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Document Sample
Ober-Haus Real Estate Company
Krolewska 14 Slawkowska 6 Dmowskiego 12/6
00-065 Warsaw 31-014 Krakow 80-264 Gdansk
Tel. +48 22 829 12 12 Tel. +48 12 428 17 00 Tel. +48 58 520 40 99
Fax +48 22 829 12 22 Fax +48 12 428 19 00 Fax +48 58 520 40 59
Plac Miarki 8 Mielzynskiego 14
40-035 Katowice 61-725 Poznan
Tel. +48 32 609 00 90 Tel. +48 61 851 90 00
Fax +48 32 608 00 70 Fax +48 61 851 99 44
www.ober-haus.com
BUY-TO-LET INVESTMENT OPPORTUNITY
Krakow, Poland
Sobieski Residence on Lobzowska 22 St.
All prices in Poland are set in Polish zloty (PLN). When prices are quoted in this document in euro (EUR), they are quoted
assuming an exchange rate of 3.8 PLN to 1 EUR. Exchange rates may vary. This document is for guidance, and does not
constitute an offer. All market information in this document are given in good faith and are believed to be correct, however,
neither Ober-Haus nor the developer should be held liable for inaccuracies. All purchasers should satisfy themselves as to the
accuracy of these details before making a purchase.
Ober-Haus Real Estate Company
www.ober-haus.com
Summary ..................................................................................................................................3
Why Invest in Krakow? .........................................................................................................3
Key Economic Indicators for Poland.....................................................................................6
Why Invest in Sobieski Residence?......................................................................................6
Investment Rational (Summary) ...........................................................................................6
The Neighbourhood ..............................................................................................................7
Sobieski Residence ..............................................................................................................7
Reliable Developer ...............................................................................................................8
Map of the Neighbourhood ...................................................................................................9
Letting and Property Management ...........................................................................................9
Agent.................................................................................................................................9
Typical monthly rent ..........................................................................................................9
Property Management ..........................................................................................................9
The Transaction - Pricing .........................................................................................................9
Pricing...................................................................................................................................9
Payment terms are as follows: ..........................................................................................9
The Transaction - Finance and Legal.......................................................................................9
Mortgage Finance.................................................................................................................9
What does the mortgage loan cost? .................................................................................9
Currency Exchange ..............................................................................................................9
Property Insurance ...............................................................................................................9
Legal Conveyance ................................................................................................................9
Purchase Costs and Taxes...................................................................................................9
Legal Conveyance ............................................................................................................9
Notary Fee ........................................................................................................................9
Court Fees ........................................................................................................................9
Tax Planning.........................................................................................................................9
Property Specifications.............................................................................................................9
Floorplans .............................................................................................................................9
Finishout ...............................................................................................................................9
Parking Spaces.....................................................................................................................9
Construction specifications ...................................................................................................9
Apartments finishing standard ..............................................................................................9
Simple and Easy ......................................................................................................................9
Appendix: RESERVATION AGREEMENT...............................................................................9
Appendix: Mortgage Application Document Checklist..............................................................9
I. Information about home mortgage.....................................................................................9
II. Key information.................................................................................................................9
III. Information on family – assets and liabilities status.........................................................9
IV. Information on the employment status ............................................................................9
V. Information on financial standing......................................................................................9
VI. Bank accounts and cards held ........................................................................................9
List of attachments................................................................................................................9
Disclaimer.................................................................................................................................9
Ober-Haus Real Estate Company page 2 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Summary
Why Invest in Krakow?
Krakow - a city with population of 740,000, the capital of the Malopolska Region, the centre
of Poland's cultural life and a dynamic centre for the Region's economic development.
The city is situated at the intersection of major trade routes, near the Silesian conurbation
and the southern border of Poland. The A4 Motorway provides fast and convenient
connection with Silesia and Germany, and in the future also with the Ukrainian capital - Lvov.
The second largest airport in the country provides direct connections with many European
cities, Tel Aviv, New York and Chicago.
Together with its suburban areas Krakow's population reaches nearly one million. When we
add those who commute to work here and the 138,000 of the city's students, we arrive at a
powerful regional consumer market.
Thanks to its favorable situation and unlimited resources of highly qualified staff in all modern
economy sectors, Krakow has continued to attract investors in numerous fields and branches
since the early 1990s.
Fast development, a large number of scientific and research institutions working for the
needs of modern industry, numerous completed investments and qualified human resources
are the qualities to which Krakow owes its fame of a perfect place for starting new
investments. Low unemployment rate, relatively low labor costs, good social climate for new
investments, and attractiveness of the city greatly enhanced by the high quality of life:
culture, entertainment, sports - all these make Krakow a city where investment is worth your
effort.
Standard and Poor’s, one of the world's leading rating institutions, has continued to assess
the city's creditworthiness since 1997. In the year 2002, Krakow's received BBB+ rating.
Such a high rating increases the City's creditworthiness, not only making it easier to contract
loans that are used for investments and development but also to improve the likelihood of
obtaining better prices for the city's bonds sold on international markets as well.
In the ranking of local-authority investors announced in Rzeczpospolita national quality daily
on 4th July, 2002 by the Centre for Regional Research, Krakow was ranked seventh among
the Golden Ten of poviat cities for the year 2002.
