678 luxury flats, 3 commercial centres, 1 business tower in the heart of Bucharest Business Centre. Extravagant suspended gardens , location by the lake , excellent facilities and especially the attractive price make this development a MUST HAVE in every investor’s portfolio. This is an incredible investment, with a finance plan designed for the investors who seek High Capital gains (265%) and High Rental Yields (16.4%) . Location and facilities make for easy sale locally, providing an ideal exit strategy.

DUE DILIGENCE

• Planning permission- obtained;
• Construction started (early stages);
• Builder – Rotary Construct – one of the main players in Romania with excellent tracking record;
• Financing bank – BCR – the biggest bank in Romania;
• Mortgage and other financing options available (for residents and non-residents).

• High unsatisfied demand for residential properties (estimates of 300,000 units in demand and, according to National Statistic Office only 6,746 units were 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 CASE STUDY BELOW.
• Major investments in the infrastructure (Romania will receive €30billion EU investment between 2007-2012).
• Low cost carriers flights are available from major UK airports (Wizz Air, Blue Air, Easyjet).

• 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, 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);
• Proximity to Bucharest Zoo.

Development summary:

4 blocks /678 luxury apartments by the lake (7ha development) + 3 commercial centres + 1 business tower ( Colosseum Tower ) 32 - storied


Building summary:
- 4 studio flats - Built areas (63 sqm) - Price range without VAT (84,475 EUR - 87,200 EUR )
- 220 one bedroom - Built areas (75 sqm - 117 sqm) - Price range without VAT ( 103,308 EUR - 189,712 EUR)
- 370 two bedrooms - Built areas (105 sqm - 242 sqm) - Price range without VAT (162,786 EUR - 542,100 EUR)
- 54 three bedrooms - Built areas (175 sqm - 275 sqm) - Price range without VAT ( 237,654 EUR - 640,500 EUR )
- 30 Penthouses - Built areas (347 sqm - 484 sqm ) - Price range without VAT ( 846,300 EUR - 1,074,675 EUR )

Onsite Facilities:
• Apartments with:High-standard interiors with large terraces or individual suspended gardens for each apartment ;
• Business tower(32 floors glass building);
• 3 on-site commercial centres;
• Underground parking (1180 places);
• Medical and beauty centre;
• Gym Sport football court;
• Kinder garden and after-school;
• Covered/uncovered pool;
• Restaurants;
• Water sports facilities on the onsite lake;
• Large park
• Good transport links underground station, and easy car access to both central city and the motorway network.

Nearby Proximity Facilities: (1 mile radius)

• Herastrau Park (Bucharest Main Park);
• Baneasa Forest - (Popular leisure area);
• Diplomatic Club (exclusive club that has the only golf course within Bucharest, Tennis, Swimming pool)
• Bucharest Zoo;
• The Village Museum (one of the biggest tourist attraction in Bucharest)
• Frateli and Bamboo Clubs (Bucharest most famous clubs);
• Major retail centres within 1mile radius (Baneasa City Shopping);Commercial:Baneasa City Shopping, Selgros, Metro, Bricostore, Carrefour, Ikea, Feeria
• Only 10 minutes drive away from the city centre
• Business: Bucharest Business Centre,Romexpo- the exhibition centre, Casa Presei Libere
• Baneasa Airport

Option 1 Payment 1- 10% - when you sign the contract Payment 2- 20% - a year later (financing available for the financing bank - BCR) Payment 3– 70% - 15.05.2011 (mortgage available including non-residents)	Option 2 Payment 1- 10% - when you sign the contract Payment 2- 30% when the structural work is completed Payment 3- 40% (3 months before the completion) Payment 4- 20% completion
Option 3 Payment 1- 10% - when you sign the contract Payments 2- 15 % paid in 30 instalments (each month an equal fee to be paid) Payment 3 - 5% paid in the 32nd month Payment 4– 70% - 15.05.2011 (mortgage available including non-residents)	Option 4 Payment 1- 20% - when you sign the contract Payment 2- 70% in 5 instalments,representing 14% each fee/semester Payment 3 - 10% completion

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 approximately :
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 “ Belvedere Baneasa” (VAT = 19%)

- Building 1 – starting from only 1,330 €/sq meter built +Vat - Building 3 – 15% increase from Building 2
- Building 2 – 15% increase from Building 1 - 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.


Conclusion: 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.


Q/A SECTION:
Q1) Can we offer a rental service?
A: We will once a development is completed

Q2) What is the rental yield in Baneasa area, Bucharest?
A: A Communist one bedroom apartment is currently renting for €900-€1200 per month. “Belvedere-Baneasa” would probably achieve €1700-€2500 per month because is bigger, better located and with excellent facilities. In other words, assuming that you had your property completed at this moment in time, you could achieve a rental yield of 16.4% which would easily 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.