The Royal Peninsula Managed GUARANTEED RENTAL YIELD PROGRAMME

Peninsula Project Management, through the Royal Peninsula Affiliate Network, the fastest growing leaseback programme in Spain, offers a unique Rental Yield Programme for up to a 10 year renewable period. This Annual Guaranteed rental yield is fixed at 5% of the purchase price of the property.

Once you become the freehold owner of your property, you sign a Guaranteed Rental Agreement with Royal Peninsula. You will not be able to use the property for the duration of the contract. However, being an Affiliate of Royal Peninsula means that you will be able to enjoy reduced rental rates at all of the resorts managed by Royal Peninsula throughout southern Spain. All arrangements can be made through our On Site Management Offices.

In exchange Royal Peninsula guarantees you 5% Rental Return. Rental funds are transferred to the property owner on a monthly basis. Rental funds are transferred in accordance with the owner’s instructions and can be transferred either within Spain or to a bank account in any other country. That means that Royal Peninsula takes care of your property, all the maintenance and guarantees you a hassle-free 5% yield, index-linked to the Spanish CPI (Consumer Price Index). So each year your rental yield will actually increase, making it easier for you to cover the payments on your property mortgage.

WHAT GUARANTEES YOUR 5% RENTAL YIELD?

Unlike most of the "rental guarantees" currently offered on the market, the Royal Peninsula Guaranteed Rental Yield Programme is strongly backed up and secured as follows: Contracts are signed with National and International Tour Operators offering Golf, Ski and holiday rentals. Contracts are signed in advance and cover 2, 3, 5 or 10 year renewable periods.

This Programme has been designed to give our valued clients maximum flexibility and it will still be available after project completion through our On-Site Property Management Offices. The contractual guarantees will be given by the tour operators who will pre-book and pre-pay the rental periods using their own bank and insurance guarantees. These payment guarantees, as well as the contracts with the tour operators will be underwritten by an international insurance company. The insurance company being used to underwrite the contracts, giving our clients full guarantee and peace of mind, is ARAG, Compañía Internacional de Seguros y Reaseguros S.A.

In this way, you are not exposed to fluctuation in the rental market as returns are guaranteed irrespective of occupancy and you have no worries whatsoever about the day-to-day management responsibilities: no need to look for tenants or pay an intermediary, deal with maintenance issues and so on.

GUARANTEED RENTAL YIELD PROGRAMME

Royal Peninsula is totally responsible for the maintenance and the management of your property, so you will have none of the hassles typically associated with rental or investment property ownership and at the same time you can rest assured that your property is being looked after by the most professional and established rental and management company in Southern Spain.

Throughout the duration of the contract, your property is kept in optimum condition by the On-Site Management staff. They collect damage deposits and check the property prior to the holiday maker’s departure, returning the deposit only once everything has been checked and assuring that no damage has
been done.

The property is cleaned prior to arrival, and any maintenance needed is carried out. Mid-term cleaning is scheduled where necessary. All sheets and towels are laundered and returned on a weekly or mid-weekly basis, depending on the individual rental. On arrival, each holidaymaker is met by one of Royal Peninsula's staff and taken to the property. They are shown how the various electrical appliances work, and given a new alarm code for the duration of their stay. On the departure day, one of the Royal Peninsula staff go to the property to inspect for possible damage, collect the keys, and return the same to the on site office for safe keeping. The property is then cleaned and available for the following rental booking.

A monthly Property Inspection Report, Statement and Balance is generated by the rental department of the Royal Peninsula On-Site Management Office and transmitted to the owner via email, fax or post.
The Annual Affiliates fee for 2005 is €1.700 increasing to €2.100 by 2006. For Royal Peninsula affiliates, these fees will be discounted to €1.100, and this discounted price will be valid until 2009.

These services have been negotiated by Peninsula Project Management solely for their clients, and are exclusive to Affiliates of ROYAL PENINSULA. The Royal Peninsula Managed GUARANTEED RENTAL YIELD PROGRAMME is only available at the developments of Peninsula Project Management.