Blizne Park - Property Secrets

Transcription

propertysecrets*
B L I Z N E
P A R K
WARSAW
P
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L
A
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• One of the fastest growing areas in Warsaw –
huge price growth expected
• Best payment terms in CEE – only 10% deposit
• We have first choice of units
* unveiling the truths of property investment
propertysecrets*
Contents
Executive Summary
Page 3
Blizne Park: The Interview
Page 6
The Development: Location
Page 9
The Development: Specification
Page 17
Financials
Page 23
Legal
Page 31
Buying Process
Page 34
Property Management Services
Page 36
Who We Are
Page 41
Why Buy Through Property Secrets
Page 43
Disclaimer
Page 45
Blizne Park. Please Read The Disclaimer
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© Copyright JoJaffa Ltd 2007
propertysecrets*
Executive Summary
• One of the fastest growing areas in Warsaw – huge price growth expected
• Best payment terms in CEE – only 10% deposit
• We have first choice of units
B
lizne Park offers investors an
opportunity to purchase property in
one of the fastest growing areas in Warsaw,
with excellent payment terms, exclusive to
Property Secrets’ investors. The developer is
expected to increase the list price by
PLN300/sqm, giving us an effective discount of
3.8% off market price.
This development is due for completion near
October 2008 and we anticipate a 50% growth
rate in house prices in the area before then; this
offers investors excellent returns in an area
where demand for housing far outweighs supply.
Blizne Park is located in an emerging area of
west Warsaw and neighbours two of the fastest
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fortification built in the late 1800s, and now a
local tourist site.
growing districts in the city. Bemowo is located
west of Wola which, in February, experienced
growth of 23.4%.
Blizne Park is well connected to the city centre
with the journey taking approximately 30
minutes by car. Several bus routes link Bemowo
with the city centre, and the nearest bus stop to
Blizne Park is just 200 yards away on Kaliskiego
Street. A bus stop is also located on Kocjana
Street not far from the development.
North of Bemowo, the district of Bielany grew
by 6.6% in March.
The area has excellent transport links into the
city centre and the new metro line will pass
through the district of Bemowo. There is an
influx of young professionals and young families
moving out of the city centre in search of larger
housing and an improved quality of life.
Demand is currently exceeding supply in the
region. Properties in Bemowo are already selling
faster than the city’s average.
A tram route also links the development with the
city centre; a journey of approximately 20
minutes. The nearest tram stop is on Górczewska
Street, just two kilometres from Blizne Park.
Transport links from the area will be significantly
improved with the building of a new metro line
linking Bemowo with the city centre. The nearest
metro stop from the development will be at
Powstańców Śląskich, some four kilometres away.
The education system in Bemowo is of a very
high standard, with 50% of the municipality
budget allocated to education in the region.
There are also excellent sporting and cultural
facilities in the region.
Bemowo is an extremely green area with very
low density: approximately 50% of the area is
green space with plenty of parks and lakes for
recreation. The area is bordered by
Kampinowski Forest, which forms a natural
boundary to the city.
Blizne Park is located on Antoniego Kocjana
Street in the district of Bemowo in Warsaw. The
site is located west of Fort Blizne, an old
Location
It is currently attracting lots of people moving out
of the city, as it is within commuting distance and
is very well connected. There are many transport
links and the area is well supported by leisure,
sporting and retail facilities.
• Blizne Park is located on Antoniego
Kocjana Street close to the intersection
with Sylwestra Kaliskiego Street in the
Bemowo district.
• Bemowo is located on the western
outskirts of Warsaw.
• The development is close to several bus
routes (149, 105, 109, 410) and tram lines
(8, 10, 26, 27).
• Blizne Park is located to the west of the
ruins of Fort Blizne.
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50% expected growth
before completion is
an attractive
proposition. This
investment is in a
fast-growing district
in Warsaw, which is
being discovered by
those who want larger housing for their
money, great transport links and a lower
density population.
Financial
• Average price of PLN8,218/sqm (£1,483).
The developer is expected to raise prices
by PLN300/sqm, giving Property Secrets an
effective discount of 3.8% on these units.
The independent valuation values the units
at 2.5% higher than Property Secrets’
prices. The average effective discount is
worth PLN213/sqm (£39). This is a total
discount of PLN13,044 (£2,354) on the
average sized unit.
With a solid transport infrastructure already in
place, supported by local leisure facilities and
green space, it will attract young professionals
and families who want to move out of the
centre of the city in search of a better quality
of life. Warsaw has shown itself to be a rocksolid investment location in the last two years
and there are still superb capital growth
opportunities if you pick the right location
within the city – this is one.
• Prices start from just PLN273,703
(£49,405).
• Exclusive payment terms of 10% on
exchange and 90% near completion
(estimated at October 2008). These are
currently the best payment terms available
in Poland.
• Average estimated Return on Investment of
1,269%, five years after completion.
• Estimated net rental yields average 4.5%
and gross yields average 5.1%.
Tim Crighton
Head of Marketing
Property Secrets
• Up to 85% loan to value mortgages over
30 years (subject to availability).
More information
Deal
For more information about Poland, download
our Poland Property Market Profile.
• 26 units are reserved for Property Secrets’
investor clients. There are 239 units in the
entire development. Property Secrets has
secured four studios, eight 1-beds, twelve
2-beds and one 3-bed in the development.
To find out more about investing in Warsaw,
download our Warsaw Investment
Decision Maker.
• Full support of the Client Services Team up
to the signing of your Preliminary
Purchase Contract (PPC).
Click Here to view Blizne Park in
Google Earth
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Blizne Park:
The Interview
G
rowth spurt – why Warsaw is likely to
experience 25 to 30 per cent
property price growth in the next year.
That is the basics out of the way.
But, probably the most interesting aspect is that,
if you can identify an attractive deal, now is a
great time to buy into the Warsaw market
because we are going to see a phase of very
strong growth.
Robert Chojnacki is our Polish property finder
and we believe he’s the best in the business.
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.
So, why is Warsaw going to see strong growth?
Well, it’s important to appreciate the breadth and
the potential long term of the Warsaw market.
It is the biggest and the most liquid market in
Poland, and as the capital and the most
important business and economic centre in the
country, it undoubtedly is the strongest market.
We interviewed Robert and asked him to
characterise this deal and outline its
outstanding features.
By strongest I am talking about stability and
resilience. And we are now just at the start of a
second big price growth spurt, I am sure of this.
Why Blizne Park, why Warsaw?
The answer in both cases is actually very simple.
We hear what you’re saying, but what are
your reasons for predicting this growth spurt
at this time?
Of course, it is easy to see that this is a very
good deal with very attractive payment terms of
10% down and 90% near completion, which is
always good in a market that is as hot as
Poland’s.
I always treat any property market the same; you
must look at supply and demand and you must
assess purchasing power.
And, as always, it is so very important to deal
with a developer that has the best reputation
and the best track record. Budimex is firmly in
this category.
