Proposal Update Thalassa Beach

Dear Purchasers,

Firstly, we would like to say thank you for your patience in receiving responses from us over the last two weeks. We are obviously doing our very best to provide people with relocation options and clear the backlog of questions.

Within the last two weeks we have been to court concerning the injunction placed on us by Fullmarks, restricting the number of apartments we can sell. We have successfully reduced the number of apartments affected by this injunction to 73, meaning we now have 210 apartments available for new purchasers. All of the current sold and possible relocation apartments are not encumbered in anyway by this injunction.

In order to move the development forward the recently issued proposal has been sent to all our clients to enlist your support in accepting the revised completion date for blocks 13-21 as 31st March 2012. (If you have not acknowledged receipt please do as we are about to send again)

Where purchasers are located in blocks 1-12 we are asking them to cooperate with us in finding a suitable alternative within blocks 13-21. Once we are in receipt of the relocation form we are providing purchasers with options to consider. We are NOT moving purchasers until we have found a mutually acceptable apartment.

Furthermore, the Proposed Resolution and Extension Consent Form only address the extension of the possession date and related rights to the original date, the 12 months free maintenance, and re-location process. All other terms of the Sale Agreement remain unchanged. Additionally, should we not get the required number this form is not binding on either party.

To date we are receiving a good response and are hopeful that with your continued support we will achieve the numbers required to take the development forward. As we are focusing on achieving this positive result for all who have invested in Thalassa Beach Resort, we are unable to provide more information at this time should the 85% not be achieved.

Please don't forget that even if you have agreed to swap, or are in communication with us regarding options, we do still require your signed form returned to us by the 25th April 2011 to secure the maintenance incentive and by the 10th May 2011 for you to be included in the 85%.

We hope that with the support of our buyers we can overcome the extreme difficulties we have faced, and all share in the success of Thalassa Beach Resort.

Tavor Properties
Kensington Development Group