Nad Rokykou, Prague, Czech Republic

Details last updated/reviewed 18 April 2008

Development Details

Hundreds of smart apartments in villa houses in different architectural styles will be constructed over several stages in the beautiful green area alongside the Rokytka river. This project aspires to be in touch with modern housing trends, placing an emphasis on comfort, quality, and an appealing setting.

The project will be represented by low apartment buildings with close contact to nature in the form of cultivated parks as well as with excellent infrastructure and amenities. The focus of this project is on modern lifestyle in harmony with nature.

Residents of Rokytka who are fond of sport will appreciate the modern and safe cycle path which is to be built around and through the project and which will connect Hloubětín to the city centre.

The internal layouts of the apartments are designed with practicality in mind, ranging from studios to three room flats up to 89 m2. The interior design will be simple and clean, using modern materials combined with excellent standard fittings and furnishings. The floors will be a mix of ceramic tiling and laminated floating flooring, with doors and frames in oak. The architects have not forgotten pleasant details such as the highly popular bathroom windows and separate lavatories. Lifts will be installed in all the buildings. All the apartments will have a terrace or balcony; the ground floor flats will have their own private gardens.

Naturally, quality materials will be used in combination with very excellent standards.

Up to a certain phase of construction, customers can request modifications to the layout of their chosen apartment.

Call 0845 257 0903 for more information!

Investment Overview

• Exceptional and unheard of payment terms in Prague with low entry payment - ONLY 10% DEPOSIT, with the remainder on completion.
• Expected annual CAPITAL GROWT OF 12-14% in one of Prague’s fastest developing areas. Buyers will enjoy an anticipated 25% capital appreciation over the building cycle.
• Units starting from 2,188,000 CZK (54,700 GBP / 79,565 EUR), with exchange requirements starting from circa 219,000 CZK (circa 5,475 GBP / 7,970 EUR )
• Average price in the newly launched phase ranging from 37,000 - 55,000 CZK per m²
• Units in equivalent developments in the area sell for significantly higher prices - around 60,000 CZK
• Excellent location – well located in the up & coming area of Vysocany, Prague 9. An area much favoured by both locals and foreigners, excellent public transportation, shops and services,10 minutes drive to the city centre.
• Strong rental de mand expectations due to the massive commercial and office development taking place in the area

A limited number of the best buy to let units have been preselected by our investment team and are now available.

Project Review

The construction of the Nad Rokytkou residential area consists of three stages – the Nad Rokytkou Gardens, the Nad Rokytkou Courtyard and the Nad Rokytkou Residency.

Please see the following table for project details.

Project phases:	Nad Rokytkou Gardens	Nad Rokytkou Courtyard	Nad Rokytkou Residence
Project timetable:
Building Permit:	Granted	Granted	4/2008
Construction Start:	10/2006	11/2007	5/2008
Project Completion:	Q2 2008	Q2 2009	Q3 2009
Project details:
Address:	Podebradska Street	Podebradska Street	Podebradska Street
Tenure:	Freehold	Freehold	Freehold
No. of Apartments:	195	275	160
Apartment sizes:	50 m² - 87 m²	57 - 90 m²	44 - 154 m²
No. of buildings:	7	10	5
No. floors:	5	5	7
Parking:	234	163	213
Starting price (excl. VAT ):	2,661,219 CZK / c. 97k EUR / 67k GBP	3,097,000 CZK / c. 113k EUR / 78k GBP	2,188,000 CZK / 80k EUR / 55k GBP
Service charges (estimated):	30 – 40 CZK per m2 / per month	TBC	TBC
Parking price from (excl. VAT ):	Under 295k CZK/11k EUR / 7.5k GBP	Under 251k CZK/9.1k EUR / 6.4k GB	Under 280k CZK/10.1k EUR / 7k GB
	Above 102.5k CZK/4k EUR / 2.6k GBP	Above 86.4k CZK/3.2k EUR / 2.2k GBP	Above n/a

Developer: B.C.D., in cooperation with Broome and Wellington

Lead architect: Loxia, a.s. (www.loxia.cz) , Bilek Assosiates

The Central And Eastern European Region

Home to gorgeous scenery, stunning coastlines, unexplored forests, a wealth of history and culture – and now also home to some of the most exciting emerging economies and real estate markets in the world. On 1st May 2004 Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic and Slovenia joined the EU; this year Bulgaria and Romania joined as well.

