Les Terrasses d’Agadir,
Agadir, Morocco
Brief Investment Guide
• Fully furnished 4-star apartment-hotel development
• Price: €109,800 to €202,520
• 50% guaranteed finance package
• 2-year minimum rental return at 8%
• All revenue surplus (estimated 13-15%) is split on a 50/50 basis
• 28 days free usage per annum
• 300 days of sunshine per year: Hot summers, mild winters
The Development
Les Terrasses d’Agadir is a distinctive new development situated on Morocco’s exclusive Atlantic
coast, offering investors the opportunity to buy a fully managed and furnished 4-star apartment – the
first of its kind in Agadir.
Size: The development will consist of 147 apartments/ hotel rooms.
Furniture: Apartments/ hotel rooms will be fully furnished.
On-site facilities: A spa, gymnasium, two swimming pools and a bar / restaurant.
Planning permission: Full planning permission.
Completion: December 2009.
Finance: 50% loan-to-value.
Payment Terms: £1,000 booking deposit (fully refundable for a 14-day period or deducted from
initial deposit). 30% deposit required on signing preliminary contract, 20% 6 months later, balance on
completion.
Rental Yields: Guaranteed 8% for 2 years, with all revenue surplus split 50/50 between client and hotel
(estimated returns for client, 13-15% per annum).
Price: €109,800 to €202,520
Why invest in Les Terrasses d’Agadir?
§ Fully furnished 4-star apartment room – a hassle free investment.
§ 2-year 8% guaranteed yield. All revenue surplus is split on a 50/50 basis (estimated 13-15% ROI
per annum).
§ 28 days free usage per annum at your own discretion.
§ Projected capital appreciation estimated at 15-20% per annum.
§ Full usage of all hotel facilities – spa, gymnasium, restaurants.
§ All rentals are fully managed by the hotel, which is contractually committed for 18 years.
§ All dilapidation costs are paid from management’s revenue and not client revenue.
§ No tax on rental income for the first five years.
§ No capital gains tax after 10 years. Double tax treaty with UK.
§ Agadir is one of the six Plan Azur Resorts and has the best development infrastructure in
Morocco. Tourism here is year-round.
§ The economy is strong, GDP is high and the government is liberal and modernist.
§ An increasing number of charter flights into Agadir airport have raised the city’s profile in the
UK and upped its hotel occupancy rates by more than 10% last year.
Why invest in Morocco?
Morocco Joins Europe
2010 will see Morocco joining Europe with the first link between Europe and Africa via a 39km rail
tunnel from Spain to Tangiers (Morocco) – The Gibraltar Tunnel.
Investors & Property Market
Astute investors are moving in to Morocco from all over Europe, while property prices are 50-70%
lower than elsewhere in Europe. Capital growth is around 15-20% per annum and rental yields are
achieving between 7-15%.
Government & Foreign Investment
Over €10 billion is being spent by the Moroccan Government on infrastructure and the tourism
industry.
The political system has been liberalized and new policies implemented to attract foreign direct
investment into the country. Nokia, Dell and Intel are currently setting up operations in Morocco.
Reputable European developers and property giants like Dubai’s Nakheel and Emaar are actively
involved in Morocco.
The Moroccan government has established very attractive tax breaks for corporate investment.
Annual tourism figures have leapt by 60%, from 4 million in 2003 to 6.5 million in 2006, and 7.5million for
2007.
Vision 2010 – Plan Azur & Open Skies Policy
Vision 2010, was designed to attract 10 million tourists by 2010; and the Plan Azur, an investment of
€10 billion in infrastructure development. Both plans are already in full swing.
The implemented ‘Open Skies’ agreement has made a further tourism boom inevitable. Monarch,
Ryan Air, Easy Jet, Thomas Cook, Thomsons and Atlas Blue are flying direct to Moroccan airports.
Ryan Air has also signed a deal with the Moroccan government to open 20 new routes.
Political Stability
Morocco has been internationally recognized for holding free and democratic elections. The liberal,
modernist government is intent on promoting economic growth and tourism.
Stable Economy
Current GDP growth is very strong at 9.4%, aided by the Government’s liberal economic policy and
important free trade agreements such as; the Euro-Mediterranean agreement with the EU; and the
US-Morocco Free Trade Agreement that came into force in January 2006.
Location
Famous as a ‘winter sun’ destination, Agadir is located on
the shores of the Atlantic Ocean, near the foot of the Atlas
Mountains.
The development is situated adjacent to the King’s
Palace, an international exhibition centre and Morocco’s
largest retail shopping centre.
Agadir Airport is just a 20-minute drive from the
development.
