Rezidenca Ime Tirana - Albania Acquisitions

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					      ALBANIA
             Europe's last frontier



REZIDENCA IME
    DEVELOPMENT
                TIRANA
               High Capital Growth
Twenty Four 2 bedroom Apartments for sale




    REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA   1
Table of Contents
Highlights of the     exé|wxÇvt \Åx                Development             3




Introduction to     exé|wxÇvt \Åx                Development               4



Mortgages                                                                  6


10 Reasons to Invest in        exé|wxÇvt \Åx                               7



Information about Albania                                                  10



Why Albania?                                                               13



About the Developer                                                        15


About   exé|wxÇvt \Åx                                                      16



Floor Plan – Example of Apartment 17                                       17

Payment Schedule & Post Completion Service                                 18

Price List & Investment Scenario                                           19

Legal Service                                                              20

Questions and Answers about Property Investment                            21

In Albania



Exit Strategy                                                              22

Reservation Form                                                           23

Terms & Conditions                                                         24

[assistance with the production of this brochure has been associated with 360 Degrees shpk]


         REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                2
[|z{Ä|z{àá Éy à{x exé|wxÇvt \Åx WxäxÄÉÑÅxÇà
 • Low Price                 Two bedroom apartment from Euros

   37,065. This works out at only Euros 550 per m²

 • Spacious Size             Two bedroom apartment starts from

   68.43² or 736.57ft² and go up to 116.62m² or 1,255.18ft²

 • Financing                 Available on this development

 • Location                  Just 2½ miles from the City Centre

 • Property Management and Rental Service

 • Stable Local Demand       Perfect for selling on to locals

 • Quality Development       Developer has a solid track record

   stretching 5 years

 • Apartments                24     choice    apartments   reserved

   Completion                December 2008



 Reserve an apartment in this quality development for just Euros

 3,000.00




     REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA    3
      A r tist I mp r e ssio n o f Re z id e n c a I me De ve lo p men t, Ka sh a r Distr ic t, Tir a n a – fr o n t vie w



Introduction
O               ur busi n ess i s oft en a sked h ow t o i den t i fy n e w a r ea s t o i n vest i n t o.        On e of t h e ke y
                cr i t er ia we h a ve i s t o ful l y un der st an d th e t r i gger poi n t s wi t h in th e m ar ket pl a ce t h a t
                spur dem an d. Wi l l th er e be gr owt h in th e m ar ket? Wh o i s goi n g t o bu y your pr oper t y t o
en a bl e your exi t ? Ar e t h e e c on om i c fun da m en tal s i n pl a ce t o en sur e sust a i n a bl e gr owt h ? Ar e you
a bl e t o bu y a t bel ow m a r ket va l ue an d l ock i n your pr ofi t ?

As a boom i n g ci t y of 800, 000 pe opl e or 15% of t h e t ot a l popul a t i on of t h e c oun tr y, T i r an a an swer s
m an y of t h ese qu est i on s si m pl y a n d qui ckl y. T h er e i s a t r em en dous dem a n d fr om l oca l s i n a
pr oper t y m a r ket th a t i s un der suppl i ed. Th i s i s for ci n g pr oper t y pr i ce s sk ywa r d. Th e n eed for
a par t m en t s a l so st em s fr om a m ar ket th a t up unt i l r ecen t l y h a s h a d n o a cces s t o m or t ga ges. Can
you i m a gi n e bu yi n g i n Lon don wi t h out a m or t ga ge? Al l t h a t h a s ch an ged in T ir ana a s m or t ga ge s
h a ve bec om e a va i l a bl e a n d we wa n t t o be t h er e to m a ke t h e m ost of i t !

We bel i e ve we h a ve a dea l wh i ch t i cks th at box, a l l owi n g you t o get i n t o a m ar ket at th e begi nn ing

of t h e c ycl e.   exé|wxÇvt \Åx WxäxÄÉÑÅxÇà i s l oca t ed i n th e Ka shar Di str i ct of
T ir an a, Al ba ni a an d con si st s of 104 uni t s of wh i ch 32 ha ve be en secur ed for In t erna t i ona l
In vest or s. We h a ve excl usi vi t y i n sel l i n g 24 t wo bedr oom spa ci ou s a pa rt m ent s wi t h in th i s
de vel opm en t . Th e r em a in der wi l l be s ol d t o t h e loca l m ar ket . It i s bei n g desi gn ed for th e gr owi n g
m i d-m ar ket sect or of t h e r esi den t i a l mar ket . Th e de vel opi n g ec on om y h a s cr ea t in g a ra pi dl y

               REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                                    4
em er gi n g m i ddl e cl a ss. Th i s em er gin g mi ddl e cl ass i s l ooki n g t o i m pr ove t h ei r st at us by m ovi n g
i nt o n ewer h i gh er st an din g a part m ent bui l din gs.

