CNMI Investment Strategy

The Company anticipates making marina investments both as sole principal or, where appropriate, in joint arrangements with third parties, which may include the taking of minority positions. Real estate and property development may be undertaken with other parties having relevant experience or local knowledge.

Acquisitions will typically be through leasehold agreements, BOT Agreements, concessions, rental agreements, freehold purchases or agreements of a similar nature under the laws of the jurisdiction in which the Company will be operating. Certain acquisitions may be held through more than one form of agreement, for example the Company may hold freehold title to a land area with only a leasehold title to the associated water area.

Total returns on the Company’s investments will primarily be generated as follows:

(i) Income – recurring revenues arising from: rental of berths, storage of yachts ashore, dry stack storage, parking, sales of fuels and utilities, rental or operation of yacht repair facilities, and lifting and launching of yachts as well as marina related real estate rental revenues from properties located on the marina site including: residential units, retail units, hotels, food and beverage establishments and other commercial premises or specialist leisure components such as golf courses and spas; and

(ii) Capital – the disposal or licensing of interests in whole or in part in land and/or marina assets at any phase of development, the disposal or licensing of long term berths or the disposal or licensing of marina related real estate. Sales of marina assets may be made as individual or groups of marinas through a trade sale, initial public offering or other form of disposal; and

In addition, CNMI expects to generate profit and cash flow from the management and branding of 3rd party marinas and consultancy work.