Invest in the idyllic beauty of ancient Greece
Prinos Village
Crete
March 2006
Off plan Investment Opportunity: Prinos Village, CreteConfidentialMarch 2006© Urban Exposure Ltd 2006
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Important
The information contained in this report is confidential and is set out as a general outline of an investment
opportunity. All descriptions, references and other details are given in good faith, as is external market
information that has been gathered by Urban Exposure or is believed to have derived from reputable and
reliable sources. All opinions, judgments, and all financial forecasts and projections contained in this
document are necessarily of a subjective nature and subject to uncertainty. The analysis is based on sources
believed to be correct and reliable and represent the opinion of Urban Exposure as at the date of this
document.
Neither Urban Exposure nor any of the sources quoted or relied upon assume any responsibility for any direct
or indirect damage or loss suffered due to reliance on the information contained herein.
The information contained in this report, including any part thereof, may not be reproduced or quoted to
third parties beyond the intended recipient without the prior written permission of Urban Exposure and/or the
sources quoted or expressly relied upon herein.
Nothing in this document constitutes an offer or solicitation.
© Urban Exposure Ltd, 2006
Off plan Investment Opportunity: Prinos Village, CreteConfidentialMarch 2006© Urban Exposure Ltd 2006
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Contents
1. Introduction..............................................................................................52. The region................................................................................................53. Prinos Village............................................................................................74. Getting there............................................................................................85. Activities on the island..............................................................................86. The Developer........................................................................................107. The Resort..............................................................................................108. Apartment specifications.......................................................................119. Guarantees.............................................................................................1210. Furniture packages.................................................................................1211. Mortgage Guarantee...............................................................................1212. Rental Market and Projected Open Market Income.................................1213. Use of Apartments by owners.................................................................1214. Capital growth........................................................................................1315. Finance...................................................................................................1416. Inspection visits......................................................................................1417. Payment schedule and purchase procedure...........................................1418. Currency.................................................................................................1519. Tax.........................................................................................................1520. Legal.......................................................................................................15
Appendix 1: CLIMATE STATISTICS..............................................................16Appendix 2: EXAMPLES OF FLOOR PLANS..................................................17Appendix 4: SAMPLE FURNITURE INVENTORY……………………………………………………………20Appendix 5: INTERNAL IMAGES………………………..…………………………………………………..….202Appendix 6: EXTERNAL
ELEVATIONS…………………………………………………………………….…..204
Off plan Investment Opportunity: Prinos Village, CreteConfidentialMarch 2006© Urban Exposure Ltd 2006
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Summary Information
Urban Exposure is pleased to present you with the opportunity to purchase a luxury
apartment on the beautiful island of Crete. The exclusive development consists of 78
apartments, due to complete in May 2007. Located in a stunning valley with
spectacular sea views and within walking distance of the beach, it is only 10 minutes
drive of Rethymno – a popular tourist harbour town. Urban Exposure has compiled an
excellent package of discounts and incentives for purchasers as follows;
15% Discount incorporated into purchase price
Costs paid for 3 years: including mortgage payments, service charge
& utilities
Full furniture package included
Solicitor’s and notary fees paid
Purchase tax paid
Financing of up to 85% available (subject to status)
Excellent capital growth potential
Fully managed rental pool with free use for apartment owners
Please make reservation enquiries as soon as possible to avoid disappointment. Please
contact Urban Exposure on 020 7763 7186 or email [email protected] with
any queries or to make a reservation.
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1. Introduction
Urban Exposure has secured an outstanding
investment opportunity on the beautiful island of
Crete exclusively for its investors. Not only does
the development have excellent capital growth
potential in the short and long term but the
purchase price has been negotiated to include all
costs associated with the purchase of the
property (such as solicitors and notary fees) in addition to the payment of all ongoing
costs including mortgage payments for the first 3 years.
Excellent levels of financing are available (subject to status and bank lending criteria)
and the price of investing in this Mediterranean paradise is incredibly reasonable
compared with other European destinations.