Now, when you look at nominal prices in
Warsaw and then look at Wroclaw and
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Krakow, say, what you find is that there is a
significant difference between Warsaw and
these other markets.
tournament is for Poland. Combined with the
strength of the economy and the confidence
created by the EU accession – which is still very
much apparent – the games have created an
enormous feel-good factor. This should not be
underestimated.
In nominal terms Warsaw is behind and yet
Warsaw has much greater purchasing power.
You look at how many square metres an average
salary in these other places can purchase you
find that it is considerably more in Warsaw. This
means property is relatively, and significantly,
cheaper in Warsaw.
When you also factor in the rise in salary levels –
especially in the construction industry, mainly
because so many skilled workers have left to
work overseas – then you have a recipe for
rapidly rising costs for developers. In some
sectors of the construction industry we have seen
salaries go up by 100% in the last 12 months.
The other thing to realise is that when you have
a market in which demand exceeds supply by a
wide margin this of course will drive prices. But
when you have a more liquid market like
Warsaw, in which supply and demand are much
more balanced, you have much less speculation
in the market.
This is undoubtedly going to drive up property
prices in the short and medium term. Warsaw
should be seen in this light. Warsaw, because of
its depth, its larger number of wealthy buyers
and the fact that it’s the biggest recipient of FDI,
is a very safe property market.
So you have price growth that is driven much
more by fundamentals.
Long term that translates into steady, but less
spectacular growth.
OK, that seems to make sense, Robert, but as a
highly experienced observer of this market, can
you translate this growth into actual figures?
But, we are going to see a burst of growth in the
immediate future, probably over the next year or
so, perhaps a little longer, of 25 to 30%, just on
the basis of purchasing power alone.
Well, yes, but let me also outline some other key
factors that will drive this growth spurt and then
I can explain how I see the property price
growth curve developing in Warsaw.
After this – and I think Warsaw is a market that
should be viewed as a long-term investment – I
think we will see steady annual growth of 10%
or so.
I think the construction programmes that are
already in the pipeline, and that will now be
speeded up because of Euro 2012, are going to
have a huge impact.
Are there any specific infrastructure projects
that will impact on this development?
Yes, there is a crucial one – the new
underground rail line.
And, of course, Warsaw will be the biggest
beneficiary of these projects, including a huge
new stadium.
Now in Warsaw there is only one line, linking
the north of the city with the south.
It’s important to realise how significant this
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this new period of accelerated growth over the
next year or so before we see prices really move
to a height where a much stronger rental market
is created. This is fairly convenient for anyone
buying into this deal, because they are going to
experience accelerated growth during the
construction phase.
The new project will run east to west and will
actually link this development to the right bank
of the river; a very, very important improvement
to the development’s location.
What about the rental market, Robert?
I’m not going to pretend about the rental market.
It is weak. This is a sellers’ market.
And also from the rental viewpoint, it is
reassuring to be dealing with Budimex because
it is very careful about how many units are sold
in any development to investors – never more
than 30%.
The reason for this is entirely according to the
pattern in which property markets develop.
When prices are rising strongly, people
predominantly prefer to buy, of course, and to
do this they will pay a considerable premium on
the cost of renting – while they can!
In fact, there were seven or eight investor groups
as well as us who wanted to come into this
development, but because we have established
a good relationship with the developer, we were
the ones to land the deal.
Naturally, as prices rise, an increasing number of
people are going to hit the affordability barrier –
they simply won’t be able to afford to buy.
So, there are a lot of disappointed people out
there already!
And we are seeing evidence of this now. I think,
though, we’re going to have to move through
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The Development:
Location
B
emowo is the eighth largest district in
Warsaw with a population of over
106,000 inhabitants. It spreads over 2,500
hectares, which constitutes 5% of the total
Warsaw area.
improved quality of life. An excellent transport
system facilitates commuting to the city centre
for young professionals and a good quality
education system is attracting young families to
the area.
There is a real sense of space in Bemowo. The
area has started to attract young professionals
and young families pushing out from the city
centre in search of bigger living spaces and
It is an extremely green, low-density area, with
140 square metres of green space per
inhabitant. Green space makes up 54% of the
total area in Bemowo and there are numerous
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lakes and parks, with the Kampinowski Forest to
the west of the district forming a natural
boundary to the city.
language learning, sport and cultural activities.
In the majority of schools, reward systems are in
place providing grants and foreign excursions to
high-achieving students. The standard of
education is high in the district as a result.
Within the district of Bemowo, there are 583
hectarres of meadows, grasslands, arable land
and orchards. An important recreation area is
Bemowski Forest, covering a total surface area
of 418 hectares. Within Bemowski Forest are
two lake reserves, the Kazimierz Łapczyński
‘Kalinowa Łąka’ reserve and ‘Łosiowe Błota’.
The standard of education in schools in different
regions can have a huge draw on people moving
into the area. The facilities that schools in
Bemowo provide and the amount of money
allocated to advancing the education system will
definitely be a stimulus for people moving to the
district. If we look at school league tables in the
UK and how property prices in regions with
high performing schools can be affected, then
this could be an indicator of house price growth
in the area.
Parks in the vicinity of Blizne Park include
Górczewska, Bemowo II and Kasztelanski
Square. Górczewska Park is located just two
kilometres from Blizne Park and Kaszetlanski
Square, which spans 26 hectares, is situated
under four kilometres from the development.
Along with 15 public schools and 19
kindergartens, the Military University of
Technology, Academy of International Relations
and Centre for American Studies are also located
in Bemowo.
There are numerous forts located within
Bemowo, including Blizne, Radiowo, Bema and
Chrzanow forts. These fortifications were built
by the Russians in the late 1800s, when presentday Poland was under Russian rule. The many
fortification ruins in the district of Bemowo are
evidence of the strong military influence in the
area. There is still a military school in Bemowo
and the Army still owns a substantial amount of
land in the district; up to 200 hectares of forestry
and land is still under Army ownership.
Travel
Blizne Park is well connected to the city centre
with the journey time of approximately 30
minutes by car. Several bus routes link Bemowo
with the city centre. The nearest bus stop to
Blizne Park is just 200 yards away on Kaliskiego
Street. A bus stop is also located on Kocjana
Street not far from the development.
Education facilities
This is going to be a fantastic location to raise
children. Not only is this an ecologically
friendly and low-density region of the city, but it
also has an excellent education system. Almost
half of the Bemowo Authority’s budget is
allocated to education and the standard of
schools is extremely high – schools in the region
are equipped with advanced multimedia
technology, libraries and sporting facilities.
There is also a lot of emphasis put on foreignBlizne Park. Please Read The Disclaimer
A tram route also links the development with the
city centre and takes approximately 20 minutes.
The nearest tram stop is on Górczewska Street,
just two kilometres from Blizne Park.
Transport links from the area will be further
improved with the building of a new metro line
linking Bemowo with the city centre.
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Why Warsaw?
• 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%.
• Warsaw is the main scientific, cultural,
political and economic centre of Poland.
• This capital city hosts the seats of
Parliament, the President of the Republic
of Poland, the government and other
central authorities, as well as numerous
embassies and diplomatic posts.
