The Emperor's Island Resort & Casino Project Atimpoku Ghana




SEprrEMBJER 2008
Prepared by Henry Osei Haines for: Kings Island Hotel Resort & Enterprises ltd NoA Leslie Crescent Labone Accra Ghana Overseas Contact: Henry Osei Haines P.O. Box 450 Hurstville BC NSW 1491 Sydney Australia Email:

Table of Contents
Executive Summary 4
Introduction Project Location Investment Management Repayment 4 4 4 Project Sponsors Description 5

& Site Analysis 5
Environ ment 6 7 7 8 9 of Loans 8

Market Demand

Funds Required

Return on Investment Exit Strategy Benefits Benefits 9

Market Entry Risks Resolved to Investors to Ghanaians 10 10


If. agreement with I<ings island Hotel Resort & Enterprises ltd is prohibited Any use of this material except Kings Island Hotel Resort & Enterprises Ltd 2 The Emperor's Island Resort & Casino .net.O. Prepared By: Henry Osei Haines Chairman & CEO Disclaimer: The information contained in this memorandum about the proposed business opportunity is not intended to be the only information upon which your decision to become an investor in the project is made and is not a substitute for a prospectus or any other notice that may be required under the Companies Act 179.DOCUMENT INFORMATION Project Name The Emperor's Island Resort & Casino Document No Document Title Investment Proposal Revision Status Final 20/01 This Investment Proposal is for the Ministry of Tourism & Diaspora Relations to assist in securing foreign investors to finance the proposed project. Prospective investors are advised to make further inquiry about this business opportunity as well as seek professional advice before proceeding.4 Leslie Crescent Labone. Box 450 Hurstville BC NSW 1491 Sydney. Kings Island Hotel Resort & Enterprises Ltd has supplied this information and presents it in good faith believing it to be true but makes no representations as to its accuracy. Australia Mobile: 0061 418405073 Email: hhaines@bigpond. Chairman & CEO Kings Island Hotel Resort & Enterprises Ltd No. All rights to: Copyright © 2007 1<lngs Island Hotel Resort & Enterprises in accordance with a written Ltd. please contact: Henry Osei Haines. Accra Ghana All correspondence Henry Osel Haines P. after having read this information memorandum and you then wish to proceed.

equipment and security. a commercial space with conferencing tennis tournaments. cinema complex and shops. exhibition course. a golf and conference and meeting rooms. 2 wharves. which are available on request. Kings Island Hotel Resort & Enterprises ltd 3 The Emperor's Island Resort & Casino . KIHR&EL have submitted an Environmental Impact Assessment (EIA) proposal of the project to the Environmental Protection Agency (EPA) that has now been approved. roads. PROJECT SPONSORS KIHR&EL. swimming pools. centre with casino. a registered Ghanaian company.EXECUTIVE SUMMARY INTRODUCTION Kings Island Hotel Resort & Enterprises Ltd (KIHR&EL). KIHR&EL desires to make EIR&C a one of a kind fantasy destination in Ghana if not Africa specifically targeting upmarket international visitors to Ghana and wealthy domestic clientele looking for a paradise with the ultimate in luxury and seclusion. a spa. a Ghanaian private liability limited company (LTD) was formed and registered in 2004 by Henry and Jeanette Osei Haines in Accra. having acquired a 35. Ghana proposes to develop 5 Star international island hotel resort with casino to be called The Emperor's Island Resort & Casino (EIR&C). Ghana as the sponsor of the project. The business plan and financial feasibility of the project.35-acre it into a luxury concept-driven uninhabited island in Atimpoku. helipad. demonstrates that: your investment of US$24 million in this project will yield a realistic and achievable return of at least US$100 million in five years. KIHR&EL is negotiating with the Ghana Government to obtain Ghana's first island resort casino gambling license and to capitalize on this opportunity. and waste and water treatment plants requiring US$24miliion of capital in the form of debt and equity investment. bush walking and horse riding on the island as well as water and river sports activities. PROJECT DESCRIPTION The project involves building 180 luxury concept-driven hotel units with restaurants. and The resort will also consist of a 162-metre long bridge. There will also be tour boat operations. tennis court. discotheque. sewage.

