IR templateA - Property Secrets

Transcription

propertysecrets*
K O R S A K A
A P A R T M E N T S
P R A G A
W A R S A W
P
O
L
A
N
D
Affordable prices in a vibrant new ‘Islington’ of Warsaw starting
from 292,561 PLN (approximately £49,925) with at least
a 6% discount
Excellent payment terms: 10% on exchange and 90%
on completion
Budimex is the 3rd best developer in Poland and is offering
exclusive access to units for Property Secrets clients
New metro station planned a short walk from the development
* unveiling the truths of property investment
CLICK HERE TO REGISTER YOUR INTEREST IN THIS INVESTMENT
Contents
Executive Summary
Page 3
Korsaka Apartments: The interview
Page 6
The Development: Location
Page 10
The Development: Specification
Page 15
Finance
Page 19
Legal
Page 26
Buying process
Page 29
Property Management Services
Page 31
Who we are
Page 36
Why buy through Property Secrets
Page 38
Disclaimer
Page 40
Korsaka Apartments
Please Read The Disclaimer
2
© Copyright JoJaffa Ltd 2007
Executive Summary
Affordable prices in a vibrant new ‘Islington’ of Warsaw starting from 292,561 PLN
(approximately £49,925) with at least a 6% discount
Excellent payment terms: 10% on exchange and 90% on handover
Budimex is the third best developer in Poland and is offering exclusive access to units
for Property Secrets’ clients
New metro station planned a short walk from the development
P
raga represents the latest ‘up and coming’
district of Warsaw and Korsaka Apartments
is the first high quality development within it.
exclusive, affordable prices – including at least a
6% discount. We have also negotiated excellent
payment terms; just 10% on exchange and 90%
on handover.
Property Secrets has reserved 25 of the best
units within Phase 1 of Korsaka Apartments at
Korsaka Apartments
3
propertysecrets*
Praga is fast emerging as Warsaw’s cultural
centre and, as such, is receiving massive
investment, including a planned new metro line
which will have a station within five minutes
walk of Korsaka Apartments. There are a host of
theatres, galleries and clubs opening as the area
becomes more and more desirable – we are
comparing it to Islington or Notting Hill.
Location
• Korsaka Apartments is located on
Tadeusza Korsaka Street in the Praga Polnoc
District in Warsaw. They are located just
around the corner from the main
thoroughfare in Praga, Zabkowska Street
• Praga is emerging as the cultural district of
Warsaw and Korsaka Apartments is located
just minutes away from The Wytornia
Theatre, Luksfera Gallery and the Fabryka
Trzciny Club
Praga is located close to the city centre and
Korsaka Apartments is being developed by
Budimex, one of the most established
developers in Poland, recently voted the third
best in the country.
• A new metro route is planned from the
city centre to Praga and the metro stop will
be located only minutes by foot from
Korsaka Apartments
Both capital growth and rental yields look
strong, with an estimated Return on Investment
breaking the 400% mark five years after
completion.
• The development is also within walking
distance from an elementary school, train and
bus station, hospital, pharmacy and post office
• Korsaka Apartments is located close to
services and amenities. A large shopping
mall, CH Wilenska is situated approximately
three minutes’ walk from Korsaka Apartments
• Praga Polnoc is home to the Praga House
of Culture, ‘Baj2’ Doll and Actor Theatre,
Remus Theatre, Praha cinema, Municipal
Zoological Gardens, Praski Park and
Szmulowizna Park
Korsaka Apartments
4
propertysecrets*
Financial
• Average price of 7,196 PLN / £1,227 per
sqm. This is an affordable price when
compared to other developments on the
Warsaw market, eg Galeria Park where the
average price per sqm was 10,699 PLN /
£1,826. Although Galeria Park enjoys a
prime location in the city centre, we expect
prices to increase in Korsaka to meet
growing demand from the younger
professional market
Deal
• 25 units in the first phase have been
reserved for Property Secrets’ investor
clients. The entire development consists of
156 units in two phases. This deal is
currently not available on the market.
Property Secrets’ clients have exclusive
access to these units at this price
• Great payment terms with 10% deposit
and 90% payable near handover in
November 2008
• Average estimated Return on Investment
of 578%, five years after completion
• Estimated initial net rental yields average
3.6% and gross yields average 4.2% with
the potential to increase as the area
continues to rejuvenate
• Full support of Client Services up to the
signing of your Preliminary Purchase Contract.
• Potential of 85% loan to value mortgages
at 3.6% over 30 years available. Refinance
is now available
More Information
• Prices are estimated to be discounted by
at least 6% against the current market value
(worth around £3,000 for an average unit).
For more information about Poland and Warsaw
in particular, download our Poland Property
Profile Report and Warsaw Investment Decision
Maker.
Click Here to add Korsaka Apartments to
Google Earth
Korsaka Apartments
5
Korsaka Apartments:
The interview
R
obert Chojnacki is our Polish property
finder and we believe he’s the best in
the business.
(http://www.propertysecrets.net/article/simon_says_
investing_in_central_and_eastern_europe_have_yo
u_missed_the_boat/1537.html)
Robert has researched the Polish property
market for over ten years – three years as an
equity analyst specialising in property stocks,
and then for more than seven years as
President of Poland's most comprehensive
property investment research company.
When Robert recommends a deal, the first
thing we do is put him through the ‘Elevator
Test’ – can he convince us in a very short
time that this is a great deal? Here are our
questions and his replies:
In fact, I think anyone thinking of investing in
Polish property would be well advised to read
Simon’s piece. The arguments are, to my mind,
cast iron.
So, Robert, back in Warsaw with this deal.
The city has seen incredible capital growth,
hasn’t it? I suppose we come back to the
question of whether investors have missed the
boat in Warsaw?
The levels of all these elements are nowhere near
their peak, in fact they are years from that –
therefore, there is a great deal more room for
strong growth.
Of course, I don’t have time to summarise all
these arguments, but what we can say for sure is
that growth in Warsaw’s economy, in its regional
importance, growth in FDI inflows into the
capital and growth in its property market have
only really just got underway.
Now, we are not going to see some of the
numbers we have already seen in the last
couple of years or so in all parts of the Warsaw
market.
Yes, this is a question I am asked a lot these
days. I believe it actually reflects the terrific
growth we’ve seen in property prices in Warsaw,
rather than indicating any valid worries about
the future.
We are going to see a steadier price climb and a
more stable market and, crucially I think for
investors, a stronger rental market. Why?
Because more and more people are going to be
forced to rent before they can afford to buy.
I’d recommend anyone who is concerned about
this question should read the views of the
Property Secrets’ chief analyst, Simon Tweddle.
Click here to read Simon’s column. . . .
Korsaka Apartments
6
propertysecrets*
Now, because Praga was cheap and basically
fairly run down, it attracted a lot of those people
who want to be near the heart of a city, near
like-minded people with the same interests, but
who don’t have much money. We’re talking of
young arty people, of course!
OK, so what we’re looking at with Korsaka
Apartments is slow and steady price growth, is it?
No, I don’t think so at all. What I was talking
about was the Warsaw market as a whole.
And in a market such as Warsaw’s, which has
already generated enormous excitement and is
established as blue-chip, the challenge is to find
what we might call undiscovered areas.
And this is what has transformed the area – it’s
become a young, arty, trendy happening place.
Again, imagine Notting Hill before prices took off.
So, are Korsaka Apartments in an undiscovered
area? Is that the deal’s big attraction?
The key here is what do we mean by ‘take off’?
Well, I know Neil Lewis has talked about this
before, and it is a phenomenon we can see in
many, many cities.
In short, yes. Sometimes it’s a little challenging to
really convey a deal’s appeal – because it’s down
to a large combination of factors. In this case, it is
very, very simple.
First, an area will be opened up by young
people, who establish it as a culturally very
active place. With a colourful street life, the area
retains a certain edge, but even so, theatres and
galleries spring up – funky cafes.
Praga is on the up. It’s becoming an increasingly
sexy and cool place to live.
It is perhaps the last undiscovered area of the
capital that is still within easy reach of the centre
of town.
And once this phenomenon occurs, what
happens is that those young people with money,