• The Warsaw property market is currently
experiencing huge growth and prices in
desired areas are continuing to increase.
• 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.
• 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.
• Warsaw is the biggest Polish city in terms
of population; there were 1.7 million
people in 2006. 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.
• Last year, the 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, please refer to our
Warsaw Investment Decision Maker.
The planned Line II of the subway will run from
Chrzanów in the district of Ursus to
Rembielinska on the eastern side of the city in
Białołęka.
announcement that Poland will co-host the
European Football Championships in 2012, it is
expected that many infrastructural projects will
be accelerated, to facilitate the demand the
games are expected to generate.
Planned stations on the line include Chrzanów,
Lazurowa, Powstańców Śląskich, Czuchnowska,
Wolska, Bema Płocka, Daszyńskiego Traffic
Circle, ONZ Traffic Circle, Centrum
(Marszałkowska), Nowy Świat, Powiśle, Praga
Centrum (Praga Port), Dw. Wileński Railway
Station, Szwedzka, Targówek, Zacisze and
Kondratowicza, terminating at Rembielińska.
The nearest metro stop from the development
will be at Powstańców Śląskich, approximately
four kilometres from the development.
Details and maps of the planned new metro
route from the city centre to Bemowo can be
viewed on the Metro Warsaw webpage.
Sports facilities
A great indicator for growth in the region is the
services and facilities already located in the area
that will attract people. Along with providing
exceptional educational facilities, the local
authorities also place huge emphasis on the
provision of sports facilities.
A completion date for the new metro has not
been made public; however, following the
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Why Poland?
• Poland will co-host the European Football
Championship in 2012. Cities that will play
host to games include Gdansk, Poznań,
Warsaw and Wroclaw with Kraków and
Chorzow listed as reserve venues.
decade with the number of households with
one or two members expected to increase
dramatically over the next 25 years.
• Only 18% of owned property is currently
mortgaged and the mortgage market is
becoming more competitive. Low interest
rates, lower bank margins and more
products on the supply side, along with
rising demand for housing in an overall
scenario of good economic growth, will
push mortgage lending up. The supporting
institutional factors are low mortgage
penetration both relative to GDP and
residential stock.
• 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.
• 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.
• Over the last 10 years the Polish economy
has been growing rapidly. Unemployment
levels are continuing to fall from around
20% in 2003 to 12.6% in 2006
(provisional Poland Statistical Office data).
• The tax provisions are favourable with
19% Capital Gains Tax if the property is
sold within five years and exempt
otherwise. There is VAT of 7% on most
new build units, but residential rental
income is tax exempt. Poland observes
double taxation treaties with all major
Western countries.
• Poland achieved the highest house price
growth in Central and Eastern Europe in
2006 according to the RICS Housing
Review 2007. The housing market is
expected to show average price growth of
an estimated 13% per year over the next
• For further information please refer to our
Poland Property Market Profile.
In the vicinity of Blizne Park are swimming
pools at Oławska Street and Brygadzistów
Street, both located approximately five
kilometres from the development.
Propagation Associations Centres. Three such
centres can be found close to Blizne Park at
Puszczy Solskiej and Raginsa Street (less than
five kilometres away) and Kaliskiego Street
(around the corner from the development).
These centres organise sports training and
events, provide the use of tennis courts,
playgrounds and exercise rooms for the locality,
and also run winter and summer sports camps
for local children.
The Military University Sports Club is located on
Kartezjusza Street around the corner from Blizne
Park. The Gas Company’s Sports Club on
Oświatowa Street and Bemowo Sports Club
(Yawara) on Irzykowskiego Street can be found
within five kilometres of Blizne Park.
Tennis courts in the area can be found at
Kazubów Street (2.5 kilometres away), Raginsa
Street (five kilometres away) and Kartezjusza
Also in the district are community run sporting
and cultural centres called Physical Culture
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Last year house prices exceeded PLN26,000/sqm
(£4,437) with the sale of Zlota 44 in the city
centre. This 44-storey building was designed by
Daniel Liebeskind and is the tallest residential
building in Poland.
Street which is just a few minutes’ walk from
Blizne Park. For the more adventurous is the
Warsaw Flying Club, located on Księycowa
Street in Bemowo.
Leisure facilities
Since the start of 2007, we have seen a levelling
off in price growth. After years of phenomenal
house price increases in the Polish capital, it
would now appear the days of extraordinary
growth in Warsaw have started to level off as we
see more stable and mature house price growth.
In the latest data published for March, Warsaw
saw a minimal increase of 0.1% with most
districts seeing moderate increases. We see this
as a maturing of the market, with strong
fundamentals supporting the continued and
stable growth of the market.
The abundance of parks, lakes and sporting
facilities in Bemowo provide residents with
plenty to see and do.
A dedicated cultural department within the City
of Warsaw is responsible for coordinating
cultural events in the district.
Among annual events organised in Bemowo are
Kindergarten Song Festivals, a Christmas Orchestra,
classical musical concerts and operettas.
Wages are high 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.
Retail facilities
A Tesco and Media Market are located on
Górczewska Street just three minutes’ drive from
the development.
Warsaw continues to attract huge FDI. The city
has the biggest concentration of electronics and
high-tech industry 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.
A Multiplex cinema, Cinema City, is located four
kilometres from Blizne Park on Powstańców
Śląskich Street.
Generally, there is a good commercial mix in
the vicinity of Blizne Park and the development
is well served with small convenience shops in
the surrounding neighbourhood.
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.
Current state of the Warsaw
property market
We estimate that Warsaw will achieve house
price growth of approximately 15% 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.
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Wola would have been regarded as one of the
least attractive districts in Warsaw; however, it is
now one of the most popular and most
expensive. The area is getting a facelift with
luxury apartments appearing in former industrial
areas and more and more developments coming
on the market.
The most expensive and desired locations in the
city are downtown, Mokotow and Wilanow.
These areas were the first to experience growth
and we are now seeing house prices in these
areas stabilise. New growth areas are emerging
in the city. To the east of the Vistula, the Praga
district, which is close to the city centre, is
seeing major renovation and is becoming
Warsaw’s cultural hub.
North of Wola, the district of Bielany is also
performing well. House prices here grew by
6.6% in March.
West of the Vistula, districts such as Wola and
Bielany have seen impressive house price
growth since the start of the year.
While both these districts have performed well,
we believe it is the neighbouring district of
Bemowo, west of Wola and south of Bielany that
will be the next growth area in the city.
There are strong fundamentals in place to
support continued house price growth in this
district over the next few years. Firstly, the age
profile in Bemowo is very young. Over 20% of
the population is less than 20 years old and over
40% under 30 years of age.
Current state of the Bemowo
property market
Supported by recent house price data, we
believe the next growth area will be located
west of the Vistula River in a district called
Bemowo. House prices have seen impressive
growth in this region lately. Looking at the
district of Wola in West Warsaw for instance,
this district experienced the highest house price
growth in Warsaw for the month of February,
when prices grew by 23.4%. A few years ago
The average age of people buying apartments in
Bemowo is 29, indicating the age profile of
people moving into the area. Over 66% of all
buyers in the market are currently
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How does Warsaw compare with
other cities?
owner/occupiers, indicating people’s desire to
live in the area.