2. The region
Greece
Greece has long been a popular holiday destination due to its wonderful climate,
beautiful scenery, fascinating heritage and delicious cuisine. The Greek mainland and
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its archipelago of 1400 islands (169 of which are inhabited) boast a 5000 year old
history and are home to just over 10 million people. The islands are divided into six
groups: the Cyclades, the Ionian, the Dodecanese, the islands of the North-Eastern
Aegean, the Sporades, and the Saronic Gulf islands. The two largest islands, Crete and
Evia, do not belong to any group.
Some facts at a glance:
Population: 11 millionArea: 131,957 sq kmReligion: Greek Orthodox 98%, Muslim 1.3%, Other 0.7%Currency: EuroKey Industries: Tourism, Shipping, Food and Tobacco, Textiles, Chemicals, Metal
Products, Mining and Petroleum.Key Trading Partners: Germany, Italy, France, Great Britain, USAPresident: Karolos PapouliasPrime Minister: Costas KaramanlisRuling Party: New Democracy Party.
Crete
Crete is the largest of the Greek islands and
located at the southern most part of Europe.
The island is rich in natural beauty and has
1000 km of dramatic coastline as well as high
mountains and rugged countryside. Life on
Crete is relaxed and informal and the cost of
living is affordable. In addition to this the island
also has a rich cultural heritage which its people
are very proud of, hence the Greek building regulations are every strict to protect the
island from over development. Crete alone accounts for ¼ of the entire Greek tourist
trade and is the only place on earth that you can visit the reputed birthplace of Zeus
the King of the Gods!
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Rethymno
A well known holiday destination on Crete,
Rethymno is a gorgeous harbour town that
manages to cater to tourists and holiday makers
whilst retaining its charm through its fabulous
Venetian architecture. It has a vibrant nightlife
and plenty to keep holiday makers with all
interests occupied. Visitors to Rethymno can
enjoy the hustle and bustle of a pretty Greek
town as well as the idyllic solitude of Crete’s
beautiful coast or mountains within a short walk
or drive.
3.Prinos Village
Located on the North West coast and within a 10-minute
drive of Rethymno, Prinos is an idyllic location for this
exclusive development. The development will be within
walking distance of the beach and has great views of both
the coast and mountains. The location gives a feeling of
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seclusion as well as being ideally located for all the bars, shops and historic sites that
Rethymno city centre has to offer.
4. Getting there
Crete has two international airports: the bigger and principal one is Heraklion and the
other is Chania. Frequent charter flights link both to many European cities during high
season; flights are currently less frequent during winter. However there are plans to
introduce direct flight during the off peak season which will greatly increase
the rental potential for property on the island. Both airports have regular flights
to/from Athens (about 50 minutes from Heraklion and 40 minutes from Chania) so
connections are easily made.
5. Activities on the island
Historical Attractions - Crete is crammed with
ancient archaeological sites and the island is a
paradise for history enthusiasts but some highlights
are:
Knossos - Other local attractions include
the infamous Palace of Knossos. Home to King Minos this palace dates back to
1900 BC and houses more than 1000 rooms
Nikos Kanzantzakis – The author of Zorba
the Greek is buried just outside Iraklio.
Dikteon Cave – Reputedly the birthplace of
Zeus, king of the gods.
Golf - Crete’s first 18 hole championship golf course was opened in July 2003. Based to
the east of Heraklion the 6430 yard 71 par course. The course also comes with the full
range of practice facilities for novice golfers, tourists and golf club members. This
includes a double- ended covered driving range with practice bunkers, short game area
and practice putting green. There is also a second putting green adjacent to the first
tee. There are plans to construct another course on
the island.
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Water Sports - Most organised beaches in the Rethymno and surrounding areas offer
water skiing, wind surfing, sea parachuting and other water sports. There are also
some excellent dive centres around the island.