but far duller working lives – bankers, accountants
and so on – these people want the same funky,
slightly edgy but culturally sophisticated
environment to live in, so they start coming into
the area.
Investing in this area now is really being ahead
of the game.
Think buying in Islington or Notting Hill
BEFORE their trendiness really started to drive
property prices through the roof. This is what
Praga represents.
That’s take-off time!
Well, this is THE crucial fact. The area is
considerably cheaper than other more
established residential areas and yet, yes, it is
already trendy.
After all, property prices in Islington and Notting
Hill weren’t driven up by the artists and
culturally active young people that were first
attracted to the area; they were driven up by the
professionals who followed and wanted to be
part of an area like Notting Hill and Islington
had become.
It’s still around 30 per cent cheaper than areas to
the west of the river.
The fact is these areas become cool. And cool
drives property prices!
Is the area already established as trendy then?
Korsaka Apartments
7
propertysecrets*
This is happening right now with Praga.
We have identified a value investment within a
highly charged market, which is what Warsaw
is. An area that is going to become increasingly
recognised as having a real and unique
character and yet that is so very well situated for
the centre of Warsaw.
So, the opportunity is to get into an area that
resembles an Islington or a Notting Hill
BEFORE property prices take off?
Exactly. This, in a nutshell, is the opportunity.
Korsaka Apartments
8
propertysecrets*
Plus, although we don’t yet know the date,
there will also be a metro line into the area and
a station within five minutes of the
development.
This top regeneration
area in a Blue Chip city
is drawing the arty and
young crowd. With a
new metro station a
short walk from Korsaka
Apartments, this
development will benefit
from both imminent capital uplift as well as
appealing to the young singles. With the units
well sized they are ideally suited to appeal to
the rapidly developing rental market.
So is this gentrification already underway?
Yes, it’s underway, for sure. This is not a punt on
an area that may, according to me, take off.
It’s already a cool, happening place to live. But,
this attraction is still at a relatively early stage. It is
being displayed at the moment by the trend to
convert old, post-industrial buildings into
residential use. This is very popular.
Neil Lewis, CEO, Property Secrets
Korsaka Apartments will not be completed until
August 2008 and, by that time, I forecast the
area’s wider appeal will be well known and the
effect on prices very obvious indeed.
What you have here then is a classic
opportunity to be first into an area poised for
very strong price growth simply because it is
a relatively undiscovered gem. How
undiscovered? Well, for Warsaw, an average
price of £1,227/sqm is pretty undiscovered!
This a great price when compared to recent
developments on the Warsaw market.
Praga, to my mind, and many other people’s too,
really does represent, right now, a fantastic
investment opportunity.
Korsaka Apartments
9
The Development:
Location
T
he district of Praga is situated on the
eastern or right bank of the River Vistula,
across from Warsaw’s old town.
communist-style housing. Long regarded as the
grim and derelict part of Warsaw, this unique
mix of housing is now undergoing renovation
and regeneration.
Historically, it was the working class area of
Warsaw, where all the shoe, vodka and textile
factories were located. During the Second
World War the district escaped much of the
destruction seen throughout the city of Warsaw.
While much of the Old Town and areas of
Warsaw left of the river bank were flattened
during the war, most of the buildings in Praga
were left standing.
Praga is the venue for many art exhibitions and
concerts. The Musical Praga festival took place
from September to November 2006 and attracted
international classical musicians and singers.
Many of the old tenement buildings and
factories are being renovated and converted into
cultural centres as well as apartments and lofts.
Fabryka Trzciny, a former rubber-shoe factory
and marmalade plant has been transformed into
a conference and cultural centre.
The area was neglected after the war, becoming
a dangerous and undesirable place to live. The
district fell into disrepair, attracting little
investment or development until recently.
In December 2006, investment fund, BBI
Development NFI, and property developer,
Juvenes, purchased the century-old Kosener
vodka factory for 60.5 million PLN (£10
As sales and rental prices rise in the city centre,
investors and tenants have begun to look to
places such as Praga for more affordable
property. The rejuvenation of Praga has been a
spontaneous process promoted by artists who
were attracted by the district’s unique
atmosphere and reasonable house prices.
Warsaw prices have gone up so fast that
people are taking a closer look at Praga,
which is actually quite close to the city
centre. There is a trend toward revitalising
old parts of cities and Praga has enormous
potential. If it was properly renovated it
would be a beautiful district.
Numerous art galleries and cultural centres
were established and the district is developing
into the cultural quarter of Warsaw. The
housing in Praga is a mixture of old industrial
factories, 1930’s tenement buildings and
Korsaka Apartments
Robert Chojnacki, Head of Rednet real
estate agency
10
propertysecrets*
Why Poland?
Why Warsaw?
• Poland is the largest of eight countries
that joined the European Union in May
2004, accounting for more than half the
population of these new member states
• Warsaw is the main scientific, cultural,
political and economic centre of Poland
• This capital city hosts the seats of the
Parliament, the President of the Republic of
Poland, the Government and other central
authorities, as well as numerous embassies
and diplomatic posts
• The country is continuing to benefit from
high levels of foreign investment with FDI
reaching a record €11.69 billion in 2006 –
up 46.6% from the €7.71 billion in 2005
• It is the biggest academic centre in Poland:
the four biggest Polish universities are located
here (Warsaw University, Warsaw University
of Technology, Warsaw School of Economics,
Warsaw Agricultural University), as well as
over 62 smaller colleges
• Over the last 10 years the Polish economy
has been growing rapidly. Unemployment
levels are continuing to fall from around
20% in 2003 to 15% in 2006
• Poland is one of the youngest countries on
the continent – 35% of Poles are under the
age of 25
• Warsaw is the biggest Polish city in terms
of population. In 2006 the population of
Warsaw was 1.7 million. This is a small
population for a capital in a country the size
of Poland. As new jobs are created, Warsaw’s
population is expected to experience huge
growth, creating a dynamic property market
for many years to come
• Poland’s housing market is expected to
show price growth of an estimated 13% per
year over the next decade with the number
of households with one or two members
expected to increase dramatically over the
next 25 years
• Warsaw is benefiting from high levels of
FDI into Poland. More and more jobs are
being created and unemployment in
Warsaw is only around 5%
• Only 18% of owned property is currently
mortgaged and the mortgage market is
becoming more competitive – 105% LTV
loans are now available to polish borrowers
• The Warsaw property market is currently
experiencing huge growth and prices in
desired areas are continuing to increase
• Poland achieved the highest house price
growth in Central and Eastern Europe in 2006
according to the RICS Housing Review 2007
• According to the RICS Housing Review
2007, house prices boomed in Warsaw in
2006 with an increase of 33%. Demand is
currently outstripping supply and continued
house price growth is predicted for 2007
• For further information please refer to our
detailed Poland Property Profile Report
Continued on page 12
Korsaka Apartments
11
propertysecrets*
Why Warsaw? Continued from page 11
commercial property market. The Golden
Terraces shopping mall opened in Warsaw in
February 2007. The 500 million Euro project has
200 stores, 1,700 parking spaces and 65.5
thousand square metres of office space and
multi-cineplex. The mall is fully let with
designer and high street stores signifying the
rising affluence in the city.
• Last year’s RICS European Housing Review
estimated that Poland has a housing shortage of
approximately 1.5 million and Warsaw is
experiencing most of this shortage
• For further information on Warsaw please refer
to our Warsaw Investment Decision Maker
Wages are growing rapidly in the city with wage
growth of around 10% between November and
December 2006. Such wage growth is driving
the residential market in Warsaw and other key
cities in Poland.
million). The old brick factory will be developed
into art galleries and theatres while new
