two years. On the day of our visit there was little activity, but as we visited on Independence Day this was expected. GFM wish to have an additional 100 units handed over before the end of the year, which may be optimistic, with the remaining properties on AP-2, AP-3, AP-4, AP-5, AP-6, V-1, V-2 and RT-1 completing during the first half of 2009. This will make the first section of the resort ready for the official opening in June 2009.

Atlas Golf

Atlas Golf, the GFM project in Marrakech, is proceeding well, and we expect the completion schedules to be met. The first handovers are therefore likely to occur next year. It is unlikely that the golf course will be ready at this time, and Adohha are approaching one of the nearby courses (Royal or Amelkis) with the intention of negotiating playing privileges while the course at Atlas is being completed.

We visited the show Riad on site, and were generally impressed. The property is very large for a property that is, in reality, a 2 bedroom unit at over 200 square meters. Pricing is however reasonable for the size of the property, and the show Riad demonstrates that these properties will be highly desirable.

Alkudia Smir

Alkudia Smir is progressing well, and will also provide clients with a project that will, in our opinion, meet their requirements. The entire site is still under construction, and it is therefore difficult to accurately comment on the site. We understand that building is broadly on schedule, and minimal delays are anticipated.

Adohha Projects

Tanja Beach

Dreamworld has marketed Tanja Beach on an exclusive basis in the UK for some time. The project is a golf project located close to the start of the motorway to the South of Tangier, and is also close to the Al Houra project from Qatari Diar and Tinja Beach from Emaar (with which it is often confused due to the similarity of name). The project has been plagued with water problems as the site lies below sea level and is the lowest point in the area. A solution is being installed utilising a complex drainage system draining into the golf course’s water features, which are then pumped out to sea if the water level rise too much. This system is already used in the area to keep the road system dry, and there is therefore a proven system. The project itself comprises 3,000 apartments sited around the golf course, situated between the coast and the motorway. There is access to the beach via footbridges crossing the coast road.

Bouskoura Golf City

Bouskoura Golf City is a golf development on the outskirts of Casablanca targeted at the Casablanca 1^st / 2^nd home market and expatriate Moroccans looking for a property in Casablanca. Whilst it is well featured, the location means that it is not realistically a tourist destination. The project is located in the Bouskoura Forest, just off the motorway between the city centre and the Airport, on the route de Marrakech. It is 20 minutes from the centre of Casablanca, and the same from the Airport. 1,000 apartments and 1,000 villas will be built, with apartments from MAD 1,800,000 to MAD 2,110,000 and villas from MAD 4,700,000 to MAD 12,190,000. The apartments price represents good value at MAD 15,000 per square metre, while the villas cost around MAD 17,500 per square metre, depending on the plot size.

Situated on the development will be an 18 hole golf course, 2 shopping malls and a major shopping complex, giving residents access to all the services, leisure and shopping facilities they could want. The properties are available in a range of designs, from the traditional to the ultra modern, and are likely to cater for most tastes and budgets.

This project looks like it could be a real winner for the investment market and those looking for a Casablanca residence. The properties are good value, well located and will benefit from good facilities.

Hivernage Golf

The golf resort at Hivernage (on the junction of Bvd Mhmd VI and Route de Amizmiz) is the closest golf development to the centre of Marrakech, and the closest luxury, mixed, development to the centre. The only properties closer are locally developed town centre apartments. The project is a large one, covering 174 Ha, and will encompass villas, townhouses and apartments. The designs are contemporary Moroccan, with the lead architect being Said Bensat. The site is generally in a prime location, but both benefits and suffers from extreme proximity to the airport.

Management Meeting

The senior management of GFM were available to us on and off throughout the road trip, but there was also a meeting arranged to specifically discuss matters with them, and with Anas Sefrioui, the Chairman of Adohha.

Re-launch of Groupe Fadesa Maroc

Following the complete breakdown of commercial and customer management after the administration of Martensa Fadesa, Adohha have now established commercial, customer services and marketing departments and wish to re-launch the Groupe Fadesa Maroc brand to the international market. Their first question to us was how to do this.

Our first reaction was that they first needed to fix a number of problems and issues, or at least show positive progress. We suggested Cancellations was a good place to start, but that they also needed to be supremely confident in respect of the completions they are trying for this year. We impressed upon them the fact that the UK market in particular can be very suspicious of rebranding exercises unless they are accompanied by concrete improvements in performance. One bad move could well de-rail any attempted re-launch, and generate continued, or stronger, bad publicity.