Un i t pr i ces st a r t a t onl y €37, 065, wh i ch i s a n en tr y pr i ce of €550 p er m ² an d pr oduc es a gr oss
yi el d of ci r ca 7%. Mor t ga ge fi n an ce i s a va i l a bl e a n d th i s i s t h e on l y m a r ket in th e r egi on wh e r e
you ca n a l so obt a i n In t er est On l y fi n an ce! In a ddi t i on, T iran a i s exper i en cin g str on g pr oper t y
gr owt h . As a m a t t er of fa ct , pr oper t y i n t h e l a st 5 yea r s h a s dou bl ed i n va l ue. T h i s gr owt h i s bei n g
dr i ven an d suppor t ed by dem ogr a phi c m a ke up an d m ovem en t a s wel l a s s oun d ec on om i c i n di ca t or s
wh i ch wi l l be expl a i n ed l a t er in fur th er det a i l.




Wi t h Al ba n ia ’s pl a nn ed E U a cc es si on by 2014, t h e c oun tr y i s cur r ent l y g oi n g t hr ough a per i od o f
pol i t i ca l a n d ec on om i c r e for m s, desi gn ed spe ci fi ca l l y t o sh r ug off n ega t i ve p er cept i on s, i n cr ea se
t h e st an dar d of l i vi n g, im pr ove i n fr a str uct ur e, and a t tra ct h i gh er l evel s of for ei gn in vest m en t .

So fa r i t ’s wor ki n g – GDP h a s gr own by a r oun d 6% p. a. - h i gh er th an th e E U a ver a ge for t h e past
t hr ee yea r s; th e E U h a s com m i t t ed m or e th an €11 bi l l i on t o t h e coun t r y t o a i d i n fra st r uct ur e an d
a ssi st i t s a cc es si on ; a n d for ei gn dir ect i n vest m e n t gr ew four fol d i n on e yea r t o US$2. 1 bi l l i on l a st
yea r .

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               REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                                      5
Mortgages

T                   he lend ing in dustr y is r elat ivel y new in Albania, however ther e ar e 17 banks n ow
                    oper ating in the countr y with 15 of them of f er in g mor tgages. Th e entr ance of the
                    ‘bigger ’ west er n names such a s Ra if f eisen B ank, So ciete Gener ale, I ntesa Sa n
Paolo … etc have playe d an impor tant r ole in the availabili ty of a wide and competit ive r ange of
pr oducts compar able to the west er n standar ds.




M or tgages will be of f er ed and f ac ilitate d by ou r B usiness Par tner , 360 D egr ees. 360 D egr ees is
the f ir st and the onl y mor tgage br ok er age s er vice compan y in the mar ket . The co mpany is
independent and wor ks with al l the banks in t he countr y that of f er mor tgages f or inter natio nal
customer s, se cur ing the best deals availab le f or investor s. 360 D egr ees has extensive exper ience
in other C entr al and Easter n Eur opean mar kets includ ing wor king with f or eign investor s which i s
r ef lected in its lo cal oper ations .


Ter ms of f er ed ar e quite sim ilar to th e r est of t he Eur opean mar kets w ith inter es t r ates star tin g
f r om 7% in Eur os and loan to values as high as 80%. M or tgage tenor s fr om 15- 25 year s ar e
available . O ne ma jor adv ant ag e of this m arket is th at Interest O nly mortg ag es a re
avai la ble .


M or tgages ar e available to employe d and self e mploye d cli ents. The ent ir e mor tgage applicati on
pr ocess can be comp leted w ithout the need of you visit ing Albania, unle ss you want to, via an
online appli cation f or m.




                REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                6
10 Reasons to invest
                                                      3.       Tax Benefits
in Rezidenca Ime                                      On top of an already superb deal, you enjoy the
                                                      best possible tax environment. There is no VAT
1.      Entry Level Price s                           payable on investment property nor is there any
Prices start from just €37,065. This works out at     inheritance tax. Furthermore, all growth goes
only €550 per m². This is relatively cheap,           straight into your pocket as there is no capital
considering that property prices in capitals such     gains tax either.
as Bucharest [Romania] and Sofia [Bulgaria] range
between €1,600-2,400 and €1,250-2,250 per m²
                                                      4.       Plan ned        NATO              an d        EU
respectively. The prices are a third of what they
are in the Center (the prices in the Center reach     Accession           –   Scope        for         definite
as high €2,500 per m² and are not lower than          Investment
€1800 per m²). Our research indicates that this       Albania is joining NATO next year with EU
development, in the short term, will benefit from     accession planned by 2014. The EU is very keen
the “ripple” effect and thus the capital gains will   on embracing the Balkan countries and is already
exceed the average growth rates in the city.          investing in the local infrastructure – more than
                                                      €11billion of EU money has been committed to
2.      Early market entry – make the                 Albania over the next six years, in preparation for
                                                      the country’s accession.
most of growth
Entering at such a low price level and at an early
stage of the market cycle will allow investors to
                                                      5.       Chan gin g Demographic s– youn g,
make the most of the high capital increase            upwar dly mobile citizen s
forecasted for the region. Property professionals     Tirana’s demographics are changing – more young
in the area are conservatively predicting capital     professionals and families are looking to buy their
growth will continue at a level of 10% per annum      first   homes.      Increasing    salaries       and   the
- but with international interest growing, this is    introduction of mortgages will enable a whole
set to accelerate rapidly.                            new section of the population to get on the
                                                      property     ladder.     The     Tirana    City    Center
                                                      Masterplan        was   drawn      by      the     French
                                                      “Architecture Studio”. The main aim of this
                                                      project for Albania off plan properties is to
                                                      preserve the historic heritage and to combine
                                                      high    quality   architecture    with    carefully    and
                                                      modern renovated historic buildings. Only four or
                                                      five years ago, Tirana was a rather unpleasant site.
                                                      Now a light, beginning awakening is discernible.
                                                      With the help of institutions such as the CEB for
                                                      example, the reconstruction is begun according to
                                                      the master plan. Streets and underground car
                                                      parks are built, the public traffic is built (again)
            REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                  7
and the historic city centre, once the meeting            •    The development in question is set back from
point for the generations, is to be revitalised. The           the main road creating almost a “cul de sac”
master plan even pays attention to the city’s                  feeling which provides a safe environment for
skyline. A number of so-called towers – matching               families.
the historic heritage – will be built around the
main square of the city and some towers will be
                                                          7.       Accessibility to Europe
built in the northern part of the historic city
                                                          European budget airlines already fly to Tirana, as
centre, which becomes a new housing area.
                                                          do BA, Lufthansa, Austrian Air and Malev. With
People will work as well as live in these towers.
                                                          the extension of Tirana’s international airport
There is no doubt about how necessary it is to
                                                          complete, undoubtedly the likes of EasyJet will
realise this master plan.
                                                          follow. When you consider the price growth
                                                          witnessed further along the coast in Croatia and
6.       Kash ar – Next Urban Hotspot!                    Montenegro, the market in Albania can only go
Building permits to build in the center of the city       one way – up.
are quite limited. In fact during 2007 there has
been absolutely none issued. The new urban plan
aims at creating a sharp distinction between
residential areas and the industrial ones which is
giving the city a new shape and face.         Kashar in
this plan is a purely residential area.


Further to that there are a number of other
advantages to the area:
•    The city connects to the other towns via
     three main roads: one that leads to the south,
     through the Elbasan road, one that leads to          8        Internal Migr ation
     the north through the Kamza town and one             Tirana has more than tripled its population
     that leads to coastal Durres through the             number in the last 15 years (from 250,000 in the
     Durresi road. Kashar is located in neither of        early 90-ies to over 800,000 in 2006 and this
     these major routes which means it will not           number is still growing.     This sharp increase
     suffer    the   heavy   traffic   of   Monday   or   results mainly from a very rapid movement of
     Weekends.                                            people from the smaller towns to Tirana (the
•    “Rezidenca Ime” is only 15 minutes from the          Capital) where the opportunities for high paid
     center of Tirana.                                    jobs are better and the variety of professions
•    “Rezidenca Ime” is only 20 minutes from              available is greater. In fact Tirana is now home to
     Tirana International Airport.                        numerous International Companies which opens

•    “Rezidenca Ime” has become the next spot             new windows of opportunities for the average

     for the average Albanian family which means          young educated Albanian citizen.

     that the opportunities to find tenants are
     better.


               REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                             8
9         Public Administration
The size of public administration has a big share        EUROPE’S LAST
of the total employment market (with respect to
the total employment size of the country) with           FRONTIER
more than 200,000 employees most of which                “The country has a balmy southern
reside in the capital. It is this strata which also      Mediterranean climate, mile after mile
makes up for the typical average family in Tirana        of undeveloped beaches and crystal-
that dictates prices in general including the            clear water, and some of the lowest
average residential rental prices.                       house prices in Europe: in short,
                                                         everything to give it the potential to
                                                         become the next stop of the intrepid
10        Student Accommodation
                                                         property investor.”
Tirana University is the biggest university in the
                                                         The Sunday Times
country and this year saw more than 4,500
students register. This number coupled with the
growing     trend   of     newly      opened   private
universities, we predict, will boost the student
population close to 6,000 individuals. Areas such
as Kashar are becoming more and more attractive
for this target group of the rental market.




