MARCUS HOTEL PRESENTATION - Auran Group
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THE PURPOSE OF THIS DOCUMENT IS TO ACT AS A GUIDE ONLY. FOR ALL FULL AND FINAL INFORMATION AS RELATES TO THIS OFFERING PLEASE REFER TO THE PRIVATE PLACEMENT MEMORANDUM. REGULATION D 506(C) MANDATED LEGEND Any historical performance data represents past performance. Past performance does not guarantee future results; Current performance may be different than the performance data presented; The Company is not required by law to follow any standard methodology when calculating and representing performance data; The performance of the Company may not be directly comparable to the performance of other private or registered funds or companies; The securities are being offered in reliance on an exemption from the registration requirements, and therefore are not required to comply with certain specific disclosure requirements; The Securities and Exchange Commission has not passed upon the merits of or approved the securities, the terms of the offering, or the accuracy of the materials. MARCUS HOTEL PRESENTATION
SUMMARY • The Auran Group are pleased to offer the opportunity to participate in the financing of “Marcus Hotel” a 152 room, 4*+ branded hotel, located on Pratamnak Hill, Pattaya Marcus Hotel • The hotel will have a built up area of 9,109 sqm on a 2,265 sqm land plot • Target returns to the financiers are 40% over 2.5 years • The project will be fully funded on day 1, meaning there are no concerns on the future availability of financing which could impact the projects target completion date • The project will be constructed by the New Nordic Group who have successfully built over 50 condominium projects and hotels on Pratamnak Hill • The New Nordic Group is fully aligned in the development of the project with a 20.8% equity stake MARCUS HOTEL PRESENTATION
Offeree Marcus Hotel LLC Offering 2,000,000 class A convertible preferred membership units TERM Value per Unit USD 10.00 SHEET Maximum Amount to be Raised USD 20,000,000 Domicile USA Class A Term 2.5 years Convertible Estimated Completion October 2020 Preferred Security For Investors Mortgage/charge over the Thai local company holding the hotel asset Membership Units Hotel Operator Best Western Hotels and Resorts Closing Continuous Lawyers Thailand - Blumenthal Richter & Sumet (Bangkok) USA - Raines Feldman LLP (Los Angeles) Asset Realization At the completion of the construction and the opening of the hotel, the hotel will be sold with the units redeemed, including the proportional profit on the sale of the property. Alternatively, conversion into equity in the hotel will be allowed if more than 51% of the unit holders agree (please refer to private placement memorandum). MARCUS HOTEL PRESENTATION
The following pages give information on the New Nordic Group and how the Auran Group fits within the overall structure. Here you can also find information on the investment structure. MARCUS HOTEL PRESENTATION
NEW NORDIC New Nordic Group Holding GROUP Co. COMPANY STRUCTURE New Nordic Asset Auran Group Oroma Management Developments Alani Kiwano Travel Hospitality MARCUS HOTEL PRESENTATION
Auran PLC (Singapore) AURAN GROUP Auran Growth Auran Growth Auran Income Auran Income COMPANY Manager LLC Corporation (US) Corporation (US) Management LLC STRUCTURE Auran Growth Auran Income Series Holdings Series Holdings LLC LLC Auran Thailand Auran Regular Auran Marcus Land Bank LLC Income Pratamnak Hotel LLC LLC Auran Phuket Auran Phetchaburi Water World Hotel Park LLC LLC Auran Fortress LLC MARCUS HOTEL PRESENTATION