The Golden Ten of local-authority investors was specially set apart from among sixty-five
largest poviat cities, due to the fact that the criteria for ranking among the Golden Hundred
favour smaller gminas (communes), where large investments are distributed over a smaller
population.
Central Europe in general and Krakow in particular, is now at the beginning of a new growth
cycle in residential apartment prices. The new cycle is being driven by the following factors:
Phenomenal GDP growth, averaging 4.5% per year for the past 10 years. Krakow itself
enjoys far higher economic growth rates: Krakow city GDP grew over 15% in 2005, vs. 3.8%
for the country as a whole.
Ober-Haus Real Estate Company page 3 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
GDP and production growth in %
2001 - 2006
7 6,3
6 5,3 5,5
4,8 4,8
5
4,2
3,8
4
2,9
3
2
1,2 1,2
1
1
0
-0,1
-1
GDP industry production sold
GDP growth
8.0
7.0 6.8
7.0
6.0
6.0 5.2 5.4
4.8 5.0
5.0 4.1
3.8 4.0 3.8
4.0 3.6
3.0 2.6
2.0 1.3
1.0
1.0
0.0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Growing loan liquidity. Low rates fuel demand. Over 5 billion EUR worth of home loans
were given in 2005, up from 3.75 billion EUR granted in 2004. Still, total residential loans
outstanding are less than 4% of GDP, compared to over 48% in the EU. This means a lot
more liquidity is still in the pipeline to come.
New mortgages (EUR bil / year)
4
3
2
1
0
2002 2003 2004
Ober-Haus Real Estate Company page 4 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Growing population. Krakow is city with 754 000 inhabitants and as forecasts indicate the
natural growth rate will stay at the very low but positive level.
Concerning division for age groups, the highest share holds men and women in working age.
As the natural growth will continue to be low, society of Krakow will become older an older
and the share of non-mobile and post-working group will grow.
Population forcasts for Krakow to 2030 (in thousands)
759,2
758,5
740,7
739,7
800
700
600
405,6
404,9
393,1
392,9
353,6
353,6
500
347,6
men
346,7
400 women
300 total
200
100
0
1998 2000 2015 2030
Lack of supply. Krakow suffers an acute housing, especially in the low to mid-price range.
Krakow authorities say the immediate need is for an additional 60,000 new flats. Existing
living space is much smaller than required: there is 21 sqm of living space for each Krakow
inhabitant, far less than the 32 sqm average in Western Europe.
Deteriorating housing stock. Most flats were built from 1945 - 1990. There are an
estimated 600,000 people living in Soviet-era, prefabricated concrete panel buildings that
simply won’t last another twenty years. And these flats cost more to heat and repair than a
modern flat. When living in junk costs more than a mortgage for a new flat, people will move.
Strong real wage growth. Real wage growth in Krakow is over 7% per year.
Low unemployment. Forget about the figures you read for national unemployment.
Joblessness in Krakow is officially 8,5%, and probably much lower considering the unofficial
economy.
“EU-phoria”. People feel good - and secure in buying a new home - in the new geopolitical
reality. They are aggressive buyers because they know the same flat that costs 1,250 EUR
per sqm here costs three to five times that in the West.
Planned introduction of the Euro. This will bring multiple benefits, including currency
stability, lower interest rates, and increased FDI.
FDI growth. The examples of Ireland, Spain and Portugal all show that FDI increases more
than 500% within six years after joining the EU.
Ober-Haus Real Estate Company page 5 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Due to these and other positive economic trends, the General Partner anticipates demand for
new residential houses and apartments will continue to outpace supply. In Krakow the
demand is so strong, 87% of all apartments planned for completion in 2005, were pre-
sold by May (less than halfway through the year).
Key Economic Indicators for Poland
Main economic indicators:
2003 2004 2005 2006(f) 2007(f)
GDP(%) 3,8 5,6 3,5 4,4 4,0
Inflation
0,8 3,5 2,2 2,1 2,0
(%)
Unemploy
20 19,1 17,3 16,9 16,4
ment rate
Interest
5,25 4,5 4,0 n/a
rate
Average
Exchange
4,4 4,53 4,1 n/a n/a
Rate
PLN/EUR
Average
Exchange
3,89 3,65 3,2 n/a n/a
Rate
PLN/USD
Why Invest in Sobieski Residence?
Sobieski Residence is an exceptional development that brings the talents of a known modern
residential developer into the heart of the most desired Krakow neighbourhood.
Investment Rational (Summary)
• Ober-Haus has arranged 25 year loans for its clients from leading banks, to cover up to
95% of the purchase price - and at the lowest interest rates in the market, starting from
3% annually.
• The competitive price and low mortgage terms means your investment can be cash-flow
positive from day one.
• With full financing, you can buy a unit for as little as 5,000 EUR down (including equity
and all fees).
• Forecast capital growth of 10-15% annually.
• Turn-key investment opportunity - Ober-Haus and its partners can handle mortgage
finance, acquisition, conveyance, fit-out, insurance, letting, and property management.
Ober-Haus Real Estate Company page 6 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
The Neighbourhood
Krakow has one of the best-preserved medieval city centres in Europe, with dozens of
churches covering almost every architectural period and surrounded by monasteries and
abbeys.