The appeal of Central and Eastern Europe goes beyond the consolidation of the accession states. The thinning economic and social borders throughout the entire region and an increase in Foreign Direct Investment (FD I) from corporations off shore business takes advantage of highly skilled but lower cost work forces meaning that the current climate for property investors is excellent:

• As fiscal enrichment permeates the CEE, development is encouraged bringing these countries in line with the rest of the EU.
• Investors can choose between attractive modern designed apartments and gorgeous ancient homes in the old historic centres.
• The burgeoning middle classes of the CEE offer the investor an opportunity to maximise their investment as these nouveau riche seek larger and nicer places to house their families.
• CEE markets are not only booming in volume but they’re also booming in price. It is strongly believed that most of these markets are likely to outperform more traditional markets, such as Spain or France throughout 2007 and beyond.
• New jobs and an overall level of economic growth have resulted from major economic reforms

The rapid price rises witnessed in Central & Eastern Europe have been fuelled by highly successful national economies that have attracted large amounts of inward investment.

About The Czech Republic

Prague is endlessly fascinating and diverse, and a crossroad of cultures. It is a city of such physical beauty. - Homes Worldwide

Economic Overview

The Czech Republic's economy is as strong as ever and shows no sign of slowing down. The Czech National Bank (CN B) is one of the well respected banks in the CEE. The financial market’s maturity and strong currency make the Czech Republic an ideal environment for the foreign investor. The Czech Republic has one of the highest per capita Foreign Direct Investment (FD I) in continental Europe. With legal and tax reform underway, unemployment rates falling, low interest rates, and a well educated labour force, the Czech Republic has solidified its economic stronghold on the European market:

Basic Data:

• Gross Domestic Product: 118.9 billion USD
• GDP growth: 6.2 %
• GDP per capita: 21,600 USD
• Foreign Direct Investment: 9,072 million EUR (Czech National Bank, Inward flows in 2006)
• Rate of Inflation: 2.5%
• Unemployment: 8.4% (Prague- 3%)
• Population: 10.2 million
• Currency: Czech Crown (CZK)

Mortgages in the Czech Republic

Last year domestic mortgage banks lent 101 billion CZK. Still, the total potential tapped is only in single digits percentage wise, leaving plenty of room for growth over the foreseeable long term. However, the concept of mortgages is relatively new to the Czech banking institutions. This tells you a great deal about what is and what will be fuelling the market in Prague for some time.

Property investment in the Czech Republic offers a terrific combination:

• High growth potential though either mature markets that will continue to grow steadily, or through basement level opportunities that are likely to take off.
• Economic, political and social stability
• Freely available finance on attractive terms in a market that is now constantly offering new and improved products

About Prague

Prague's prominent role in medieval Central Europe is rewarded with this inclusion. It has seen continuous urban development from the Middle Ages to the present, resulting in an architectural ensemble of outstanding quality - World Heritage Site

Basic Data:

• 1.21 million inhabitants
• 496 square km
• Centre of the Czech Republic, 50°05"N and 14°27"E
• Average salary 23,729 CZK/Month (€833.489)
• Approx 7.4 million tourists per annum

Prague€s newly regained status as an international hub has garnered the reputation of The Jewel of Europe. Its liberal lifestyle yet modern mind set has made it attractive for visitors from all four corners of the world. It is often regarded as the new Paris of old Europe.

- World Heritage Site

Numerous foreign businesses are now being attracted to Prague for various reasons:

• Centuries of construction gave rise to an exceptional integrated architectural complex
• Concentration of cultural heritage
• Prague is the seat of the top level legislative, administrative and political bodies of the country
• Prague has maintained its exceptional attraction for tourists and is renowned for being one of the world’s most beautiful cities
• Its central European location, cheap labour costs and beautiful scenery.
• Ever increasing expatriate community
• An influx of foreign wages since the Czech Republic’s accession to the EU on 1st May, 2004
• Almost one half of the national income from tourism is realised in Prague
• A great deal of films are also now shot in Prague, bringing a multitude of actors and celebrities to its doorstep - including the likes of Johnny Depp, Sean Connery, Bruce Willis and Wesley Snipes.
• UN ESCO listed, the city of Prague has had prominent personalities throughout the centuries pay homage to it, including Mozart, Beethoven, Tchaikovsky, Queen Elizabeth II and Pope John Paul II, all of whom professed their beguilement because of its attractiveness and architectural beauty.

A great deal of films are also now shot in Prague, bringing a multitude of actors and celebrities to its doorstep - including the likes of Johnny Depp, Sean Connery, Bruce Willis and Wesley Snipes.