                                                         Photo of the construction – November 2007



              Un ive r sit y o f Tir a n a




             REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                       9
Information
about Albania
                   lbania not only has a fascinating


T                  and     mountainous      natural
                   environment but also a very
rich culture. Through the ages, the country has
been ruled by different people who all left their
mark on the culture. The climate in this Southern-
European country is sunny and warm.
                                                       Some of the most important monuments are: the
                                                       Palace of Culture with its concert hall, the
Tirana, once the capital of the most isolated
                                                       Mohammed Dashi mosque and the Museum of
country in Europe, is slowly being transformed
                                                       National History.
into a city with a relaxed Mediterranean feel.
During the communist era the city expanded and
                                                       The main road of Tirana is Rruga Bajram Curri.
became a major industrial centre. This same easy-
                                                       Alongside this street are charming old houses that
going style now pervades the whole country,
                                                       date from Ottoman times. Over the River Lana
especially the beach resorts of Durres and
                                                       river stretches the Tanners Bridge, built in the
Saranda.
                                                       18th century. Furthermore, one can visit the
                                                       Petrela castle (Greek-Roman times). This castle
                                                       dominates the traditional houses clustered on the
                                                       hill below in the museum cities of Berat and
                                                       Gjirokastra. In the south, Saranda's whitewashed
                                                       houses   on   the   slopes   surrounding   the   bay
                                                       resemble the apartments on the Greek islands.




Cityscape
Tirana, with its mix of Italian, Soviet and Ottoman
architectural styles is overlooked by the statue of
Mother Albania, an example of socialist realism
art at its best. The heart of Tirana is Skanderberg
Square where the business centre of Albania is
situated.




            REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                              10
Landsc ape
Swim in the Ionian Sea on the Albanian Riviera,
where olive-clad hills sweep dramatically down to
the sea.




                                                      Eat & Drink
                                                      Albanian food is organic and seasonal, so don't
                                                      expect to find summer vegetables, such as okra,
                                                      available in the winter. Very satisfying is baked
                                                      lamb with yoghurt and Burek, filo pastry filled
Trek or mountain bike through the Albanian Alps       with meat, cheese or vegetables. Cold yoghurt
in the northeast and be welcomed into the homes       and cucumber soup is refreshing in the very hot
of the people who live in this remote region.         summers.   Vast    amounts   of   raki    are   drunk
Admire the wild beauty of Mount Tomorri.              together with strong, sweetened Turkish coffee.


Take Home
Albanian rugs reveal their Ottoman influence with
vibrant colours and intricate patterns. Delicate
filigree silver jewellery is a tempting gift from
souvenir and jewellery shops. Visit the old bazaar
in Kruja for a small selection of souvenirs
including    engraved   copper   ware    and   wood
carvings. Buy home-made raki from the market in
Tirana. International shops can be found at the
few small shopping complexes that have appeared
in Tirana.                                            Public Holi day s
                                                      New Year (1/2 Jan), Greater Bairam Festival (Jan),
New Per spective                                      Labour Day (1 May), Lesser Bairam Festival (end

Venture into the mountainous northeast where          of   Ramadan),    Independence    Day     (28   Nov),

there is a fledgling industry in guided treks,        Liberation Day (29 Nov), Christmas (25 Dec).
mountain biking, kayaking and rafting.




             REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                            11
Weather                                               GMT
Central Albania and the coast experience very hot     GMT + 1 (GMT + 2 from last Sunday in March to
35°C plus, dry summers and mild, damp winters.        last Sunday in October).
The mountainous northeast is cooler and in the
winter there is snowfall, which frequently cuts off   Albania Tourist Info
some    communities    for   many    months.   Air    Albanian Tourism website
conditioning is the exception rather than the
norm.
                                                      Fit In
                                                      When Albanians nod their head, they aren't
                                                      agreeing with you – quite the opposite. A nod of
                                                      the head means ‘no' and they shake their head for
                                                      ‘yes'. Many a visitor has come unstuck because of
                                                      this, thinking they are agreeing to an offer of a
                                                      drink, only to find the waiter walking away. To
                                                      make it even more confusing, Albanians used to
                                                      dealing with foreigners try to be helpful by
                                                      nodding for yes and shaking their head for no! It
                                                      is always worth checking what exactly is meant.


Electricity
220V AC, 50 Hz, two-pin plugs are standard.


Dialling Code
+355 (national).


Money
Currency is Lek




              REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                          12
                                                             Defined Master Plan
Why Albania?                                                 Unlike Croatia, there is a well defined master plan

                 lbania     suffers      from    negative    for urban development, with clear build guidelines


A                stereotypes of being a backward,
                 mafia-ridden country and has not
yet become a property hotspot. Given the current
                                                             such   as    build
                                                             floors/maximum
                                                                                     density
                                                                                  build
                                                                                                 and
                                                                                            height.
                                                                                                         number
                                                                                                        The
                                                             process is more straight-forward, with a location
                                                                                                                    of
                                                                                                              planning


trend of UK and Irish property investors buying in           permit granted in 45 days and a full building

Eastern Europe, there are a number of compelling             permit 45 days after that. Therefore a developer

reasons    why   it   worth     looking     beyond     the   can start to build approximately 3 months after

stereotypes and investing in the Albania property            planning application, not three years as has been

market    now.    Albania     is      surprisingly   more    the case in Croatia.

advanced in its real estate offer to the foreign
investor than its more fashionable neighbours,               Availability of Financing
Montenegro and Croatia.                                      There is a highly competitive mortgage market
                                                             with 17 foreign banks operating in Albania (there
Clean Titles                                                 are no local banks left). The 100% mortgage for

Clean title deeds are a concern when buying                  the local market has just been launched. Foreign

overseas and many foreign buyers have been                   non-residents can form an Albanian company and

duped     into   buying     unclean       properties   by    leverage up to 70%, a clear advantage to investors

unsuspecting agents in countries such as Croatia.            over Montenegro and Croatia.