The area is appealing to young professionals and
young families pushing out from the city centre
in search of bigger living spaces and an
improved quality of life. An excellent transport
system makes the commute to the city centre
possible for young professionals, while a good
quality education system is drawing young
families to the area.
The growth in wages, FDI and house prices that
Warsaw has witnessed is unique. 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.
In a recent survey conducted by our partner in
Poland, Rednet, it was also revealed that almost
40% of people planning to move to the district
were doing so because they wanted to live in a
bigger apartment and 27% were moving
because they wanted to live in a better
neighbourhood. Furthermore, 66% of those
interviewed said they would be interested in
purchasing an apartment on the secondary
market in Bemowo. These findings indicate a
resale market already emerging in this district.
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 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.
How does Bemowo compare with
other districts?
As part of this survey, people were asked which
district in Warsaw they would prefer. Wola,
Mokotow and Bielany featured as the preferred
three locations, again indicating the knock-on
effect that demand in neighbouring Wola and
Bielany will have on the district.
Chorlton, in South Manchester, has become an
increasingly popular alternative to city living for
young professionals. Commuting distance to the
city centre is just 30 minutes by car and buses
run frequently to the centre. The area has
become increasingly attractive to young
professionals and families, and house prices
have risen rapidly over the past number of years
as supply has not met demand.
A good commercial mix of small stores and
restaurants serves the community while larger
shopping centres are only a few kilometres from
the centre.
Having missed on development over the past few
years, the region is now seeing rapid growth. The
area is seeing an influx of young professionals
and young families moving out of the city centre
in search of larger housing and an improved
quality of life. Demand is currently exceeding
supply in the region. Properties in Bemowo are
already selling faster than the city’s average.
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propertysecrets*
Chorlton is similar to Bemowo in terms of
location and also in the leisure facilities it
provides. Chorlton is bordered by the Chorlton
Water Reserve, which comprises playing fields,
lakes, forests and natural reserves.
Resources
What you need to know
Information in Polish on Fort Blizne with images
When will the metro, linking
Bemowo with the city centre, be
complete?
Property Secrets Articles
Euro fever! Poland celebrates 2012 soccer
success, but which property markets will be the
real winners?
The planned new metro route from the city
centre to Bemowo can be viewed on the Metro
Warsaw webpage.
Line II has already been approved; however,
construction has not yet begun.
A completion date for the new metro has not
been made public; however following the
announcement that Poland is co-hosting the
European Football Championships in 2012, it is
expected that many infrastructural projects will
be accelerated to complete in time to meet the
demand the games are expected to generate.
The nearest metro stop from the development
will be at Powstańców Śląskich. The distance
from the development is just four kilometres.
Has the developer received
planning permission and building
permits?
Yes. The developer has received full planning
permission and building permits for the Blizne
Park development.
16
propertysecrets*
The Development:
Specification
T
c. Electric power – connected to city network
he finish of these units will be high. The
site will be gated with a 24-hour porter.
The development will be made up of
three multi-family buildings equipped with lifts
and underground multi-bay car park.
d. Central heating and hot water – from gas
boiler houses
2. The scope of works and finishing standard of
the building
Specification of works – apartments
a. Building construction – reinforced concrete,
plate and pillar, monolithic, poured out
1. Technical infrastructure solutions
b. Walls
a. Water – from urban network
• Silicate and reinforced concrete
b. Sewage system – connected to urban
sewage system
• Internal walls – reinforced concrete
Plan of development
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propertysecrets*
Floor plans/layout
Click here to view more floorplans
Studio
1 Bed
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propertysecrets*
2 Bed
3 Bed
• Doors to facility rooms and technical
rooms – steel
• Partition walls – Ceramic and/or
silicate bricks
f. Windows
c. Façades – thin layer plaster made on heat
insulation, local parts of façade in rustic
works, selected parts of the building finished
with lining (eg TeknoAmerBlok type) and/or
with face brick, pedestal – mosaic plaster
• Wooden and painted
• Staircases – aluminium
g. Floor finishing
• Floor in car park – concrete or concrete
pavement cubes
d. Ceilings – reinforced concrete
e. Doors
• Floors in technical rooms – concrete and/or
gress tiles
• Staircase doors – aluminium
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propertysecrets*
Windows
• Floors in corridors, staircases and common
sections – gress tiles
h. Walls
• Balcony windows and doors – timber
painted with finishing coat
• Walls in staircases and corridors – gypsum
plaster, painted
a. Balcony and terraces balustrades – steel,
painted
• Technical rooms – cement and lime or
gypsum plasters, walls of silicate blocks and
elements of reinforced concrete – without
finishing
b. Water and sewage system – plastic pipes
without end devices for sanitary receivers,
water and sewage receiving points protected
by plugs, without white finishing and
bathroom fixtures
• Administrative rooms – gypsum
plaster, painted
c. Central Heating installation – plastic pipes,
plate radiators with thermostatic valves and
heads, in bathrooms – towel rail radiators
i. Stairs balustrades – steel, painted
j. Lifts – located in each staircase
d. Ventilation installation – hybrid installation,
individual ventilation pipes for kitchen hoods
The scope of works and finishing standard of
apartments
e. Electrical Installations
Finish of external walls and ceiling
• Plaster – in sanitary rooms – cement and
lime without finishing coat or gypsum,
unpainted, in remaining rooms gypsum
plasters initially painted white
• Power installation: monophase, in kitchens
tri-phase power for electric cookers, with
electric devices
• Lighting installation without lighting fittings,
except for balconies, loggias, terraces – wall or
ceiling lighting fittings
• Internal doors profiles not plastered,
not painted
• Low-power cable installations for telephone
and television – cables brought up from
apartments to installation shaft on the storey,
remaining cables and signal provision to be
delivered by the operator
Floor finish
• In apartments – cement
• Low-power installations for interphone and
bell
• On balconies, loggias and terraces –
gress tiles
f. Individual meters for electric power, central
heating and cold and hot water
Doors
External works
• Entrance doors to apartments – full, antiburglary, C class
a. Roads, squares, pavements, garage entrances
– concrete cubes surface, ground-floor
terraces fragments – of concrete plates
• Without internal doors
b. Within the development – lawns and foliage
20
propertysecrets*
c. Dustbins – free-standing and incorporated
We have pre-agreed with a design company,
HTH, that it will offer Property Secrets’ clients
who take up the Letting and Management
Service, the final finish option and a full kitchen
installation.
d. Enclosed area
e. Lighting throughout the development
SPECIFICATION of car park and
individual storage rooms
The final finish cost is currently estimated at
PLN783/sqm (£141/sqm), excluding Polish VAT.
The price for a kitchen is currently estimated at
PLN23,000 (£4,152) (including VAT) for a 1 bed
and PLN28,500 (£5,144) (including VAT) for a 2bed unit.
