The Big Creek Group
Investment Opportunities
Table of Contents
Belize – Its Mystique, Politics, Culture, History and Future
The Opportunities of the Caribbean Market
Recent Significant Developments in Belize
Oil Exploration Investment Opportunity
Overview
The Big Creek Group is a group of investors situated in the south of Belize, in the privately owned community of Big Creek. The Group’s focus is on oil, land development and other tourism related activities. The key members of the Group are Michael Duncker, Antonio Zabaneh and Zaid Flores, all businessmen involved in a variety of major industries such as shrimp, banana, orange, port facilities, ship agency and fertilizer importation and distribution. www.bigcreekgroup.com
With the recent discovery of oil in commercial quantities in Belize, the Group saw the potential business opportunity to obtain an oil exploration license and positioned itself to become a major part of this growing industry. The Group acquired an oil exploration license in August 2006 which was later renewed in 2008.
The key members of the Group are also the owners of huge tracts of prime real estate property on the south coast of the country, a stone throw away from the growing, very popular overnight tourist destination, Placencia. (www.placencia.com)
The Group is seeking investment partners to develop the prime coastal real estate properties, explore the possibilities of tapping into the growing cruise ship tourism industry and/or participate in their oil exploration venture.
Belize – Its Mystique, Politics, Culture, History and Future
By developing the coastal real estate properties, the Group hopes to attract the attention of North American and European consumers seeking vacation homes, retirement homes, and leisure travel in the Caribbean. This target market is being fueled by an aging baby boomer population.
Belize is a small country located on the western border of the Caribbean Sea. It provides a unique blend of history, geography and culture. It is known for its great tropical and Caribbean climate, unspoiled rainforest, longest living coral reef in the Western hemisphere, great dive sites, the majestic Blue Hole, intriguing Maya ruins, exotic birds, the worlds largest jaguar reserve, white sand beaches, mountain ranges, scattered beautiful tropical islands, stable currency and a democratic government.
Belize achieved its independence in 1981. The Government is managed by a Cabinet under the leadership of the Prime Minister, and an 8 member Senate, the majority appointed on the recommendation of the Prime Minister. Belize has a functioning two-party political system revolving around the Peoples United Party (PUP) and the United Democratic Party (UDP).
Belize is divided into seven districts, Corozal, Orange Walk, Belize, Belmopan, Stann Creek, Cayo and Toledo. The population of Belize at the last census (Census 2000) was 280,000. Approximately 42% of the population is below the age of 15 years. Belize has a rich cultural heritage. Some of the major cultures represented in Belize include Mayan, Garifuna, Spanish, Creole, Chinese, Mennonite, East
Indian, European and North American.
Belize boasts a peaceful, stable democracy. The official language of the country is English and the currency is the Belize dollar. The Belize dollar is pegged to the US dollar at the rate of 2:1. This assures investors a stable currency. Both American and Belize dollars are accepted everywhere in the country.
Belize is 174 miles long and 68 miles wide with islands extending out another 50 miles into the Caribbean Sea.
The ancient Mayan history of Belize continues to be one of Belize’s biggest tourist attractions. Ancient Mayan cities offer a rare glimpse into an ancient culture rich in religion, science and the arts. Today, archaeologists are able to date finds and sites of the Mayan civilization using artifacts of ceramic, stone, shells and bone, as well as the Mayans’ own complex calendar system. The ancient Mayan sites of Belize cover the full spectrum of time and diversity. Belize boasts the oldest known Mayan site; the longest occupied site; and the largest carved jade object. Over 600 hundred sites have been discovered to date in Belize. Excavation projects are taking place all over Belize today.
Belize is home to Francis Ford Coppola’s famous Turtle Inn, in Placencia, a finalist in 2005 Reader’s Choice Awards. Belize has been called the “Bright Young Thing” by Travel & Leisure Magazine, “Nature’s best Kept Secret” and “Belize: “The Land of Aaahs” magazine called Belize’s marine ecosystem “second to none.” Belize’s ecotourism is quickly gaining recognition as tourists are attracted to explore its mountains, rainforests, rivers, marine life, and ancient civilizations.