This does not happen in Albania as the title is
guaranteed by the public notary. The process of
restitution is ongoing where land confiscated by
the Communist regime is being returned to its
original owners. The process is expected to be
completed by the end of 2008.




                                                                 Rezidenca Im e offers financing o n completio n



                                                             Tax Incentives
                                                             The government is pro-active in enticing and
                                                             supporting    foreign        investment.    There     are
                                                             numerous tax incentives which make investing in
                                                             Albania an attractive proposition. There is no
                                                             capital gains tax on private purchases and a five-
                                                             year tax holiday for foreign investors.



             REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                         13
Improvement of Infrastructure
There     is     a    major     ongoing      upgrade      of    The international airport in Tirana has recently
infrastructure in the country which will connect                undergone a major extension and refurbishment
the country to Europe and increase its strategic                and road infrastructural improvements are well

importance. Two main motorways are planned –                    underway, which will make Albania’s spectacular
the so-called Dalmatian Corridor which will link                coastline far more accessible, as early as next

Greece to mainland Europe through the former                    year.
Yugoslav coast. This will pass close to the entire
Albanian coast. The second motorway is the so-                  Tourist numbers are already rising steadily in the
called Corridor VIII which will link the port of                country. In 1997 only 119,000 foreigners visited

Durres    to     Macedonia,     Greece      and   Bulgaria.     Albania. This increased to 353,000 in 2001,
Durres is already an important port for Bulgaria                further increasing by nearly 100,000 per year
and the Black Sea area. A €50 million new airport               since. By 2004 this figure had grown to a healthy
terminal opened in Tirana in March 2007. British                645,000 international tourists.

Airways already flies direct three times a week.




                                                                EU Acc ession
                                                                Albania   signed   the   SAA      (Stabilisation   and
    Mother Theresa Internatio nal Airport, Tirana               Association   Agreement)    in    June    2006.    This
                                                                marked the beginning of a new phase in the EU’s
Growing Tou rism Marke t                                        relations with the country, paving the way for EU

Sharing    the       Adriatic   coastline    with      Italy,   membership. With accession earmarked for 2014,

Montenegro and Croatia, it is no surprise that                  the delegation of the European Commission in
                                                                Albania has allocated a finance package or IPA
Albania is becoming more popular as a tourist
                                                                (Instrument for Pre-Accession Assistance) of
destination. Already quite established as an
                                                                €11 billion from 2007-2013.
Italian tourism destination, coastal Albania has
also begun to attract other European interest.
                                                                This is a huge commitment towards Albania’s
Sixteen thousand Brits currently visit the small
                                                                accession and an explicit expression of the EU’s
Mediterranean country each year and with
                                                                intention to bring the country into the fold. When
direct BA flights to Tirana and the perception
                                                                you consider this huge financial commitment by
of the country on the up, this figure is set to
                                                                the EU and how the accessions of Bulgaria and
grow.                                                           Romania were fast-tracked this year, everything

               REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                        14
suggests accession will happen for Albania and
that it may happen sooner rather than later.           About the
No Restrictions on Foreign Resi denti al
                                                       Developer
& Commercial Property Owner ship
Apart from land ownership, foreigners can freely       “SO N ” ltd was established in 1994 and is
own residential and commercial property in             consid er ed one of the best constr uction
Albania. Furthermore, they enjoy all the same tax      companies in the mar ket due to its h igh
benefits as the locals do – no VAT, no capital         quality       standar ds     and    it s      pr of essional
gains and no inheritance tax. Even the 3% stamp        exper ience a cquir ed in the last 13 year s of
duty is payable by the seller.                         oper ations. The f ounder of the company is a
                                                       well known eng ineer and ar chite ct that has
                                                       par ticipated in a number of str ategi c nationa l
                                                       investmen ts.


                                                       The      co mpany    has     exten ded       its        pr ojec ts
                                                       ( mainly of its ar chitectur al stud io) in other
                                                       countr ies as well with the most signif i cant
                                                       wor ks being d one in Gr ee ce, Santa D om ingo
                                                       and I taly.