which will increase the attractiveness opportunities to re-brand this area. The Asuogyaman District Assembly has zoned the land for hotel development. makes Atlmooku and Akosombo an important corridor linking Accra and her Eastern. of the area to a wider market. The Atirnpoku and Akosombo area is the " tourist district of Ghana" . Electricity supply will be tapped from a 33-kilovolt pylon already positioned on the island to produce 220-240 volts of electric power for the resort. Hydrological and Geological reports indicate that the island can never be flooded and can sustain the project. Currently. giving rise to Kings Island Hotel Resort & Enterprises Ltd 4 The Emperor's Island Resort & Casino . the largest man-made lake in the world at Akosombo and with its potential for cruising in addition to being a means of direct and cheaper transportation. most of these visitors stay in 4-5 star hotels in Accra that meet international tourist standards and travel to the Akosombo and Atimpoku area on day trips to see the Akosombo dam and the Volta Lake and return to their hotels in Accra. The number of tourists staying overnight is low because of lack of proper accommodation facilities. there are only two high quality 3-2 star hotels in the area to cater for this growth. a MARKET DEMAND Ghana attracted over 1 million international holiday and business visitors in 2007 and with the discovery of oil in Ghana this target will increase to over 2 million visitors by 2010. Volta and Northern neighbours. the sponsors believe that an upmarket concept-driven resort on the island with 180 luxury hotel units enhanced with recreational facilities will add to room stock and capture the majority of the tourists returning to the Accra market and get more people to stay overnight as well as Significantly improve the quality of the product. Presently.LOCATION & SITE ANALYSIS The proposed project is to be located on the island owned by KIHR&EL in the middle of the Volta River at Atirnpoku in the Asuogyaman District of the Eastern Region of Ghana and mere 45 minutes drive away from Kotoka International Airport in Accra (capital of Ghana). KIHR&EL will lease the island to EIR&C for the development on a Debt and Equity investment basis. And with its close proximity to the country' s only suspension bridge at Atimpoku. Based on research conducted. the hydroelectric dam and the Volta Lake. thus attracting over 1 million foreigners and nationals a year that use Atimpoku and Akosombo as a tourist and a transit point.

5% per annum Corporate tax rebates of 40%-75% Exemptions from custom business • • • Relief from double taxation for foreign investors and employees Immigrant quotas are automatic depending on paid-up capital Free transferability of profits. dividends and capital gains overseas duties on plant. Competitive labour costs Operational capital market Good and improving infrastructure development trainable and stable workforce in Africa Incentives are: • • • • • • Hotel companies profits not liable for tax in the first five years of operation Depreciation or capital allowance of 50% in the first year of investment for building Exemptions from taxes and rates levied on building properties for three years Investment allowance of 7. machinery. especially hotels. The government also actively encourages investment in hotel properties offers many opportunities for private investors.INVESTMENT ENVIRONMENT Ghana offers a good environment for investment in tourism infrastructure. They include: • • • • • • • A liberal investment environment and a stable. with daily flights to Europe and USA EXistence of the best-trained. equipment and parts for Kings Island Hotel Resort & Enterprises Ltd 5 The Emperor's Island Resort & Casino . tourist arrivals and receipts since 1991 have increased by 576%. As a result. democratic political system 100% foreign ownership of local companies and joint-venture operations that meets international standards to cater for the influx of international visitors to Ghana and also Excellent sea and air connections.

Gaming. Romanous . The Emperor's Island Resort & Casino strategy and loan repayments Kings Island Hotel Resort & Enterprises ltd 6 .000 1. President. His experience in founding and successfully managing another project makes him perfectly placed in this position. His team is ideally suited for this position. Walsh has MBA and with over 28 years of business acumen.000 • • $ 13. His mix of skills enables him to understand the business of EIR&C from all perspectives and will direct EIR&C in the right direction over the coming years.000 1. his role as CFO is most suited.000.000. FUNDS REQUIRED (US DOLLARS) KIHR&EL and its subsidiary. and CEO He is an Accountant by profession and a veteran in the hospitality and transport industry with 20 years experience as CEO of his own luxury hospitality and transport company in Australia.000.000 Funds received by late 2008 or early 2009 will be used in providing the working capital necessary to implement the first two years development deferred until December 31. The project management team will comprise of: H. EIR&C are seeking Investors/ Lenders to provide $24Million to fund: Bridge & 2 Wharfs construction & Beach Area Development BUildings/Infrastructure/Landscaping Electronic.000 2. Chairman.MANAGEMENT EIR&C is a private Partnership venture and a wholly owned subsidiary of KIHR&EL and will be incorporated in Accra.Founder. Romanous delivers 15 years of successful business ownership in the highly competitive field of Architecture in Australia. 2011. Computer.Consulting Architect J.Chief Finance Officer (CFO) M. Osel Haines . J.800. Having successfully run a number of businesses and trained in financial services.000 2.200.000 24. Kitchen/Bar Equipment Furniture & Fixtures Ferry/Baroe/vehlcles Pre-Construction/ TOTAL FINANCING purchase costs Pre-operation/Contingency $ $ $ $ $ $ 4. M.000. Walsh . EIR&C will manage the project and the completed resort will be outsourced to a competent international group that has the resources and the ability to manage it completely. Ghana.000.

6 million Year 2 $19.3 million Year 5 $24. Restaurants. the operating environment is very attractive. Restaurants. With low wage rates.9 million 21. RETURN ON INVESTMENT (ROI) The following table reflects a projected summary oceratinc statement of EIR&C. 2016. Bars.52% 49. Year 1 Net Profit Debts ROI less $10.9 million Total $100.08% 46.REPAYMENT OF LOANS Funds shall be treated as a loan and carried as debt EIR&C cash flow generated from combined revenues of Accommodation. Amenities and Profit Centres indicate a" breakeven" during year 2012 and the debt fully repaid by December 31. Bars.1 % to over 49.1 million Year 3 $23 million Year 4 $23. Amenities and Profit centres minus costs. Dividend issuance is another means of increasing shareholder ROI that the company may consider as early as 2013.26% 46. It is to illustrate net profit in US dollars based on combined revenues of Accommodation.81% ROI for the original paid-in funds of US$24 million is estimated conservatively at US$l 00. Lenders/ Investors will receive from EIR&C: • • • 48% Ordinary Equity of EIR&C and retain their 48% Equity even after loan repayment Minimum of 2 seats on the Board A performance contract with the management team.16% 38.8% by year 5. expenses and debt repayments. Kings Island Hotel Resort & Enterprises Ltd 7 The Emperor's Island Resort & Casino . competitive utility and food prices and limited competition.9 million or estimated to be 21. In return for provision of funds. in addition to a recently reformed economic environment of Ghana.