The neighbourhood of the project sits directly on the banks of the Wisla (Vistula) River. The
project sits just a few hundred metres from the famous Wawel Castle, the heart of Poland
and Polish history.
From the 11th century Poland's monarchs took up their residence here in the Royal Castle.
They were both crowned and buried here, in the Wawel Cathedral where later on Polish
national heroes have also been laid to rest since the 19th century. The place not only
overflows with priceless art treasures, architectural
beauties, relics of the past and curiosities. It is also full of
glory, magic, history and fable.
Krakow has rapidly become a leading tourism destination
for visitors from all over Europe and the world, whose
tourism spending has made the local economy one of the
fastest growing in Poland. Krakow is now served directly
by numerous airlines, including the budget travel airlines
Ryanair and Easy Jet and others. In response to this, even
more bars, cafés and restaurants have been opening up,
making the city centre all the more attractive a place to
enjoy.
Sobieski Residence
Sobieski Residence is an extremely inviting place to live in an up-market neighbourhood. The
developers have designed an elegant apartment complex surrounded by greenery in one of
the most popular and desirable districts of Krakow.
Ober-Haus Real Estate Company page 7 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
The project consists of 25 to 172 sqm modern apartments in three, four and six-storey
buildings. The elegant architecture of this development creates a unique atmosphere and the
vicinity of the parks makes this project the perfect place for leisure and relaxation.
In addition, the apartment buildings have underground garages and utility rooms. The
property has ample green areas as well as beautifully arranged paths leading to the
buildings.
The Sobieski Residence development is the most modern and comfortable residence in this
sought after neighbourhood. Located close to Wawel Castle and the Old Town, which has
cafes, bars and restaurants to suit everyone, this development has unrivalled potential.
Reliable Developer
The Bryksy Group
From its beginning the Bryksy Goup has based its expansion not only on residential
construction but also on industrial and ecological projects. In addition to homes, it has built
sewage treatment plants, pumping stations and reservoirs. Nevertheless, residential
construction remains a strategic area for the Group. Over 1,000 families have put their trust
in us. Since 2000 alone the Bryksy Group has built more than 900 flats, 50 commercial
premises and numerous single-family houses – and that number is growing all the time. The
achievements of the Bryksy Group were honored in 2002 with the distinction of Business
Gazelle, a title awarded to the most dynamically expanding companies. In 2003 the Group
was awarded the European Medal for best Multi-Family Residential Building. At the
beginning of 2005 all the companies in the Group received Fair Play Enterprise Certificates.
Ober-Haus Real Estate Company page 8 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Map of the Neighbourhood
Ober-Haus Real Estate Company page 9 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Letting and Property Management
Agent
There are many rental companies available, and you are free to choose your own. However,
Ober-Haus is the largest property-letting agency in Central and Eastern Europe, with eight
offices and 70 brokers working just in Poland. Ober-Haus works with all embassies,
relocations companies and human resource departments of multi-national companies, to find
homes for hundreds of expatriate workers each month.
Ober-Haus is the most successful residential letting agent, and can market your property
through direct calls, business events, weekly newspaper listings, internet offers and direct
contacts.
Typical monthly rent
Typical monthly rents for a modern apartment with underground parking garage in Sobieski
Residence are:
gross
gross rent per monthly utilities net rent per net yield
symbol yield
month and letting fee month %
%
A03 3000 5.5 602 2398 4.4
AIV1 14000 6.1 2199 11801 5.1
AIV2 12000 6.2 1865 10135 5.2
C01 2500 5.3 484 2016 4.3
C02 2500 6.3 475 2025 5.1
C03 1500 6.0 291 1209 4.9
C04 2000 6.2 387 1613 5.0
C05 2300 5.6 455 1845 4.5
C06 2500 5.9 481 2019 4.8
CI1 2500 5.1 484 2016 4.1
CI2 2500 5.3 476 2024 4.3
CI3 3700 5.2 721 2979 4.2
CI4 2500 5.2 478 2022 4.2
CI5 2400 5.2 460 1940 4.2
CI6 2500 5.2 481 2019 4.2
CII1 2500 5.1 484 2016 4.1
CII3 3700 5.2 721 2979 4.2
CII4 2600 5.4 486 2114 4.4
CII5 2500 5.3 469 2031 4.3
CII6 2600 5.3 490 2110 4.3
CIII3 3800 5.2 729 3071 4.2
CIII4 2600 5.3 486 2114 4.3
CIII5 2500 5.2 469 2031 4.3
CIII6 2600 5.2 490 2110 4.2
CIV3 3800 5.2 729 3071 4.2
CV3 4000 5.4 746 3254 4.4
CV5 2600 5.4 477 2123 4.4
CVI2 10000 7.2 1461 8539 6.1
Ober-Haus Real Estate Company page 10 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Rents will depend, of course, on factors such as apartment size, location, and floor. Real
market comparables are available on our web site www.ober-haus.com or from other letting
agents.
The tenant pays a gross rent. From that rent the owner pays a monthly maintenance fee for
landscaping, cleaning of common areas, security, water and heating. These fees tend to be
about 7 PLN per sqm of living space.
