Slovakia Investment Property

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Slovakia Investment Property Newsletter
May 2005 - Issue # 8
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Dear

Welcome to our May newsletter. In this and the following
issues we will take a look at Slovakia's potential in the
various sectors of the tourism industry, from congress
tourism through golfing, ski resorts, health and spa
tourism, and more. Enjoy!

In this issue you will find:

1. Bratislava, A 'White City'
2. New Hot Spot For Congress Tourism?
3. Commercial Property Opportunities
4. Your Questions Answered
5. Win a Bottle of 'Tokaj'! (Prize Draw)
6. Tell Us What You Think!

===================== FEATURE EDITORIAL =================

1) Bratislava, A 'White City'

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Last month an austrian investor announced plans to build
a science and technology park in Bratislava - Vajnory.
The construction of the Central European Park for Innovative
Technologies (CEPIT) should begin in early 2006.

The 63 ha park should house companies from the sectors
of biotechnology, IT, as well as research and development
related to the automotive industry.

The ambitious project also involves construction of a
hotel and congress centre, as well as a higher technical
school for 1,500 students (to be operated as a PPP -
private public partnership).

To attract companies into the park, the austrian and
german CEPIT investors want to use their know-how and
experience from similar projects in Western Europe.

According to the investors, negotiations are underway
with several mostly multinational concerns interested
in transferring their research and development divisions
into Central Europe.

Bratislava's mayor supports the CEPIT project. Bratislava's
concept is to become a "white city" - a city of modern,
innovative technologies, science and research.

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2) New Hot Spot For Congress Tourism?

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Congress tourism is a very specific and lucrative form
of the tourism industry and one that has been growing
steadily since the WWII. Europe is, after the US, the
world's most popular conference destination.

Europe's most successful conference centre - Vienna,
lies only 50 km from Bratislava. It is of little
surprise then that the Slovak capital intends to take
some of this lucrative business away from its neighbour.

Indeed, more and more international companies are
interested in organizing their conferences, workshops
and seminars in Bratislava. This is due to Slovakia's
EU membership, favourable business and tax environment,
fast growing economy and lower cost.

The biggest advantage is Bratislava's position in the
centre of Europe, proximity of other european capitals,
and increasing flight options to/from Bratislava.

However, Bratislava will need more than just suitable
congress centres in order to successfully compete with
established european congress destinations. The city
still lacks basic services necessary for the development
of the conference business.

Most importantly, it needs larger capacity of high quality
hotel rooms, sufficient parking facilities, high-speed
internet and communication networks, interpreter booths etc.

At present, Radisson SAS Carlton, Devin, Danube and Holiday
Inn hotels are well equipped to cater to the congress
visitors. Another 209 rooms will be available in the Crowne
Plaza to open this summer (after refurbishment of the
building previously housing the Forum hotel). At least
three new 4-5 star hotels are planned for construction in
the next five years, adding over 600 rooms in the luxury
segment.

Not less important are additional activities to be offered
the seminar and congress visitors, such as sport, leisure
and cultural activities. In this respect, Slovakia has a
lot to offer - wellness and relaxation stays in its spas
and thermal baths, rafting, cave exploring, Danube boat
trips, wine tasting, etc.

If Bratislava uses its potential wisely, it could, in
the next 5-10 years, become a serious player in the
european conference business.

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3) Commercial Property Opportunities

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Although our largest investor base is involved in the
residential property sector, Slovakia Investment Property
also offers commercial investment opportunities, as well
as land for development.

Another part of the service we offer to those interested
in investing in Slovakia is renovation and project management.
And, of course, should you be involved in any of these
activities yourself, we are always happy to recommend
experienced architects, builders, and other professionals
(especially in the Bratislava and western Slovakia regions).

For commercial property investors we can offer a variety
of opportunities ranging from small and medium investments
up to large scale multi-million pound deals.

Typical examples of small to medium deals are smaller mix
use buildings usually in the city centres of Bratislava
and other regional capitals, starting around GBP 300,000
in fast developing cities such as Trnava, Trencin or
Zilina, or from GBP 700,000 in Bratislava.