residential apartments and lofts will be built on
the open space.
Warsaw continues to attract huge FDI. The city
has the biggest concentration of electronics
and high-tech industries in Poland. Important
foreign companies present on the Warsaw
property market include ING Real Estate, ETC,
Skanska International Building AB, Bouygues,
FIM, Mahler International and Ilbau, Reform
Company and ITT Sheraton.
Tenement buildings are now being completely
restored, many with original iron balconies and
decorative windows. Old streetlights and cobble
streets are also being renovated. Public and
private funding is pouring into the district. The
Local Revitalisation Program for Warsaw, cofunded by the European Union, is helping
rebuild the district.
European-based companies are attracted to
Poland, and in particular Warsaw, by the ease of
access to Central and Eastern Europe, the
relatively low cost of office space and a skilled
and relatively low-cost labour force.
An increasing numbers of artists, tourists and
investors are putting a new face on an old district.
Current state of the market
We believe that Warsaw will achieve house
price growth of between 15% and 20% in
2007. This is a conservative estimate
considering prices boomed in Warsaw in 2006
by 33%, having grown by 28% in 2005.
As a result, housing demand is currently
outstripping supply and this does not seem to be
changing in the short to medium term.
The most expensive and desired locations in the
city are downtown, Mokotow and Wilanow.
Emerging areas include the Praga district which
is close to the city centre and becoming
Warsaw’s cultural hub.
Last year house prices exceeded 26,000 PLN /
£4,436 per sqm with the sale of Zlota 44 in the
city centre. The 44 storey building was designed
by Daniel Liebeskind and is the tallest
residential building in Poland.
In addition, 2006 was another good year for the
Korsaka Apartments
12
propertysecrets*
How does this city compare with
other cities?
The area has now become the home of choice
for young single professionals.
The growth in wages, FDI and house prices that
Warsaw has witnessed is unique.
For an Irish comparison, the closest similarity
might be with Galway city or Crow Lane in
Temple Bar, Dublin.
Warsaw could be compared to Madrid in Spain.
The city has emerged as an important capital city
in East and Central Europe and is set for further
growth, leaving many parts of the country lagging
behind, just as Madrid led the economic and
population explosion in Spain in the early 1980s.
Since 1980 Madrid’s population has increased
from three to five million. And it is reasonable to
expect Warsaw to experience the same growth.
Warsaw is where an increasing number of
people are migrating to in search of jobs and a
better standard of living. The city will attract
aspirant and newly affluent middles classes, and
it is this sector of the population that will drive
growth in the property market.
Praga is the most dynamically developing
district of Warsaw, attracting the cultural
and artistic communities.
Janusz Pietkiewicz, Artistic Director,
Musical Praga
What you need to know
Previously, the district of Praga was considered a
dangerous and undesirable part of Warsaw. The
district has changed vastly however. Artists have
been moving to the area in the past few years,
attracted by reasonable rents and suitable
premises for art studios etc. Galleries and theatres
have followed and now the area is one of the
most cultural and vibrant parts of the city. The
southern part of Praga was always considered the
least desirable area of Praga. Korsaka Apartments
is located in Praga Polnoc, in northern Praga, and
just around the corner from one of the main
thoroughfares, Zabkowska Street, which is
undergoing huge renovation.
How does Praga compare with
other districts?
The district of Praga is going through a process of
rejuvenation and is emerging as Warsaw’s
cultural centre. The area, long considered
undesirable and dangerous, is now regarded as a
cool place to live. Old buildings are being
converted into lofts and apartments that young
people desire to live in.
Warsaw has experienced significant house price
growth in recent years with house prices
increasing by 28% in 2005 and 33% in 2006.
There has been some concern that the property
market in Warsaw might be overheating. Last
year prices reached new heights of 26,000 PLN /
£4,436 per sqm for units in the Daniel Libeskind
designed Zlota 44 in the city centre. Zlota 44 was
a luxurious development located in the city
centre that sold out on the local market (which is
still cheap by comparison with any West
Think Islington in London before it became one
of the most desirable areas of the city to live in.
Also, the district could be compared to the
Northern Quarter in Manchester. Many of the
old industrial cotton mills in the area have been
renovated and converted into apartments and
lofts. A new craft centre and Buddhist centre
have opened in the quarter along with
numerous art shops, and funky cafes and bars.
Korsaka Apartments
13
propertysecrets*
European capital). This is evidence of the wage
growth and wealth creation taking place in the
city of Warsaw. We believe the level of
investment and foreign companies locating to the
city will sustain this growth. The opening of the
landmark Golden Terraces shopping centre in the
city this month further indicates that Warsaw is
becoming a key capital city in Europe.
Warsaw - A Festival City
(http://www.warsawvoice.pl/printArticle.php?a=12
412)
Financial Times article on redevelopment of
Praga district with quotes from our partner in
Poland: From ugly sister to Cinderella
(http://www.ft.com/cms/s/4d889a74-b6d2-11db8bc2-0000779e2340.html).
Resources
Please see the Praga House of Culture website
here for a list of activities and programes taking
place in the district (http://www.pragapn.waw.pl/pragapn/aktualnosci_en/1139353200
_the_praga_house_of_culture).
For further information on Warsaw please refer
to our Poland Property Profile Report and our
Warsaw Investment Decision Maker report.
For additional information on Praga please see
the following articles:
Please see the Praga Polnoc website for further
information on the area (http://www.pragapn.waw.pl/pragapn/aktualnosci_en/1139526000
_praga_polnoc).
Simon Says . . . Investing in central and Eastern
Europe – have you missed the boat?
(http://www.propertysecrets.net/article/simon_sa
ys_investing_in_central_and_eastern_europe_ha
ve_you_missed_the_boat/1537.html)
For more information on the artistic and cultural
happenings in the district, see The artistic
landscape of Praga article (http://www.pragapn.waw.pl/pragapn/site/praga_artistic).
Article about cultural events that took place in
Warsaw during 2006 including Musical Praga:
For data on Polish and Warsaw property see the
RICS Housing Review 2007
(http://www.rics.org/NR/rdonlyres/0DD5FFBBD02E-4FD6-A13D-E80E0207CC7B/0/36383_Eur
o_Housing_Final.pdf).
For details and maps of the planned new metro
route from the city centre to Praga, see the Metro
Warsaw website
(http://www.metro.waw.pl/?lng=en&PHPSESSID=
5d60da211f7de02e1f426af9fead10d9).
Korsaka Apartments
14
The Development:
Specification
B
Plans of development
udimex Nieruchomości is developing
Korsaka Apartments in Praga, Warsaw.
Budimex was voted the third best developer in
Poland in 2006.
The development is centrally located on
Tadeusza Korsaka Street. The entire development
consists of 156 units in two phases.
Approximately 80 units will be constructed in
Korsaka Apartments
15
propertysecrets*
Floor plans/layout
Phase 1, due to be completed in Q3 2008.
The development will be made up of two
buildings, constructed to heights of five and
nine storeys. There will be commercial space
on the ground floor of the five storey building.
Parking will be located underground.
Click here to view more floorplans
Interior
• Walls will be reinforced concrete
Bricks will be silicate bricks, insulated and
finished with mineral plaster
• Internal walls will be reinforced concrete
• Floors in the garage, admin and technical
rooms will be concrete or concrete cubes
• Floors in the corridors and staircases will
be made from gress tiles
• The stairs balustrades will be made of
steel
• There will be one lift in each staircase
Studio
Interior Specification
• External walls and ceilings in apartments
will be gypsum plasters, painted white, with
the exception of walls in bathrooms and WC,
where gypsum plasters are left unpainted
• Internal doors will not be painted
1 Bed
Floors
• Floors in apartments and commercial
units will be cement layout
• On balconies, floor will be frost resistant,
gress tiles
2 Bed
Windows
• Windows on balcony doors will be white
PVC
• Internal windowsills will be constructed
of MDF plates
Heating
• There will be rail towel radiators in all
bathrooms
• There will be individual electrical and
central heating meters
Korsaka Apartments
3 Bed
16
propertysecrets*
Black/white finish & kitchens
Developer
Most units in Poland are sold with black finish –
this is a very basic state, without walls being
