Canidelo Apartments

1. Project Updates

• Hired Adriano Pimenta Arquitetos, Lda which will conduct the concept phase and licensing. For this first stage was agreed a total fee €35,000. The same proposal allows us to proceed with Adriano Pimenta for the execution phase where was agreed a total fee of €255,000 (not awarded).
• Multiprojectus from Garcia Garcia was hired as the engineering team for the project. Multi projects will be responsible for the execution of projects, and construction supervision and also be involved in the concept and licensing phases. The total fee agreed upon was €200,000.
• Changes in the City Hall Management Structure allowed for more flexible design proposals and optimization.
• After several informal contacts with the Cityhall, two official information requests were submitted (PIP), one for a single building and another for two buildings.
• At the same time was requested a request for an IVA reduction of 6%.
• Support from tourism/operation expertise was received and pointed to include further semi-independent room units into the design.
• Typology tests are being carried out along with image conception studies.
• The next step is to submit licensing of one of the proposals and refine the construction cost estimation.

2. Financial Updates

• The fund now owns 100% of Sparkling Joy, Lda with:
  • Capital: 525k euros
  • Shareholder’s loan: 1,725,000 euros

• After transaction’s completion, the shareholder’s loan were partially used to reimburse the loans and other operational expenses which were previously provided/supported by other companies from Group Qualiv in a total amount of €1,461,969
  • Proezasterisco €142,412 (intercompany loan plus interest)
  • Urban Episode €1,293,938 (intercompany loan plus interest)
  • Other operating expenses €22,563