Tenants pay separately for their own-metered use of electricity, as well as their monthly
telephone, cable TV, and Internet usage bills.
Property Management
Maintenance of the building, including security, cleaning, gardening, and other services, is
taken care of by Sobieski Residence’s private facilities management company.
Your individual units, however, need to be managed by a local property manager. The value
of your investment property will depend, to a great extent, on the professionalism of its
management. It is absolutely critical that your property is well looked after and maintained in
order to maximise its market potential and protect your investment and future tenancy. Well
maintained properties keep their tenants, meaning you will have more cash flow and fewer
“rental voids”.
Most important for you, as a landlord you need fluent English speaking, professional property
managers at your call 24-hours a day, 7-days a week. Ober-Haus property managers are all
bi-lingual and have experience working in property management in the UK, US, Australia, or
other English speaking countries.
We provide owner/investors like you with the following range of services:
• Collection of all incomings: deposits, rents, and utility payments
• Management of rent accounting
• Holding of deposits
• Payment of all outgoings
• Routine and emergency repairs
• 24-hour tenant help line to answer all tenant concerns
• Taking inventory of each property during handover and return
• Handling all insurance claims
• Advice on safety and legal obligations
Ober-Haus Real Estate Company page 11 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
The Transaction - Pricing
Pricing
Flats are available from 25 to 172 sqm. Prices for an apartment, including typical fit-out, one
underground parking space, and VAT are:
Total price with
Internal
No. Symbol Floor fit-out and
SQM
parking
3 A03 GROUND 58.60 651,190
17 AIV1 IV 172.00 2,762,160
18 AIV2 IV 144.20 2,334,596
1 C01 GROUND 45.90 566,478
2 C02 GROUND 44.50 477,142
3 C03 GROUND 27.60 298,594
4 C04 GROUND 36.70 386,881
5 C05 GROUND 43.90 489,592
6 C06 GROUND 45.50 507,181
7 CI1 I 45.90 586,123
8 CI2 I 44.60 571,276
9 CI3 I 68.70 846,522
10 CI4 I 44.90 574,702
11 CI5 I 43.40 557,571
12 CI6 I 45.50 581,555
13 CII1 II 45.90 591,035
15 CII3 II 68.70 853,873
16 CII4 II 44.90 579,507
17 CII5 II 43.40 562,215
18 CII6 II 45.50 586,424
21 CIII3 III 68.70 868,575
22 CIII4 III 44.90 589,115
23 CIII5 III 43.40 571,502
24 CIII6 III 45.50 596,161
27 CIV3 IV 68.70 875,926
33 CV3 V 68.70 883,277
35 CV5 V 43.40 580,790
38 CVI2 VI 104.60 1,670,648
All prices shown above include 7% VAT on residential space, and 22% VAT on parking.
Ober-Haus Real Estate Company page 12 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Payment terms are as follows:
Installment
Date Payment Amount
No.
Decision on site development
1 conditions March 2006 25% PLN 1.646.378
2 Decision granting building permit August 2006 20% PLN 1.317.103
3 Construction period September 2006 5% PLN 329.276
4 December 2006 9% PLN 592.696
5 March 2007 9% PLN 592.696
6 June 2007 9% PLN 592.696
7 September 2007 9% PLN 592.696
8 December 2007 9% PLN 592.696
9 Final agreement February 2008 5% PLN 329.276
However, assuming you finance this acquisition through, for example, a 95% loan-to-value
mortgage, and then only 5% of the total cost would be due at the outset, as your equity in the
deal, the following payments are covered by the bank.
Ober-Haus Real Estate Company page 13 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
The Transaction - Finance and Legal
Mortgage Finance
Ober-Haus works with all the top local banks ready to provide finance for investors
purchasing investments in the Sobieski Residence.
General mortgage terms:
Loan-to-value: Maximum 100% for applicants with high incomes and low debts
70-90% for most other applicants.
Terms: Up to 30 years
Currency: EUR (Euros)
CHF (Swiss franks)
GBP (Pounds sterling)
PLN (Polish zloty)
Our in-house mortgage advisors can help get you the finance you need to leverage your
investment returns. Ober-Haus has in-house mortgage brokers who will collect all the
required documentation from you, collect all the documentation on the property to be
purchased, and provide the complete application to the bank, which provides the best rates
in the currency of your choice.
See the checklist of documents you will need for the mortgage application on page 23.
What does the mortgage loan cost?
Typical fees for setting up a mortgage loan on your investment property are from 1.5% -
2.5%, depending on the bank and other required documentation.
Currency Exchange
All purchases have to be made in PLN, polish zloty. Your financing bank in Poland will, of
course, disburse its loan to you in PLN (even is the underlying currency of the contract is
EUR, CHF or GBP). However, you will have to remit the equity portion of your purchase
yourself. Chances are, your capital is now in GBP, EUR, or some other currency.
In order to reduce the cost to you of currency conversion (Polish banks charge 2.5%!) we
have negotiated a special rate for our clients with the UK firm HIFX Currency Specialists.
HIFX Currency Specialists should be able to exchange your currency for PLN for fess more
than 80% cheaper than those of Polish banks. See their web page at: www.hifx.co.uk
In order to set-up currency conversion, please contact Monika Canic and mention that you
are a client of Ober-Haus.