Discussions also covered the basics of customer service that have, at least until now, been largely ignored. These include open communication, rapid response to queries, the need to deliver on promises. We tried to make them aware of the current market conditions in the UK generally, specifically to Morocco, and specifically to Saidia. The key message we tried to get across was the need to lift the reputation of their company, as it is currently about as low as it can be. This can only be achieved by under promising and over delivering (they said that is the Moroccan way. It took great effort not to laugh).

The major specific point we discussed was cancellations. We understand from Adohha that they have 60 cancellations where documentation has been completed, with another 140 clients actively considering cancellation. In order to avoid the need to divert funds into cancellations Adohha have unilaterally taken the decision to suspend cancellations. They will refund clients without penalty if they can resell the unit, but will not refund otherwise. We are in constant communication with Adohha to press the case that the cancellations are contractual issues that cannot be unilaterally ignored. Various clients have already made clear that they will be taking further action, including legal action, political representation through the FCO and potentially publicity in the UK. This fact has also been made clear to Adohha. At present our pressure in this area is falling on deaf ears, but we continue to press the point.

For more information on the GFM resorts see www.saffronvillas.com or call us on 0844 330 6734 (International: +44 1635 255 940)

Adohha have now established their international customer services department and next week (commencing 17th November) many of their agents will be undertaking a tour of the projects, and meetings with Adohha’s senior management. Hopefully this visit will give us a wide ranging update, both on the progress of the sites and on how the company is going forward.

Time permitting I will be blogging an updatge on the vsit on a daily basis, so feel free to come back and find out what is happening.

The Rezidor Hotel Group announces the Radisson Resort & Spa Saidia in Morocco – the property featuring 384 rooms and 97 villas is scheduled to open in Q3 2010. – With this signing we are adding a new and emerging country to our pipeline and are now present in 53 countries across EMEA”, comments Kurt Ritter, President & CEO of Rezidor.
- In the Middle East and Africa we now have 47 hotels with almost 11,500 rooms in operation and under development – a clear sign for our commitment to this region.”

The Radisson Resort & Spa Saïdia is a common project between Rezidor and Property Logic, the developer behind Le Jardin de Fleur resorts in Morocco.
- We are delighted to partner with such an important international brand as Radisson because of its outstanding quality and services that are renowned in the industry. Our companies share a common vision for luxury standards that will make the Saïdia resort a world class tourism destination,” said Mr. Joop Huisman, Managing Director of Property Logic.
Mediterrania-Saïdia is located on the northeast Mediterranean coast of Morocco and famous for its 6 kilometers of unspoiled coastline. Besides its luxury suites and villa residences the Radisson resort will offer 4 restaurants, 3 bars, a Moroccan-themed Spa and Thalasso centre comprising 1,500 square meters, 5 outdoor pools, 1 indoor pool, 2 fitness centers, a kids club, shops, tennis courts, an amphitheatre and a beach club. The resort’s 1,500 square meters of meeting and conference facilities will make it ideal for business and leisure travellers alike.

Facts & Figures

Hotel Radisson Resort & Spa Saidia (to open)
Rooms 384 rooms and 97 villas

www.saffronvillas.com

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EGYPT’S FIRST PURE “DOMESTIC’ BUY TO LET OPPORTUNITY Tranquilia Town Apartments, the most promising buy to let opportunity available to investors, it is a prestigious residential development in an imposing circular building consisting of sixty-five apartments set over five floors in central Hurghada (new town) on the Red Sea Riviera.

The Opportunity

• Landmark residential apartment block in prime central Hurghada location
  • Hurghada is Egypt’s second largest Red Sea tourist centre (behind Sharm El Sheikh). In 2006 the region attracted some 250,000 international and domestic tourists.
  • All year round rental opportunities: ideal location and facilities to capitalise on stable residential rental market (e.g. managers of local hotels), therefore significantly reducing risk of ‘rental void’ periods.
  • Zero non construction risk – development completed. Pay off plan prices (due to substantial refurbishment) that are ready for occupation six months from date contract is signed.
  • Relative value in respect of price: apartment available from £470 per square metre. Comparable developments in Sharm El Sheikh are circa 30% more expensive.
  • Very high specification apartments built to European standards with upper floors benefiting from panoramic views of Hurghada and direct Red Sea views

• Less than 5km from Hurghada International Airport
• All relevant due diligence undertaken
• Favourable tax jurisdiction for foreign investors

• Estimated rental yield of 8%+

An established developer has owned the landmark building since its construction in 1996; they are currently refurbishing the apartments to European standards. One, two and three bedroom residences are available for investors. The development is set one row back from the sea and amongst a cluster of hotels. The locality is extremely well served by buses, taxis and ferries, and all local attractions/amenities can be easily reached. The International Airport is just a short taxi or bus ride away, whilst Cairo lies around 450km north.