UN ESCO listed, the city of Prague has had prominent personalities throughout the centuries pay homage to it, including Mozart, Beethoven, Tchaikovsky, Queen Elizabeth II and Pope John Paul II, all of whom professed their beguilement because of its attractiveness and architectural beauty.

Vysocany is transforming as its industrial roots give way to a modern district with diverse housing opportunities, services, retail outlets, beautiful green areas and cultural and sports facilities. The most recent structures include the well known multipurpose Sazka Arena and the nearby shopping centre in Cerny Most, boasting a multiscreen cinema, fitness centre, IKEA and other retailers. The new Nad Rokytkou neighborhood is well served with transport infrastructure; tram stops are just three minutes walk away, and the B line metro stations of Hloubetin and Palmovka are in the immediate vicinity.

Construction of the massive Gallery Fenix shopping centre at the corner of Sokolovska and Freyova streets, a few minutes from Nad Rokytkou illustrates the growing residential demand of the area.

The Vysocany area has also deep cultural roots with several community centre and a famous musical school which puts on some of the best choir performances in Central and Eastern Europe. Aside from that there is the Vyscoany hospital and both elementary and middle schools.

This land was concealed from the residents and visitors of Vysocany for a long time, this fact has brought one great asset – nature. It is a beautiful area with easy and direct access to the city centre.

Price growth

The Prague residential market showed surprising strength in 2006, with gains exceeding most expectations showing an average price increase of approximately 12.6%. The centre of Prague along the districts such as Troja, Vysocany, Zbraslav and Holesovice led gains with averages closer to 25%.

In 2006 Vysocany was second highest in capital growth of all the Prague neighbourhoods.

Location - Area Development

The long-awaited continuation of development around Sazka Arena in the Prague 9 district will finally proceed, as Lighthouse Group now appears committed to completing a multifunctional scheme on the site. This development is in the immediate vicinity immediate vicinity on the new Nad Rokytkou project and illustrates the growing potential of this up and coming Prague neighbourhood.

Lighthouse Group will soon kick off a €300 million project in Prague with the construction of a parking garage, the first part of a development plan that should see a complete change in the surroundings of Sazka Arena.

The land was purchased at the end of last year by C&R Developments, one of the members of the Lighthouse Group, after six months of negotiations. The architects of the arena, the Helika and Atip studios, drew up a project for the land called the Green Island, which calls for the construction of a shopping and entertainment center, a hotel and an office component. This plan was always going to require the help of a strategic partner, as Sazka is not a development company.

Lighthouse's CEO Tamir Winterstein says his company was able to reach an agreement with Sazka and buy the land (and accompanying valid land use permit) because it had the ability to finance the purchase without a bank loan. The permit allows for the construction of 178,000 sqm of space and will be left untouched, despite changes made to the project by Atip and Lighthouse’s architect Moshe Zur and his studio, which specializes in the design of shopping and leisure centers. It will have the same components and the same capacity, so there’s no need to change the land use permit, says Winterstein.

A tender for the contractor is currently underway for a job that needs to be finished by the beginning of next year. The developer plans to begin construction of the first phase of Green Island by the second quarter of 2008, at the latest. This phase will include the shopping center on the western portion of the land along with some of the office space to the east. The shopping center will be connected to a smaller building accessible from Ceskomoravská Street, offering a small skating rink and playing fields. There will be also a variety of leisure elements in the shopping center including a fitness studio.

The developer is also planning to build a congress hotel on the western portion of the land in future phases. Winterstein says its standards will be specified only after he reaches agreement with a hotel operator. There are several sizeable hotels being built in Vysocany, so we have to consider that, he says. Thanks to the synergetic effects of the neighboring arena, there's a good deal of interest from the top operators.

The final stage of construction will take place on the northern portion of the plot, where a green amphitheater for outdoor cultural events will be built. It's one of the main reasons Prague 9's leadership has supported the project, says Winterstein. They see it as one of the most important projects for Prague in part because it will help improve the entire area.

Payment Terms

Excellent payment terms of 10/90, meaning no payments down during the 18 months building cycle.

Clients are required to transfer the reservation payment 5 days from the signing of the reservation agreement. Reservation fees are deducted from the fee payable on the exchange of a Future Purchase Contract.

• Reservation fee: 52,500 CZK (payment of the reservation fee is within 5 days after signing the Reservation Contract)
• Future Purchase Contract: 10% (payment of the first installment is within 30 days after signing the FPC)
• Purchase Contract: 90% (after final inspection)

Confirmation of interest form
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