Ober-Haus Real Estate Company page 14 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Contact:
Monika Canic
HIFX plc
Morgan House
Maderia Walk
Windsor
Berkshire
SL4 1EP
Ph.: 0044 1753 859 159 Ext 7278
Fax: 0044 1753 859 169
monika.canic@hifx.co.uk.
Property Insurance
Ober-Haus has agreements with the largest insurance brokers in the region to provide low
cost insurance quotes to you before you make your acquisition.
Legal Conveyance
Normally lawyers are not used in Poland in residential property transactions. Notary Publics
oversee al aspects of the purchase agreements.
However, since many of our buyers are based in the UK or Ireland, and would like to have an
English speaking lawyer safeguard their interests, we have negotiated a special price
arrangement with the law firm of Baranski-Bartosiak-Cieslik Law Firm to oversee
conveyance.
The partner in charge of property transactions at Baranski-Bartosiak-Cieslik Law Firm is Mr.
Jacek Bartosiak represents many property investors and funds making purchases in Poland.
Mr. Bartosiak and his team have negotiated, on behalf of Ober-Haus and our clients, the
standard purchase agreement with the developer of this property.
Contact:
Jacek Bartosiak
Barański-Bartosiak-Cieslik
Kancelaria Adwokacka Sp. p.
Topiel 21/5
00-342 Warsaw
Ph.: (48 22) 826 20 18
Fax: (48 22) 826 20 19
www.kancelaria-bbc.com.pl
Ober-Haus Real Estate Company page 15 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Purchase Costs and Taxes
Legal Conveyance
For each apartment purchased, the conveyance fee is PLN 2,000 + VAT.
Notary Fee
For each apartment purchased, the notary fee is approximately PLN 4,000 + VAT. If more
than one apartment is purchased, we can negotiate with notary for a lower fee per unit.
Court Fees
Court fees are approximately PLN 460 per apartment.
Tax Planning
Ober-Haus works with the most respected tax advisory firms in the region, to help you
choose which type of investment structure is most tax efficient for you. We can recommend a
well-known tax advisory firm to help you plan for extracting cash during the hold period, or
benefiting from capital gains.
Our recommendation for UK and Irish clients is to use the tax and accounting firm of Grant
Thornten International. Grant Thornton has offices in the UK, Ireland and Poland, and has
local English and Polish-speaking tax professionals in their Krakow office.
Information on Grant Thornton International is available on-line at: www.gt.org.pl
Contact:
Grant Thornton Sp. z o.o.
Tomasz Karas
Direct (+48) 22 501 9636
Nordic Park
ul. Kruczkowskiego 8
00-380 Warsaw
Poland.
Ph.: (+48) 22 501 95 00
Fax: (+48) 22 501 95 99
E-mail: admi@pkgt.pl
Website: www.gt.org.pl
Ober-Haus Real Estate Company page 16 of 29
Krolewska 14, Warsaw, Poland, +48 22 829-1212
Please read the disclaimer before investing funds
Ober-Haus Real Estate Company
www.ober-haus.com
Property Specifications
Floorplans
Floorplans of the entire development, and of the selected apartments, are on the Ober-Haus
web page at www.ober-haus.pl.
Finishout
Apartments in Poland and nearly all sold in what the UK market would describe as “black
finish” (stan surowy in Polish, meaning “raw state”). That is they are sold without interior
works such as parquet, wall plastering, kitchens, etc).
Developers generally do not do the finishing works.
To make your investment easier, we have negotiated with one of the largest interior fit-out
companies in Poland, to complete the works. Because we negotiated on behalf of all our
clients at once, we were able to negotiate a reduced rate for our clients.
To complete the unit requires an additional 600 PLN per sqm (including VAT). To make your
own financial calculations easier, we have included this price in all the apartment price
tables, so the price you see is the price for final fit-out. The apartment purchase prices in our
price tables also include the cost of a simple kitchen, the most basic required to rent the flat.
This kitchen costs 7,200 PLN, and is included in the prices on the apartment pricing tables.
Therefore the prices you see in the tables are the final price you will pay for a fully fitted
apartment unit.
Parking Spaces
Underground parking is a key requirement if you want to rent or sell your unit. A unit without
parking has substantially lower market value.
That is why we have negotiated that every apartment unit is sold to our clients with an
underground parking space. The underground garage has access to the apartments by a lift.
The garage is gated and access is by a magnetic card only, provided only to residents of the
property. This type of security is a big plus when you are renting out your unit.
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Construction specifications
Common spaces finishing standard
• Entrance to the building – wooden doors
• Hall floors - stoneware tiles
• Walls – high - class roughcast, painted with acrylic finish
• Reception desk in the hall of the front building, monitoring, building under surveillance
around the clock, video entry phone and apartments connected with reception in the
hall
• Rapid, silent lift
• Entire building air-conditioned
• Balcony rail, staircase balustrades – after architect’s decision.
• Elevation clad with stone, wooden window frames (ground floor) , acrylic roughcast
• Universal key to open the building entrance, storage space and communal areas
within the building (accessible to residents).
• Forecourt to the underground garage cobbled with stone cubs.