These are typically either tenanted and offering a
yield of 10 - 30% (15%+ is only achievable in the
regional centres, while Bratislava's commercial yields
are around 10% currently) or in need of renovation,
often offering an additional potential for extensions.

To those interested in the tourism and leisure sector,
a range of small to large guest-houses and hotels, in
the High and Low Tatras and other tourist destinations.

The entry levels for small guest-houses start at around
GBP 150,000, while GBP 400,000 to 1 million will get
you a medium size hotel (typically in need of upgrading
or renovation) in the High Tatras.

Land for construction of hotels and resorts as well
as other developments (including golf courses, congress
centres, etc) is available for serious investors or
developers.

If you are interested in similar investment opportunities,
or have any questions, we will be pleased to hear from you.

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As announced recently, we are putting together a very
rare deal on new apartments in the very city centre of
Bratislava, the Stare Mesto (district I). You will
receive further information in coming weeks.

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As a registered member of Slovakia Investment Property you
will always receive first notification of developments and
first opportunity to choose and reserve your preferred unit.

If this email was forwarded to you by a friend and you are
not a registered member, please remember that you need to
register in order to be able to receive notifications and
view our deals.

To join FREE of charge, please follow the link below:
http://www.slovakiainvestmentproperty.com/register.php

PLEASE REMEMBER:
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Slovakia Investment Property is not your typical UK
company of UK nationals claiming to be foreign property
experts. Not only have we teamed up with the best local
experts in Slovakia, we are Slovak nationals with first
hand experience of the Bratislava market. And yes, we
also put our own money into the opportunities offered.

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4) Your Questions Answered

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What are the typical rental yields in Bratislava?

Ok, this one is a bit tricky. There are many factors
that influence rental yields. However, for high quality
properties in the areas with good rental demand (city
centre/Stare Mesto and areas very close to the centre)
yields of 5-8% are currently achievable.

One bed flats and smaller 2 beds will typically offer
a gross yield of around 7% p.a., larger 2 beds and smaller
3 beds around 6%, while apartments over 150 m2 will
usually have a lower yield.

This is not to say small units offer the best investment
potential. For rental (as well as sales) the most popular
apartments in Bratislava are good size two beds, larger
one beds, as well as three bed flats. Large units, penthouses
and maisonettes (often - especially in new developments -
up to 300+ m2) are popular with some tenants but will
usually offer a lower yield.

(Good size 1 bed apartments in the capital are typically
60 - 80 m2, popular 2 beds range from 80 - 120 m2, and
three beds from 110 to 150+ m2.)

If you have any question you want to see answered here,
please send it to us: contact@slovakiainvestmentproperty.com

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5) WIN a Bottle of 'Tokaj'! (Prize Draw)

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As every month, it is again time to give one of you the
chance to win a bottle of some of Slovakia's most popular
wines and liquors. This time, a bottle of the famous Tokaj
(or Tokay as it is known internationally) wine awaits a
lucky winner.

The lucky April winner is Mr. H. Whyte. Congratulations!

All you have to do to be entered into the prize draw is email
your answer to our Question of the Month before 15 June to:
competition@slovakiainvestmentproperty.com.

It's as easy as that! We will contact the winner to obtain
the postal address. Good luck!

Question: How would you rate our Newsletter since its
first issue in September 2004?
a) excellent
b) good, but could benefit from some improvement
c) not interesting

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6) Tell Us What You Think!

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We would love to hear what you think of this issue of our
newsletter. We hope you find the information useful and
wish you best success in your investment activities.
And of course, if you have any suggestions for upcoming
issues that you'd like to share with us, please send them!

Just e-mail us at: contact@slovakiainvestmentproperty.com

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We are looking forward to seeing you next month. In the
meantime, if you have any questions or would like to
request further information, please contact us at
info@slovakiainvestmentproperty.com or at
+44 (0)207 152 4014.

Best of success,

Petra Gajdosikova
Managing Director
Slovakia Investment Property
www.slovakiainvestmentproperty.com

Slovakia Investment Property is a trading name of
Alpha Real Estate Investments Limited