plastered or painted etc.
Korsaka Apartments is being developed by
Budimex Nieruchomości.
Budimex Nieruchomości is part of the largest
construction holding in Poland, Budimex SA.
The main areas of activity for Budimex
Nieruchomości are the largest cities in Poland ie
Warsaw, Kraków and Poznań.
White finish (also known as final finish) is plastered,
painted and ready to move into. The units in
Korsaka Apartments are offered as black finish.
We have pre-agreed with a design company
(HTH) that it will offer all Property Secrets’
clients, through our Letting and Management
Service, the final finish option and a full
kitchen installation.
For the last seven years, it has been
distinguished by the Developer’s Certificate
awarded by the Polish Association of
Construction Employers.
The final finish cost is currently estimated at
PLN 1,187 /sqm, (£202) including Polish VAT.
The price for a kitchen is currently estimated at
23,500 PLN / £4,010 (including VAT) for studio
and one beds and PLN 28,000 / £4,778 (including
VAT) for two beds and more.
The company concentrates on the construction
of good quality properties with particular
emphasis on matching the product to the actual
trends in the market.
Since July 2005, Budimex Nieruchomości has
been operating together with Ferrovial
Inmobiliaria, one of the leading Spanish
development companies, to which Budimex
also belongs.
This cost for final finish has not been included in
the calculations. We advise that you seek
mortgage advice as it might be possible to
include the fit out (final finish) and kitchen costs
as part of the mortgage.
The newly established Budimex
Nieruchomości Inwestycje, in which 50% of
the shares are owned by Budimex
Nieruchomości and Ferrovial Inmobiliaria
respectively, was formed in order to jointly
complete significantly larger projects.
Parking
Secure parking is a very important factor in
Poland, both for consideration of resale value
and for rental (particularly underground
parking, due to the cold weather in winter
months). It is a highly desirable factor as more
and more Poles own their own cars.
The company’s financial position is very good
and Budimex Nieruchomości Inwestycje
completes about 1,000 properties a year.
The company was voted the third best developer
in Poland in 2006.
The purchase of a secure underground parking
space is compulsory in this development. A
parking space in this development is priced at
18,300 PLN / £3,122 and 26,840 PLN / £4,480
including VAT.
Korsaka Apartments
Some of the previous developments by this
developer include:
17
propertysecrets*
Praga Polnoc district is slowly becoming a
fashionable cultural centre where
properties (flats and workshops) are being
purchased by well known artists and actors
(Praga is the only district where historical
buildings from the 19th and the beginning
of 20th centuries, although in bad technical
condition, survived the war).
• Kraków, Sołtysowska Street,( Kompleks
Sołtysowska)
• Kraków, Jugowicka Street, (Zaułek
Jugowicka)
• Poznań, Bóżnicza Street, (Osiedle pod
Kasztanem)
• Poznań, ( Osiedle Zielony Taras)
• Białystok, Zachodnia Street, (Osiedle
Kameralne)
• Białystok, Sienkiewicza and Fabryczna
Street
• Warszawa, Sulejowska Street, (Osiedle
Sulejowska)
• Piaseczno, Zielona Street, (Osiedle
Baśniowe)
• Warszawa, Łodygowa Street, (Osiedle
Zacisze)
• Warszawa, Staszica Street, (Osiedle
Słoneczne) – December 2004
• Warszawa, Jaworowa Street, (Osiedle
Złote Runo)
• Warszawa, Zawiszy Street, (Osiedle
Zawiszy) – June 2005
• Warszawa, Łodygowa and Wyspowa
Street, (Osiedle Zacoisze Bis)
Within the area of a former vodka factory
‘Koneser’ a cultural centre is planned (art
galleries, theatres) combined with
apartments and lofts (similar project is
planned in Praga Poludnie district (on
Minska street) within the old optical
equipment factory). Praga Polnoc is also
becoming a popular location for the
property market (apart from advantages
mentioned above, important is also where
the district is situated – just on the other
side of Vistula River, Warsaw Old Town with
the Royal Castle, President’s Palace and one
of the most popular streets in Warsaw –
Krakowskie Przedmiescie are located).
Pawel Gilewski, Property Valuer, Gilewski
Property Consulting
Property Secrets has worked with Budimex on
a number of occasions and it has always
proved itself to be professional and easy to do
business with.
For further information on the developer go to:
www.budimex-nieruchomosci.pl
Korsaka Apartments
18
Finance
W
e have negotiated competitive prices
starting from 292,561 PLN / £49,925
that have been thoroughly checked to
guarantee they reflect good value for money.
Prices and payments
With exchange deposits starting from 29,256
PLN / £4,992, this represents a very low entry
level to a residential development in Warsaw.
Typical mortgage terms, subject to status
Mortgages
Mortgages in Poland have developed
substantially over the last few years, with
products at high LTVs and low interest rates now
available. There are no interest-only mortgages
available yet in Poland, though refinance
products have just come on to the market this
year. This is a key aspect that makes investing in
the Polish property market very attractive.
Property Secrets is conservative when
estimating any figures; therefore, in the
sections below, the figures generally represent
a worst case scenario.
Please use the Purchase Price Spreadsheet for
the full breakdown, and enter your own details
as required.
LTV
Up to 85%
Mortgage rate
3.6% (CHF)
Bank fee
0.5%
Up to 30 years
Price component
Details
Term
Prices range from
Black finish, incl VAT
292,561 PLN (£49,925)
to 634,865 PLN
(£108,339)
Mortgage contacts
Minimum Exchange
Deposit
From 29,256 PLN
(£4,992)
Payment terms
10% on exchange (due
March 2007) and 90%
on handover (est.
November 2008)
Korsaka Apartments
Noble Bank
Jakub Krol
Financial Advisor
Noble Bank
Tel: +48 22 31 95 665
Mobile: +48 66 302 1351
E-mail: jakub.krol@noblebank.pl
Website: www.noblebank.pl
19
propertysecrets*
Time frame
By completion
Year 1
Year 2
Year 3
Year 4
Year 5
Cash injections
required/year
-20,310
-4,100
-73
46
165
284
Accumulative cash injected
-20,310
-24,410
-24,483
-24,437
-24,272
-23,987
NB. All figures are in GBP for an average unit and include black finish, parking and kitchens in year 1,
service charges, insurance and all fees.
Cash flow projections
In addition to this, units are sold as black finish,
therefore, final finish and kitchen installation will
need to be funded. However, it may be possible
that final finish and kitchens can be mortgaged;
please speak to your mortgage advisor.
We estimate Korsaka Apartments to produce a
negative cash flow in the first year and better
than average capital growth. It should be noted
that the main reason why there is slightly
negative cash flow is because only
repayment mortgages are available.
By the time the development completes in
approximately 20 months time, we predict the
rental market will have moved upwards, as an
increasing number of people will not be able to
afford to buy, and will be forced to either rent,
or rent for longer before buying. This will have a
positive impact on property investors’ cash flow
for this deal.
The amount of cash needed to fund the first five
years of ownership is detailed in the Purchase
Price Spreadsheet – see the ‘Cash flow’ tab.
This information is summarised in the table
below for the average unit in this deal. Due to
the fact that currently only repayment mortgages
are available in Poland, investors may have to
fund their mortgage repayments in the first year
after completion.
Furthermore by the time the development
completes we estimate that the district of Praga
will have become a more sought-after area to
live as regeneration of the district continues.
BPH Bank
Justyna Marcinkowska
Residential Mortgage Manager
BPH SA
Tel: +48 502 357 373
Mobile: +48 502 906 500
E-mail: justyna.marcinkowska@bph-cbb.pl
Please be aware that BPH does not currently
offer self-certified mortgages to non-residents.
Please check with your mortgage broker about
how long your mortgage offer is valid for once
offered.
Korsaka Apartments
20
propertysecrets*
Comparisons and valuation
It must be noted that no two developments are
ever directly comparable. The comparable
development we have used, Przy Porcie
Praskim, is located in Praga on Kepna Street.
The development comprises 119 apartments,
195 parking places and
five offices.
The standard of the finish
is high with wooden
windows and stone
staircases. The location is
also closer to the city
centre than Korsaka
Apartments.
CONSULTING in February 2007. The
independent valuation has valued the studios
and one beds at 8,032 PLN and two and three
beds at 7,796 PLN per sqm including VAT.
The conclusion of the valuation report was as
follows:
Average price
Average price
Discount to
PLN/sqm –
PLN/sqm
market
valuation report* Property Secrets
Studio and one beds
8,032
7,529
6.3%
Two and three beds
7,796
6,936
11%
*NB. All units in the valuation report are based on