AN The New Nordic headquarters corporate office is located in Hong Kong. OVERVIEW The New Nordic Group operates its own construction, property management, hospitality, food & beverage and travel businesses. The New Nordic Group The New Nordic Group has since 2009, developed and constructed condominiums, apartments, villas and hotels with the goal of creating blissful holiday villages. In total, the group is involved in more than 100 projects throughout the ASEAN. The New Nordic Group ensures all buyers not only receive properties, but also become a part of a full community including leisure and retail outlets. Please refer to the following map showing the location of the New Nordic Group projects and offices. MARCUS HOTEL PRESENTATION
THE NUMBERS The New Nordic Group • 50+ Completed Buildings • 100+ Projects Launched • 1,050+ Employees • 3,000+ Apartment Owners • 9+ Years of Experience MARCUS HOTEL PRESENTATION
INVESTMENT RAISED VIP BUILDINGS 1-6 TREND BUILDINGS 1-7 • Selected examples of equity raised by Auran Group USD 30.3M USD 44.4M partners • Ongoing business activities by the partners continue to generate regular uninterrupted income for SUITES BUILDINGS 1-6 PATTAYA, THAILAND thousands of investors USD 26.4M USD 340M MARCUS HOTEL PRESENTATION
INVESTMENT STRUCTURE AURAN MARCUS HOTEL INVESTORS LLC USA 100% OWNERSHIP AURAN MARCUS HOTEL THAILAND Co., Ltd. B.O.I. Registered MARCUS HOTEL PRESENTATION
The following pages give information on the location and specifics of the hotel. MARCUS HOTEL PRESENTATION
PATTAYA CITY Tourism Overview Pattaya is centrally located within the Thai governments Eastern Economic Corridor zone. The program is set to see the area benefit from more than 45 billion USD in investment. Focal areas are the development of – • Rail links • Motorways • Deep seaport • Airports • Industrial Estates MARCUS HOTEL PRESENTATION
PATTAYA CITY Tourism Overview Pattaya ranked as number 8 in the top-10 Asia Pacific destinations ranked by international overnight arrivals for 2017. Tourism numbers – 2015: 8.1m 2016: 13.7m 2017: 8m (First 6-months) MARCUS HOTEL PRESENTATION
PROJECT LOCATION Soi Pratamnak 4 Banglamung District Pattaya City, Chonburi THAILAND MARCUS HOTEL PRESENTATION
WINTER WINDS SITE ORIENTATION & EXPOSURE 6 PM 6 AM NOON SUMMER WINDS SOUTHERN WINDS MARCUS HOTEL PRESENTATION
PROJECT LOCATION Soi Pratamnak 4 Banglamung District Pattaya City, Chonburi THAILAND Accessibility from Soi Pratamnak 4 MARCUS HOTEL PRESENTATION
LAND AREA FOR MARCUS HOTEL MARCUS HOTEL PRESENTATION
SITE LAYOUT Google Coordinates 12°54’57.8”N 100°51’42.0”E Land Size 2,265 m2 Construction Allowed 11,390m2 Allowed Building Types Hotel Residential MARCUS HOTEL PRESENTATION
FEASIBILITY DESIGN STUDY PROPOSAL ROOF TOP LEVEL Typical Building 7TH LOOR LEVEL Cross Section 6TH LOOR LEVEL 2X 5TH LOOR LEVEL 2X 1X 4TH LOOR LEVEL 1X 3RD FLOOR LEVEL 2ND FLOOR LEVEL DROP-OFF ROAD 1ST FLOOR LEVEL ROAD MARCUS HOTEL PRESENTATION
HOTEL IMAGERY Additional renderings currently being finalized. MARCUS HOTEL PRESENTATION
PROJECT HIGHLIGHTS FEATURES & AMENITIES Guest Rooms 152 The hotel boasts all of the modern facilities that one Gymnasium 1 would expect from a modern 4*+ establishment. Garden 1 Lounge Area 1 All Day Restaurant 1 Rooftop Infinity Pool 1 Outdoor Rooftop Bar Area 1 MARCUS HOTEL PRESENTATION
The following pages give information relating to the financial offer, use of proceeds, hotel operator and contact details. MARCUS HOTEL PRESENTATION
THE 40% Profit OFFER Profit Participation The assets are held by a U.S. registered LLC and are designed to benefit from the We have engaged an Thailand Board of Investment approval. 840m THB internationally 475m THB Target Sales This provides the following benefits - recognised and Capital Raise Price respected 3rd party to • 100% foreign ownership of a Thai offer professional company valuations of both the • Freehold ownership of the land on which land and the the hotel is located completed property. 125m THB Raised* Apr 2018 Oct 2020 *New Nordic Group Subsidiary MARCUS HOTEL PRESENTATION
