Why invest in Bucharest? (Capital city)

• High unsatisfied demand for residential properties;(estimates of 300,000 units in demand and only 1,800 units delivered in 2007).
• Local migration to Bucharest for the better-paid jobs (adds more pressure to the residential/rental demand).
• Major Multinationals (Microsoft, IKEA,etc) establish headquarters in Bucharest (creates a demand for business rental).
• Prices on new build are still cheaper than the old communist flats; SEE MARKET ANALYSIS BELOW.
• Major investments in the infrastructure (Romania will receive €30billion EU funding between 2007-2012).
• Low cost carriers flights are available from major UK airports (Easyjet, Ryanair).

Why invest in "Belvedere Baneasa"?

-Excellent payment plan (as little as 10% initial capital requirements)
-Exit plan (re-sell opportunities through our Romanian company before or after completion)
-Brilliantly located in the North within the heart of Bucharest Business Centre with existing infrastructure.
- Excellent leisure facilities within the complex and around Herastrau Lake, tennis, carting, restaurants and clubs
-Excellent transport links underground station, main bus links,and easy car access to both central city and the motorway network.
-Proximity to major employment opportunities for professionals ensures rental income
-Major retail centres within 1mile radius(Baneasa City Shopping)
-Recreational areas in close proximity (onsite lake and park)
-Easy access to the mountain ski resorts (1h30min drive) Facilities within the Development
-4 blocks of flats/678 luxury apartments by the lake (7ha development)
-High-standard interiors with large terrace and individual suspended gardens for each apartment
-3 on-site commercial centres
-Business tower(28 floors glass building) -Underground parking (1180 places)
-Medical and beauty centre
-Gym
-Kinder garden and after-school
-Covered/uncovered pool -Sport&football court
-Restaurants
-Water sports facilities on the onsite lake
-Recreation on the onsite park

Payment Plan: 4 different options are offered for payment:

Option 1
-10% initial deposit
-15 % paid in 30 instalments, each month an equal fee to be paid
-5% paid in the 32nd month
-70% completion, financed by the bank

Option 2
- 10% initial deposit

- 30%when the structural work is completed
- 40% 3 months before the completion
- 20% completion

Option 3
-30% initial deposit
-70% at the completion

Option 4
- 20% initial deposit
- 80% in 5 instalments,representing 14% each fee/semester
- 10% completion

Practical Example: Local Market Analysis–Bucharest (Baneasa-Pipera area) (Communist era flats v new builds)

1)Pricing of existing communist era flats one bedroom apartment (equivalent to 2 rooms apartment in Romania) in the Baneasa average €140,000 for a 58sqm net area (including balcony).So they can be compared with the new build, the above price needs to be transformed into €/ sq metre built +Vat.After the calculations,the equivalent of the above price is aprox.: 1810 €/sqm + VAT (VAT = 19%)

Q: How was the average price obtained?
A: average price taken from www.anuntul.ro (main property search engine in Romania)

2) Pricing opportunities “ Belvedere Baneasa” (VAT = 19%) Building 1 - starting 1,540 €/sq metre built +Vat Building 2 – 15% increase from Building 1 Building 3 – 15% increase from Building 2 Building 4 – 15% increase from Building 3

Q: Why is the property cheaper at the start of the development and then it goes up in value?
A: As a developer, in order to get a better deal with the financing bank, we need to have a certain level of interest in the early stages of the project. Because of that, the first few apartments we sell almost at cost. To ensure our profitability, we increase the price towards the completion of the development, when it can easily be absorbed by the local demand.

Conclusions Our apartments are currently 17.5% cheaper than the thirty year old, dilapidated communist era properties. Because you initially invest only 10% deposit, this means you may have a 175% return on your investment right from the beginning, subject to market conditions. This will give you good start in developing your capital gain expectations.

Note: Even if you achieve this good start, it is very difficult to sell these contracts straight away because you compete with us, the developer, in selling the apartments. However, towards the end of the development, when we finish selling, we would be interested in finding clients for your properties and in this way help your ‘exit’ strategy.

Q1) Can we offer a rental service?
A: We will once a development is completed – this is not the case at present!

Q2) What is the rental yield in Baneasa area, Bucharest?
A: A Communist one bedroom apartment is currently renting for €700-€1000 per month. “Belvedere-Baneasa” would probably, pessimistically, achieve €1000-€1250 per month because is bigger, better located and with excellent facilitie. In other words, assuming that you had your property completed at this moment in time, you could achieve a rental yield of al least 8.3% which would have covered the cost of your mortgage.

Q3) Guaranteed rental income?
A: Guaranteed rental normally applies to holiday resorts where income from travel companies can be taken into account. This is not the case in an urban situation in Romania.

Q4) Where can you meet us?
A: You can either meet our knowledgeable team based in our London office or meet our colleagues in Romania. We also organise subsidised inspections trips to Romania for our clients.

Contact us for more details.

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