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Circular 151 / 10.8.2006 / Cottage Lettings / Better news for Cottage Shareholders This circular is relevant to one-bedroomed COTTAGE owners only. Clifden Glen Management (2005) Plc (or "CGM") became the site management company at Clifden Glen effective from 1st January 2005 on the retirement of Clifden Developments Ltd (or "CDL"). CGM purchased the relevant assets ONLY and not the shareholding in CDL. One the many issues that CGM faced on becoming the site management company at Clifden Glen was to seek to ensure that "aparthotel" cottage owners would continue to be in a position to meet their tax requirements. In this regard CGM: (1) paid to officially register the aparthotel cottages and made them available for rent in 2005 and 2006 and (2) made a breakfast facility available if required by visitors. Bookings in 2005 were very poor and income amounted to approximately €6,500. Advertising costs exceeded €10,000. Good News! In 2005 CGM paid rents to those cottages owned by shareholders which had been guaranteed specific rents by CDL and whose cottages were actually used. The payment was on a non-precedent basis and was made even though the payments represented a total loss to CGM. One of the benefits of being a shareholder! In 2006 CGM set up a "cottage lettings" web site at www.clifdenglen.COM (our main site is www.clifdenglen.NET) and we ran a more effective advertising campaign. Bookings in 2006 exceeded our expectations and it now looks like total gross cottage rental income for 2006 will exceed €48,000 and bookings will exceed 190 "events". In fact, the portfolio of cottages available could not meet demand in the four peak weeks in 2006. CGM could have let more! As already advised CGM will pay the specific rents "guaranteed" by CDL again in 2006 to our shareholders on the same non-precedent basis as was paid in 2005. These payments will exceed €2,000 per cottage in many cases. Promising News! In ADDITION, later in 2006, CGM will also make a rental payment to those cottage shareholder owners who do not fall within the CDL specific guarantee but who were "guaranteed" 37.5% of rents received. It is not possible to say how much will actually be paid as further analysis has to be completed on the actual cottages utilised. Caveat Payments will only be made to owners of cottages that were actually used by CGM. Even though non-shareholders properties were available these were not used in 2006. 2007 and beyond ... If you exclude those cottages that are: (1) private; (2) not up to letting standard; (3) not owned by our shareholders, then there is a maximum of 22 of the 44 cottages available for lettings. For 2007 CGM will be doing its best to further improve performance and make a return for our shareholder cottage owners who remain within the aparthotel scheme and also those who have no tax obligations and just wish to let their properties. Please refer to circular
149 by clicking here for further letting information. Issued by Clifden Glen Management (2005) Plc
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