                The Pyramid, Tirana                    SO N      Shpk    has      extensi ve      exp er ience        in

Emerging Market – Hotspot                              r esidential and co mmer cia l build ings with its

Boasting the same spectacular Adriatic coastline       latest    r esidentia l    devel opments           in     Tir ana
                                                       C enter and D urr es all of which have alr ead y
as Croatia and Montenegro, Albania represents
one of the last chances to have a slice of this part   sold out. SO N shpk has build in a number of
                                                       other cities and town s of Albania includ ing
of the world at a fraction of the cost. With prices
in some parts of Montenegro and Croatia soaring        its most r ecent r esident ial vi lla comp lex in

to around €10,000 per m², affordable property          L ez ha, and a C ommer cial B uilding in Elbasan.

along this stretch of coastline is becoming scarce.
                                                       SO N shpk has build over 20 buildings dur ing

Politically the country is far more stable than it     the last 5 year s an d its oper ation s susta in

was a decade ago and economically Albania              the same quality they ar e r enowned f or .

continues to grow at a steady pace and is
attracting solid foreign capital. The investment
story is easy to see – don’t you wish you had
invested in Croatia and Montenegro four years
ago?




            REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                      15
About Rezidenca Ime                                             Bedroom
                                                                Infrastructure for Air conditioning and heating*
The developer has a reputation for quality construction.

                                                                The property benefits from Double Glazing and
The property will be finished as follows:
                                                                also Sun Shutters on the exterior. The common
Bathroom                                                        areas will also have an elevator and in the event
*         Walls: Tiled with quality Italian or Spanish tiles    of a power shortage separate power generator to
to a height of 2.2 Meters                                       power the said and the common area lighting.
*         Floors: Tiled with quality Italian or Spanish tiles
*         Walls: Painted white                                  Brief power shortages are a common occurrence
*         Ceiling: Painted White                                in Albania, however not all properties have a
*         Extractor fan operated through the on/off             generator, so this is a strong letting benefit for
switch.                                                         the property.
*         Light
*         Toilet
*         Sink
*         Shower Cubicle. (It is usual in such a
development not to have a bath tub)
*         Taps
*         Bide


Kitchen
                                                                Image of bed ro om – n ot ref lected in thi s dev elopm ent
*         Walls Tiled at worktop height up to shelf level.      *We recommend that an Air Conditioning Unit (which als o

No Kitchen (but available upon request)                         heats) is installed in the property. These are relatively low
                                                                cost.
Plumbing and Electrics installed

                                                                Installation s
                                                                Kitchens are not included in the purchase price. A
                                                                choice of Kitchens will be available and arranged
                                                                by the developer and our business partner, the
                                                                cost of which can be included in your mortgage.


                                                                Furniture packs will also be available to Investors,
                                                                though these cannot be included in the mortgage.
Image of kitche n – not refl ected in t his devel opme nt

Lounge/Living Area                                              As stated above, we recommend the installation
*         Infrastructure for Air conditioning and               of Air Conditioning Units (which also heats) is
heating* – remember this is a Mediterranean                     installed in the property.
country!
*         Telephone and TV sockets                              We recommend client’s budget €3,500 including
                                                                VAT and installation for the above.


                 REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                         16
Example of Floor Plan for Apartment 17




    REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA   17
Payment Schedule
The Reservation Fee for an apartment in Tirana is €3,000 payable for every individual reservation made.



                 Timing                         What For                  Amount
                 Immediately                    Reservation Fee             €3,000
                 On contract 14-28 days         Legal                     Approx € 800
                 On contract 14-28 days         First Stage Payment       40% of price
                                                Second Stage              30% of price [payment can be
                 On contract end May ‘08        Payment                   financed via mortgage]
                                                                          30% of purchase price
                                                                          [payment can be financed via
                 Completion [Dec 2008]          Final payment             mortgage]



As can be seen above , 60% of the pur chase pr ice can be f unde d via a mor tgage. H owe ver 80%
loan- to- value pr oducts ar e availabl e and if r equir ed you can incr ease your mor tgage on
complet ion to 80%.



      Property Set up costs & all other costs involved including bank fees & taxes
      Income Tax (from rental income if the property is given for rent)                                     10%
      Capital Gains Tax                                                                                     10%
      Property Management Fee – common parts                                                                TBA
      Lawyer’s fee                                                                                         €800
      Kitchen and Furniture                                                                              € 3,500
      Mortgage Brokerage Fee                                                                               €500
                                                                                                     Up to 2% of
      Bank Mortgage Fees                                                                            loan amount
      Valuation Fee                                                                                        €100


Post Completion and Rental Service
On Completion of the property and prior to the final payment being made, our preferred business partner
360 Degrees shpk will complete a “Snagging” survey of your property. They will ensure the unit has been
completed to an acceptable quality and is ready for habitation. This will also include ensuring your kitchen
has been installed, the unit thoroughly cleaned and your furniture pack installed.


