PROJECT ADRIATIC

The first development project identified to be undertaken by the Partnership will be the Adriatic Project in Budva, Montenegro which the Partnership will provide its services, and share the profits from, a 5 star luxury hotel with approximately 200 rooms and 180 luxury residential apartments, together covering approximately 400,000 sq ft - with a state of the art exhibition centre.

The property has received planning permission to construct a mixed use residential, commercial hotel and exhibition centre development. The development site is next to the beautiful Roman town of Budva - about 15 minutes drive from Tivat International Airport and about 90 minutes from Dubrovnik in the South of Croatia.

The Partnership has also been engaged by the developer of the Adriatic Project (the "Developer Group") under a Real Estate Consultancy Contract to provide ongoing consultancy services with respect to identifying, recommending and facilitating further development project opportunities within Montenegro over the next two years and will be paid, subject to performance criteria, fixed fees.

It is expected that the construction of the conference centre will commence in the first half of 2010.

The project has advanced significantly to the point where it expects to submit its preliminary design application (which is equivalent to RIBA stage D detailed design).

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