Mountaineering/Walking - Crete is home to the
famous Samaria Gorge, Europe’s longest ravine
which has spectacular walks that last between 5
and 7 hours as well as other fabulous nature trails
through mountains and lush vegetation and
historical walks encompassing ancient
archaeological and religious sites. Organised tours
are available or you can just take a map and
explore!
Mountain Biking - Organised Mountain bike tours
are available as well as the opportunity to explore
the Cretan countryside by renting a bike on your
own. The countryside is easily accessible from Prinos by car or foot.
Shops, Restaurants and Nightlife - Rethymno has
an impressive variety of shops selling designer labels,
hand made jewellery, fine antiques and high quality
leather goods. You can enjoy drinks, music and dancing
in the clubs, and folk dances to live music played on
the bouzouki. Whether dining at a local taverna or an
elegant restaurant, there are a delightful variety of
restaurants serving Greek specialities and international
cuisine.
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6. The Developer
A House on Crete is a construction and development company based near Rethymno
on Crete. The company is run by British born Mark Last, who has over 20 years
property development experience and has lived on the island for 9 years. Their
portfolio includes exclusive small developments, restoration work and bespoke luxury
villas. They have an excellent reputation on Crete for the outstanding quality of their
work and the truly personal service they provide to their customers. More information
is available at www.a-house-on-crete.com.
7. The Resort
Carefully designed to work with the
contours and slopes of an existing
hillside, the resort will be built to a high
standard in a traditional low-rise
architectural style. Apartments will be
built in blocks of two, with spectacular
sea views from almost all units. The
resort will be fully managed by an
onsite manager, and facilities will
include;
A communal swimming pool
A shop for food and conveniences
Restaurant with garden terrace and poolside snack bar
All apartments have been designed with well-proportioned spacious living
areas, large windows to allow in the light, and outdoor areas to enjoy the
sunshine and sea views.
There are three types of
apartment available with the
following average sizes:
Studios 35 m2
1 Bedroom 50 m2
2 Bedrooms 60 m2
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8. Apartment specifications
2 Bedroom Apartments
These apartments consist of 2 double bedrooms
of 14 m2 and 13 m2 respectively, one bathroom
fully equipped with bathtub, toilet ball with
flushing device, washstand, mirror, laundry area.
One open plan kitchen and living area of 33 sq
m.
The kitchens is fully equipped with fitted cupboards and sink with tap for hot – cold
water. The kitchen will be fitted with ceramic hob with extractor fan, oven and fridge
freezer.
1 Bedroom apartments
These apartments consist of one double
bedroom with closet of 13.25 sq m and one
bathroom of 4.80 sq m fully equipped with
bathtub, toilet ball with flushing device,
washstand, mirror and laundry area.
One open plan kitchen and living area 30 sq m.
The kitchen is fully equipped with fitted cupboards and sink with tap for hot – cold
water. The kitchen will be fitted with ceramic hob with extractor fan, oven and fridge
freezer.
1 Bedroom studio
These apartments consist of one bedroom with
closet of 12.70 sq m, one bathroom of 4 sq m
fully equipped with bathtub, toilet ball with
flushing device, washstand, mirror and laundry
area.
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One open plan kitchen and living room of 16.30 sq m.
The kitchen is fully equipped with fitted cupboards and sink with tap for hot – cold
water. The kitchen will be fitted with ceramic hob with extractor fan, oven and fridge
freezer.
9. Guarantees
Copies of all guarantees including the Mortgage Guarantee, Construction Insurance and
Construction Guarantees, and Property Management documents are available to view
on request.
10. Furniture packages
Furniture Packages are included in the purchase price of the apartments. A complete
inventory is shown in Appendix 4, and images of internal finishes are in Appendix 5.
11. Mortgage Guarantee
For the first 3 years all costs including mortgage payments, utilities and service
charges will be paid by the developer. All rental income earned from the property will
be kept by the developer, therefore the apartment will be effectively cost and income
free. We believe this is a great way to take advantage of the good capital growth
prospects without having the inconvenience and day-to-day worry of running costs and
rental management. After the initial 3-year period has expired, purchasers will have
the option to keep the apartment in a rental pool, or to manage this themselves. If the
apartment is sold at any point during the first 3 years these benefits are not
transferable to the new purchaser.