A LAND PRICE COST (THB) COST (USD) Land Purchase Price 125,000,000 $3,974,563,00 USE OF PROCEEDS B PRE-CONSTRUCTION COST (THB) COST (USD) B.1 Architectural Drawings 1,625,000 51,669 B.2 Engineering Drawings 2,550,000 81,081 B.3 EIA & Building Permit Expenses 2,800,000 89,030 B.4 Construction Drawings 1,350,000 42,925 TOTAL 8,325,000 264,706 C SITE CLEARANCE COST (THB) COST (USD) C.1 Demolition Work 2,300,000 73,132 C.2 Tree Cutting & Site Grading 3,250,000 103,339 TOTAL 5,550,000 176,471 MARCUS HOTEL PRESENTATION
D CONSTRUCTION 1 COST (THB) COST (USD) USE OF D.1 Civil & Structural 122,000,000 3,879,173 Including but not limited to landfill, excavation, PROCEEDS piling, foundation, raft slabs, retaining walls, beams & columns, staircases, waterproofing and structural steel works. D.2 Architectural 51,000,000 1,621,622 Including but not limited to roofing, staircase finishes, internal walls & partitions, doors & windows, floor finishes, ceiling finishes, internal painting & coating and signages. D.3 Façade 20,000,000 635,930 Including but not limited to external wall finishes, stone finishes, cladding, glazing and gondola works. D.4 Mechanical, Electrical & Plumbing 80,000,000 2,543,720 Including but not limited to air conditioning & ventilation, exterior & interior lights, power backup, elevators CCTV system, cable TV, telephone system, water supply & drainage, fire protection & sprinkler system, and IT cabling. MARCUS HOTEL PRESENTATION
USE OF PROCEEDS D CONSTRUCTION 2 COST (THB) COST (USD) D.5 Interiors 65,000,000 2,066,773 Including but not limited to all furniture items, all electronic items such as TVs & refrigerators, artwork, upholstery, linen and all other soft goods. D.6 Landscaping 45,000,000 1,430,843 Including but not limited to roads & drains, pathways, plants, outdoor signages, water irrigation & re-use and swimming pools. TOTAL 383,000,000 12,178,060 MARCUS HOTEL PRESENTATION
USE OF PROCEEDS E OTHER EXPENSES COST (THB) COST (USD) E.1 Company Formation 500,000 15,898 E.2 Hotel Registration & Legal Costs 4,000,000 127,186 E.3 Management Fee 34,000,000 1,081,081 E.4 Project Insurance 3,400,000 108,108 E.5 Sales and Marketing 18,500,000 588,235 E.6 Overheads 8,000,000 245,372 E.7 Unforeseen 10,000,000 317,965 TOTAL 78,400,000 2,492,846 MARCUS HOTEL PRESENTATION
USE OF PROCEEDS ITEM THB COST USD COST* Land 125,000,000 3,974,563 Estimates Subject to Change Pre-Construction 8,325,000 264,706 Site Clearance 5,550,000 176,471 Construction 383,000,000 12,178,060 Other Expenses 78,400,000 2,492,846 Grand Total 600,275,000 19,086,645 *Note: USD 1 = THB 31.45 MARCUS HOTEL PRESENTATION
HOTEL OPERATOR The Auran Group subsidiary Marcus Hotel LLC has entered into an agreement with Best Western Hotels & Resorts® to manage the property once fully completed. Best Western Hotels & Resorts® is only operating the property in the capacity of hotel operator through that agreement and reports back only to the Auran Group subsidiary Marcus Hotel LLC . As in investor, you’re purchasing a product with the Auran Group subsidiary Marcus Hotel LLC acting as a property developer and Best Western Hotels & Resorts® is not involved in any way or form in the said transaction. Best Western Hotels & Resorts® does not guarantee any type of financial return / performance / ROI to any investor and is not involved in the sales and marketing promotions of the project. Best Western Hotels & Resorts® shall not be liable for the contracts, obligations or liabilities of the developer The Auran Group subsidiary Marcus Hotel LLC. MARCUS HOTEL PRESENTATION
CONTACT Auran Group USA 9171 Wilshire Boulevard, Suite 500, Beverly Hills, CA 90210 DETAILS +1 424 214 3184, Toll free: + 1 818 302 0098 Auran Group Thailand Unit 2105, Interchange 21, 399 Sukhumvit Road, North Klongtoey, Wattana, Bangkok 10110 +66 2088-5278 Auran Group Singapore Level 42, Suntec Tower Three, 8 Temasek Boulevard 038988 +65 3159-3246 Auran Group Hong Kong Unit 1420, 88 Gloucester Road, Wanchai +852 5801-0952 AuranGroup.com info@aurangroup.com MARCUS HOTEL PRESENTATION
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