The scope of works and finishing standard of car
park and individual storage rooms located in the
underground level:
a. Entrance gate to multi-bay car park – with
electric, remote-controlled gates
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 your mortgage.
b. Floors:
• In car park – concrete and/or concrete
pavement cube
• Floors in technical rooms – concrete and/or
gress tiles
Parking
• In individual storage rooms – concrete
Underground parking has been allocated to
each unit and parking is compulsory. Parking
spaces are priced at PLN19,520 (£3,523), each
including VAT.
c. Walls:
• Concrete and/or silicate bricks, not plastered
d. Electrical installations:
• Monophase, with electric devices
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 cars.
• In garage hall – carbon monoxide detection
installation
e. Mechanical ventilation
The works not specified in the Annex are to be
fulfilled by the purchaser on his/her own.
Developer
Black Finish
Blizne Park is being developed by Budimex
Nieruchomości.
Most units in Poland are sold with black finish –
this is a very basic state, without walls being
plastered or painted etc. White finish (also
known as final finish) is plastered, painted and
ready to move into. The units in Blizne Park are
offered as black finish.
Budimex Nieruchomości is part of the largest
construction holding in Poland, Budimex S.A.
The main areas of activity for Budimex
Nieruchomości are the largest cities in Poland ie
Warsaw, Kraków and Poznań.
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propertysecrets*
• Piaseczno, Zielona Street, ( Osiedle Baśniowe)
For the last seven years, it has been
distinguished by the Developer’s Certificate
awarded by the Polish Association of
Construction Employers.
• Warszawa, Łodygowa Street, (Osiedle Zacisze)
• Warszawa, Staszica Street, (Osiedle
Słoneczne), December 2004
• Warszawa, Jaworowa Street, (Osiedle Złote
Runo)
The company concentrates on the construction
of good quality properties with particular
emphasis on matching the product to the actual
trends in the market.
• Warszawa, Zawiszy Street, (Osiedle Zawiszy),
June 2005
Since July 2005, Budimex Nieruchomości has
been operating together with Ferrovial
Inmobiliaria, one of the leading Spanish
development companies, to which Budimex
also belongs.
• Warszawa, Łodygowa and Wyspowa Street,
(Osiedle Zacoisze Bis)
Property Secrets has worked with Budimex on a
number of occasions and who have always
proven themselves to be professional and easy
to do business with.
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.
For further information on the developer go to:
www.budimex-nieruchomosci.pl
The company’s financial position is very good
and Budimex Nieruchomości Inwestycje
completes about 1,000 properties a year.
The company was voted one of the best
developers in Poland in 2006. Some of its
previous developments include:
• Kraków, Sołtysowska Street,( Kompleks
Sołtysowska)
• Kraków, Jugowicka Street, (Zaułek Jugowicka)
• Poznań, Bónicza Street, (Osiedle pod
Kasztanem)
• Poznań, ( Osiedle Zielony Taras)
• Białystok, Zachodnia Street, (Osiedle
Kameralne)
• Białystok, Sienkiewicza and Fabryczna Street
• Warszawa, Sulejowska Street, (Osiedle
Sulejowska)
22
propertysecrets*
Financials
W
Mortgages
We have negotiated prices starting
from PLN273,703 (£49,405) that
have been thoroughly checked to
guarantee they reflect good value for money. We
have secured an average effective discount from
the developer of 3.8%. Furthermore, according
to our valuation, these prices are currently an
average 2.5% lower than market value. This
represents an average discount of PLN213
(£39)/sqm. With exchange deposits starting from
PLN27,370 (£4,940), this represents a very low
entry level for the Warsaw market in an area set
to experience good capital growth in the next
few years. Please use the Purchase Price
Spreadsheet for the full breakdown, and enter
your own details as required.
Typical Mortgage Terms
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, although 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.
Prices & Payments
Price component
Details
Prices range from Black
Finish including Parking PLN273,703 (£49,405) to
(where applicable)
PLN793,213 (£143,179)
and VAT
Minimum Exchange
From PLN27,370 (£4,940)
Deposit
Payment terms
10% on exchange
(14th June 2007)
90% near completion
(estimated October 2008)
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propertysecrets*
Time Frame
By
Completion
Year 1
Year 2
Year 3
Year 4
Year 5
Cash flow /
year
-12,574
-2,605
-812
-646
-479
-313
Cumulative
cash flow
-12,574
-15,079
-15,891
-16,537
-17,016
-17,329
*NB. All figures are in GBP for an average unit and include black finish, parking (where applicable)
and kitchens in year 1, service charges, insurance and all fees.
Cash Flow Projections
We estimate Blizne Park will produce a minimal
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
at relatively high interest rates have been
included in our calculations.
investors may have to fund their mortgage
repayments in the first year after completion.
Final finish and kitchens can now be mortgaged;
please speak to your mortgage advisor.
Blizne Park is due for completion in October
2008, allowing investors to enjoy capital growth
over 18 months if they do opt to draw down
mortgages after this period.
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
above for the average unit in this deal. Because
only repayment mortgages are considered,
Mortgage Contacts
BPH Bank
Justyna Marcinkowska
Residential Mortgage Manager
BPH SA
T: +48 502 357 373
M: +48 502 906 500
E: justyna.marcinkowska@bph-cbb-
Noble Bank
Jakub Krol
Financial Advisor
Noble Bank
T: +48 22 31 95 665
M: +48 66 302 1351
E: [email protected]
W: www.noblebank.pl
Rednet Finance
Anna Wacikowska
ul. 1 Sierpnia 6A,
02–134 Warsaw
T: +48 22 318 72 00
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propertysecrets*
A key feature of this deal is that we
commissioned an independent valuation of the
units on offer, by GILEWSKI PROPERTY
CONSULTING in April 2007.
Comparisons & Valuation
It must be noted that no two developments are
ever directly comparable.
The independent valuation has valued the units
in Blizne Park as follows:
The closest in terms of specifications and location
to Blizne Park are Apartamenty Kryształowa and
Świetlików and Chłuchowska Street.
Apartamenty Kryształowa is an investment by
Green House Development located in Bemowo
near Kryształowa and Muszlowa Street and near
to Górczewska Park. It has a modern, futuristic
design with a very high standard of finish. The
development is six storeys high and apartment
sizes range from 38 sqm and 83 sqm.
Underground parking is provided. This location
is superior to Blizne Park but prices are
considerable higher and possible over-priced.
Studio and 1 Bed
PLN 8,627 (£1,557)
2 and 3 Bed
PLN 8,235 (£1,487)
The independent valuation values the units in
Blizne Park higher than Property Secrets’ prices,
representing a market value discount on average
of 2.5%.
Please click here to view the full independent
valuation report
The developer, Wawel Sernice Sp. Z o.o. is
developing an 11-storey building on the corner
of Świetlików and Chłuchowska Street. Not far
from Kryształowa Apartamenty, the location is
again superior to Blizne Park; however the
standard is inferior to Blizne Park. There are 200
units in total in the development with apartment
sizes ranging from 22sqm to 117sqm.
