Slovakia Investment Property

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Slovakia Investment Property Newsletter
September 2005 - Issue # 12
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Welcome to the September issue of our Slovakia Newsletter.
Today, we will finish our overview of the country's most
famous tourist regions...and what better to close this
series than Slovakia's majestic High Tatra mountains.

In the next issue you will find the start of a new series,
featuring an overview of Slovakia's property markets, segment
by segment. Plus, a special on Bratislava's five districts
from a property investor perspective.

Whether your interest lies in retail or business centres,
industrial properties or residential housing, land development
or property finance - you will find it here, month after month.
So, don't miss our next Newsletter issues, and enjoy reading!

In this issue you will find:

1. New Hotels for Bratislava
2. High Tatras - Slovakia's National Treasure
3. Your Questions Answered (deposit)
4. Win a Bottle of 'Tokaj'! (Prize Draw)
5. Tell Us What You Think!

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

1) New Hotels for Bratislava

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It's been just over a year since Slovakia joined the EU,
yet the slovak tourist industry is already profiting from
the change. Bratislava airport has seen the passenger
numbers rise spectacularly, more and more airline carriers
are starting direct flights to the slovak capital, and
visitor numbers are on the up.

Indeed, Bratislava's increasing popularity among tourists
ans business visitors alike has resulted in severe shortage
of hotel capacities. Investors and hotel groups were fast
to spot the opportunity and several new hotels will start
filling the gap over the next 2-3 years.

This summer, the 214 room Crowne Plaza opened its doors
in the heart of Bratislava. The recently opened MaMaison
Residences Sulekova, Slovakia's first extended-stay hotel,
has proved highly successful and investors are already on
the look for a second property.

Later this year, reconstruction will begin on three historic
properties in Old Town Bratislava to later serve as 4 star
hotels, providing over 150 rooms on total (by 2007).

In close proximity to the new Crowne Plaza, works will begin
shortly on a further 200 room hotel. Not to forget are
two large development projects on Bratislava's Danube river,
to be constructed until 2009, each housing a top-class
hotel (one of them, the Kempinski, will be the first 5-star
hotel facility in the slovak capital).

While currently all of the city's higher-category hotels
are concentrated in the Bratislava I district (Old Town),
the right bank of the Danube (BA V, Petrzalka) is also to
get its own luxury 162 room hotel in the next 2 years.

So, the next time you will be visiting Bratislava you may
not be spoilt for choice as yet, but, you may at least be
able to get a room in the high season.

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2) High Tatras - Slovakia's National Treasure

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There is no doubt about it...Slovakia's most famous and
highest mountains, the High Tatras, have seen better times.
In the 70's and 80's they have welcomed 4-5 millions of
(mostly Eastern Bloc) tourists each year. The big shock
came after 1990 - visitor numbers dropped dramatically and
hotel occupancy went from over 80% to just over 20%.

While the High Tatras offer sufficient accomodation
capacity (10,000 beds plus an estimated 9,000 beds in
private houses), a serious improvement of quality, services,
language abilities (of the staff), and facilities is
necessary to make the Tatras succeed in competition with
austrian, french or italian mountain resorts.

Most of the High Tatras form the Tatra National Park (TANAP),
and as such are strictly protected areas where any development
is extremely difficult. Despite of that, interest into
the region has risen over the last two years, and several
hotels and buildings in disrepair have been renovated to
a higher standard. The region's first 5-star hotel (Kempinski)
is planned to open in 2006/7 in Strbske Pleso.

While High Tatras offer stunningly beautiful nature and
outstanding hiking in the summer season, as well as reasonably
good skiing conditions in the winter, the main problem
remains the lack of auxiliary services and facilities. Until
recently, visitors had very few option on a rainy day.
Today, large new acqua parks, healing spas and golf courses
offer an additional choice to the tourists.

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3) Your Questions Answered

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"How much deposit is a buyer required to pay when purchasing
a property in Slovakia?"

To be able to answer this, we need to distinguish between
resale property and new developments. When you are buying a
resale residential property, the deposit required on
exchange of contracts is typically low, between 50k and 100k
SKK (at present, 1 GBP = approx. 57 SKK). Note that for higher
value properties (150k+ GBP) the deposit will usually be higher.
You should not, however, be required to pay more than about
5% of the property price.

At the same time as you sign the purchase contract and the
deposit is paid to the vendor, you will be required to pay
the full balance to a slovak notary's or bank's escrow.
Once the Cadaster (Land registry) has registered the title
transfer, these funds will be released to the vendor.
Please note: in Slovakia you will loose your deposit if
you pull out of a purchase.

When purchasing a new built property, the developer will
typically require you to pay in stages during construction.
Most commonly in payments of 30/30/30/10% or 40/30/20/10%
(where the last 10% is due on completion).

We at Slovakia Investment Property, however, will always
try to negotiate a more favourable payment structure for
you. Indeed, as our investors can witness, we have been
successful in offering a structure to purchase with
only a 30% deposit, and no further payment until after
completion.

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

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4) 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 Slovakia's famous Tokaj wine
(or Tokay as it is known internationally).

The lucky July winner is Mr. S. Johansen. 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 October to:
competition@slovakiainvestmentproperty.com.

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

Would you find any of these guides particularly helpful?
(Please only list ONE that would benefit you MOST.)

1. Slovakia - the property purchase process step-by-step
2. Bratislava - area by area - where to buy for growth and
rental
3. Mortgages - obtaining finance in Slovakia
4. Else? ............................ (Please tell us what)

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5) 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