Pete, I can't deny that the annualised growth rates have been approx 4 & 6% on the Medlanky deals. But also our other 2 deals have shown 14% annualised growth (ie approx 15%). Furthermore, when i say currently the growth rate is approx 15% i'm talking about the rate in the last few months (annualised) not an average over the last two years. I suspect we will see better growth rates on the Medlanky deals when we make the next update in October (if not you can really shoot me down :) ). Like you say long term they will do well as are located in a nice quiet established residential area in the north of the city. All - thanks for all your comments. Just to mention further that Star Capital Finance have another self-cert product from another bank too - so its worth contacting them as they provide a very helpful and efficient service and know the finance market in CZ inside out.

Could Simon Tweddle please explain why so far Medlanky has not performed as well as the two other Brno deals and should I conclude from that that I invested in the wrong Brno development in spite of what was in the PS brochure ?

Michael, I suggest calling Richard on 07976150710 as he sourced all the deals in Brno and you can ask him all about it.

Hi Michael, Simon It would be useful for Richard to post his thoughts on Medlanky going forward. Medlanky has probably been one of the worst performing deals which is why I was a little annoyed seeing the %age increase for later, more successful deals being quoted as the norm and ignoring the poor performance of Medlanky. Regards Pete

Hi Pete As it is impossible for me to keep track of prices on all our past deals i would normally refer these to our local partner. In this case it is Erik Dempsey - who has proven to be very good at monitoring price growth. My opinion is that Medlanky hasnt yet started it fast growth curve and may have been a little aheade of its time but i still believe that it will show significant long term growth Here is Erik's commnets 'I’m actually realising we may have been under valuing this project as recent comparables in the area indicate sale values in excess of CZK 35,000/m2. I’m wary of jumping the prices in too large a step, but clearly it is worth well more than CZK 31,000/m2 at this point of time. Growth in 2005 was largely flat; with the majority beginning in the 2nd half of 2006. I would expect Medlanky to be worth CZK 40k/m2 by the end of this year.'

I was told by a mortgage company in Prague that you could not refinance a property that was purchased more than one year ago. Surely this will have implications on people who hope to refinance after two to three years.