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Acquisition process
Royal Eagle Investment Management Fund Ltd. will, after carefuly checking the requirements mentioned in the prospectus, present projects to the Directors of Royal Eagle Property Investment Fund PCC. The Directors will, on behalf of the investors, determine wether to accept the project. If a project does not meet the criteria, the Directors will reject such a possible acquisition.

Investment criteria
Currently our portfolio has a significant weighting towards South African property assets. This exposure can be diluted as the portfolio expands. We aim to spread investments across developing markets which must have particular opportunities that reflect a higher return, lower risk combination. We will not invest in countries with significant political or economic policy risk. In addition we focus on the best possible locations within these markets which ensure buyer demand.

We will either acquire land and develop entire sites, or hold until optimal growth before liquidating some, or all subdivide for profit. Investments will target residential, commercial and retail sectors.

Because of our local network we know about the best plots before they are put on the market. Through project management and experienced negotiation via specialists in the local markets we secure favourable building rates at or near costs.

By properly aligning our plans with initiatives from the state and local municipalities we can maximize our build able area, increasing the number of sales. We will support initiatives from local organisations that look for sustainable solutions to poverty, suffering and injustice if this contributes in optimising the development possibilities.

WE INVEST ONLY IN THE BEST POSSIBLE LOCATIONS AND DEVELOPMENTS TO ACCELERATE GROWTH AND TO BUFFER DOWNTURNS.

Investment example
An example of Development Performance.
It is estimated that investments in developments such as described in this document achieve returns per project up to 200% over a typical 3-5 year deal cycle. The description below illustrate a very basic example of how a typical deal will work. In our example a €5 million piece of land produces up to €60 million in property sales.

1. Royal Eagle purchase the land (plus associated costs) via equity investment into the development company.
2. Royal Eagle pay partly for the building costs and the developing company will leverage remaining costs necessary to design
and build the site, up to 50% and pre-sales of the properties.
3. The development company sees the project through to completion, and all properties are built and sold.
4. Upon completion the development realizes profits.
5. Profits are then distributed to Royal Eagle and management.
6. Investors realize their profits.

80% of the profit is for Royal Eagle, 20% of profit is for the Management of Royal Eagle.
With a leverage of 50% in the development, the investment of Royal Eagle will be 50% of
€25 million, equals €12,5 million.
If €12,5 million investment produces €28 million profit, this equals to a 224% return.