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LAUNCHING 01 NOVEMBER 2007
Located in the mountain town of Vrchlabi, this luxury project offers investors the opportunity to utilise the exclusive apartments for their holiday use throughout the year.
Perched on the Elbe river in the mountain town of Vrchlabi, this luxury project will set a distinct standard for years to come in the region of Liberecky Kraj. Only 150 meters from the historic center, this scheme will combine traditional townhouses with a modern villahouse. The town of Vrchlabi is known as the gateway to the popular Krokonose (Giant) Mountains and offers a wide variety of both summer and winter sports & cultural facilities. In addition to the new ski park which is currently under development there are also 11.3 km of downhill slopes which many do not realize is almost the same size as the larges ski of 12km.
This development is positioned to cater for the growing market of more discerning international and local travelers, offering them standards not yet common, including security parking, a laundry room, ski storage, sauna, gym and caf bar. A total of 55 units, this boutique development will be targeting the growing holiday market in the Krkonose Mountains. Only 15 units have been allocated for international sales and a presale discount of 5% is being offered on these initial units. Prices range from 45,600 50,000 CZK per sqm, with units starting from circa 1,390,600 CZK (34,765 GBP 50,560 EUR) and increases over the duration of the build cycle are expected to be 1520%. In addition to excellent payment terms with low deposit on exchange, the developer is currently in negotiations with a potential shortterm operator to sign a 3 5 yr. lease on the premises, which means that owners will have the added benefit of being able to make use of the property during their holidays as well.
What makes this development particularly interesting is the potential fallback options. Should holiday rentals not meet expectations in terms of revenue generation, investors have the option to lease out the units on a normal 1yr. lease contracts to employees of the new Skoda Car Factory that is about to undergo modernization to become a fullscale manufacturing plant for Skoda & Volkswagen by 2010. The company is investing CZK 55 billion in to it's Czech plants as part of this modernization process and the Vrchlabi factory workforce is expected to double to 3,000 personnel with a capacity to produce 200,000 cars per annum including Audis, Seats and Vokwagens. The average wage of a bluecollared worker in the Skoda company is currently 22,000 CZK, and with a current shortage of designorientated apartments in Vrchlabi, demand (both rental & resale) is expected to be very high for the units at Riverside Vrchlabi.
Investment Overview:
▪Luxury boutique holidayapartment development
▪ Located in the historic town of Vrchlabi, gateway to the Krokonose Mountains
▪ Off plan investment due to complete Q4 2009 (in time for the ski season)
▪ Local sales only due to launch Q1 2008, offmarket deal
▪ Growing tourist market both internationally & locally with a lack of supply of highend accommodation
▪ High capital growth and potential shortterm operator in negotiation for 35 yr. lease
▪ Only 15 units allocated for international sales, with a presale discount of 5%.
▪ Average unit price (including parking, storage, excl. VAT) of 1,922,000 CZK, price psqm 45,000 CZK
▪ LTV's (mortgage leverage) expected of 90%+ for nonresident purchasers
▪ No capital gains tax if held for 5 yrs.
▪ Low exchange deposit of 15%, remainder on completion.
▪ Equity requirements starting at 211k CZK (7.9k EUR 5.3k GBP29
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