• Entire investment ground enclosed.
Apartments finishing standard
Technical description
I. INTERIOR FINISH
• Walls
o rooms, hall, kitchen
gypsum plaster
o bathroom
hydraulic lime cement,
• Flooring
o rooms, kitchen and hall
screeding
o bathroom
cement screeding with water-resistant insulation
II. FIXTURES
• electric wiring with accessories (sockets, switches and a bell)
• telecom installation, video entry phone with monitor, cable TV and Internet connection (
broadband access)
• air conditioning - cooling system
• central heating with heaters, in bathroom -heated towel hangers
• wood-framed windows
• marble window ledges
• secure entrance door
• universal key to open the apartment entrance door, the building entrance, storage space
and communal areas within the building (accessible to residents)
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Simple and Easy
It has never been easier to take advantage of growing real estate values in the emerging
countries of the new EU. Ober-Haus has been working 12 years in Central and Eastern
Europe, and is the only property company in the region that can offer all buy-to-let services,
from acquisition through financing, letting, and management, all under one roof.
For more information, please contact:
David Rice
Regional Buy-to-Let Manager
Ober-Haus Real Estate Company
Krolewska 14, Warsaw
00-065 Poland
Ph.: +48 22 829 12 12
Fax: + 48 22 829 12 22
Mobile: +48 502 10 50 30
Email: david.rice@ober-haus.com
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Appendix: RESERVATION AGREEMENT
made on ………………….. in Kraków
by:
BRYKSY Sp. z o.o. with registered office at ul. Biskupińska 14 in Kraków, entered in the
National Court Register of Entrepreneurs kept by the District Court for Kraków Śródmieście,
11th Commercial Division, KRS Entry No. 0000114991, represented by:
Mariusz Bryksy – C.E.O,
hereinafter referred to as the Company
and
Mr. ……………………………………. son of …………………., resident in …………………….
at ……………………….., holder of ID card (passport) No. ……..…………, Taxpayer ID No.
……………………..
hereinafter referred to as the Customer.
The Company and the Customer agree as follows:
§1
The Company declares that it plans to complete a development project including the
construction of 3 multi-family apartment buildings with an underground garage on a plot of
land situated in Kraków, described in Land Register as follows: Śródmieście area, Section
59, Plot No. 91, at ul. Łobzowska 22. The Plot is entered in Land and Mortgage Register
KR1P 9792/6 kept by the District Court for Kraków Podgórze, Division of Land and Mortgage
Registers; therefore the Company entered on 4 November 2005 into a Conditional
Preliminary Contract of Sale (a Letter of Intent) made before Waldemar Wajda, Notary Public
of Notary Office in Kraków at ul. Marszałka Józefa Piłsudskiego 40/3 (Notary Deed,
Repertory A, Entry No. 8628/2005) to acquire 100% shareholdings in a company that is the
owner of the said plot of land.
§2
The development project referred to in § 1 shall be completed directly by the Company or
through another company assigned with this task, in which the Company shall hold shares.
§3
Project completion schedule:
- commencement of works: August 2006
- completion of the development project: December 2007
§4
The Company shall enter into a Preliminary Contract of Sale (a Letter of Intent) with the
Customer by 30 June 2006. The purpose of the Contract shall be the sale of:
NUMBER OF THE APARTAMENTS , BUILDING AND CAR SPACE
in Kraków at ul. Łobzowska 22, to be constructed as part of the development project on Plot
91 as described in § 1 (an outline drawing is attached to this Reservation Agreement as
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Schedule 1), on the terms and conditions defined below, provided that the Customer pays in
full the advance defined in § 6 of this Agreement.
§5
The Parties agree the following price for the property described in § 4:
1. The price for the flats referred to in § 4 shall be PLN ; the price includes
VAT at the rate of 7%. If the final floor area of the flats is altered as a result of the
development of detailed designs, the price shall be adjusted according to a base
price per 1 square metre which on the date of this Agreement amounts to PLN
…………….. + VAT.
2. The price of the garage area shall be PLN …………….. for 1-vehicle space. This
price includes VAT at the rate of 22%.
3. The total value of the property defined in § 4 shall amount to
PLN……………………
§6
1. The Customer shall pay for the reservation of property referred to in § 4 an
advance in Polish złotys equivalent to EUR 5,000. The advance shall be paid
within 7 days from the date of this Agreement to bank account held with Bank
Spółdzielczy Rzemiosła w Krakowie, ul. Dunajewskiego 7, account number 80
85890006 0000 0019 6976 0005.
2. All charges and commissions collected for the transfer of funds on account of the
reservation shall be paid by the Customer.
§7
All further payments shall be made upon the conclusion of the Preliminary Contract to the
bank account referred to in § 6, in accordance with the following Schedule of Payments
agreed by the Parties:
Installment
No. Date Payment Amount
Decision on site development
1 conditions March 2006 25% PLN 1.646.378
Decision granting building
2 permit August 2006 20% PLN 1.317.103
3 Construction period September 2006 5% PLN 329.276
4 December 2006 9% PLN 592.696
5 March 2007 9% PLN 592.696
6 June 2007 9% PLN 592.696
7 September 2007 9% PLN 592.696
8 December 2007 9% PLN 592.696
9 Final agreement February 2008 5% PLN 329.276
§8
If the Customer fails to pay the advance to the amount and by the date defined in § 6, this
Reservation shall expire at the end of the period set for advance payment.
