Riese

• Participation in Homburg Riese is an attractive real estate investment option.
• Homburg Gulbe is investing indirectly in a 20-hectare parcel of land near Vilnius in Lithuania.
• Total gross returns (after Lithuanian taxes) have been projected at 22,66% per year.
• Investment horizon of 2 to 3 years, participation starting at 50,000 Euros (5 shares), excluding 3% issuing fee.
• The selected investment structure is tax-friendly and limits the participant’s liability to the amount of their participation.

Yield per share
Mortgage loan (closed by UAB Homlit 4)	€ 1.824.500
Equity capital (provided by Homburg Riese)	€ 2.000.000
Total investment	€ 3.824.500
Total returns	€ 5.560.092
Total disbursement and repayment of total investment	€ 3.934.978
Profits before tax	€ 1.625.115
Profits after tax	€ 1.332.594
Projected returns on Homburg Riese
Payment of first 12% of returns	€ 480.000
Yield from other part of sales profit (50%)	€ 426.297
Total yield	€ 906.297
Average yield per year (2 years)	22,66%

• The value of your investment may fluctuate. Results attained in the past are no guarantee of future performance.

The total investment for the acquisition comes to 3.824.500 Euros, including costs. The required equity capital of 2.000.000 Euros has been raised by Homburg Riese, distributed over a maximum of 200 shares at a value of 10,000 Euros each.

Homburg Riese is investing indirectly in a 20-hectare parcel of land located in Didzioji Riese. The parcel is located 500 metres north of Vilnius, the capital of Lithuania.

Developments in the city zoning plans have been followed closely. Since the beginning of the project, various plans have been submitted for spatial planning in the Vilnius region. However, they have not yet arrived at a definitive plan. This is due to the fact that local elections were held in late February of 2007, which resulted in major decisions being postponed.

We are in touch with our political contacts. They have informed us that the new city council has designated finalization of the plan for spatial planning as one its top priorities. As soon as this phase is complete, we will be in a position to submit the detailed plan that has been further elaborated.

In the meantime, we have made preparations to conduct a study on the required water and sewage capacities and connections with adjacent lots. One of our neighbours is an Estonian developer, and another is a famous Lithuanian NBA basketball player.

We have also prepared draft designs of possible layouts for single-family dwellings on our parcel that we can use in our detailed plan.
Moreover, there is still a shortage of lots that are zoned residential. Developers are prepared to pay a higher price for these parcels because they are allowed to begin construction immediately, thus saving them all of the time involved in obtaining the necessary permits. Parcels in Vilnius itself and up to ten kilometres away are in the highest demand.

Development of the detailed plan for the parcel is well underway. For the time being, we must wait until the city council gives it final approval of the draft city zoning plan.