Underground parking is provided.
Average
Price/sqm
Price PLN/sqm
Variance
Blizne Park
8,218
N/A
Apartamenty
Kryształowa
8,614
4.60%
8,573
4.10%
Development
Świetlików/Chłuch
owska
*NB. All figures in the comparables and valuation are in PLN and include black finish and VAT
25
propertysecrets*
Capital growth projection
The table below shows financial data for an
average unit in Blizne for the first five years –
assuming it will grow at the given capital growth
rate below. As we have already mentioned the
capital growth rate will be high in the first one
to two years and will gradually stabilise to a rate
of around 15% per annum on average.
We have already seen that demand currently
outweighs supply in Bemowo. Neighbouring
districts such as Wola are experiencing rapid
house price growth and we estimate that
Bemowo will also experience high growth in the
coming years.
On
Completion
Year 1
Year 2
Year 3
Year 4
Year 5
Capital Growth Rate
(predicted)
50%
24%
18%
15%
15%
15%
Property Value
146,879
182,129
214,913
247,150
284,222
326,855
Mortgage Amount
91,523
88,472
85,421
82,371
79,320
76,269
Personal Equity
55,356
93,657
129,491
164,779
204,902
250,586
Effective Gearing
62%
49%
40%
33%
28%
23%
Cash flow/year
-12,574
-2,605
-812
-646
-479
-313
Cumulative Cash
flow
-12,574
-15,079
-15,891
-16,537
-17,016
-17,329
Potential Investment
Profit
38,375
73,114
107,153
140,827
179,359
223,451
ROI
305%
485%
674%
852%
1,054%
1,289%
For the purpose of the above model we have predicted a growth rate of 50% before completion. This
is based on current house price data in Bemowo, on the market comparables and expected capital
growth. Investor returns are expected to be substantially higher than the figures we’ve quoted above.
26
propertysecrets*
We have included three predicted capital
growth rates over the next 10 years – a typical
maximum rate, minimum rate and our predicted
ROI that investors can expect to achieve during
this period.
growth will level off at 15% per annum.
For the minimum ROI, we calculated a growth
rate of 15% in the first year, until completion,
and a similar growth rate in the first year. This is
equivalent to a growth rate of less than 1% per
month during the first year and, considering the
recent growth rate in the area, we would
consider this to be the minimum return that can
be expected.
For the maximum ROI, we have taken a
maximum growth rate of 80% until completion,
which translates into a growth rate of 53% per
annum. Latest data for March 2007 showed a
3% house price growth for Bemowo and,
applying a monthly growth rate of
approximately 4%, we have calculated that
capital growth in year 1 will reach 50%. As with
emerging areas, we tend to see house price
growth levelling off in subsequent years and we
have applied growth accordingly.
After the first six years we have predicted that
The minimum ROI has decreased in subsequent
years as the market is expected to level off. After
Year 5, growth stabilises at 8% per annum, a 6%
increase per month, which we believe is the
minimum return that can be expected.
Predicted Average ROI (over 10 yrs)
8000%
7000%
6000%
4000%
ROI
5000%
Expected ROI
Max ROI
Min ROI
3000%
2000%
1000%
0%
0
1
2
3
4
5
6
7
8
9
10
Years
27
propertysecrets*
We then took the three predicted capital growth
rates and applied these to the predicted average
property value over this 10 year period.
The graph illustrates the expected property value
over the spread of 10 years and also factors in a
typical maximum property value and minimum
value over this time period.
Predicted Average Property Value (over 10 yrs)
1,600,000
1,400,000
1,200,000
800,000
600,000
Property Value
1,000,000
Expected Property Value
Max Property Value
Min Property Value
400,000
200,000
0
1
2
3
4
5
6
7
8
9
10
Years
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propertysecrets*
Where does this investment fit into
my property portfolio?
Rental Market
Summary of Rental Comparables
Size
Blizne Park prediction
PLN/sqm/month
Studio
1 Bed
2 Bed
3 Bed
52
42
38
38
This investment offers an excellent opportunity
to invest in Warsaw in an emerging district that
is set to see rapid growth in line with more
established areas of the city. Furthermore, in the
recent Rednet report, 66% of those interviewed
said they would be interested in purchasing an
apartment on the secondary market in
Bemowo. These findings indicate a resale
market already emerging in this district.
Rental figures for the area show strong growth due
to the lack of new stock in relation to demand.
Warsaw is a great longterm blue chip location.
However, not all areas
of the city are ripe for
investors due to some
very large price
increases last year.
Bemowo is becoming increasingly popular for
people moving out from the city centre and
transport links are improving the journey time to
the city centre for commuters. The trend is for
rental demand to increase as more and more
people locate to the area.
However, not all areas of Warsaw have yet
experienced the big jump in prices – but
these areas are expected to move rapidly
this year as property price growth ripples
out from the high growth areas to the new/
redevelopment areas such as Praga or
Bemowo. This is why we have high
expectations of this deal performing well in
the short term, as well as an expectation
that the city will continue to deliver great
investment returns as it develops into a
major business centre.
Rental Yield (Predicted)
The table below outlines what yields we predict
can be achieved in Blizne Park:
All units
Net Yield
Gross Yield
Min
2.50%
3.00%
Max
5.60%
6.50%
Average
4.50%
5.10%
Lastly, don't forget the football! The Euro
2012 victory means the cash will flow faster
and development projects will happen
quicker. This is great news for the 'new/
redevelopment' locations such as Bemowo.
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
Purchase Price Spreadsheet included in the
investment pack.
Neil Lewis, CEO, Property Secrets
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Unit price summary
Total
Full Key
Property Cost Total Finder’s
Ready
Internal Size (Black Finish Fee incl VAT (including
in £
+ Parking)
kitchen)
incl VAT in £
Estimate in £
Our Unit ID
Unit Type
Floor – UK
definition
1
Studio
First
32.38
49,405
3,465
64,472
2
Studio
Third
34.17
54,408
3,609
69,948
3
Studio
First
38.64
57,856
3,729
74,217
4
Studio
Third
33.85
52,343
3,537
67,740
5
Studio
Fourth
31.65
50,313
3,467
65,301
6
1 bed
Ground
49.26
69,767
4,100
88,195
7
1 bed
First
50.05
77,153
4,307
96,021
8
1 bed
Fourth
46.76
77,377
4,314
95,788
9
1 bed
Fourth
48.23
78,828
4,363
97,520
10
1 bed
Fourth
50.04
78,945
4,367
97,897
11
1 bed
First
52.3
80,841
4,383
100,154
12
1 bed
Second
56.49
87,035
4,587
107,252
13
1 bed
Third
72.34
113,078
5,244
136,619
14
2 bed
First
75.38
108,974
5,180
133,802
15
2 bed
Second
72.84
109,365
5,193
133,857
16
2 bed
Third
75.38
114,416
5,286
139,445
17
2 bed
Third
88.48
128,897
5,661
156,394
18
2 bed
Fourth
76.9
118,041
5,399
143,449
19
2 bed
First
71.46
98,846
4,917
122,688
20
2 bed
First
73.15
107,703
5,140
132,161
21
2 bed
Second
75.7
112,701
5,232
137,696
22
2 bed
Second
88.18
121,150
5,424
148,236
23
2 bed
Third
79.83
120,098
5,392
145,959
24
2 bed
Fourth
73.04
115,457
5,318
140,210
25
2 bed
Fourth
88.14
127,460
5,617
154,842
26
3 bed
Fourth
57.6
143,179
5,929
166,804
94,371
4,737
116,026
Average
30
propertysecrets*
Legal
T
he requirement to use the legal firm
TGC Corporate Lawyers is an integral
part of this deal.
understand please download The Legal
Documents.