total area including black finish including VAT.
Thus the price for Przy Porcie Praskim is higher
than Korsaka Apartments. We believe the area
is just beginning to be redeveloped and
investment in this district is at the early stage.
We would predict that prices in the area of
Praga will increase as regeneration continues
and more people are attracted by its cultural
appeal and proximity to the city centre.
Hence, by buying in at this early stage, investors
are buying at prices estimated to be at least 6%
below the market value. For an average property
this is worth around £3,000.
The valuation goes on to say:
As shown in the above table the highest average
value refers to the properties comprising of
‘studio’ and ‘1 bed’ apartments (however, the
differences in the value of properties comprising
groups one and two are relatively small). This
A key feature of this deal is that we
commissioned an independent valuation of
the units on offer, by GILEWSKI PROPERTY
Development
Average
Average
Average price
total price* internal size
PLN/sqm
(sqm)
PLN
Average
total size
(sqm)
Quality/locati
on factors
Price/sq
m
variance
14%
N/A
Przy Porcie Praskim
8,332
557,091
66.86
72.12
High
quality/closer
to city centre
Korsaka Apartments
7,196
433,058
60.18
73.77
N/A
*Average total price is based on Black Finish including VAT.
Korsaka Apartments
21
propertysecrets*
situation reflects the fact that within the district
there is a large demand for new flats situated
within closed developments with underground
garages (Praga Polnoc was until now one of the
districts with the smallest number of new
residential projects).
Lack of new units led in to a significant increase
of units’ prices in old buildings and unattractive
locations – today they are at the level of 6,000–
6,500 PLN/m2 (it is also worth noting that the
secondary market in the Praga Polnoc district
offers flats of 35–40 m2). At the same time,
prices of units situated in new developments (eg
Florianska or Namyslowska streets – both
completed two years ago) reach the level of
8,000– 10,000 PLN/m2 (and there are
practically no available units there).
Please click here to view the full independent
valuation report.
Korsaka Apartments
22
propertysecrets*
Cash growth projection
800%
£400,000
600%
£300,000
400%
£200,000
200%
£100,000
0%
Property Value
ROI
stabilise to a rate of around 13% per annum.
Property Secrets is confident that Korsaka
Growth
Projection
Capital
The table
below
shows financial data for an
The table below shows financial data for an average unit in Korsaka Apartments for the
Apartments
will experience high growth rates
average
unit
in Korsaka
Apartments
the given
first capital
5 years
- assuming
that
it will growfor
at the
growth rate below. As we
first
have already mentioned the capital growth rate will be highsimilar
in the first
2 years
and
to those
seen
in will
other areas in Warsaw.
five years – assuming that it will grow at the
gradually stabilise to a rate of around 13% per annum. Property Secrets are confident
Clientstoare
now
able
finance furnishings and
that
Korsaka
Apartments
will above.
experience
highhave
growth rates similar
those
seen
in to
other
given
capital
growth rate
As we
areas in Warsaw.
kitchens using their mortgages and we have
already mentioned the capital growth rate will
experience of some clients having successfully
be high in the first two years and will gradually
done this already.
Predicted Average Property Value & ROI (over 10 yrs)
This reduces the cash
1200%
£600,000
injections required
from the investor
1000%
£500,000
each year.
ROI
Property Value
£0
0
1
2
3
4
5
6
7
8
9
10
Years
Capital growth rate
(predicted)
Property value
.
On Completion
Year 1
Year 2
Year 3
Year 4
Year 5
30%
20%
20%
15%
15%
15%
100,282
122,792 147,350 169,452 194,870 224,101
Mortgage amount
65,569
63,383
61,198
59,012
Personal equity
34,713
59,408
86,152
110,440 138,044 169,460
Effective gearing
65%
52%
42%
35%
29%
24%
Cash injections
required/year
-20,310
-4,100
-73
46
165
284
Accumulative cash injected
-20,310
-24,410
-24,483
-24,437
-24272
-23,987
Potential investment profit
11,395
31,315
57,249
80,920
107,926 138,750
ROI
56%
128%
234%
331%
Korsaka Apartments
23
56,827
445%
54,641
578%
propertysecrets*
Rental Market
Purchase Price Spreadsheet included in the
investment pack.
Summary of Rental Comparables
Size
Studio
1 Bed
2 Bed
3 Bed
Where does this investment fit into
my property portfolio?
Korsaka Apartments prediction
PLN/sqm/month
33
31
33
37
This represents an opportunity to invest early in the
growing property market of Praga. Prices are still
very low in comparison to Warsaw city centre.
Praga is close to the city centre and a Metro will
link the district with downtown Warsaw.
The table above shows the average rent expectations for the different sized units, with our predictions being based on the average market price for
all market sectors in Warsaw.
The development has a low cost entry with prices
starting at 292,561 PLN (£49,925) for 1 bed
apartments, making it an ideal opportunity for an
investor to buy into Warsaw for the first time at
reasonable cost vs risk, whether a first time
investor or adding to an existing portfolio.
With prices in Warsaw now reaching 26,000 PLN/
£4,436 per sqm, eg luxury development, Zlota 44
and average price per sqm of 7,196 in Korsaka,
this offers an excellent opportunity to take
advantage of early market entry.
Artists were initially attracted to Praga’s affordable rents and unique buildings and trendy atmosphere. Demand from young professionals
who want to live in an up and coming area,
close the city centre is increasing. We predict
that when Korsaka Apartments complete in 20
months time, there will be demand from young
professionals wanting to live in Praga.
Rental Yield (Predicted)
All Units
Net Yield
Gross Yield
Min
3.2%
3.8%
Max
4.5%
5.4%
Average
3.6%
4.2%
The table below outlines what yields we predict
can be achieved in Korsaka Apartments:
Please note: we have included a void period per
annum of four weeks and one month’s rent for
management and letting costs.
For rental yields on each unit please refer to the
Korsaka Apartments
24
propertysecrets*
Unit price summary
Unit details
Our Unit
ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Unit type
studio
studio
studio
studio
1 bed
1 bed
1 bed
1 bed
1 bed
1 bed
1 bed
1 bed
1 bed
1 bed
2 bed
2 bed
2 bed
2 bed
2 bed
2 bed
2 bed
2 bed
2 bed
3 bed
3 bed
Floor UK
definition
third
first
third
first
first
first
ground floor
first
first
first
first
first
second
third
third
first
ground floor
first
second
ground floor
first
second
second
first
second
Prices
Total Property
Cost (Black
Finish + Parking Total Finders
Fee incl VAT
Internal SQM
incl VAT)
36.78
52,707
3,550
37.57
49,925
3,483
36.78
53,962
3,594
36.78
51,452
3,507
49.98
67,090
4,009
51
66,655
3,994
50.22
67,398
4,020
49.98
67,090
4,009
50.22
67,398
4,020
54.43
71,857
4,129
47.71
64,185
3,910
54.89
71,501
4,118
47.71
65,813
3,966
54.89
73,375
4,180
74.63
93,545
4,746
77.05
91,218
4,671
79.01
96,155
4,830
74.9
91,316
4,674
74.9
93,872
4,756
71.2
89,389
4,664
67.55
84,967
4,519
67.55
87,272
4,594
77.3
96,780
4,850
90.75
105,241
5,062
90.75
108,339
5,160
Full Key
Ready
Estimate
70,887
68,186
72,191
69,582
89,069
88,824
89,437
89,069
89,437
94,877
85,593
94,601
87,283
96,545
121,483
119,561
125,076
119,227
121,877
116,533
112,163
114,554
126,333
137,884
141,093
77,140
101,655
Averages
Korsaka Apartments
25
Legal
T
Safety Nets
he requirement to use the legal firm TGC
Corporate Lawyers is an integral part of
this deal.
Safety net – pre-negotiated preliminary purchase
contract
The legal firm TGC Corporate Lawyers is one of
the longest-standing, international law firms in
Poland. It has extensive experience in the types
of transactions you may become engaged in.
More details about TGC Corporate Lawyers may
be found at www.tgc.eu
Property Secrets invests large amount of time,
effort and money obtaining the best possible
terms for our clients.
As a result, you have available a pre-negotiated
contract with more favourable terms than would
be available to buyers who come off the street,
and which contains certain contractual
safeguards. The preliminary purchase contract
has also been translated into English at no extra
cost to you, the investor.
Contact details
Mark Malik
property@tgc.eu
0048 22 653 3644/45/34
These more favourable terms are only available as
a result of the negotiating power of Property
Secrets and are a good indication of some of the
clear benefits of buying through Property Secrets.
TGC Ordowska
Kancelaria Prawnicza Sp. k.
ul. Krolewska 27
00-060 Warszawa
Polska
Safety net – late delivery penalties
Legal pricing
Strict deadlines are provided for the developer
to complete construction of the building by 18
August 2008, to deliver the residential premises
no later than by 20 November 2008 and to sign
the final purchase contract no later than by 31
January 2009.
TGC will charge 5,795 PLN including VAT as its
legal fees for this transaction.
For full details of the legal process for this deal, legal
