Fw: Re: Rio apartment

Mark, as we discussed, I am considering a purchase of an apartment in Rio. It is in a block under construction in Ipanema. It is being re-sold off plan by the original purchaser. Asking price is 5.350 .000 rials. I am told that this value will rise on construction and will follow Rio property prices up in coming years.

I can forward property details to you in next few days but I would be grateful for advice from you on how HSBCPB in Rio can assist in helping me take the decision on this particular property and in a purchase. I also need some advice on tax implications in Brazil and UK.

I am minded to place ownership, once secured, in Reinaldo's name and advice on this would also be welcome.

Please let me know whether and how you can help on this.

Best regards from Beijing

Peter
Sent from my iPad

Peter,

Further to our meeting earlier I have been following up. Unfortunately I was working on the incorrect assumption that we valued Park Village West when you bought it. However we did not (due to the modest LTV), so we will need to instruct a valuer in due course, but other than the cost of doing so, this should not change the numbers we discussed.

I will be in touch.

Best wishes

Mark

HSBC Private Bank Mark NIALL ASSOCIATE DIRECTOR I Media & Entertainment HSBC Private Bank (UK) Limited, 78 St. James's Street, London, SW1A 1JB

Thanks, Mark, for your sensitive handling of the meeting this morning.

The first question David A asked me was "what % interest rate" is the bank charging ?". I know the level of monthly re-payment but what's the answer to David's question...

Peter

Peter,

3% was the rate I used to arrive at approx. £12k per month. This is an approximate figure based on 3m LIBOR of 0.74% + the Bank's margin of 2.25%.

Regards

Mark

HSBC Private Bank Mark NIALL ASSOCIATE DIRECTOR | Media & Entertainment HSBC Private Bank (UK) Limited, 78 St. James's Street, London, SW1A 1JB

Mark,Thanks for this but is 3pc an estimate or a decision ? It seems a bit steep in all the circumstances. Would you consider coming down to 2pc ?BestPeter Sent from my BlackBerry® wireless device

Peter,

I am pleased to confirm that I now have approval to provide you with a loan on the following headline terms:-

Borrower

You

Amount

£1.68m

Purpose Assistance with purchase of holiday home in Rio

Term 5 years

Repayment £24,000 per quarter

Security Mortgage over 4 Park Village West

Valuation The property will be valued by one of the bank's panel valuers, at your cost. We require a minimum valuation of £2.4m

Interest 2.25% over 3m LIBOR - i.e. approx. 3% p.a. at the present time. This is a discount to our revised standard pricing of 2.5% margin, and unfortunately I am unable to reduce it further

Fee 0.75% (£12,600)

Other For the duration of the facility, it is a condition that you maintain a minimum credit balance with us of £100,000

Please advise if/how you wish to proceed. As you may recall, from the end of this week I will be on holiday until 13th December, but Sam will be able to take matters forward in my absence.

Regards

Mark

HSBC Private Bank Mark MALL ASSOCIATE DIRECTOR I Media & Entertainment FISBC Private Bank (UK) Limited, 78 St. James's Street, London, SW1A 1JB

I cannot tell you how nervous this makes me. Going to bed now.