The purchase of a proportion (minimum 1/13) of a hotel room in a boutique 5* hotel in the luxury Ponta do Pargo Resort in South West Madeira.

What is the initial deposit?  £5,750 all-inclusive entry price. All-inclusive means that all set-up costs and legal fees are included in this price.

What is the total investment required?  The total investment is £15,620, including the initial deposit, the remainder is divided between 5 affordable stage payments of €2,290 (£1,976*) between the starting date and completion (April 2012) of the hotel. * based on an exchange rate of £1 = €1.16

What total return will I earn from investing in the Ponta do Pargo Resort? 

• A return on investment of 142.7% is estimated after a five year period.
• Once the hotel opens, investors start earning rental income from their room at the rate of 50% of the revenue generated their allocated nights e.g. based on revenue of €250, the investor would receive €125. The remainder goes towards hotel management and upkeep. This is a fully-managed investment and there are no additional costs to the investor. The investor has the peace of mind that they will not receive any additional on-going charges. Service charges, maintenance fees and all repairs/renewals are for the account of the Hotel Management Company.
• When the hotel is sold, investors will receive a return from the sale proceeds for the whole hotel, 0.10% for a Master Suite and 0.188% for a Presidential Suite. (Based on a 58 room configuration)

How does the proportion work? 

• Each of the 58 hotel rooms is divided into 13 investment units with a total of 28 nights' room rental income allocated to each unit.
• The 28 nights are rotated in each quarter every year to ensure investors receive rental income at different times in each quarter.
• Investors have the option to stay in their room for 7 of their allocated nights a year for just the price of a small administration fee. (This does not apply to investors using funds from a SIPP - see below)

Why this investment? 

• Incredibly low and all-inclusive entry price - buy from under £5,750
• Low total investment - just £15,620 - not all your available capital is tied up.
• Five very affordable stage payments of just €2,290 each. These are spread throughout the term until April 2012
• 142.7% return after five years.
• Exceptional location overlooking the 18th hole of the Nick Faldo golf course and clubhouse.
• Luxury, bespoke boutique 5-star hotel with magnificent facilities.
• 28-nights' room rental income including the option of 7 free nights' accommodation in your own room. (Non-SIPP investors only)
• Secure and safe investment location.
• Fully-managed investment.

How safe is my investment?  This investment is an asset backed investment. The land was acquired for the development of this project in 2008 and underpins the assets of the company and therefore your investment. The land was acquired prior to further increases in land and commercial property increases in 2008/9. Against a back drop of falling prices Madeira produced outstanding gains in 2008/9, in part due to the government zoning a high percentage of the island as green.

What guarantees do I receive that this development will be built?  If the development is not started then the investors are assured of a full refund of all investment monies. 

How many units can I buy?  No limit is placed on the number of units you can buy. Many investors acquire multiple units - They determine the correct strategy for their investment portfolio at this time.

Why Madeira? 

• According to The Sunday Times Travel Magazine, Madeira is "the perfect island for a fashionable short break".
• Statistics for hotels in Madeira were impressive for 2008 - the number of hotel guests went up by 4.8% and nights spent in hotel accommodation by 3.6%. In Calheta municipality, the number of nights spent in hotels grew by over 10%.
• The Madeiran hotel industry places great emphasis on high-end establishments. All new hotels built on the island must be at least 4-star and most 3-star hotels are being upgraded.
• Mirroring the island's booming tourism sector, Madeira's hotel industry is buoyant and demand is high. Annual occupancy on this year-round holiday destination is good with average room rates at approximately €250 a night, reflecting the fact that hotels are predominantly high-end.
• In the region of Calheta, where the Ponta do Pargo resort is situated, there are currently just three hotels, all 4-star. The Ponta do Pargo Resort will be the only 5-star hotel in this area.
• Madeira is a well-established port of call for cruise liners - 10 dock at Funchal daily in high season.

What do I need to do to purchase in the Ponta do Pargo Resort?  Morgan Forbes ensures that the investment process is hassle-free by administering all aspects of the investment from entry to exit

All clients need to do is:-

• Instruct your broker
• Exchange contracts with the Staple Inn Partnership who provide the legal documentation for your signature)
• Complete the money laundering documentation
• Provide the funds
• Liaise with your broker, as your dedicated representative keeps you monitored on the progress, with regular updates, of this stunning opportunity.

Do I need a mortgage?  This is one of the underlying benefits to this development. Due to the low entry level deposit and small stage payments, the need to source a mortgage or release equity is not required.

Where is the Ponta do Pargo Resort located?  Just outside the charming Ponta do Pargo town on the westernmost point of the island.

What proof of ownership do I receive after purchase?  When the full payment is made you receive a share certificate. This certificate is issued in the name of the individual or company entering into the purchase contract. This is a proof of ownership document.

What type of hotel rooms will be available at Ponta do Pargo Resort?  The spacious 5-star hotel consists of 54 Master Suites, all boasting an average 42m* and 4 Presidential Suites with an average of 81m2

What facilities are available at the Ponta do Pargo Resort?  Luxury facilities include a spa, gymnasium, treatment rooms, ocean-facing infinity pool, Madeiran-hallmark tropical gardens, restaurants and bars.

How do you get to the Ponta do Pargo Resort?

• Flight time from the United Kingdom to Funchal Airport is around 3.5 hours (1.5 hours from Lisbon).
• Funchal Airport has a wide range of direct flights daily from several countries including the UK and Portugal. For example, Easyjet offers flights from London Gatwick and Stansted, Bristol and Lisbon airports.
• Road infrastructure has improved substantially recently with the completion of the motorway between Funchal and the north of the island. Also, the motorway from the capital to Ponta do Pargo is due for completion at the end of 2009, reducing travel time from the airport from 1 hour to under 40 minutes.

Who are the developers of the Ponta do Pargo Resort?   The developers, Morgan Forbes are a Madeiran-based investment company, managed by three partners whose combined management, legal and surveyor portfolios bring over 50 years of expertise in property to the company. Morgan Forbes (UK) Limited, the UK based marketing arm of the project, have their head office in Canary Wharf, London.

Who are the architects of the Ponta do Pargo Resort?  Architects for the Ponta do Pargo Resort are MSB, based in Funchal. The firm, established in 2004, comprises a team of four architects with wide experience in designing residential and hotel projects in Madeira. Contemporary, modern design is the main characteristic behind MSB's extensive portfolio.

When is the project due for completion?   The project is scheduled to complete in April 2012, to coincide with the opening of the Sir Nick Faldo designed golf course and by which time the motorway between Funchal and Ponta do Pargo will have been completed.

Can I place this investment inside my SIPP?  This project is a commercial property investment and therefore at the discretion of your Trustee or Manager the investment may be approved for use within your SIPP. No benefits in kind can be offered or taken and therefore participants will not be contractually offered the opportunity to use the facility at discounted rates. This is specified under contract. In consideration for not taking any contractual 'benefits in kind' the SIPP investors realises 50% of the revenue generated for the full period - 28 nights.

Who are Morgan Forbes solicitors?  Morgan Forbes use the Staple Inn Partnership based in Canary Wharf, London to manage the purchase process. Our clients are offered the legal services in relation to the purchase contract free of charge. If you require independent legal advice you should instruct your own solicitors, in which case you will be responsible for their fees.

Terms and conditions are available on request.