documents to sign and contracts to understand
please download The Legal Documents.
Korsaka Apartments
26
propertysecrets*
In the event your premises are not handed over
within 30 days from the abovementioned date
for reasons attributable to the developer, you
will be entitled to demand from the developer a
contractual penalty equivalent to statutory
interest charged in respect of the amounts paid
by you for each day of delay, unless you choose
to exercise your right to rescind the preliminary
purchase contract. The contractual penalty
cannot exceed 1% of the price of residential
premises.
c. The residential premises are constructed with
serious defects which cannot be remedied and
prevent the residential premises being used, or
d. The utility premises are constructed with
serious defects which cannot be remedied and
prevent the residential premises being used.
In such circumstances you will be entitled to a
refund of the nominal amounts paid, together
with the following contractual penalty
calculated respectively with regards to the
above:
In the event that the developer delays in signing
the final purchase contract, you will be entitled
to a contractual penalty equivalent to statutory
interest computed in respect of the amounts
paid by you for each day of delay, unless you
exercise your right to unilaterally terminate the
preliminary purchase contract. The
contractual penalty cannot exceed 1% of the
price of residential premises.
re: a. 10% of the price of the residential
premises
re: b. 10% of the price of the utility premises
re: c. 10% of the price of the residential
premises
re: d. 10% of the price of the utility premises
Payment should be made within 30 days from
the date of serving on the developer a written
notice terminating the preliminary purchase
contract and by providing a bank account
number into which the amounts will be repaid.
Purchasers are also entitled to rescind the
preliminary purchase contract not later than
within three days from the date of signing of the
hand-over protocol of the residential premises, if
the surface area of the apartment differs from the
area specified in the preliminary purchase
contract by more than 5%. In such an event, the
developer is obliged to return the nominal
amount of the advance payments to the
purchaser’s bank account within 30 days from
the date of termination. The amounts will be
returned to the purchaser once relevant
accounting documents (corrective invoices) have
been signed by the purchaser.
Safety net – construction and
internal spec guarantees
As a purchaser you have a statutory right to a
three-year warranty for physical defects in the
building, fixtures and construction, and a oneyear warranty for physical defects in the
premises.
Safety net – exit strategies
Purchasers will have the right to rescind the
preliminary purchase contract where:
a. The developer delays in signing the final
purchase contract for residential premises for
more than two months, or
b. The developer delays in signing the final
purchase contract for the share in the utility
premises for more than two months, or
Korsaka Apartments
If the VAT rate changes, resulting in a price
increase of the residential premises,
27
propertysecrets*
purchasers will be entitled to rescind the
preliminary purchase within 30 days from the
date the amendment to the VAT Act, amending
the rate in respect of residential premises
comes into force. In such a case, purchasers
shall be obliged to serve a written notice
rescinding the preliminary purchase contract.
Within 30 days from the date of rescission the
developer should return the advance payments
to purchaser’s bank account. The amounts will
be transferred once relevant accounting
documents (corrective invoices) have been
signed by the purchaser.
Korsaka Apartments
28
Buying process
T
There are two parts to the buying process:
to have paid the remaining finder’s fee, and
signed and returned the JoJaffa Agency
Agreement.
• Reserving a unit
• Buying a unit
Please note: The remainder of the Finder’s Fee
must be paid either by cheque or bank transfer;
credit and debit card payments will not be
accepted.
Reserving a unit
You should register as soon as possible to ensure
you have the option of buying a unit.
Registering does not commit you to buying.
You can register for this deal by going to:
www.propertysecrets.net/register/90.html
At this stage you need to conduct your due
diligence and, in particular, contact your
mortgage broker to discuss your mortgage
requirements.
At any point in this process, please feel free to
contact the Property Secrets’ Client Services
Team on +44 (0)1270 539 550 or at
investments@propertysecrets.net
The Client Services Team is on hand to facilitate
communication between our clients and Polish
partners (ie the lawyers and developer). Simon
Blakebrough, our deal broker, is available on
+44 (0) 7920 468 497 should you require any
additional information in your own due
diligence process.
You must confirm your interest in this
development before Thursday 8th March 2007.
Clients who have registered will be informed via
e-mail when confirmation is open and how to
do so.
Buying a unit
From Thursday 8th of March 2007 onwards
clients will be contacted by phone and the
units will be released to those investors who
registered first and then confirmed their interest.
At this point you pay the initial non-refundable
deposit of £500 (plus VAT) towards your Finder’s
Fee per unit to JoJaffa Ltd by credit card.
1. At the point of allocation, the Property
Secrets’ Client Services Team will contact you to
request the following information:
•
name(s) of buyer(s)
•
address(es) of buyer(s)
•
names of buyers’ parents
•
marital status
•
citizenship of buyer
By Thursday 15th of March 2007 you will need
Korsaka Apartments
29
propertysecrets*
•
•
•
deed form, please see The Legal Documents for
definitions
•
Request legal fees and transaction cost to
be paid
passport number of buyer
e-mail contact for buyer
phone contact for buyer
This information is required by the lawyers on
the day of allocation to assist in the creation of
the legal documentation, should you be
successful in obtaining a unit(s) in this
investment.
4. Client will then, in the first instance:
o
Print out 2 copies of the POA
o
Sign first POA (please note this POA does
not need to be Notarised or Apostilled) and
return it to TGC no later than Thursday 22nd
March 2007 along with TGC’s engagement letter
o
Have second POA notarised and
apostilled return to TGC no later than Thursday
19th April 2007.
o
Information on apostilling can be
obtained from the following website:
http://www.fco.gov.uk/servlet/Front?pagename=
OpenMarket/Xcelerate/ShowPage&c=Page&cid=
1007029391440
• Send legal fees and transaction cost to lawyer’s
account no later than Thursday 22nd March
2007
• Please note these fees are due prior to the
signing of the Preliminary Purchase Contract
• Pay exchange deposit by Thursday 22nd
March 2007 into the TGC client account.
2. At the point of allocation of your unit(s), the
Property Secrets’ Client Services Team will
confirm the following information; unit(s)
purchased, storage and parking space to be
bought (if applicable) and the price to be paid
for the entire property.
All the information supplied will then be
forwarded to the lawyer once you have been
allocated a unit(s) and paid your Finders Fee
deposit(s).
3. Lawyers will then, via e-mail:
•
Send Client Engagement Letter
•
Send Instruction Letter
•
Send Power of Attorney (POA) – please
note the Preliminary Purchase Contract will be
completed in simple form initially, then in notarial
Korsaka Apartments
30
Property Management
Services
P
• Oversee the day-to-day relationship and
delivery of services and information from the
Suppliers to the Client
roperty Secrets offer Clients its Local
Completion Service (LCS), with the
purpose of bringing the Unit to a condition
such that it is ready to be sold or let.
• Help the Client to co-ordinate individual
payments and contracts with Suppliers
Property Secrets will, for the Client’s Unit(s):
• In the case of the hand-over service and
snagging management, Property Secrets will
subcontract local Suppliers. All other Suppliers
and services sourced will be payable by the Client
direct to the Supplier. In particular, the Client will
be responsible for paying Suppliers for all
kitchens, white goods and white finish (if relevant)
and any other costs or taxes associated with the
construction and purchase of the Unit(s)
• Source Local Property Management and
Property Service Advisers and providers
(‘Suppliers’) for the Client such that the Client
receives a completed Unit which can be handed
over with keys and is in a suitable state for
either selling or letting (albeit it will not include
furniture or minor fittings)
• At its sole discretion, pay local contacts to
source and manage Suppliers on its behalf
The LCS will include sourcing and managing
Suppliers for the Client’s Units with regard to the
following:
• Assess those Suppliers in terms of quality and