• Apartments are finished to an exceptionally high standard
• There are direct sea views from some apartments
• 24 hour reception and security
• Room service will be available

• Air conditioning, satellite TV, dishwasher, microwave, fridge, washing machine and direct dial phone included.

• Wireless internet access (for a small fee)
• Roof top Jacuzzi and bar, sun lounging area

• Management Services by Nilotica PM.

Price Examples

1 bedroom apartment with 60m2 prices start from £24,600 – £30,000
2 bedroom apartment with 82m2 prices start from £35,260 – £46,740
3 bedroom apartment with 121m2 prices start from £52,030 – £60,500

Payment Plan

£2000 reservation deposit
90% on signing of the contracts
10% upon completion of refurbishment (6 months)

Inspection trips – please contact us for further information +44 (0)1635 39189

Contact us for more information
T: +44 (0) 1635 39189 E: info@quest2invest.com

www.saffronvillas.com www.quest2invest.com

Hurghada Dreams – Invest in Hurghada’s prime located resort that offers sea views, beach access and extensive facilities, competitive prices start as low as £29,543

Hurghada Dreams is a brand new gated development of hotel-style apartments (1 & 2 bedrooms), commercial units and extensive facilities. The project is located centrally in Hurghada in a strategic location between downtown and new town and only 15 minutes drive from the International Airport. Across the road from Hurghada Dreams is the best open public beach in the area giving fantastic sea views from most apartments. This project presents a unique opportunity to invest in Egypt’s rapidly emerging property market. No other project this close to the centre can offer sea views & beach access with extensive facilities on a large project at these prices. Owners should see a strong capital growth and an excellent long and short-term rental income throughout the year.

The Beauty of Hurghada Dreams is its proximity to the public beach. The project lies in front of a large and well-maintained public beach meaning the project has fantastic sea views (even from the ground floor). Being a public beach also means that your views will be maintained!

A rental management company will be in place to manage rentals on apartments. For those interested in a pure investment a guaranteed rental offer is available (Currently limited to 1 bedroom apartments)

Guaranteed rental returns:

• Year 1 & 2 – 5% per year

• Years 3-5 – 10% per year

Rental income is paid annually in arrears and there is an extra management charge of £200 per year for the rental management. In order to qualify for the guaranteed rental packages apartments must be supplied with the correct options list (Available on request) Maintenance is £460 per year

Payment Plan
£2,300 refundable deposit for 28 days
35% on signing of contracts
15% 6 weeks after signing contract
25% 8 months after contract
25% on completion less the deposit (March 2009)

Price Examples

1 bedroom apartment £29,543 – £51,998 with square footage ranging from 45m2 – 78m2
2 bedroom apartment £51,535 – £74,474 with square footage ranging from 91m2 – 112.84m2
Inspection Trips – Available please call on +44 (0) 1635 39189 for further information

Contact us for more information
T: +44 (0) 1635 39189 E: info@quest2invest.com

www.saffronvillas.com www.quest2invest.com

Horizon View Heights provides excellent views of the sea, mountains and desert; the project is situated in Nabq, in an elevated position affording excellent view of the bay and Teran Island. This resort caters for everyone’s needs, from those wanting a simple holiday home, to those wanting to spend months under the sunshine or retire, and for those looking for a lucrative investment.

The resort will be ideal for those looking to generate a rental income with its myriad of facilities that include:-

• Direct beach access through a private beach
• Swimming pools
• Gymnasium and Clubhouse
• Close proximity to the airports, less than 20 minutes to Sharm El Sheikh airport
• Brand new shopping complex to include supermarkets, retail outlets, eateries, pharmacy and so much more.
• Roof Terrace Restaurantss
• 24 Hour Security
• Rental Management Company
• Golf course directly behind the development
• All year round season in Egypt.

Strong capital growth is expected with a project of this calibre; prices have been increasing steadily in Egypt’s Red Sea resorts by about 15-25% per annum and this is expected to increase due to forthcoming rises in the cost of building materials and the minimum wage in Egypt.