12. Rental Market and Projected Open Market Income
The holiday season on Crete lasts for 30 weeks from April to October. Based on 75%
occupancy for a 30-week season we estimate that the development should achieve the
following rents.
Apartment Weekly Rental Income
Studio 300 – 350 euros
1 bed apartment 400 euros
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2 bed apartment 500 – 550 euros
13. Use of Apartments by owners
During the mortgage paid period all owners will be entitled to 50% discount on the use
of the apartment during peak season (June, July and August) OR up to 2 weeks free in
April, May, September or October PLUS up to 3 further weeks free during the winter
months (November – March inclusive).
14. Capital growth
Purchasers of apartments at Prinos Village will immediately benefit from the 15%
discount that Urban Exposure has secured on the development, providing them with
instant equity in their property. We are confident that property prices on the island of
Crete are set to rise steadily over the next few years due to the strong tourist trade
and potential for development on the island. There are plans to introduce direct flights
to the island throughout the winter season which will greatly increase the number of
visitors to the island during the off peak season; as well as plans for new golf courses
to be built which is always a sign of affluence in any area.
Historical data for an 80 sq m property on inland Greece shows an average annual
capital growth of 13.35% over the past 5 years. This is based on off plan property sales
in the Rethymno area.
Year Price in Euros % Increase
2000 75000
2001 85000 13.33%
2002 100,000 17.65%
2003 110,000 10%
2004 120,000 9.09%
2005 140,000 16.67%
Assuming capital growth in the area over the next 2 years of 5% pa, 10% pa and 15%
pa then the equity in the following properties would be:
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Apt
Purchas
e Price
in Euros
Equity
of 15%
on
Purchas
e
Growth Rate
5% paGrowth Rate
10% pa
Growth Rate
15% pa
Value Equity Value Equity Value Equity
A1/
6178,483 26,772
196,77
745,066
215,96
4
64,25
3
236,04
384,332
A4/
487,803 13,170 96,803 22,170
106,24
231,609
116,12
041,487
A9/
1
128,90019,335
142,11
232,547
155,96
946,404
170,47
0 60,905
15. Finance
Arranging a mortgage is a simple process and involves completing a 2 page Bank of
Greece application, attaching the appropriate ID (a colour copy of your passport) and 3
years tax returns.
In conjunction with the National Bank of Greece Urban Exposure has secured loans of
up to 85% of purchase price on properties at Prinos Village*.
Interest rates are from 3.72% during the first year and rise to between 3.92%
and 4.42% depending on the size of the loan. Mortgages are available for 15,
20 and 25 year terms.
*Please note that all rates are quoted directly from Bank of Greece, are subject to change and market
conditions. Urban Exposure makes no representations or warranties about the rates available and or the
mortgage products offered now or in the future by any institution.
16. Inspection visits
Inspection visits to Crete are available to all potential purchasers who will need to pay for the cost of
the flight only. The developer will arrange airport collection and 2 night’s hotel accommodation. The
itinerary will include a project briefing at the developer’s office, site visit, lunch/dinner and a visit to
an English-speaking lawyer if required.
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17. Payment schedule and purchase procedure
1. Reservation
A reservation form needs to be completed and sent to Urban Exposure
A deposit of €1500 is payable directly by bank transfer to the developer
If finance is required, a mortgage application needs to be completed and
sent back to Urban Exposure with supporting documents:
o Proof of identity (colour copy of passport)
o Proof of income (3 years tax returns – P60)
Please note that all reservations are considered provisional until the
reservation deposit is received in cleared funds to the nominated
account
2. Exchange of Contracts
Urban Exposure has allocated a solicitors firm to work on contracts on
your behalf
Exchange of contracts will take place 28 days after reservation
A 15% deposit is payable at this stage
3. Completion
Contracts are completed and legal title transferred
Balance of 85% payable on completion (via mortgage funds if arranging
finance)
Please note that solicitor’s and notary fees are included in the purchase
price of the apartment
18. Currency
All transactions will take place in Euros.