reliability (please note, the level of service in
some parts of Europe may be below what you'd
expect in the UK, but then the cost levels are
likely be lower too)
• Building completion (snagging)
• Managing the handover protocol process and
(if necessary) overseeing the process of
negotiation with the constructor (as determined
in the relevant property purchase contract)
• Kitchen plans and proposals including
transport, delivery, installation and checking
• Property and kitchen completion check (in
accordance with the Client’s purchase contract)
• Internal fit-out proposals and quotations from
• Negotiate discounts for the Client (where
possible) using the buying power of all Property
Secrets’ clients
• Negotiate for the Client improved service
levels from Suppliers
Korsaka Apartments
31
propertysecrets*
finish or other services. Thereafter, further work
will be chargeable as set out in the Price
Schedule.
local Suppliers/developer (if required)
•White finish (if required) proposals and
quotations from local Suppliers and checking of
work
•White goods proposals and quotations from
local Suppliers along with transport delivery and
Installation
• Bathroom fixtures proposals and/or quotations
from local Suppliers/developer and transport,
delivery and installation
• Negotiations with the developer in terms of
the construction stages of Units
• Local arrangements so that, where possible,
the paperwork can be processed without the
Client having to be present in the location on
each occasion.
Commencement and expiry of LCS
The LCS commences on the agreement to
purchase Unit(s), and expires when the unit is
ready to be either sold or let.
Property Secrets will provide a UK helpline and
email contact for Clients during UK office hours.
Price schedule
Local Completion Service (LCS) £
Clients will be entitled to one hour’s
management work of modification to the
proposed fit-out or white
1st unit
2nd unit
Studio
445
378
1 Bed
495
421
2 Bed
595
506
3 Bed
695
591
4 Bed
795
676
Prices in GBP. Not including UK VAT which is
charged at 17.5% (if applicable).
The above fee per Unit includes a discount for
swift payment (within 14 days of order). For bills
paid late, Clients will lose the discount paying
per Unit an additional £100+VAT (if applicable).
The LCS fee for the 1st Unit applies to the first
Unit which is contracted to this agreement by the
Client.
Second and subsequent Units contracted by the
same Client will receive a 15% discount on LCS
prices as listed above. There are no other
discounts for bulk purchase of Units.
Korsaka Apartments
32
propertysecrets*
up’ phase and the ‘on-going management’ for
which there are different fees.
Kitchens and final finish
Kitchens and final finish are not included in the
price and it is not compulsory to buy through
any suppliers we suggest. Property Secrets can
arrange for installation of kitchens and final
finish as part of the Local Completion Service.
During both phases of the PLS Property Secrets
will;
• Source Local Property Management and
Property Service Advisers and providers
(‘Suppliers’) for the Client
• Assess those Suppliers in terms of quality and
reliability (please note, the level of service in
some parts of Europe may be below what you'd
expect in the UK, but then the cost levels are
likely be lower too)
• Negotiate for the Client discounts (where
possible) using the buying power of all Property
Secrets’ clients
• Negotiate for the Client improved services and
service levels from Suppliers
• Oversee the day-to-day relationship and
delivery of services and information from the
Suppliers to the Client
• Help the Client to co-ordinate individual
payments and contracts with Suppliers
• Advise Client on rental, resale and
management decisions
• Set up local arrangements so that, where
possible, the paperwork can be processed
without the Client having to be present in the
location on each occasion.
Insurance
Property Secrets can obtain quotes and arrange
insurance for your Unit as part of the Proxy
Landlord Service (PLS).
Furnishing your Unit
Property Secrets can organise furnishing as part
of the Proxy Landlord Service (PLS).
Service charge
The service charge has not been specified yet by
the developer. This will be set at the market
average at the time of handover.
How will I rent out my unit?
There are, of course, a number of rental
agencies available locally, and when Korsaka
Apartments is complete, the choice of who to
appoint as rental agency and manager will be
up to the individual investor.
PLS set up phase will include sourcing and
managing Suppliers for the Client's Unit(s) with
regard to the following:
• Advice on whether to rent or sell the Unit
• Furniture plan and investment rational
• Review of likely tenants and how best to
optimise rental potential
• Assess likely rental costs and suitable levels of
deposits for property management accounts
• Source Tax Registration services
• Source Tax Advice services
• Key holding services
However, we offer a Proxy Landlord Service
which is outlined below.
Proxy Landlord Service
The Proxy Landlord Service (PLS) has been
created to respond to clients’ demand for a
service that offers a truly hands-off investment.
The service will consists of two phases; the ‘set
Korsaka Apartments
33
propertysecrets*
viewing and negotiating rent
• Renewal and new rental contract
• Inventory prior to tenant moving in and make
out on tenant exit
• Holding, recording and returning rental
deposits
• Negotiating with tenants on exit
• Source appropriate bathroom fittings and
• Source appropriate bedroom fittings and
• Source appropriate living room fittings and
fixtures and delivery and installation
• Source appropriate electrical equipment and
• Source appropriate lighting and delivery and
installation
• Source appropriate outdoor furniture (where
applicable) and delivery and installation
• Arrange furniture purchase, installation and
snagging
• Property letting, including marketing, viewing
and negotiating rent
• Rental contract
• Rental deposit
• Inventory prior to tenant moving in and make
out on tenant exit
• Holding and recording deposits
Price schedule
Proxy Landlord
PLS on-going
Service (PLS) Set Management ex
1st Unit 2nd unit 1st Unit 2nd unit
The PLS on-going management will include
managing and overseeing suppliers for the
client’s unit(s) for long lets (rental contracts
averaging greater than three months) with regard
to the following:
345
293
240
120
1 Bed
395
336
240
120
2 Bed
445
378
240
120
3 Bed
495
421
240
120
4 Bed
545
463
240
120
Luxury
545
463
240
120
The above PLS Set Up fees include a £100 +
VAT discount per Unit for swift payment (within
14 days of the bill becoming due). For bills paid
late, Property Secrets reserves the right to annul
the discount and collect the full amount.
• On-going management of let unit
• Tenant liaison (help lines)
• Rent chasing
• Repair services
• Rent collection
• Property accounting services
• Provision of property condition reports
• Sourcing Tax Advisors
• Annual property balance statements
• Property taxes and VAT payments
• On-going key holding arrangements
• Sourcing and management of re-letting agents
• Renewal of letting contracts, inventories
• Sourcing legal advice
• Repeat property letting, including marketing,
Korsaka Apartments
Studio
PLS set up phase fees for the 1st unit apply to
the first unit which is contracted to this
agreement by the client. Second and subsequent
units contracted by the client will receive a 15%
discount on PLS set up phase prices listed
above. There are no further discounts on PLS
fees for bulk purchase of units.
PLS on-going management phase fees are £240
(plus VAT) per annum for the first unit of the client.
Second and subsequent units from the same client
will be charged at £120 (plus VAT) per annum.
34
propertysecrets*
There are no further discounts on PLS ongoing
management prices for bulk purchase of units.
These fees apply to all units except those units
which are managed as Short Let.
property is successfully let and the PLS on-going
management phase commences at the end of
the set up phase and is an annual fee due on the
anniversary of the start of the service.
For Short Let Management, the individual fees
per unit will be agreed by separate negotiation.
Please note, the PLS set up phase ends when the
Korsaka Apartments
35
Who we are
O
• Act with transparency and honesty in all
financial and other dealings with clients,
suppliers and the people with whom we work
• Are passionately focused on driving customer
success and enthusiastic about achieving
customer success
• Create and redesign our business to deliver
higher performance, better reliability and always
to ensure that the customer is the first to benefit,
and that the customer can use it to accelerate
his/her growth
• Insist on excellence and are intolerant of
bureaucracy
• Act across the business, always searching for
and applying the best ideas regardless of their
source
• Prize the teams we work in and the people we
work with, built from exceptional individuals