Belize also boasts three large coral atolls which lie east of the Barrier Reef. One of these coral atolls, Lighthouse Reef, home to Half Moon Cay and the Blue Hole, is truly one of the marine gems of the world. The Blue Hole is probably the most famous site in Belize and largely considered one of the world’s best diving spots.
The landscape of Belize varies extensively. Approximately sixty percent of the country is covered by tropical and subtropical forests. The southern and central area of Belize is highlighted by the Maya Mountain range and most of northern Belize as well as the coastline area consist of low-lying plains and wetlands. Belize has a moderate year round climate with an abundance of sunshine. Temperatures range from 50° F to 95° F with an annual mean of 79° F.
Belize has over 49 distinct types of forests identified to date. The environment of Belize is home to a wide range of plant and animal species. Belize has over 4,000 species of flowering plants, 250 types of orchids, and over 500 native trees. More than 150 species of mammals, including howler monkeys, deer, jaguars, ocelots, pumas, and tapirs etc. live in the forest. There are over 520 species of birds, including ducks, kingfishers, jabiru storks, hawks, eagles, vultures, hummingbirds, toucans etc. The Forest Reserves, Nature Reserves, Wildlife Sanctuaries, National Parks, Private Reserves, National Monuments, Marine Reserves, and Archaeological Reserves offer protection for these plants and animals.
The Group believes that Belize is rapidly approaching a critical point in its development, a point where relative obscurity is quickly being overturned by recognition. This is being fueled by influencers such as celebrities seeking private getaway destinations within the Caribbean. These celebrities are encouraged by magazine articles and real estate sales representatives. Their desire for privacy, security and ecological preservation are being met in Belize. Several international travel guides, fishing and diving magazines, vacation and leisure travel magazines and newspapers frequently feature articles on Belize.
Francis Ford Coppola, director of the Godfather and Apocalypse Now and owner of two Belize resorts, Blancaneaux Lodge in the Maya Mountains and the Turtle Inn in Placencia is probably the most prominent celebrity to come to Belize. Recently, Leonardo DiCaprio and Robert De Niro have joined the ranks of celebrity land owners in Belize. Surely, interest in Belize is growing especially within the diving & sport fishing community. This hum is putting Belize at the front of emerging destinations in the Caribbean.
Big Creek
Big Creek is approximately 1,200 acres and is situated in the south of the country. It is the home of the Banana Industry and the only operating port facility in the south, Big Creek Port. The port is heavily utilized by the banana and citrus industries since it provides easy access for the exportation of their product. The port also handles a significant volume of general cargo.
In a recently signed agreement, The Group allotted a portion of the land adjacent to the Big Creek Port for the storage of crude oil coming in from the current oil production facility in Spanish Lookout for exportation. This is a promising aspect of the oil industry that the Group has embarked on. The Group has erected an additional tank farm facility consisting of six tanks with a capacity of 60,000 barrels.
Big Creek is accessible by land, air and sea. Because of its port facilities, the channel leading into the port is deep enough to be able to handle large vessels. Many small islands called cayes are scattered within an area of 10 square miles of Big Creek. These islands are easily accessible with skiffs and other larger vessels and provide an abundance of marine life and white sandy beaches.
The Group is currently undertaking the development and expansion of the Port, a BZ$30M investment. This includes the construction of modern offices, deepening of the entry channel, the construction of a large steel deck barge, the acquisition of an additional tug boat and other miscellaneous heavy duty equipment and the construction of a third berthing facility. www.bigcreekgroup.com
The Belizean Economy
Belize's economic activity revolves primarily around its primary sectors, agriculture and fishing. Of significance are banana, citrus, sugarcane, lobster, fish and conch; however, with the recent discovery of oil in commercial quantities, the petroleum industry may become the life blood of the country’s economy.