2. cash. who may seek to gain access to the board by acquiring EIR&C. There also exists the possibility of the sale of equity via a private placement to a direct equity fund seeking a growth investment in the hotel and resort sector or by going public. Land acquisition which 2. There may be a number of strategic investors in other launch markets. 3. 3. who have observed EIR&C' s potential in the hospitality industry. and contracts and work-In-hand. EXIT STRATEGY The initial investment will be structured as a combination of equity and shareholder loans with prioritized repayments to be paid from operating profits before any profit and can be recovered in 5 years. The issue of land acquisition and tenure Selecting a reputable joint-venture partner Bureaucratic Government procedures (many Government approvals required) Cultural and language barriers.MARKET ENTRY RISKS RESOLVED Foreign investors face market entry obstacles when investing in the hotel industry in Ghana. KIHR&EL being a Ghanaian company has already resolved all the above challenges: 1. in Ghana especially of a unique land piece such as this island to authorities have cultural and religious attachment can be a formidable task to acquire Selecting a partner is no longer a problem since KIHR&EL has the right to offer 48% of EIR&C' s ownership All Bureaucratic Government red tape had already been cut with an Environmental Permit being granted for the project to go ahead and the land has been zoned for hotel/resort 4. In 5 years EIR&C will be an established company with total revenue in excess of US$400million and will be a substantial industry player. traditional Henry Osei Haines is an indigene of Atimpoku and has adequate contacts and connections that have facilitated the acquisition of the island. 4. They include: 1. Kings Island Hotel Resort & Enterprises Ltd 8 The Emperor's Island Resort & Casino . KIHR&EL' s chairman. Cultural and language barriers do not exist as the Chairman of KIHR&EL is a Ghanaian and speaks the language perfectly and is acclimatized with the culture. Most of the investment during the initial five years can be secured by assets.

net. foreign travellers and returning overseas Ghanaians. adding to the overall security of the investment Proposed structure allows accelerated prioritized loans. Chairman & CEO on: Kings Island Hotel Resort & Enterprises ltd 9 The Emperor's Island Resort & Casino . rasultinq in high demand for s exclusive rights provision products and know-how and reputable project brand offered by recovery of the initial investment via • • • • • High tourism growth resulting in high demand for additional BENEFITS TO GHANAIANS Millions of US Dollars in Land tax over 45 years 2 3 4 Hundreds employed during construction and operation Attract VIPs to Ghana and the region The center for corporate.BENEFITS TO INVESTORS The benefits to investors are: • In addition to being a shareholder. industrial conferences/seminars national tourists. KIHR&El as the initial developer is a long-term resident in Ghana with relevant experience and Contact Henry Osei Haines. for international and Accordingly your investment is invited In return for a proportionate share of this outstanding business opportunity l-1a issued shares hhaines@bigpond. before profit distribution Attractive location already acquired Offshore and local expatriate management will monitor all the operations EIR&C' s interest will stay with the project Excellent chance for a high equity return resulting from: Excellent management EIR&C Reservation booking guaranteed by Ghana' s largest tourist agencies Excellent resort location in the major economic and population zone Local competition eliminated due to the location' services Potential long term resort demand for foreign additional hotel rooms Building material availability guaranteed. companies' staff.



_l Kings Island Hotel Resort & Enterprises Ltd 2 The Emperor's Island Resort & Casino .



Satellite picture showing Atimpoku Township and Island .

Satellite picture showing distance from Atimpoku to the island for a new bridge .

Distance from Adami Bridge to the Island .

~ .I.Resort & Casino . .i.-~iF" '..-:.<-.m :1' -6 lOW '\ i . c )rcl._r~.rdd:. c ' 11"r~. .../':' •.: .- .' Ii_I.1 / ) -r- - }- I. ~~ '~I .1 I I -'.-.Map of Atimpoku showing the Island from Highway & Adame Bridge c. '.. .· .I.'. 005'E Kings Island Hotel Resort & Enterprises Ltd 2 The Emperor's Island . ·i~tc." .~ .

- I.o~'2~ope THE PROPOSED BRIDGE .qt. i _-- I I i 167 ~~ I . 1--- ''''''''---~ .MAP showing new bridge and Adome Bridge MAP Of ATIMPOKU P to AN . J ~ 1 I I 1._----_.. _f .

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Akosombo Dam/Volta Lake Spillways at Akosombo The Adami Bridge (picture 1) .

The Adomi Bridge (picture 2) .

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