The following facilities are all within easy walking distance:
§ 10km sandy beaches
§ Agadir Marina (with over 500 berths)
§ Stunning designer golf course
§ Promenade with 15 beach clubs, diving, water
sports, yacht club
§ Restaurants, bars and casinos
§ Medical Centre
§ Ten 4* & 5* hotels
§ Tennis courts
§ International exhibition centre & shopping centre
Development – Interior Views
Development – Exterior Views
Sample Floor Plans - 1-bed: 45m2 (plus terrace)
• Terrace: ranging from 6m2 to 12m2
• One bedroom
• Living room
• Kitchen
• Fully furnished
• Air conditioning
• Satellite / cable / plasma TV
• Telephone
• Access to all hotel facilities
• 24-hour concierge
• Parking available
Sample Floor Plans - 2-bed: 60 to 65m2 (plus terrace)
• Terrace: ranging from 7.5m2 to 22m2
• Two bedrooms
• Spacious living room
• Kitchen (top of the range utilities)
• Fully furnished
• Air conditioning
• Satellite / cable / plasma TV
• Telephone
• Access to all hotel facilities
• 24-hour concierge
• Parking available
Apartment Sizes
Apartment Sizes
N °A ppt Le v e l S ize T e rra c e T o t a l S ize P ric e € ( inc l. N °A ppt Le v e l S ize T e rra c e
20% VA T )
B UILDING 5 B UILDING 6
501 Gro und Flo o r 45 0 45 109,800 601 Gro und Flo o r 65
502 Gro und Flo o r 45 6 51 124,440 602 Gro und Flo o r 65
503 Gro und Flo o r 45 6 51 124,440 603 Gro und Flo o r 65
504 Gro und Flo o r 45 12 57 139,080
604 Gro und Flo o r 65
505 Gro und Flo o r 45 12 57 139,080
611 1st Flo o r 65
506 Gro und Flo o r 45 6 51 124,440
612 1st Flo o r 65
507 Gro und Flo o r 45 6 51 124,440
613 1st Flo o r 65
508 Gro und Flo o r 60 7.5 67.5 164,700
614 1st Flo o r 65
511 1 Flo o r
st 60 7.5 67.5 164,700
621 2nd Flo o r 65
512 1 Flo o r
st 45 6 51 124,440
513 1 Flo o r
st 45 6 51 124,440 622 2nd Flo o r 65
514 1 Flo o r
st 45 12 57 139,080 623 2nd Flo o r 65
515 1 Flo o r
st 45 12 57 139,080 624 2nd Flo o r 65
516 1 Flo o r
st 45 6 51 124,440
517 1st Flo o r 45 6 51 124,440
518 1st Flo o r 60 7.5 67.5 164,700
521 2nd Flo o r 60 7.5 67.5 164,700
522 2nd Flo o r 45 6 51 124,440
523 2nd Flo o r 45 6 51 124,440
524 2nd Flo o r 45 12 57 139,080
525 2nd Flo o r 45 12 57 139,080
526 2nd Flo o r 45 6 51 124,440
527 2nd Flo o r 45 6 51 124,440
528 2nd Flo o r 60 7.5 67.5 164,700
531 3r d Flo o r 60 11 71 173,240
532 3r d Flo o r 60 22 82 200,080
533 3r d Flo o r 45 9 54 126,880
nc l. N °A ppt Le v e l S ize T e rra c e T o t a l S ize P ric e € ( inc l. 2 0 %
T) VA T )
B UILDING 6
09,800 601 Gro und Flo o r 65 18 83 202,520
24,440 602 Gro und Flo o r 65 12 77 187,880
24,440 603 Gro und Flo o r 65 12 77 187,880
39,080
604 Gro und Flo o r 65 12 77 187,880
39,080
611 1st Flo o r 65 18 83 202,520
24,440
612 1st Flo o r 65 18 83 202,520
24,440
613 1st Flo o r 65 18 83 202,520
64,700
614 1st Flo o r 65 12 77 187,880
64,700
621 2nd Flo o r 65 18 83 202,520
24,440
24,440 622 2nd Flo o r 65 18 83 202,520
39,080 623 2nd Flo o r 65 18 83 202,520
39,080 624 2nd Flo o r 65 12 77 187,880
24,440
24,440
64,700
sses d’Agadir Financial Projections
Financial Projections
Size�of�Apt. 48m2 60m2 65m2
Average�Apt.�Room�Rate 150.00
€��������������� €��������������200.00 €��������������220.00
Occupancy 70.00% 70.00% 70.00%
Revenue�(Nights) 254 254 254
Gross�Revenue 38,100.00
€��������� €��������50,800.00 €��������55,880.00
Managment�Revenue�50% 19,050.00
€��������� €��������25,400.00 €��������27,940.00
Gross�Owners�Revenue�50% 19,050.00
€��������� €��������25,400.00 €��������27,940.00
Deducted�Service�Charges 500.00
�€��������������� �€��������������500.00 �€��������������500.00
Owners�Revenue* 18,550.00
€��������� €��������24,900.00 €��������27,440.00
Ground�Rent�Deducted�(30€�per�m2) �€�����������1,440.00 �€����������1,800.00 �€����������1,950.00
Owners�Net�Revenue* 17,110.00
€��������� €��������23,100.00 €��������25,490.00
Capital�Value 96,000.00
€��������� 120,000.00
€������ 130,000.00
€������
Tax(VAT) €���������
19,200.00 €��������24,000.00 €��������26,000.00
Closing�Costs�(approx.�5%) €�����������5,600.00 €����������7,200.00 €����������7,800.00
Total�Cost €������120,800.00 151,200.00
€������ 163,800.00
€������
Net�Yield 14.16% 15.28% 15.56%
8%�Guarentee €�����������9,664.00 €��������12,096.00 €��������13,104.00
Purchasing Process
Reservation:
£1000 payment, refundable for 14 days, to secure apartment.
Preliminary Contract:
Payment of 30% of purchase price.
Included in contract:
§ Delivery date
§ Price & payment conditions
§ Rental guarantees
§ Reimbursement guarantee
§ Technical specifications
§ Co-ownership regulations
Completion Contract:
Transfer of ownership of the property takes place after completion once the property has been
registered in the property ownership records. Signature of the aforementioned contract shall take
place after the entire price has been paid, building work completed and a permit to live in the
property obtained.
Purchasing Costs:
Budget 5-6% of purchase price to cover all closing costs.
Stamp duty 2.5%
Legal fees 1.1%
Notary Fees 0.5%
Land Registry 1.5-2%
Dispatch fees: approx €30, Misc. Certificates: €30
Purchasing Payment Procedure:
30% deposit on signing the preliminary contract
20% 6 months after signing the preliminary contract
50% on completion: Finance option (50% LTV) available.
Contact Us
For more information please visit our website at:
www.islandsblue.co.uk
Email us at:
info@islandsblue.co.uk
Call us on:
0870 063 7484