Quickly becoming Belize’s number one industry is tourism. Tourist arrivals in Belize have been consistently rising each year for the past several years; however, since the devastation of New Orleans by Hurricane Katrina, tourist arrivals fell 18%. This fall was attributed directly to cruise ship arrivals since Carnival was forced to pull ships off their scheduled runs to assist in the hurricane relief efforts in New Orleans.
Overnight tourist arrivals from all borders have grown from 130,809 visitors in 1995 to 236,673 in 2005, an average annual growth rate of 8.1%. Amazingly, cruise ship arrivals have grown from a mere 7,953 passengers in 1995 to in excess of 800,000 passengers in 2005. The hotel occupancy rate in 2005 was 40.6%. Visitors to Mayan sites were 235,514 for the same period with Altun Ha being the site most visited followed by Xunantunich. The United States accounted for 61.7% of total overnight tourists while Europeans and Canadians accounted for 19.8%.
The Belizean economy is strengthened by an abundance of land, forest, and water resources. Its close proximity to the United States and the country's historically close ties to the United Kingdom add some dimension to the economy. The United States and the United Kingdom are major trading partners of Belize.
The Opportunities of the Caribbean Market
North American and European baby boomers are now reaching age 50 and 60 with substantial disposable income, a desire to live and retire in a tranquil haven and a deep concern for their safety from terrorists attacks. This rational is quickly becoming the norm for wealthy families. As a result, real estate is experiencing a boom in the vacation and retirement home market. This boom is accompanied by price increases of up to 30% and is expected to last for at least another decade.
This trend of actively seeking vacation and retirement homes is contributing substantially to an increase in travel to exotic places like Central America and the Caribbean. Providing a vehicle for this activity is the cruise ship industry with cruise ships making regular stops in Belize City. This demand is so strong that cruise ships such as Carnival, Royal Caribbean and Norwegian have been able to fill ships despite raising prices.
As vacation markets in the United States become flooded, prices have escalated. People are forced to look for vacation homes and travel destinations outside the United States. Because of its close proximity to the United States, its favorable climate and exotic offers, the Caribbean Basin has become a preferred destination and is quickly becoming the preferred destination for much of Europe, with airlines regularly increasing flights to Caribbean destinations.
Recent Significant Developments in Belize
Several recent developments in Belize have placed the country in a good position for future growth, increased level of confidence in the county’s economic stability and government. Such developments are:
• A new U.S. Embassy and compound recently completed in the capital city of Belmopan at a staggering cost of $50 million.
• Commercial oil discovery in Spanish Lookout with other great prospect locations. With these developments one would reasonably conclude that Belize’s net worth to the United Stated has increased. One can also conclude that the United States would be willing to provide financial, military and political support where necessary. In short, these recent developments serve as an assurance to investors.
Owning Land in Belize
There are no restrictions on foreigners to own land in Belize. In Belize, foreigners can buy and hold beachfront real estate in exactly the same way as Belizeans.
The process being used is the Registered Land Act System. Under this system, an application is made for title transfer and a new Certificate of Title is issued and a recording entry is made in the national Land Register. This streamlines the process of transfer of title and eliminates ownership or undisclosed liability.
Oil Exploration Investment Opportunity
Oil exploration in Belize is controlled via a licensing process for pre-defined commercial blocks. (See the Petroleum Exploration MAP attached) The licensing process is lengthy but fairly simple; however, since the discovery of oil in commercial quantities by Belize Natural Energy (BNE), the approval process has become extremely selective and to a large extent exploration license approval for blocks classified by the Petroleum Authorities as having a high potential for oil discovery is difficult to obtain.
Feel free to download our Oil Exploration Prospectus Presentation.
Conclusion
The Group is positioned to move forward on these great investment opportunities and invite you to consider investing with them.
World Famous Blue Hole