Horizon View Heights is made up of thirteen blocks of apartments, of approximately 13 apartments in each block with all apartments benefiting from the stunning vista of the local area. There are a total of 175 properties for sale with a range of spacious studios, large 1 bed apartments and 2 beds of different sizes.  Horizon View Heights has been designed with an obsessive attention to detail, each unit will have a large lounge area, plus kitchen, large bedrooms, hot and cold air conditioning, satellite television and a private parking space. All finished to a superb European standard by Italian architects and developer. Pricing on this resort is very competitive

Price Examples

Studios start from £23,500 with 39m2 of living space

1 bedroom apartments from £42,500 with 65m2 of living space and balcony and garden varying in size

2 bedroom apartments from £57,000 – £69,900 with 87m2 of living space and balcony and garden varying in size

A roof top terrace for any apartment can be purchased separately for £7,500

Payment Terms:- 50% 0n exchange of contract 25% 6 months 25% on completion Mid 2010

Inspection Trips – please call for further information +44 (0) 1635 39189

Contact us for more information
T: +44 (0) 1635 39189 E: info@quest2invest.com

www.saffronvillas.com www.quest2invest.com

Harmony Lagoon Resort with prices starting as low as £26,830

Harmony Lagoon is a luxurious off-plan 5* resort located in a prime beach front location in the Al Ahyaa district of Hurghada, just minutes from the opulent Marinas, golf courses and lagoons of El Gouna and the bustling centre of Hurghada. Harmony is a resort, which caters for everyone’s needs, from those wanting a simple holiday home, to those wanting to spend months under the sunshine or retire, and for those looking for a lucrative investment.

Harmony Lagoon Resort will be ideal for those looking to generate a rental income with its myriad of facilities, direct beach access, aqua centre, cafe’s & restaurants, shopping mall, supermarket, pharmacy property management and full rental service, its close proximity to the airports, retail centres and golf courses and of course the all year round season in Egypt. Strong capital growth is expected to be seen of a project of this caliber; prices have been increasing steadily in Egypt’s red sea resorts by about 15-25% per annum and this is expected to increase due to forthcoming rises in the cost of building materials and the minimum wage in Egypt.

The project is made up of several blocks of apartments, differencing in heights and size, and a group of frontline detached private villas next to the private beach. There are a total of 298 properties for sale ranging including spacious studios, large 1 bed apartments (72m2), 2 beds of different sizes, 3 bed units and the 4 bed Villas. Harmony has been designed with an obsessive attention to detail and will be finished to a superb European quality.

Pricing at the Harmony Resort is very competitive and is price the same as lower quality projects in the area, yet offering more included within the cost (Air conditioning, kitchen units and marble flooring as standard). The pre-release pricing period sees all properties discounted by 15% meaning starting prices are as low as £454.75 per m2.

Payment Plan

Reservation: £2,500
Deposit: 40%
6 months: 25%
12 months 20%
Completion: 15%

Maintenance is £700-950 per year depending on the apartment

Inspection trips are available – contact us for further information + 44 (0)1635 39189

Contact us for more information
T: +44 (0) 1635 39189 E: info@quest2invest.com

www.saffronvillas.com www.quest2invest.com

The Closest Residential Complex to Naama Bay.

Prices starting as low as €46,200 – € 97,640

• Excellent tax benefits
• low property tax & no capital gains tax
• Low purchasing costs
• Capital Appreciation of 20-30%
• Superb rental projections with rental yields of 8% – 10%
• High demand for local rental accommodation
• Exit strategy due to established tourism industry
• Uninterrupted sea views
• Management company on site
• Easy air access
• All year round warm climate
• Built to European Standards by a reputable developer.

Located on a primary piece of land overlooking Naama Bay in the heart of Sharm El Sheikh, lies Sunrise Heights. Situated in the already established tourist destination of Sharm El Sheikh, Sunrise Heights offers investors the chance to purchase in an area with a high demand for residential accommodation, with excellent tax benefits and capital appreciation of 20%-30%.

Sunrise Heights is a low rise, low density development featuring 44, 1 and 2 bedroom units varying in sive from 53m2 – 80m2. The apartments are set in beautiful gardens with three communal swimming pools. All apartments will have a balcony with stunning views of the sea, bay, desert, Sinai Mountains and communal pools. They are fitted with hot and cold air-conditioning units, wireless internet and satelite television feed. Interior and exterior finishes are of a high European standard with particular attention to the kitchen and bathrooms.

Payment Plan

€3000 reservation deposit

£550 Administration fee on reservation

30% on signing contract

15% 3 months after signing contract

15% 6 months after signing contract

10% 9 months after signing contract

30% on completion (September 2009)

IMMINENT PRICE RISE

Sunrise Heights PDF Brochure

Contact us for more information
T: +44 (0) 1635 39189 E: info@quest2invest.com