§9
If the Preliminary Contract of Sale of the flats and garage area – as defined in § 4 – is not
signed due to a fault of either Party, this Reservation Agreement shall become null and void
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on the date set for the conclusion of the Preliminary Contract in § 4. In such circumstances
neither Party may demand any contract to be signed or claim any compensation to be paid.
§ 10
If this Reservation Agreement is cancelled for reasons referred to in § 9, the Company shall
return all funds paid by the Customer under this Agreement to the Customer’s bank account
………………………………………, within 14 days from the date of cancellation.
§ 11
This Agreement is made in two identical copies. Each Party shall receive one copy.
........................................ .............................................
THE COMPANY THE CUSTOMER
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Appendix: Mortgage Application Document Checklist
Home Mortgage Application Form
Place Date (dd/mm/yy)
Branch name (filled in by the Bank) Branch number (filled in by the Bank)
Notes:
Please fill in the application in BLOCK LETTERS and put ‘X’ in the appropriate boxes.
If the application contains questions which do not concern You, please write ‘NOT
APPLICABLE’
* - cross out if necessary
I. Information about home mortgage
Home mortgage / construction-mortgage*:
_ PURCHASE OF A FLAT / SINGLE FAMILY HOUSE ON THE PRIMARY MARKET*
_ PURCHASE OF A FLAT / SINGLE FAMILY HOUSE ON THE SECONDARY MARKET*
_ PURCHASE OF A CONSTRUCTION PLOT / RECREATIONAL GROUNDS*
_ FINANCE CONSTRUCTION OF A HOUSE WITH OWN RESOURCES
_ FINANCE EXPENDITURE ON THE EXISTING PROPERTY
_ EQUITY RELEASE
_OTHER
Loan amount and currency: AMOUNT CURRENCY SAY:
Disbursement method: one-off in drawdowns
Dates and amounts of draw downs*:
number date of amount of no. date of amount of
disbursement drawdown disbursement drawdown
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Disbursement account: (bank, account number)
______________________________________________________________
Loan purpose:
__________________________________________________________________________
Value of the property: (based on appraisal - if required*):
________________________________________________PLN
Purchase price of the property: (according to preliminary contract, notarial deed or other relevant contract)* :
____________PLN
Investment expenditure (according to cost estimate)*: _________________PLN on
_ REFURBISHMENT
_ ADAPTATION FOR RESIDENTIAL PURPOSES
_ CONSTRUCTION OF AN ADDITIONAL FLOOR / RECONSTRUCTION / DEVELOPMENT
_ CONSTRUCTION OF A HOUSE WITH OWN RESOURCES
Amount of the Customer’s own funds: ______________________PLN
Number of monthly loan installments: _______
Interest: FIXED FOR 2 YEARS FIXED FOR 5 YEARS VARIABLE
Principal and interest installments: FULLY AMORTISING REPAYMENTS DECREASING REPAYMENTS
Bridging security (proposed collateral securing loan repayments until the time of perfecting a mortgage charge over the property,
once the mortgage is in place, the bridging security is released):
_ LOAN REPAYMENT INSURANCE POLICY
_ CIVIL GUARANTEE / B/E GUARANTEE*
_ BLANK PROMISSORY NOTE
_ PLEDGE ON _______________________________________
_ TRANSFER OF OWNERSHIP TITLE TO ___________________________________
_ ASSIGNMENT OF RIGHTS TO TERM DEPOSIT
_ OTHER, PLEASE SPECIFY THEM _______________________________________
Repayments effected by debiting personal account no. __________________________
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II. Key information
Applicant Spouse/Co-applicant
Ms. Mr. Ms. Mr.
