Circular 135 / 13.4.2006 / Sales Process Brief

The Sherry FitzGerald Kavanagh (SFK) sales campaign proper started today (13th April 2006) with an advertisement (page 9) and editorial comment (page 12) on the Irish Times. Click here for full details of the full SFK marketing campaign.

A new purchaser of a Grade "A" shareholder's property will be buying three discrete items - two plots of land and shares as follows::

(1). Land and buildings the subject of a freehold folio covering the footprint of the Lodge or Cottage. This is the original property. The seller in all cases will be a private individual or a partnership on behalf of a partner..

(2). Land the subject of a freehold folio covering the "garden" site surrounding the footprint of the building. The seller will be a private individual or Clifden Glen Management (2005) Plc in the case of a very small number.

A purchaser could chose to merge folios 1 and 2 above to simplify matters.

(3). Lodge buyers will be purchasing 500,000 ordinary shares in Clifden Glen Management (2005) Plc (the owner controlled site management company) and cottage owners half this amount. These shares should be priced at cost in the contract for sale or €10,000 per Lodge and €5,000 per Cottage with this sum to be deducted from the overall agreed prices for (1) and (2) above.

The new owner will be obliged to sign the Shareholders Agreement as amended at the recent AGM. Click here to download a PDF file (38KB) of the revised Shareholders Agreement.

The new shareholder/owner will be entitled to an independent Site Management Agreement as amended at the recent AGM. Click here to download this updated Site Management Agreement.

New shareholding owners will also be entitled to a deed from CGM in relation to site access (to avoid the need for a deed of identity). CGM will only grant this deed to shareholders. All existing shareholders are entitled to get this to copperfaster their title and access.

The standard deed of transfer used in the 13 sales in late 2005 will be amended to reflect the recent AGM decision where CGM will claim its actual costs on future sales rather than a flat fee of €1,000. This is expected to reduce the cost.

Sales Example - Lodge Value €205,000 - Scenario 1

Footprint valued at €179,000 / up 58% on footprint valuations in October 2005
Garden valued at €16,000 / up 60% on original purchase price in 2005
Shares €10,000 / no change on 2005 purchase price

Sales Example - Lodge Value €220,000 - Scenario 2

Footprint valued at €193,000 / up 70% on footprint valuations in October 2005
Garden valued at €17,000 / Up 70% original purchase price in 2005
Shares €10

CGM Management time devoted to this circular:

2 hours (excludes management and organising and liaison time).

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Issued by Clifden Glen Management (2005) Plc
Market House, Churchtown, Mallow, Co Cork