DKM

Presents

The Property BoomIn Poland

Davidoff Kleeberg & MareschResidential & Commercial Real Estate in Poland

DKM

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Why Poland?

E&Y, “European Attractiveness Survey” 2005

DKM

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

E&Y, “European Attractiveness Survey” 2005

Rank – No. 1 place for planned European Investment Destination

DKM

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

FDI Confidence index, Poland Ranks 5th Globally

DKM

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Where to buy?

Overseas flights

European flights

Domestic connections

SZCZECIN

GDAŃSK

BYDGOSZCZ

POZNAŃ

ZIELONA GÓRA

WROCŁAW

KATOWICE

KRAKÓW

WARSAW

RZESZÓW

ŁÓDŹ

DKM

• Location

• Location

• Location

• Target market

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Where to buy?

DKM

• This is Capital Growth

• Yields on rentals 6%-7%

• Costs are all covered

• 85% + mortgages LTV

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Why are we here ?

DKM

• Off Plan – Yes!

• Old tenement blocks - No!

• Modern stock – Yes

• 2-3 years of capital Growth

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

What to buy?

DKM

• Whether 1 or 101 apartments

• Small Investors with one flat

• Professional Investors buying entire blocks of apartments

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Who are our Clients?

DKM

• Only 10%-15% deposit – fixes price• Nothing to pay to developer until completion –

even if that takes 24 -36 months or more• Up to 30% growth per annum with off plan• Normal system is 20% deposit – then staged

payments

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Off Plan Sales

DKM

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Where to buy?

Overseas flights

European flights

Domestic connections

SZCZECIN

GDAŃSK

BYDGOSZCZ

POZNAŃ

ZIELONA GÓRA

WROCŁAW

KATOWICE

KRAKÓW

WARSAW

RZESZÓW

ŁÓDŹ

Capital

Special EconomicDevelopment Zone

Best know Tourist City

Industrial Centre

Exhibition Centres

DKM

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Where to buy?

Overseas flights

European flights

Domestic connections

SZCZECIN

GDAŃSK

BYDGOSZCZ

POZNAŃ

ZIELONA GÓRA

WROCŁAW

KATOWICE

KRAKÓW

WARSAW

RZESZÓW

ŁÓDŹ

Capital

Centre of Poland

DKM

• Interest Only Mortgage• 85% loan to value on costs• 85% loan to fit out costs also• Capital repayment mortgages

also available

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Financing the deal

DKM

• SPV or Own name?• 5 years + for 0% capital gains tax• Ltd Companies get only normal tax breaks• 1 month or up to 6 months to start

operations in Poland for SPV

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Structuring the deal

DKM

• Local standard fit out PLN 1,000• Top quality fit out PLN 1500 +• Quality fit out means less time

without tenants• Quality fit out means Tenants

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Interior design & fit out

DKM

• Allow 6-8 weeks to find tenants• 1 month rent in advance and 1

month deposit• No AST – but contract governed

by Polish Civil Code –• Fierce Letting competition

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Lettings

DKM

• Power of Attorney for everything• Rent normally paid in PLN • Pro - Active Letting service• Regular visits to property• Most clients never visit Poland

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Management

DKM

Davidoff Kleeberg & Maresch

Data supplied by

With kind permission of

Poland 2006

DKM

Davidoff Kleeberg & Maresch

Data supplied by

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l2005 2006

House prices, annual % change*

* Estimates for 2006Source : RICS European Housing Review, Economist

Average house price rise for 2006

Prices are rising across the residential and commercial property sectors Underlying the upturn in property prices is a benign economic environment of low interest rates and a stable economy

But concerns of a bubble in many markets is frequently expressed by commentators including the IMF

Residential & Commercial Real Estate in Poland

Property price surge boost construction activityPoland 2006

DKM

• Sell in 5-10 years time• To Polish first time buyers• They are happy to buy ready to move into• Even more mortgages available by then• Zero rate TAX in personal name

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Exit Strategy

DKM

• Meet our English speaking team• Visit Warsaw, Łódź or Kraków Now!• See 4 or 5 development sites in each • Meet the mortgage advisers & banks• Discuss legal/conveyancing/title issues

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Visit Warsaw Kraków & Łódż

DKM

Residential & Commercial Real Estate in Poland

Davidoff Kleeberg & Maresch

Recent Developments

DKM

Services available

•Mortgages / Finance •Legal – Conveyancing

•Interior Design•Fitting out service•Project management•Residential Sales•Commercial Sales•Off Plan property purchases•Land Sales•Secondary Market sales•Accountancy Services & Taxation advice•Joint Venture Partnerships

DKM

Davidoff Kleeberg & MareschResidential & Commercial Real Estate in Poland