360 Degrees will manage the letting of your property. They also recommend that you avail of their property
management service too. They will ensure rental payments are made on time and in full; they will manage
the payment of any utility bills, building management charges and take care of the up keep of your property.


The fee for their Post Completion Service and the letting your property is €400 + VAT. The ongoing
management of your property is charged at 10% plus VAT of the monthly rent.




            REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                           18
Price List
We have secured 16 two bedroom apartments for sale in this development:

                                                          1st Stage        2nd Stage         Final Stage
 Building   Floor   Apt   Size in    Size in   Price      Payment          Payment            Payment
  Nbr       Nbr     Nbr     m²       feet²      in €       40% of           30% of             30% of
                                                        Purchase Price   Purchase Price
                                                550          [€]              [€]         Purchase Price [€]

    B               14    106.78    1,149.37   58,729      23,492           17,619             17,619

                    15    116.62    1,255.29   64,141      25,656           19,242             19,242

                    16    88.38     951.31     48,609      19,444           14,583             14,583

                    17    90.83     977.69     49,957      19,983           14,987             14,987

                    20    88.38     951.31     48,609      19,444           14,583             14,583

                    21    90.83     977.69     49,957      19,983           14,987             14,987

                    22    105.78    1,138.61   58,179      23,272           17,454             17,454

                    24    88.38     951.31     48,609      19,444           14,583             14,583

                    25    90.83     977.69     49,957      19,983           14,987             14,987

                    28    88.38     951.31     48,609      19,444           14,583             14,583

                    29    90.83     977.69     49,957      19,983           14,987             14,987

                    32    88.38     951.31     48,609      19,444           14,583             14,583


    A        5      18    72.20     777.15     39,188      15,675           11,756             11,756

             5      20    68.43     736.57     37,065      14,826           11,119             11,119

             6      22    71.37     768.22     39,254      15,701           11,776             11,776

             6      24    70.20     755.63     37,895      15,158           11,369             11,369

             7      26    72.97     785.44     38,715      15,486           11,614             11,614

 Defined
   A         2       5    83.45     898.25     45,898      18,359           13,769             13,769

             4      15    94.86     1,021.06   52,173      20,869           15,652             15,652

             5      19    93.41     1,005.46   51,376      20,550           15,413             15,413

             6      23    93.41     1,005.46   51,376      20,550           15,413             15,413

             8      30    71.25     766.93     39,188      15,675           11,756             11,756

             8      31    93.41     1,005.46   51,376      20,550           15,413             15,413

             8      32    67.39     725.38     37,065      14,826           11,119             11,119
            REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                   19
Legal Service
When buying property in any foreign country, it is
imperative to have a good English-speaking lawyer
who will guide you through the process step by
step.


We have sourced a reliable Albanian legal firm to
assist investors in the purchase process. As part of
their service they will do the following:
    •   Verify the ownership of land title and the
        agreement between the landlords and the
        constructor for constructing the building.
    •   Verify the legality of building permits.
    •   Act with power of attorney for the investor.
    •   Sign the undertaking contract.
    •   Review the draft of the final purchase
        contract/s     of    the      apartment/s   of   the
        residence.
    •   Sign the purchase contract.
    •   Verify with the Real Estate Office of Tirana,
        registration    of    title    ownership    of   the
        apartment/s in the name of the client.


           HOXHA, MEMI & HOXHA
                  Attorneys at Law
                     Rr. Nikolla Tupe
                     Nr. 5, 1st Floor
                     Or P O Box 48
                     Tirana, Albania


                Tel: + 355 4 243 773
                Fax: + 355 4 244 047
               Web: www.hmh-al.net
               Email: info@hmh-al.net

Hoxha, Memi & Hoxha is an Albanian law firm
focused on business law. The firm was established
on December 2003 and since has acquired a
reputation of professionalism and diligence.




            REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA   20
Q   uestions      &A       nswers about                    Do I have to pay a tax on rent?
                                                           A tax of 10% is due on the amount of the rent (25%
Property Investment in Albania                             in Hungary and Spain!).
Who shall own property in Albania?
Personal ownership is the most common case for a           Do I have to pay wealth tax?
foreigner purchasing a property in Albania. There is       NO. There is no wealth tax in Albania
no need of creating a local company like in
Montenegro, Romania,...                                    Can capital and profits be repatriated without
                                                           difficulty      by       a        non       resident?
Are there restrictions to foreign ownership?               There is NO withholding tax in Albania (10% in the
The restrictions pertain to agricultural lands only.       US). Capital and profits can be repatriated once you
                                                           have       paid    the     legally    due      taxes.
Do I need to create a company in Albania?
Only if you intent to purchase land or to have             What is the level of inheritance/gift taxes in
Commercial activity.                                       Albania?
                                                           There is NO inheritance tax & gift tax is 3%!
Is Co-Ownership allowed in Albania?
YES. A co-ownership is an arrangement whereby              What is happening in case of default of the builder?
two or more persons buy a property together and            Builder raises finance from a bank or guarantee via
wish to provide for leaving their share (when they         the bank the mortgage loan of the prospective
die) to someone other than the other co-owners.            buyers. Nonetheless the bank requests a
                                                           performance bond from the builder to guarantee
Do local bank offer mortgage loans?                        that in the event of the developer default, funds are
YES non-resident mortgage financing is available.          available to finish the construction. Furthermore the
                                                           quality and financial standing of the builders is
Do I need an attorney to buy a property in Albania?        always thoroughly checked. All companies that we
In case you ask for independent attorney assistance        work with are members of, and regulated by, the
the Developer has negotiated with three of the             Albanian Chamber of Builders. These companies are
largest law firms in Tirana a special all inclusive fees   medium to large in size with a good track record of
for property purchased.                                    providing quality products that are delivered in
                                                           realistic                                  timescales.
What is the cost of the Public Notary?
For a transaction of €50,000 it can approximate
€180-200

