SUMMARY

The subject of the investment project is participation in an investment company focused on real estate for tourism. This company is founded in the legal form of a German investment limited commercial partnership consisting of a general partner and a limited partner (GmbH & Co. KG). HOREAL Management- und Beteiligungsgesellschaft mbH, based in Frankfurt, will be acting as the general partner and management company in the investment limited partnership (“KG”).

The company intends to generate investments of up to €500 million from investors who believe in the resurgence of tourism in Europe and the Mediterranean region and invest in hotels, leisure facilities and tourism service providers. The investment project is addressed to institutional and private investors such as funds, high-net-worth family offices and people with an interest in economics. The objects of purchase are particularly distressed loans and distressed properties.

The aim of the investment company is to create a medium-term, highly profitable and value-adding portfolio to the named tourist objects, which should be purchased at the currently generated value based on the current Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). Depending on the stabilization of the economic situation and the recovery of tourism in parts of the region, the properties should be sold after about seven years at a higher value.