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Key Features
• Exclusive discounts of 12.5% off of developers list price until Mid-June
• Fantastic investment structure; 25% deposit & nothing until completion
• 75% LTV, 30 yr mortgages are available & confirmed with low interest rates of 6.43% for first 3 years, subject to status
• Low cash investments possible, with only £12.5k cash + purchase costs
• Rapid capital appreciation ongoing and 25% to 30% expected in 2007
• Bucharest yields are healthy, averaging 4.6% net income per annum
• GDP growth rate in 2006 was 7.7%, 21% of which generated in Bucharest
• After completion (Sep 08), investments should be at-least cash-flow neutral
• ROCE over first 2 years (ask consultant for details) potentially 82% per annum
• Thorough legal diligence completed; secure contracts & ownership structure
• Developer proven with projects in the local area
• Prime location for aspiring middle classes; great road, rail & metro links, cheaper real estate prices & good local amenities
• Area undergoing complete regeneration; new shopping centres & metro stations & improving infrastructure
• Romania already receives large amount of EBRD funding & should receive €30bn in EU funding by 2013
Description
Following EU accession this January, Romania’s economy continues to surge and is now regarded as one of the strongest and most promising in Eastern Europe. In recent years, inflation has fallen from formerly astronomical levels, unemployment is low (6.5% in 2005), interest rates have been dropping and GDP is growing at a rate of 4.9%. Crucially, the country also receives significant & growing levels of FDI and enjoyed US $9.1 bn of foreign investment in 2006. Several multinational companies such as Renault, Wrigleys, Delloite & Touche and Avon as well as several reputable IT firms such as IBM, Microsoft, Oracle and Sun Systems have already taken advantage of the country’s positive economic environment and motivated educated labour pool by re-locating to the country’s main cities. Romania is also currently the highest recipient of EU Structural Funds and by 2013 expects to receive €30bn in EU funding. As a result the country’s infrastructure is improving rapidly in line with its investment potential.
Location
Bucharest is Romania’s largest city and functions as the country’s financial and economic centre producing 21% of Romania’s annual GDP. Jones Lang Lasalle has forecast that the capital is expecting the highest output growth over the mid-term ever registered in E-REGI history (European Regional Economic Growth Index), with capital growth of 30% predicted for 2007. The capital also functions as an important tourist destination for the Romanian economy. Renowned for its wide, tree-lined boulevards, glorious Belle-Epoque buildings and a reputation for the high life, Bucharest was once known as the ‘Little Paris of the East’. East of the city centre, Pallady Residence is located in one of the city’s most promising districts, an area of ongoing regeneration with new shopping centres and metro stations currently under construction. With schools, parks, a hospital, various commercial and residential developments and great transport links (highways and subways) this is a prime location for the aspiring middle class. Also of extreme importance nearby is located Southeast Europe’s largest logistics zone, where companies such as Europolis and Prologis have large warehouse allocations due to the nearby port of Constanta. Constanta receives large trade from across the Black Sea (doubling each year) and the majority of stock is transported directly to this logistics centre on the eastern outskirts of Bucharest.
The Properties
Pallady Residence price, finish and location is aimed directly at the aspiring middle classes of Bucharest, and those priced out of Bucharest city centre. Comprising of three buildings, the total number of apartments will be 134 on six or seven floors, with 124 underground car parking spaces on basement level extending under both buildings. All buildings are designed with the top floors to be set back to provide terraces. All apartments, except the studios, will have a balcony or terrace/loggia. Apartments will range from 41sqm studios up to 110sqm 2-bedroom apartments and will be delivered to a “white finish” specification. A furniture pack option will be available to foreign investors looking for a hands-free investment. Each apartment comes with 1 underground parking place allocated.
Amenities
• 5 minutes from city’s main underground line
• 1 underground parking space for each apartment
• Delivered to a “white finish” specification
• All apartments apart from studios have balconies
Prices
Studio Apartments from £51k
1 Bed Apartments from £74k
2 Bed Apartments from £94k
Payment Schedule
• 25% on reservation
• 75% on completion September 2008 (mortgage available & confirmed subject to status)
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