What are the other costs linked to a purchase?
There is NO Transfer Tax (in Croatia 5%, in
Montenegro and in Bulgaria 2% of the Purchase
Price! In Turkey 1.5% as Buyers Tax plus electricity
and water connection!).

Do you offer Property Mgmt services?
The Developer does. For overseas owners who are
concerned about owning property in Albania, they
provide property maintenance services.

Do I have to pay state or local taxes on my
property?
NO there is no state tax on real estate and local
taxes in Tirana are ±20€/ year (yes twenty).
Do I have to pay VAT on land, apartment and/or
any property purchase?
NO. The sale of buildings and land is not subject to
VAT! (20% in most of the countries).


Do I have to pay a capital gain tax on resale of my
property?
NO. There is no capital gain tax in case of personal
ownership (instead of Bulgaria 17.8%, Spain 18% and
20% in Turkey or Poland)!
            REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                21
Exit Strategy


W
                            e see these apartments
                            in   Tirana    as   mid-to
                            long-term investments
                            -    a   genuine    capital
                            appreciation        story.
Selling after five years or more should give the
market enough time to mature so you can obtain
the best possible returns. In this timeframe your
rental income will also increase, giving you more
potential to stay in the black – currently you will
need to subsidise the rental income.


The onwards market for Rezidenca Ime apartments
is diverse; local Albanians - ex-pats who want to
own a second-home on the Adriatic Coast; nationals
from Eastern Europe and other Balkan states; and as
the market matures, Western Europeans.




           REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA   22
Preferred unit        Apartment Nbr.                                                       Reservation Form
2ND Choice            Apartment Nbr.                                          PLEASE COMP LETE IN B LO CK CAPI TA LS
3rd choice            Apartment Nbr.
                                                              I/we confirm we have read this brochure and reserved this unit with
Please print your details as they appear on your passport.    full understanding of the risks involved in purchasing overseas
                                                              property.
FIRST IND IVID U A L

TIT LE:    ________________________________
                                                              Authorised Individual Signature: __________
FI RST NA ME: __ __ _ __ __ __ __ _ __ __ __ __ _ __ __       DATE:                                      __________
SUR NAME : __ __ __ __ _ __ __ __ __ _ __ __ __ __ _ __

ADDRESS: ______________________________                       OR
______________________________________

POST CODE: ____________________________                       First Individual Signature: _______________
EMAIL: ________________________________                       DATE:                           ________________

TEL: __________________________________

MOBILE: _______________________________
                                                              Second Individual Signature: _____________
                                                              DATE:                                      __________
FA X: _ _ __ __ __ __ _ __ __ __ __ _ __ __ __ __ _ __ __ _

PASS POR T N UMBER : __ _ __ __ __ __ __ _ __ __ __ _

DATE OF BIRTH :___________/__ /__________                     PLEASE NOTE THAT THAT THE RESERVATION
                                                              FEE IS REFUNDABLE WITHIN ONE MONTH OF
SE CO ND IND IVID UA L                                        COMPLETED ORDER IF FOR ANY REASON THE

TIT LE:    ________________________________                   BUYER DECIDES NOT TO PROCEED

FI RST NA ME: __ __ _ __ __ __ __ _ __ __ __ __ _ __ __

SUR NAME : __ __ __ __ _ __ __ __ __ _ __ __ __ __ _ __

ADDRESS: ______________________________

______________________________________

POST CODE: ____________________________

EMAIL: ________________________________

TEL: __________________________________

MOBILE: _______________________________

FA X: _ _ __ __ __ __ _ __ __ __ __ _ __ __ __ __ _ __ __ _

PASS POR T N UMBER : __ _ __ __ __ __ __ _ __ __ __ _

DATE OF BIRTH :___________/__ /__________


CORPORATE PURCHASER
Company Name: _________________________
Company Number: _______________________
Registration Office: _______________________




                REZIDENCA IME DEVELOPMENT – KASHAR, TIRANA ALBANIA                                              23