Safety Nets
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
Risk Management for this deal
Safety net – pre-negotiated
Preliminary Purchase Contract
Contact details
Property Secrets invests large amount of time,
effort and money obtaining the best possible
terms for our clients.
Mark Malik
T: +48 22 653 3644/45/34
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.
TGC Ordowska
Kancelaria Prawnicza Sp. k.
ul. Krolewska 27
00–060 Warszawa
Polska
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.
Legal pricing
TGC will charge PLN 6,161 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
31
propertysecrets*
Safety net – late delivery penalties
Safety net – exit strategies
Strict deadlines are provided for the developer
to complete construction of the building: by
20th October 2008, to delivery of the residential
premises not later than by 31st January 2009,
and to sign the final purchase contract not later
than by 30th March 2009.
Purchasers will have the right to rescind the
preliminary purchase contract where:
a. the developer delays signing the final
purchase contract for residential premises for
more than two months, or
b. the developer delays signing the final
purchase contract for the share in the utility
premises for more than two months, or
If your property is 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. utility premises are constructed with serious
defects, which cannot be remedied and
prevent the residential premises being used.
If the developer delays 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.
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:
Safety net – construction and
internal spec guarantees
re: c. 10% of the price of the residential
premises,
re: a. 10% of the price of the residential
premises,
re: b. 10% of the price of the utility premises,
re: d. 10% of the price of the utility premises.
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.
Payment should be made within 30 days from
the date the developer is served with a written
notice terminating the preliminary purchase
contract and by providing a bank account
number into which the amounts are to be repaid.
Purchasers are also entitled to rescind the
preliminary purchase contract, not later than
three days from the date of signing of the
32
propertysecrets*
handover protocol of the residential premises, if
the surface area of the apartment differs by more
than 5% from the area specified in the
preliminary purchase contract. In the 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.
If the VAT rate changes, resulting in a price
increase of the residential premises, 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 property – comes into
force. In such a case, purchasers shall be
obliged to serve a written notice on the
developer rescinding the preliminary purchase
contract. Within 30 days from the date of
rescission, the developer should repay the
advance payments into the purchaser’s bank
account. The amounts will be transferred once
relevant accounting documents (corrective
invoices) have been signed by the purchaser.
33
propertysecrets*
Buying Process
T
There are two parts to the buying
process:
•
•
Reserving a unit
Buying a unit
At this point you pay the initial non-refundable
deposit of £1,500 (plus VAT) towards your
Finder’s Fee per unit to JoJaffa Ltd by credit card.
By Thursday 24th May 2007 you will need to
have paid the remaining Finder’s Fee, and
signed and returned the JoJaffa Agency
Agreement.
Reserving a unit
You should register as soon as possible to ensure
you have the option of 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.
Registering does not commit you to buying.
You can register for this deal by going to:
www.propertysecrets.net/register/100.html
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
[email protected]
At this stage you need to conduct your due
diligence and, in particular, contact your
mortgage broker to discuss your mortgage
requirements.
The Client Services Team is on hand to facilitate
communication between our clients and Polish
partners (ie the lawyers and developer). Richard
Davies, our Investment Director, is available on
+44 (0)7976150710 should you require any
additional information in your own due
diligence process.
You must confirm your interest in this
development before Thursday 17th May 2007.
Clients who have registered will be informed via
e-mail when confirmation is open and how to
do so.
From Thursday 17th May 2007 onwards, clients
will be contacted by phone and the units will be
released to those investors who registered first,
then confirmed their interest.
34
propertysecrets*
Buying a unit
3. The lawyers will then, via e-mail:
1. At the point of allocation, the Property
Secrets’ Client Services Team will contact you
to request the following information:
• Send Client Engagement Letter
• Send Instruction Letter
• Send POA
• Request legal fees and the transaction costs to
be paid
• name(s) of buyer(s)
• maiden name (if applicable)
• address(es) of buyer(s)
4. The client will then, in the first instance:
• names of buyers’ parents
• Prepare the POA as per the instruction letter
and return it to the deal lawyers no later than
the 7th June 2007.
• marital status
• citizenship of buyer
• passport number of buyer
• Sign and return the lawyer’s engagement letter
by the 7th June 2007.
• e-mail contact for buyer
• phone contact for buyer
• Send legal fees and transaction cost to lawyer’s
account no later than the 14th June 2007.
Please note these fees are due prior to the
signing of the Preliminary Purchase Contract.
• nationality
• correspondence address
Please have this information available on the
day of allocation.
• Pay exchange deposit by the 14th June 2007
into the TGC client account.
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.
It is very important that both the
documentation and payments reach the lawyers
on the dates noted above.
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.
Click here
to read a full
explanation
of our
buying
process.
All the information supplied will then be
forwarded to the lawyer once you have been
allocated a unit(s) and paid your Finder’s Fee
deposit(s).
35
propertysecrets*
Property Management
Services
P
• Help the Client to co-ordinate individual
payments and contracts with Suppliers.
roperty Secrets offers 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.
• 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).
Property Secrets will, for the Client’s 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 that it
will not include furniture or minor fittings).
The LCS will include sourcing and managing
Suppliers for the Client’s Units with regard to the
following:
• At its sole discretion, pay local contacts to
source and manage Suppliers on its behalf.
• 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).
• Negotiate discounts for the Client (where
possible) using the buying power of all
Property Secrets’ clients.
• Kitchen plans and proposals including
transport, delivery, installation and checking.
• Negotiate for the Client improved service
levels from Suppliers.
• Property and kitchen completion check (in
accordance with the Client’s purchase
contract).
• Oversee the day to day relationship and
delivery of services and information from the
Suppliers to the Client.
• Internal fit out proposals and quotations from
local Suppliers/developer (if required).
36
propertysecrets*
Price schedule
•White finish (if required) proposals and
quotations from local Suppliers and checking
of work.
Local Completion Service (LCS) £
•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.
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. 2nd 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.
Clients will be entitled to one hour’s
management work of modification to the
proposed fit out or white finish or other services.
Thereafter, further work will be chargeable as set
out in the Price Schedule.
Commencement & 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.
Kitchens & 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 as part of the
Local Completion Service.
Property Secrets will provide a UK helpline and
email contact for Clients during UK office hours.
