EFTA00614808.pdf

CONFIDENTIAL .4 1 -••••.. • • A Investment Opportunity EFTA00614808  CONFIDENTIAL INVESTMENT OPPORTUNITY INVESTMENT Suntex Ventures LLC ("Suntex" or the "Sponsor") is forming a new company ("Suntex NewCo") for the purpose of acquiring and managing institutional quality marinas. The Sponsor intends to create an investment vehicle that will aggregate high quality marinas with the goal of listing in the public markets as an internally managed pure play REIT in a three year timeframe. An investment in Suntex NewCo is intended to provide investors with highly predictable and durable current income with the potential for significant capital growth. OFFERING SUMMARY To acquire, own and operate institutional Format: Reg D Use of proceeds: quality marinas in too locations in the U.S. Offering size: $200 - $300mm of equity Target leverage: 50 - 55% Sponsor: Suntex Ventures, LLC. Target current yield: 8% LEADING MARINA INDUSTRY SPONSOR CEO Johnny Powers, Scott McMullin, Bryan Redmond and the Suntex team have been operating marinas since 1995. Today, Suntex is one of the largest and most reputable marina companies in the United States. The Company owns and/or operates 22 institutional-quality marinas across the U.S. Headquartered in Dallas, TX, Suntex employs 24 people at its home office and nearly 400 people on site at the marinas. The Company has a national geographic footprint and operating infrastructure which provide it with vast market knowledge, invaluable industry relationships, and access to investment opportunities in the most desirable marina markets. PROVEN TRACK RECORD Suntex's principals and management team have over 100 years of aggregate experience managing and investing in marinas. As a result of the Sponsor's focus on acquiring high quality assets with strong cash flow generation, Suntex has consistently been able to provide investors with attractive returns. Suntex's realized investments have produced an average IRR of 35.8% and a 4.32x multiple on equity. Suntex's investors draw from high net worth, private equity, hedge funds, and, most notably, its own principals and employees. ACTIONABLE PIPELINE Suntex NewCo will take advantage of fragmentation in the marina industry to acquire marquis assets at highly attractive initial yields. The Company is currently underwriting a pipeline exceeding $1.5 billion of current opportunities, with $200 million of marinas currently in the acquisition and dosing process. Marinas are an attractive asset class to real estate investors characterized by strong free cash flow, attractive initial yields and significant upside potential EFTA00614809  CONFIDENTIAL THE OPPORTUNITY Over the last two decades, the principals of Suntex have acquired, managed and/or sold more than 40 marinas. The Company's marina experience spans geographic markets and economic cycles. The Company believes that the conditions it is observing in today's market are uniquely advantageous for acquiring high quality marina assets. CURRENT SUNTEX PROPERTIES(a) The Company's investment thesis is driven by a number of factors: HIGH BARRIERS TO ENTRY • The marina sector has steep barriers to entry with continually tightening environmental and zoning regulation • As a result, Suntex can exert strong leverage in certain gateway markets where demand outstrips supply. and new development is prohibitively expensive Bay Pointe - Quincy. MA FRAGMENTED OWNERSHIP • Greater than 90% of marinas are owned by non-institutional / individual owners • Suntex has a scaleable operating infrastructure, a national geographic footprint and relationship with marina owners throughout the country Liberty Landing - Jersey City. NJ HIGHLY ATTRACTIVE CAP RATES • Trophy marinas can be acquired at highly attractive initial yields • Given the illiquidity in the sector, Suntex can acquire irreplaceable assets for cap rates in the 8 - 10% range Snook Bight - Fort Myers. FL PATHWAY TO THE PUBLIC MARKETS • A private letter ruling from the IRS paves the way for marina eligibility in a REIT structure • The ruling creates a tax-advantaged stock or unit-based "currency" for Suntex to offer sellers to facilitate the acquisition or contribution of assets Chandler's Landing - Rockwall. TX FIRST MOVER ADVANTAGE • Suntex has a burgeoning. in-place pipeline including several world renowned marina properties • The opportunity to spearhead the roll-up of a highly fragmented and inefficient industry is today Tidewater- Portsmouth. VA (a) Properties shown are representative of assets Suntex NewCo will seek to acquire. Suntex is uniquely positioned to capitalize on today's market opportunity, and be the standard bearer for the institutionalization of the marina real estate sector EFTA00614810  CONFIDENTIAL NOTICE TO RECIPIENTS The information herein is believed to be reliable and has been obtained from sources believed to be reliable, but we make no representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such information. In addition we have no obligation to update, modify or amend this communication or to otherwise notify a recipient in the event that any matter stated herein, or any opinion, projection. forecast or estimate set forth herein, changes or subsequently becomes inaccurate. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. We therefore strongly suggest that recipients seek their own independent advice in relation to any investment, financial, legal, tax, accounting, or regulatory issues discussed herein. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed. Nothing contained herein shall constitute any representation or warranty as to future performance of any financial instrument, credit, currency rate or other market or economic measure. Furthermore, past performance is not necessarily indicative of future results. This communication is provided for information purposes only. It is not an offer to sell, or a solicitation of an offer to buy any security, nor to enter into any agreement or contract with Deutsche Bank AG or any affiliates. Any offering or potential transaction that may be related to the subject matter of this communication will be made pursuant to separate and distinct documentation and in such case the information contained herein will be superseded in its entirety by such documentation in final form. Because this communication is a summary only it may not contain all material terms, and therefore this communication in and of itself should not form the basis for any investment decision. Financial instruments that may be discussed herein may not be suitable for all investors, and potential investors must make an independent assessment of the appropriateness of any transaction in light of their own objectives and circumstances, including the possible risks and benefits of entering into such a transaction. By accepting receipt of this communication the recipient will be deemed to represent that they possess, either individually or through their advisers, sufficient investment expertise to understand the risks involved in any purchase or sale of any financial instrument discussed herein. If a financial instrument is denominated in a currency other than an investor's currency, a change in exchange rates may adversely affect the price or value of, or the income derived from, the financial, and any investor in that financial instrument effectively assumes currency risk. Prices and availability of any financial instruments described in this communication are subject to change without notice. Securities and investment banking activities in the United States are performed by Deutsche Bank Securities Inc., member NYSE. FINRA and SIPC, and its broker-dealer affiliates. Lending and other commercial banking activities in the United States are performed by Deutsche Bank AG. and its banking affiliates. This offering summary is highly confidential. It is being delivered to a limited number of sophisticated prospective investors to assist them in determining whether they have an interest in the proposed investment described herein (the Investment") and is solely for their internal use. You may not reproduce or distribute this offering summary, in whole or in part, and you may not disclose any of the contents of this offering summary to anyone without the prior written consent of Deutsche Bank Securities Inc. as placement agent for Suntex Ventures, LLC (the Placement Agent"), other than to persons you have retained to advise you in connection with the offering summary. You may not use any information herein for any purpose other than considering the Investment. By accepting delivery of this offering summary, you expressly agree to the foregoing and expressly agree to maintain the disclosed information contained in this offering summary in confidence. Deutsche Bank Securities Inc. 60 Wall Street, New York, NY 10005 Chad Cooper Gregory Patcella Managing Director Associate Real Estate Investment Banking Real Estate Investment Banking Tel: Tel: Fax: Fax: EFTA00614811