Located in the mountain town of Vrchlabi, this luxury project offers investors the opportunity to utilise the exclusive apartments for their holiday use throughout the year.
Located in the mountain town of Vrchlabi, this luxury project offers investors the opportunity to utilise the exclusive apartments for their holiday use throughout the year.
Perched on the Elbe River in the mountain town of Vrchlabi, this luxury project will set a distinct standard for years to come in the region of Liberecky Kraj. Only 150 meters from the historic center, this scheme will combine traditional townhouses with a modern villa-house. The town of Vrchlabi is known as the gateway to the popular Krokonose (Giant) Mountains and offers a wide variety of both summer and winter sports & cultural facilities. In addition to the new ski park which is currently under development there are also 11.3 km of down-hill slopes- which many do not realize is almost the same size as the larges ski of 12km.
Riverside Vrchlabi is positioned to cater for the growing market of more discerning international and local travelers, offering them standards not yet common, including security parking, a laundry room, ski storage, sauna, gym and cafe bar. A total of 55 units, this boutique development will be targeting the growing holiday market in the Krkonose Mountains. Only 15 units have been allocated for international sales and a pre-sale discount of 5% is being offered on these initial units. Prices range from 45,600 - 50,000 CZK per sq.m, with units starting from circa 1,390,600 CZK (34,765 GBP / 50,560 EUR) and increases over the duration of the build cycle are expected to be 15-20%. In addition to excellent payment terms with low deposit on exchange, the developer is currently in negotiations with a potential short-term operator to sign a 3 - 5 yr lease on the premises, which means that owners will have the added benefit of being able to make use of the property during their holidays as well.
What make this development particularly interesting is the potential fall-back options. Should holiday rentals not meet expectations in terms of revenue generation, investors have the option to lease out the units on a normal 1-yr lease contracts to employees of the new Skoda Car Factory that is about to undergo modernization to become a full-scale manufacturing plant for Skoda & Volkswagen by 2010. The company is investing CZK 55 billion in to its Czech plants as part of this modernization process and the Vrchlabi factory workforce is expected to double to 3,000 personnel with a capacity to produce 200,000 cars per annum- including Audis, Seats and Vokwagens. The average wage of a blue-collared worker in the Skoda Company is currently 22,000 CZK, and with a current shortage of design-orientated apartments in Vrchlabi, demand (both rental & resale) is expected to be very high for the units at Riverside Vrchlabi.
Investment Overview:
Luxury boutique holiday-apartment development
Located in the historic town of Vrchlabi, gateway to the Krokonose Mountains
Off plan investment- due to complete Q4 2009 (in time for the ski season)
Growing tourist market- both internationally & locally- with a lack of supply of high-end accommodation
High capital growth and potential short-term operator in negotiation for 3-5 yr lease
Only 15 units allocated for international sales
Average unit price (including parking, storage, excl. VAT) of 1,922,000 CZK, price p/sqm 45,000 CZK
LTV's (mortgage leverage) expected of 90%+ for non-resident purchasers
No capital gains tax if held for 5 yrs
Low exchange deposit of 15%, remainder on completion