Name / names
Surname
Date of birth
Place of birth
Type of identity document ID. Passport ID. Passport
Serial number
Issued by
Social security number
Nationality
Father’s name
Contact telephone number
with area code
Permanent address
Street/district/village, number
Place
Zip code / post office
Domiciled at the address
from ________ to ________ from ________ to ________
III. Information on family – assets and liabilities status
Applicant Spouse / Co-applicant
Martial status single _ single _
married _ married _
trial separation _ trial separation _
Joint ownership of assets yes _ no_ yes _ no_
Number of persons in a Number of dependants _ Number of dependants _
household
Occupied residential detached house _ detached house _
premises semi-detached _ semi-detached _
house/terraced house _ house/terraced house _
flat _ flat _
other _ other _
Living premises ownership lessee lessee
status (cooperative, municipal, (cooperative, municipal,
company) _ company) _
sub-lessee (from private sub-lessee (from private
persons)_ persons)_
with family _ with family _
owner_ owner_
other_ other_
Mortgage on the own yes _ no _ yes _ no _
premises mortgage charge ____ mortgage charge ____
Life insurance policies yes _ no _ yes _ no _
number of insurance policies number of insurance policies
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____ ____
Name of the insurance
company
Total of insurance covers
IV. Information on the employment status
Education primary_ primary_
vocational_ vocational_
secondary_ secondary_
licentiate_ licentiate_
higher_ higher_
other _ other _
Current job
Type of employment freelancer _ freelancer _
blue collar worker _ blue collar worker _
white collar worker _ white collar worker _
Name of employer/own
business*
Employed with the current years_________ years_________
employer/in own business* months _______ months _______
for
Military service record clear _ clear _
subject to service _ subject to service _
n/a _ n/a _
Employed in budget and state/local budget and state/local
administration _ administration _
budget sponsored institutions budget sponsored institutions
_ _
state owned enterprises _ state owned enterprises _
self-employed _ self-employed _
partner in civil partnership _ partner in civil partnership _
joint stock company _ joint stock company _
limited liability company _ limited liability company _
co-operative _ co-operative _
farmer _ farmer _
V. Information on financial standing
Net monthly income ______ PLN /EUR ______ PLN/EUR
Additional net monthly ______ PLN/EUR ______ PLN/EUR
income
regular _ other than regular _ regular _ other than regular _
what source _ what source _
Type of charges (exclusive of loan rental _ rental _
instalments listed in point VII) lease _ lease _
alimonies _ alimonies _
other (specify) _ other (specify) _
Total monthly charges ______ PLN ______ PLN
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VI. Bank accounts and cards held
Personal accounts held with
Personal account with Yes _ amount _______ Yes _ amount _______
overdraft No _ No _
Personal account number
Balance as at the day of filling ______ PLN ______ PLN
in the application (not applicable to
customers having a personal account with
BZWBK)
Term deposits held
Credit cards held
Number of credit cards held
Total credit limit in credit
cards held
Balance as at the day of filling
in the application
Credit facilities raised and guarantees granted (please list ALL facilities)
I avail of a credit facility YES _ NO _ YES _ NO _
Please list facilities raised by Applicant and Co-applicants
Name of Monthly loan Type of Outstanding Expiry of Borrower
Bank/Lender instalment facility balance credit term Applicant /
Co-applicant
I am a debtor in debt recovery proceedings YES _ NO _ YES _ NO _
recovered debt amount ____ recovered debt amount _______
I am a guarantor YES _ NO _ YES _ NO _
Please list guarantees granted by Applicant and Co-applicants
Name of Monthly Outstanding Expiry of Guarantor Does the
Bank/Lender instalment of balance of a credit term Applicant / Guarantor
sanctioning a facility facility under Co- clear the
a facility under the the applicant* debt ?
under the guarantee guarantee
guarantee
Yes _ No _
Yes _ No _
Yes _ No _
Yes _ No _
Yes _ No _
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Signature of the Applicant Signature of the Spouse / Co-applicant*
List of attachments
APPLICATION NUMBER (FILLED IN BY THE BANK)
Put X in the appropriate boxes
For Personal Application the following documents are required:
1.1. Statement of stable and regular monthly net income over the last 2 years
1.2. Statement of permanent / temporary job contract indicating the average net monthly
income over the last 6 months
1.3. Marriage settlement (effected by way of a notarial deed) or a court statement waiving the
statutory joint ownership
1.4. Personal net worth statement
In the case of self-employed and sole trader the bank also requires the following:
1.5.a. Revenue Office Statement confirming income over the last 12 months
1.5.b. Revenue Office Statement confirming that all tax liabilities are up to date
1.5.c. Statement confirming registration in the Company Names Register (also relevant
permits and licenses)
_1.5.d. Social Insurance Office Statement confirming that all the borrower’s and his
employees social insurance contributions are up to date.
_1.5.e. Revenue Office decision about granting a Tax Record Sheet (whereby taxable
revenue is reported)
_1.5.f. Company’s entry to the Commercial Register
_1.5.g. Current Deed of Association
_1.5.h. Company’s track record in term of financial performance for the last year (balance
sheets, P&L account, the latest F-01 report)
_1.5.i. Opinions of banks providing credit facilities to the business
_1.5.j. Resolution of the General Shareholder’s Meeting on distribution of profits and
documents confirming that dividend has been paid to the Borrower
_1.5.k. REGON number (business registration number)
_1.6. The last three statements confirming receipt of pension or disability benefit.
_1.7. Decision on granting pension or disability benefit.
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Disclaimer
As with all investments, you should carry out your own due diligence on this investment.
Ober-Haus has compiled this report based on information provided to it by the developer. OH
cannot guarantee the accuracy of this report, nor should it be relied on as the sole source of
information in making an investment decision.
Warning: property values can fall as well as rise. This document and other documents
provided are for informational purposes only.
The information should not be interpreted to be a commitment on the part of Ober-Haus, nor
can Ober-Haus guarantee the accuracy of any of the information presented.
Information presented in this report is provided “as is” without warranty of any kind. The user
assumes the entire risk as to the accuracy and the use of this report.
All prices in Poland are set in Polish zloty (PLN). When prices are quoted in this document in
euro (EUR), they are quoted assuming an exchange rate of 3.8 PLN to 1 EUR. Exchange
rates may vary. This document is for guidance, and does not constitute an offer. All market
information in this document are given in good faith and are believed to be correct, however,
neither Ober-Haus nor the developer should be held liable for inaccuracies. All purchasers
should satisfy themselves as to the accuracy of these details before making a purchase.
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