located across the world and connected by
technology and shared values.
ur aim is to create wealth through
intelligent property investment
across Europe.
Property Secrets is a firm of independent
analysts, commentators and deal finders that
deliver wealth creating market intelligence on
property investment across Europe.
Researching, analysing and interpreting longterm property market trends is what we do;
translating the facts into useful advice, forecasts
and investment deals that help our customers
profit from property is our mission.
Property is a long-term investment, with no
quick and risk-free route to instant wealth.
Prudent analysis, innovative methodologies and
the right contacts in the right countries go a long
way in making that long-term investment
generate worthwhile returns, with minimised
risk and effort. Making those returns a reality for
our customers is our goal.
Property Secrets is a brand of JoJaffa Ltd.
JoJaffa Ltd
Rail House,
Gresty Road
Crewe
Cheshire
CW2 6EA
Our market focus is Europe’s most burgeoning
cities and economies.
Our values:
All of us ... Always with unyielding integrity ...
Korsaka Apartments
JoJaffa Ltd
Registered Office
10-12 High Street
Barnes
London
SW13 9LW
Company No: 3881315
36
propertysecrets*
Your first point of contact at Property Secrets,
either before you decide to purchase on this
development or after you have purchased, is
the Client Services Team.
Our partner in Poland –
Robert Chojnacki
Robert runs and owns Tabelaofert.pl, which was
established in autumn 2000 with the aim of
enabling easy contact between a wide range of
developers, individuals and companies looking
for properties in Poland.
Tel: +44 (0)1270 539 550
E-mail: investments@propertysecrets.net
Simon Blakebrough – Deal Broker
Tabelaofert.pl is the biggest and best known
Internet portal for the primary property market
in Poland. It produces vast amounts of data
relating to the Polish property market and is
used by many companies who seek in-depth
research and analysis.
The broker at Property Secrets who put this
property investment deal together is Simon
Blakebrough.
For the last 10 years Simon has worked for the
largest estate agent in central London. While
managing a busy office, much of Simon’s time
was taken up dealing with developers and
investors and he established a reputation in this
field. During the last five years Simon has also
invested personally to build up his own portfolio
both in the UK and abroad.
90% of all new build enquiries in Poland come
through Robert’s company. This gives him a
unique and unrivalled view of the market with
both historical data and up to the minute facts.
The company’s range of services includes
publishing, organising fairs, as well as
consulting and investment advice. Over 50
professionals in six departments located in a
number of Polish cities work with the company.
Simon visits every development that he
negotiates and explores the wider geographical
area to fully understand how the development
fits into the bigger context.
If you have questions about this development
please contact Simon on +44 (0)7920 468497
or e-mail (via our Client Service team) at
Your first point of contact at Property Secrets,
either before you buy or afterwards, is our Client
Services Team.
Tel: +44 (0)1270 539 550
Korsaka Apartments
37
Why buy through
Property Secrets
O
n this development, Property Secrets
has an exclusive arrangement with the
developer such that even if you contacted the
developer directly, you would still be due to
pay the Property Secrets’ Finder’s Fees.
additional costs:
However, you may be considering buying on
alternative developments in this location
independent of Property Secrets in order to
‘save’ the fee. We encourage you to take this
approach as it is the most effective way for us to
demonstrate to you that we offer excellent value.
Of course, if you approach our developer
directly, not only would you be due to pay the
full Finder’s Fee (as part of the terms of reading
this Investment Report) but you would also miss
out on the following:
2. Higher legal fees – or lower quality of legal
support – as you will not be able to access the
same level of legal advice for the rates provided
to Property Secrets’ clients
1. The need to visit any site that you may
consider buying on – this might require one or
two trips to the location (allow £500 per trip)
3. The need to establish your own finance
broker relationship and the additional effort to
hustle the broker to ensure your request for
finance is given priority over the broker’s larger
clients
4. The need to carry out your own due diligence
and market comparables
1. Pre-launch price
5. The need to instruct an independent English
speaking and reliable valuer in order to
establish the accurate market value of the
property you are buying.
2. Preferential payment terms and pre-negotiated
English-language contracts
3. Access to the best investment units – we take
the best units before they are released to the
market
Not only that, but by buying with Property
Secrets you will also gain the following:
4. Property Secrets’ client support to exchange –
in helping to ensure that the purchase process is
as smooth as possible
1. Confidence in the investment and property
instincts of the Property Secrets’ investment
team and our selected local property finders
And if you decided to source your own
investments then you would face these
Korsaka Apartments
2. Confidence in the ability of Property Secrets
38
propertysecrets*
to analyse and evaluate quality investment
opportunities
best deals, but we also back it up fully with
analysis, support and service as you move
through the buying process.
3. Confidence in an organisation that runs open
forums – in other words, which other property
investment organisation offers clients an
opportunity to interact on public and
uncensored forums?
If you have any questions about our service
please contact investments@propertysecrets.net
4. Ability to anonymously communicate with
other investors on the Property Secrets’ forums
5. Regular (one every month or two) updates on
your development up to exchange
6. A UK telephone contact – who you can speak
to about your purchase or to help resolve any
purchase problems
7. A clear and transparent fee refund policy –
should your unit not proceed to exchange –
from a UK-based company operating within
English law.
Lastly, consider this: even if you buy direct in the
location, it is likely that somewhere along the line
an agent will be paid at least a 3% fee. This fee
will attract local VAT (which is higher than UK
VAT) and either be paid by you – or more likely
will be added to the price of the property. In
some cases, selling agents will be offered
considerably more and these costs will be added
to the price of your units.
Therefore, with Property Secrets, not only can
you buy better but you will also save
considerable amounts of time, money and effort.
We’ve found that our clients come back to us
again and again, because they know how hard
and expensive it is to source the best deal at the
best price.
And, not only do we source the best units on the
Korsaka Apartments
39
Disclaimer
T
he developer will only negotiate with a
single lawyer, so you must use the lawyer
provided to work with the developer. You are
free to engage your own lawyer at your own
expense to advise you, but they must work
through our lawyer, and not directly with the
developer.
DOCUMENTS PROVIDED ARE FOR
INFORMATIONAL PURPOSES ONLY.
JoJaffa Limited has compiled this report as best
we can; however, given the short period of time
available to review the development, we have,
in part, relied on answers supplied by the
developer.
INFORMATION PROVIDED IN THIS
DOCUMENT IS PROVIDED 'AS IS' WITHOUT
WARRANTY OF ANY KIND. The user assumes
the entire risk as to the accuracy and the use of
this document.
Therefore, as with all investments, you should
carry out your own due diligence.
Trademarks and copyright JoJaffa Limited,
Property Secrets, Dealometer, are all trade marks
of their respective owners.
The information should not be interpreted to be
a commitment on the part of JoJaffa Limited.
Nor can JoJaffa Limited guarantee the accuracy
of any information presented.
We cannot guarantee the accuracy of this report
nor should you rely upon it as your sole means
of making a decision.
In addition, this document is copyright
protected and may not be copied or re-issued
without the prior consent of JoJaffa Limited.
WARNING: PROPERTY VALUES CAN FALL AS
WELL AS RISE. THIS DOCUMENT AND OTHER
Korsaka Apartments
40

IR templateA - Property Secrets

Transcription

Similar documents

Downtown Tampa`s Residential Update

wozoco purmerend - Boparai Associates

Walking in Arabianranta

Blizne Park - Property Secrets

Vistula River

pat and vicky byrne - Crawford Auction Service

HousingSF_Stenquist

Discover Fryderyk Chopin music!

ZILUKS IN POLAND Dear Diary, Last week I was in Poland. It is an

Polish Film Festival Flyer 8_5x5_5

HOW TO GET TO BIALYSTOK BY PLANE