II. CHARACTERISTICS:

 

             Zoning:                                     Tourism

 

             City:                                          None

 

             Environment contamination: None

        

             Land use:                                  Not presently used; but the real estate has been determined for any tourist                                                                     project.

        

             Access:                                     Paved highway to Tijuana, Baja California, 120 kilometers away.

                                                               12 kilometer unpaved road to entrance of real estate.

        

                                                               The closest seaport is La Paz, Baja California Sur, 120 Km. away.

        

        

III. LAND:

        

             According to:   Provided by owner.

        

             Surface area:                            4873-66-71.909 hectares, bordering with 14.59 kilometers of beach  to

                                                                    Pacific Ocean.        

              Boundaries:

        

                  North:                                  14,635.771 meters, with Pacific Ocean.

        

                  Southeast:                            14,597.672 meters, with N.C.P.E., Ley Federal de Aguas #4

        

                  East:                                     Several measurements: 5,927.259 meters, 1,572.911 meters.

                                                                    826.802 meters, 2,422.396 meters, 403.657 meters, with Predio Boca

                                                                    arroyode Guadalupe.

 

        

IV. NATURAL CONDITIONS:

        

             Physiographic:                         The coordinates of the real estate are —

                                                                    North Latitude: 24 degrees 14 minutes.

                                                                    West Longitude: 111 degrees 12 minutes.

        

             Climate:                                    Very dry

        

             Rainfall:                                    142.6 millimeters

        

             Rainy season:                           Summer

        

             Hail:                                          None

        

             Altitude:                                   0 meters above sea level.

        

             Temperature:                           Yearly median temperature of 22.815 degrees Centigrade

        

             Winds:                                      From the West.

        

             Freezing:                                  None registered.

        

 

V. GENERAL DESCRIPTION OF THE REAL ESTATE:

        

            Productive Classification:      None

        

             Subsoil:                                     Soil with no physical problems, with chemical problems.

        

             Type:                                        Sedimentary Cenozoic, Quatemary

        

             Fertility:                                    Regular

        

             Texture:                                    Sandy

        

             Topography:                            Plain

        

             Color:                                       White

        

             Inclination:                               3%

        

             Depth:                                       From 30 to 50 centimeters

        

             Rocks:                                      Sandy, no rocks

        

             Drainage:                                  Internal: well drained. External: Receives more than produces

        

             Erosion:                                    Laminar effect, veiy little carriage

        

             Salinity:                                    Salty soil

        

             Contamination:                        None

        

             Present use:                              None

        

             Hydrology:                               Temporal

        

             Infrastructure:                          None

        

             Notes:                                       The real estate has been determined for tourist development

        

             Land Classification:                4873-66-71.909 hectares of rustic real estate

        

            Agricultural exploitation:        None

        

 

VI. CONSIDERATIONS PRIOR TO EVALUATION:

        

The physical or direct method was employed; the rent ability or indirect method was not used because the real estate property is not being used presently.  To determine its value other offerings were considered that have similar characteristics. It may be pointed out that this real estate property is better than what is on the market. Its strategically location allows for an exclusive private tourist development.

        

VII. VALUE:

 

                                                 Surface area:                           Market value:                       

              Type:                        (square meters)                     (per sq. meter)                        Value (Pesos):

                 _______________________________________________________________________         

                 Tourism                   487 3667.909                         16.00 Pesos                            $ 779,786,750.40                  

        

        

VIII. SUMMARY:

        

              Land                                                                             779,786,750.40 PESOS

      

 

IX. CONCLUSION:

        

              (Market value in rounded numbers)

        

              MARKET VALUE:                            780,000,000.00 PESOS

                                                                                                     $74, 250,000.00 USD