Full Description

Bucharest is at the crossroads of trade between the EU, Turkey and the Middle East thanks to its perfect strategic location. Its potential is increasingly recognised by companies across Europe, especially since Romania’s accession to the EU this year removed trading restrictions.

REGIONAL DISTRIBUTION HUB

Leading commercial property consultancy Jones Lang LaSalle predicts:

"[Bucharest] will join Warsaw, Prague and
Budapest in the network of key cities on the
European Union’s eastern frontier. Bucharest
is now becoming a genuine business hub."

Furthermore Ernst & Young confirms that “Romania has become a transportation hub and new destination for multinational manufacturers looking to establish low-cost production sites due to its prime geographic economy market size and friendly conditions for foreign investors.”

CentreWest Commercial Park is located on Bucharest’s busy ring road, to the west of the city, close to the start of the arterial A1 road NW to Pitesti. This is part of the Trans-European Highway network which links Bucharest with other major European cities in the west.

Bucharest is just 150 miles from Constanta, a major port on the Black Sea, which opens up more transport links to the east. With EU accession, Romania embarked on a massive programme of infrastructure improvements.

CentreWest is a complete, modern commercial and retail centre located on Bucharest’s vital ring road. The complex will be built over four floors, with the lower ground floor comprising logistic space, floors one and two a modern shopping mall with retail units, with the top floor containing restaurants and cafes.

This deal has much to offer – you can choose a logistics unit which offers a guaranteed net yield of 8% for ten years, or a retail unit which could bring a potential net 15% per year when let on the open market

WHY INVEST IN COMMERCIAL PROPERTY?

Buying commercial property requires a different mindset than residential property. Much of the emotion of a residential purchase is taken out of the equation and the decision to invest is based on purely financial terms.

The factor that most appeals to investors is the minimal hassle involved with commercial property. Commercial rental contracts are long, from three years upwards. This means that the landlord does not have to constantly think about finding new tenants and so this removes the trouble and costs associated with this.

RIGHT PLACE, RIGHT TIME

Commercial property prices tend to lag a couple of years behind those in the residential sector. This means residential price rises can be an excellent indicator of coming commercial property price rises. Bucharest has had a very buoyant housing market in recent years, suggesting this is a superb time to be investing in commercial units. What’s more, in an expanding, emerging economy such as Romania there is enormous potential scope for future capital growth.

AFFORDABLE OPPORTUNITY

Investing in commercial property usually entails purchasing larger units, which requires large amounts of capital. The beauty of this deal is that it offers a chance for you to get into a commercial development at a micro-level, but still enjoy the same level of returns that a large developer would get.

LOGISTICS UNITS

There will be 28 lower-floor logistics units, each with a floor area of 236m². Interior walls are not fixed which means that if a company wanted to rent a larger space they would be able to, by removing the dividing walls between units.

Each will offer all the facilities necessary for a business to operate – units will have individual power supply, bathroom and kitchenette with hot running water, optional mezzanine office area, a communal canteen for workers, on-site security and fire safety equipment.

RETAIL UNITS

CentreWest will have retail units arranged over two floors. There are 58 first floor units available to our buyers, each with a floor area of 94m². The retail units will be supplied with all facilities needed to operate including power supply and water. There will also be ample car parking for shoppers.

SUPERB LOCATION

Bucharest’s ring road is firmly established as a popular retail area. The north-west section is already dotted with several other large shopping centres, including Carrefour, Metro, IKEA and other hypermarkets. Major multinationals such as these do their research carefully – they have chosen to locate here because they are convinced of its record as an established retail zone. Therefore much of the hard work has been already done for us – city residents regularly use the ring road for shopping, it is easy for them to get to and huge numbers of consumers will pass right next to CentreWest as they drive to access these other retail outlets. This creates a substantial ready market.

A further attraction for retailers is that they may wish to rent the logistics units on the lower ground floor as a secure and convenient place to keep their stock. This mutually reinforces the rental market for both retail and logistics units.

NON-STATUS FINANCING

65% non-status finance in one of New Europe’s fastest growing emerging markets is virtually unheard of – it also means you only need to find 35% for the total deposit. High rentals cover the mortgage at completion.

8% P.A NET YIELD FOR TEN YEARS

The logistics units offer a healthy guaranteed net rental return of 8% for ten years. That’s enough to cover your costs so that you will always be certain to break even.

CASH-POSITIVE RETAIL UNITS

Alternatively you may opt for retail units, which are grouped together in a rental pool with even higher net yields of circa 15% expected, but not guaranteed. In fact the retail units could generate around €400 each month income after all costs.

AFFORDABLE ENTRY PRICES

With purchase prices of €91,650 for retail units and €149,388 for logistics units, initial deposits are just €13,748 and €22,408 respectively. It is highly unusual to get into the commercial property market at this low an entry level, with nothing more to pay for at least six months when the building licence is expected through.

These units are due for completion in late 2009. This means you’ll also benefit from capital growth on the full purchase price for two years having only invested 35%. By the time you have to start making mortgage payments your unit may have substantially increased in value.

KEY BENEFITS

• ENTRY PRICES FROM €91,650
• 35% DEPOSIT WITH NON-STATUS FINANCE AVAILABLE
• TEN YEAR 8% GUARANTEED RENTAL INCOME
• SUBSTANTIAL CAPITAL GROWTH POTENTIAL
• ONE OF EUROPE'S FASTEST GROWING ECONOMIES
• FULLY MANAGED ALLOWING HANDS-OFF OWNERSHIP
• GREAT INVESTMENT OPPORTUNITY