Central Park Apartments Presentation Pps 621m5l

Central Park Apartments Bucharest Romania PROPERTY MANAGEMENT PRESENTATION

Distribution by number of rooms • There are 24 units apartments with the following distribution by number of rooms: - 5 UNITS OF 2 ROOMS - 16 UNITS OF 3 ROOMS - 3 UNITS OF 4 ROOMS Apartments Central Park 2 rooms 3 rooms 4 rooms

CENTRAL PARK –Bucharest Romania in 2010 Residential complex Central Park currently has an occupancy rate of about 30-35%, most of the apartments are unoccupied. At this point in the area where this complex is locate, prices per square meter ranges between 1000-1500 euro but is true that demand is low right now because the economic situation, credit conditions are quite restricted. Therefore a sale at this time could lead to a substantial loss compared to the purchase price. A simulation of the sale of apartments is presented below, taking into that the situation is hypothetical and could sell the entire draft to lie on a quite long period, depending of course the selling price accepted by the owner and how fast the owner want to sell.

Sale Scenario

Built Area sqm

Common Area sqm

Total usable area sqm

98.31 112.55 112.55 104.67 129.02 139.62 154.01 132.27 139.78 132.27 144.30 139.62 144.30

11.37 13.21 13.21 14.82 18.37 16.39 16.16 13.88 16.55 13.88 21.07 16.39 21.07

86.94 99.34 99.34 89.85 110.65 123.23 137.85 118.39 123.23 118.39 123.23 123.23 123.23

PESIMISTIC SCENARIO

No of rooms

2 2 2 2 2 3 3 3 3 3 3 3 3

1000 Euros/sqm

OPTIMISTIC SCENARIO

UNITS

1 2 3 4 5 6 7 8 9 10 11 12 13

1500Euros/sqm

147,465 168,825 168,825 157,005 193,530 209,430 231,015 198,405 209,670 198,405 216,450 209,430 216,450

98,310 112,550 112,550 104,670 129,020 139,620 154,010 132,270 139,780 132,270 144,300 139,620 144,300

Sale scenario 1500 EUROS/SQM

14.21 16.5 21.07 19.05 19.89 21.24 19.89 21.24 21.24 20.08 20.08

121.24 140.7 123.23 162.49 169.66 159.7 169.66 159.7 159.7 150.96 150.96

3,565.76

420.86

3,144.90

203,175 235,800 216,450 272,310 284,325 271,410 284,325 271,410 271,410 256,560 256,560

Pesimistic Scenario

135.45 157.2 144.3 181.54 189.55 180.94 189.55 180.94 180.94 171.04 171.04

Optimistic Scenario

Usable Area Sqm

3 3 3 4 4 3 4 3 3 3 3

Common Area Sqm

Build Area Sqm

No of rooms

UNITS

14 15 16 17 18 19 20 21 22 23 24

1000 EUROS/SQM

135450 157200 144300 181540 189550 180940 189550 180940 180940 171040 171040

5,348,640 3,565,760 EUROS

In present, the operating costs arising from the costs of maintenance and property taxes are: Number of units Maintenance/Month Total Maintenace/Month TOTAL MAINTENANCE/YEAR Property Taxes (Annual) approx 100Euros/unit as an average

TOTAL loss

2 rooms apt 3 rooms apt 4 rooms apt TOTAL/month 5 16 3 24 60 80 100 300 1280 300 1880

22560 EUROS 1200 EUROS

24760

Euros/Year

Rent Scenario Rental apartments seems to be the best option in the short term (2 years) considering the real estate market at this moment. The rental market has a bit more activity but of course the price will be the bottom line. The apartments has to have at least kitchen furniture otherwise will be almost impossible to rent considering that there are units fully furnished on the market in Central Park-Residence. For the beginning it is not necessary to have for all 24 units the kitchen furniture but at least 3 units fully kitchen equipped.

Rent Scenario The cost for 1 kitchen fully furnished and equipped my vary but a decent one starts from 2000 Euros and up. Considering that Central Park Residence is one of the finest gated residence located in the Centrum of Bucharest it is recommended to keep a decent level of furniture and appliances because the potential tenants are in the middle class and up. Renting the apartments will erase the loss showed on page 6 of this presentation because the tenants will pay the monthly maintenance fees. The process of renting could take a few months for all 24 units. Below there is a simulation for the renting and the cost for furniture.

Rent Simulation Type of Units No of Units 2 rooms 3 rooms 4 rooms

5 16 3

Rent/Unit (EUROS)

Total rent/type of units

600 800 1200

24 Total rent Collected/Month

Total rent Collected /Year

Tax Rent 16% of 75% of the rent amount

3000 12800 3600

19,400 Euros/Month 232,800 Euros/Year 27,936 Euros/Year

Property Management • • • •

• • • • • •

Evaluate the property and present any adjustments would be made to obtain the best possible rent; Coordinates any maintenance or repair work using our own network of qualified suppliers with a guarantee in a discount, compared to market prices; Draw up a marketing plan for rental property in the best conditions and find the most appropriate tenants; Your property manager manages a program of maintenance and regular inspection of each property. Any comments, solutions and budgets are submitted to the owner in a periodic report; We maintain direct with the tenant for the whole duration of the rental; Make payments on the owner behalf: property taxes, insurance; Collecting the rent if the owner ask for direct collecting, or that the rent is paid on time; We are at tenants disposal for any emergency 24/24, permanent with the tenant, periodical check of the units; Find other tenants when the lease expires; Submit a monthly report to the owner with the rent situation up to date.

Property Management We are the link between the owner and the tenants, we make things easy for both: tenants and owner; We provide consultancy to the owner and find the best solution for the exploitation of property, ongoing search for new opportunities to exit the investment portfolio, legal advice, maintenance people; We take care of finding the best deals for furniture and assist their fitting.