19. Tax
Purchase Tax is between 9% - 13% (on the first €15,000 tax is 9% and on the
remainder tax is 11% - 13%). Please note that purchase tax is included in the purchase
price of units at Prinos Village.
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Capital Gains Tax is currently under review in Greece but expectations are that it will
be between 10 – 30% depending on the value of the property and length of ownership.
Please take independent professional advice with regards to taxation planning.
20. Legal
Please note that all legal cost associated with the purchase of units at Prinos Village
are included in the purchase price. There are no restrictions on the purchase of
property in Greece by European citizens.
The property transaction is executed before the notary and in the presence of lawyers
representing the seller and purchaser. Legal procedures in Greece are fairly simple and
if all the papers are ready and in order a sale can be completed with relative ease by
signing the official contract prepared by the Notary.
Purchase Process for Non EU Citizens
Whilst EU citizens can freely buy properties in Crete; there are certain restrictions for
those people outside of the European Union. However it is possible for non EU citizens
to purchase in Crete. It will in general take about 3 months longer. It is necessary for
your lawyer and notary public to apply to the Minister for the Interior in Greece and the
office there will investigate your position in the community and ensure that you do not
have a history of any kind which might be detrimental to the security of the island, this
is because Crete is considered to be a border territory. Please bear this in mind if you
wish t purchase an apartment.
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Appendix 1: CLIMATE STATISTICS
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Appendix 2: EXAMPLES OF FLOOR PLANS
Sample Studio Apartment
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Sample One Bedroom Apartment
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Sample Two Bedroom Floor plan
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Appendix 3: RUNNING COSTS AND UTILITY PROVISIONS
All cost detailed below are approximations. The purchase price of the unit includes all
service charges and utilities payments for the first 2 years.
Heating: 0 – 800 euros Per Annum depending on usage
Water & sewage: 100 euros per annum
Electricity: 300 – 800 euros per annum
Security: 200 euros per annum
Telephone 350 euros per annum depending on usage
Satellite TV 660 euros per annum for package with UK live sports including
premier league football and films
Internet 500 euros for ADSL line
Building Insurance 610 euros per annum on a mortgage of 100,000€.
Fire and earthquake cover is compulsory.
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Appendix 4: SAMPLE FURNITURE INVENTORY FOR RENTAL HOMES
Kitchen
Chairs/Stools Table Ceramic HobOven Extractor Fan Fridge FreezerLights Cooking Pots DrainerSpatulas Cutlery Cutlery TrayKitchen Knives Bread Knife Chopping BoardSalad Bowl Egg Cups 24cm Dining Plates21cm Deep Plate 18cm B'fast Plate Tea Cups & SaucerWater Glasses Wine Glasses Can OpenerPepper & Salt Plate Rack KettleToaster Curtains Towel HangersAsh Tray Dustbin BucketMop Wringer Broom
Living Room
Lights 3 Seater Sofa bed 2 Seater Sofa bedCoffee Table Chairs TVTV Stand Paintings CurtainsAircon Unit Artificial Plants
Bedroom
Lights Single Bed Double BedMattresses Night Stands Aircon UnitBuilt in Wardrobe Clothes Hangers BlanketsPillows Curtains Mosquito PlugsHair Dryer Iron Ironing Board
Bathroom
Lights Toilet Roll Holder Soap DishCup & Holder Soap Tray Double HookDouble towel Rail Mirror with Light Toilet BrushBin Shower Curtain
Outside
Balcony Light Clothes Horse Clothes PegsUmbrella Chairs TableSun beds
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Appendix 5: Internal Images
Bedroom
Bedroom
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Kitchen and Living Area 1
Living Area 2
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Appendix 6: Computer Generated Images of Houses and Development
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