KAHUNA

HO TRAM STRIP

RENTAL POOL SUMMARY

RENTAL POOL STRUCTURE

The Rental Pool Scheme is a Net Revenue share model.

Units bound into Rental Pool will earn a guaranteed return of 8% of net Lease Cost (Lease
Cost less VAT for the first 2 years of Operation
For the following 8 years Lessees enjoy a 60% share of the Net Rental Revenue.
The Management Company will retain 40% of the Net Rental Revenue (see below)
The Net Rental Revenue is equal to the Gross Rental Revenue less the items listed below:
o VAT
o Management Fee
o Rental Pool Reserve Fund
o Third party Booking Fees including credit card transaction fees
o The Occupancy Service fee per Unit per night occupied.
60% of Net Rental Revenue will be distributed to Lessees quarterly in arrears
The Developer will withhold all taxes as required under Vietnam Law, to be paid to the
Government and other Authorities
The Rental Pool model applies to both Villas and Condotel Units.
The term of the Rental Pool Scheme is 10 Years.

MANAGEMENT COMPANY RESPONSIBILITIES

1. Maintain the units and Villas in an appropriate Condition

2. Manage and maintain common areas including Restaurants, swimming pools and
service zones
3. Marketing the Kahuna Complex.
4. Operate and manage amenities such as Food and Beverage offerings
5. Payment of utilities
6. Manage and promote reservations through the Grand Ho Tram central Booking
system and other 3rd Party Operators at their discretion.
7. Provide accounting services including the publication of Statements to Lessees and
payment of Lessees Net Rental Revenue Share.
8. Provide audited financial statements annually to Lessees.
9. Manage and allocate owner nights in accordance with the rental pool Agreement

Please see over the page for an illustration of the Rental Pool Yield.
KAHUNA RENTAL POOL YIELD ALL IN US$
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Average Daily Rate (ADR) $150 $157 $166 $174 $183 $192 $202 $213 $224 $235
Individual owner nights 21 21 21 21 21 21 21 21 21 21
Rentable nights 344 344 344 344 344 344 344 344 344 344
Occupancy 43% 46% 49% 52% 55% 58% 61% 64% 67% 70%
Gross Rental Income $ 4,601,081 $ 5,179,179 $ 6,808,050 $ 7,598,586 $ 8,451,156 $ 9,369,987 $ 10,359,574 $ 11,424,696 $ 12,570,432 $ 13,802,180

LESS:
Service Charge (fixed VND/rm/night occ.) 626,690 698,312 775,529 858,723 948,296 1,044,680 1,148,332 1,259,738
Booking fees 1,157,369 1,291,760 1,436,696 1,592,898 1,761,128 1,942,198 2,136,973 2,346,371
Management fee 340,403 379,929 422,558 468,499 517,979 571,235 628,522 690,109
Rental pool reserve fund 140,508 156,858 174,491 193,496 213,965 235,997 259,698 285,179
Net Operating Revenue $ 4,543,081 $ 5,071,727 $ 5,641,881 $ 6,256,371 $ 6,918,207 $ 7,630,585 $ 8,396,907 $ 9,220,784

Revenue Share to Investor 60% 2,725,849 3,043,036 3,385,129 3,753,823 4,150,924 4,578,351 5,038,144 5,532,471
CASH YIELD - - 6.2% 6.9% 7.7% 8.5% 9.4% 10.4% 11.4% 12.6%

Owner nights rental value 723,038 760,438 799,628 840,708 883,785 928,964 976,360 1,026,087
OVERALL YIELD 8.0% 8.0% 7.8% 8.6% 9.5% 10.4% 11.4% 12.5% 13.7% 14.9%

INVESTMENT YIELD METRICS: 60% NET RENTAL REVENUE TO LESSEE

Owner entitlement 21
Rentable nights 344

CASH YIELD $160 $170 $180 $190 $200 $210 $220 $230 $240
40% 4.94% 5.25% 5.56% 5.87% 6.18% 6.49% 6.80% 7.10% 7.41%
50% 6.18% 6.56% 6.95% 7.34% 7.72% 8.11% 8.49% 8.88% 9.27%
60% 7.41% 7.88% 8.34% 8.80% 9.27% 9.73% 10.19% 10.66% 11.12%
70% 8.65% 9.19% 9.73% 10.27% 10.81% 11.35% 11.89% 12.43% 12.97%
80% 9.88% 10.50% 11.12% 11.74% 12.36% 12.97% 13.59% 14.21% 14.83%

OVERALL INVESTMENT YIELD $160 $170 $180 $190 $200 $210 $220 $230 $240
incld. owner nights 40% 6.83% 7.25% 7.68% 8.11% 8.53% 8.96% 9.39% 9.81% 10.24%
50% 8.06% 8.57% 9.07% 9.57% 10.08% 10.58% 11.09% 11.59% 12.09%
60% 9.30% 9.88% 10.46% 11.04% 11.62% 12.20% 12.78% 13.37% 13.95%
70% 10.53% 11.19% 11.85% 12.51% 13.17% 13.82% 14.48% 15.14% 15.80%
80% 11.77% 12.50% 13.24% 13.98% 14.71% 15.45% 16.18% 16.92% 17.65%