Insurance
Property Secrets can obtain quotes and arrange
insurance for your unit as part of the Proxy
Landlord Service (PLS).
37
propertysecrets*
• Negotiate for the Client discounts (where
possible) using the buying power of all
Property Secrets’ clients.
Furnishing Your Unit
Property Secrets can organise furnishing as part
of the Proxy Landlord Service (PLS).
• Negotiate for the Client improved services
and service levels from Suppliers.
Service Charge
• Oversee the day-to-day relationship and
delivery of services and information from the
Suppliers to the Client.
The service charge has not been specified yet by
the developer. This will be set at the market
average at the time of handover.
• Help the Client to co-ordinate individual
payments and contracts with Suppliers.
• Advise Client on rental, resale and
management decisions.
How Will I Rent Out My Unit?
• 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.
There are, of course, a number of rental agencies
available locally, and when this development is
complete, the choice of who to appoint as rental
agency and manager will be up to the individual
investor. However, we offer a Proxy Landlord
Service which is outlined below.
The PLS set up phase will include sourcing and
managing Suppliers for the Client’s Unit(s) with
regards to the following:
Proxy Landlord Service
• Advice on whether to rent or sell the Unit.
The Proxy Landlord Service (PLS) has been
created to respond to client demand for a
service that offers a truly hands-off investment.
The service will consists of two phases; the ‘set
up’ phase and the ‘on-going management’
phase, for which there are different fees.
• Furniture plan and investment rationale.
During both phases of the PLS, Property Secrets
will:
• Source Tax Registration services.
• 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 Advice services.
• Key holding services.
• Source Local Property Management and
Property Service Advisers and providers
(‘Suppliers’) for the Client.
• Source appropriate bathroom fittings and
delivery and installation.
• Source appropriate bedroom fittings and
• 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).
• Source appropriate living room fittings and
fixtures and delivery and installation.
• Source appropriate electrical equipment and
38
propertysecrets*
viewing and negotiating rent.
• Source appropriate lighting and delivery and
installation.
• Renewal and new rental contract.
• Source appropriate outdoor furniture (where
applicable) and delivery and installation.
• Inventory prior to tenant moving in and make
out on tenant exit.
• Arrange furniture purchase, installation and
snagging.
• Holding, recording and returning rental
deposits.
• Property letting, including marketing, viewing
and negotiating rent.
• Negotiating with tenants on exit.
• Rental contract.
Price schedule
• Rental deposit.
• Inventory prior to tenant moving in and make
out on tenant exit.
Proxy Landlord
Service (PLS) Set
Up ex VAT £
• Holding and recording deposits.
PLS on-going
Management ex
VAT £
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
regards to the following:
Studio
345
293
240
120
1 Bed
395
336
240
120
2 Bed
445
378
240
120
3 Bed
495
421
240
120
• Tenant liaison (help lines).
4 Bed
545
463
240
120
• Rent chasing.
Luxury
545
463
240
120
• On-going management of let unit.
• Repair services.
• Rent collection.
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.
• Property accounting services.
• Provision of property condition reports.
• Sourcing Tax Advisors.
• Annual property balance statements.
PLS set up phase fees for 1st unit apply to the
first unit which is contracted to this agreement
by the client. 2nd and subsequent units
contracted by the client will receive a 15%
discount on PLS set up phase prices listed
opposite. There are no further discounts on PLS
fees for bulk purchase of units.
• 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,
39
propertysecrets*
PLS on-going management phase fees are £240
(plus VAT) per annum for the client’s first unit.
2nd and subsequent units from the same client
will be charged at £120 (plus VAT) per annum.
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.
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
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.
40
propertysecrets*
Who We Are
O
ur aim is to create wealth through
intelligent property investment
across Europe.
Our values:
All of us... Always with unyielding integrity...
Property Secrets is a firm of independent
analysts, commentators and deal finders that
deliver wealth creating market intelligence on
property investment across Europe.
• 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.
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.
• 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 growth.
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.
• 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; teams built from exceptional
individuals located across the world and
connected by technology and shared values.
Our market focus is Europe’s most burgeoning
cities and economies.
41
propertysecrets*
Property Secrets is a brand of JoJaffa Ltd.
JoJaffa Ltd
Rail House
Gresty Road
Crewe
Cheshire
CW2 6EA
Company No: 3881315
Richard Davies –
Investment
Director
JoJaffa Ltd
Registered Office
10-12 High Street
Barnes
London
SW13 9LW
The broker at Property
Secrets who put this
property investment
deal together is Richard Davies.
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.
T: +44 (0)1270 539 550
Richard Davies is Property Secrets’
Investment Director and a successful property
investor in his own right, with a property
portfolio worth in excess of £5 million.
Our Partner in Poland –
Robert Chojnacki
Richard is responsible for putting many of
our investment opportunities together,
negotiating on your behalf with the
developers to get you the biggest discounts
and highest returns possible.
Robert Chojnacki is our Poland property expert,
with a wealth of experience, knowledge and
contacts within the Polish market. We work
extremely closely with him to source the best
investment opportunities in a wide range of
cities within the country, providing the highest
capital growth we can find.
If you have questions about this
development please contact Richard on
+44 (0)7976 150710 or e-mail (via our
Client Service Team) at
[email protected]
He provides vast amounts of valuable,
incomparable data relating to the Polish
property market and to many companies who
seek in-depth research and analysis.
This gives him a unique and unrivalled view of
the market with both historical data and up to
the minute facts.
42
propertysecrets*
Why Buy Through
Property Secrets
O
And if you decided to source your own
investments then you would face these
additional costs:
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 Fee.
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).
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.
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.
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.
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:
4. The need to carry out your own due
diligence and market comparables.
5. The need to instruct an independent English
speaking and reliable valuer to establish the
accurate market value of the property you
are buying.
1. Pre-launch price, where applicable.
2. Preferential payment terms and prenegotiated contracts.
3. Access to the best investment units.
4. Property Secrets’ client support to exchange
of contracts – in helping to ensure the
purchase process is as smooth as possible.
43
propertysecrets*
again and again, because they know how hard
and expensive it is to source the best deal at the
best price.
Not only that, but by buying with Property
Secrets you will also gain the following:
1. Confidence in the investment and property
instincts of the Property Secrets’ investment
team and our selected local property finders.
And, not only do we source the best units on the
best deals, but we also back it up fully with
analysis, support and service as you move
through the buying process.
2. Confidence in the ability of Property Secrets
to analyse and evaluate quality investment
opportunities.
If you have any questions about our service
please contact [email protected]
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?
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
44
propertysecrets*
Disclaimer
T
WARNING: PROPERTY VALUES CAN FALL AS
WELL AS RISE. THIS DOCUMENT AND OTHER
DOCUMENTS PROVIDED ARE FOR
INFORMATIONAL PURPOSES ONLY.
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.
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.
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.
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.
GBP amounts noted within this document are
for guidance only and an exchange rate of 5.54
has been used. Please be aware that exchange
rates may fluctuate.
45

Blizne Park - Property Secrets

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