HIGH CAPITAL GROWTH AND EXCELLENT RENTAL POTENTIAL IN A MARKET RIGHT AT THE BEGINNING OF ITS PROPERTY PRICE GROWTH CURVE IN THE CZECH REPUBLIC

• Walker House is a landmark luxury development of just 33 units in the old town in the very centre of the city
• One of the first new-build developments in the city with a rare combination of strong capital growth potential AND great rental demand from the corporate sector
• Property Secrets is the only investor group in the development and has secured great payment terms of 10/90 and a 4.3% discount on list price.
• Huge investment going into the area, spearheaded by the €1 billion Hyundai European Headquarters, 6km from the development and due to commence production end of 2008
• A valuation by Colliers International has assessed our prices to be up to 4.3% below market value, supporting the fact that the discount we are offering is a genuine one relative to market value

With the Walker House development Property Secrets is offering the opportunity to invest in a brand new market in the Czech Republic. Walker House is located in the city of Frýdek-Místek, 20km from Ostrava in the east of the country close to the Slovak and Polish borders.

The city is at the heart of what is becoming an electrical engineering and car construction region of excellence.

Hyundai, the Korean car giant, is investing €1 billion in locating their European Head Quarters only 6km outside Frýdek-Místek. The plant will employ up to 3,400 employees and will start production later this year. The government believes an additional 9,000 jobs will be created in the area indirectly solely as a result of the Hyundai investment.

We believe such huge employment growth in the region will kick-start the property market in Frýdek-Místek.

A key point is to understand is that the Hyundai investment is no simple manufacturing base – this is the Korean car giant’s European HQ and as such will employ large numbers of white collar workers in senior managerial positions.

Walker House is a top end development. We would not currently recommend properties aimed at the blue collar worker in this location because we see the initial potential at the higher end of the market, which will grow first, fuelled by demand from managers and professionals.

Fundamental to this is the complete lack of supply of new build property in the city centre.

The Walker House development has an exceptional location in the old town, directly in the city centre of Frýdek-Místek and is one of the first new build residential developments in the city. The development comprises just 33 units, which will be completed to a high luxury specification.

Having worked with the developer previously on the River Park development in Ostrava, we were selected as the only investment group to work with them on this project. Added to this, we have negotiated excellent payment terms of 10/90 as well as a discount of 4.3%.

An independent valuation by Colliers International has assessed our prices to be up to 4.3% below market value

We believe this is an area right at the foot of a long and sustainable growth curve and we are offering investors the opportunity to enter this market at the start of this growth curve. We forecast capital growth of at least 20% on completion by Q3 2009.

But this figure is very conservative and is based on average growth for ALL properties and doesn’t take account of how the top end of the market is likely to move faster and higher. All factors are in place for the units in Walker House to grow in price by considerably more, either during the construction phase, or during the five years or so following completion.

This unique development will allow investors to benefit from an unusual combination of strong capital growth AND attractive yields, supported by the demand for corporate lets. We anticipate average gross yields of 5.7%

Hyundai has already expressed interest in using these units for corporate lets.

This is the best location in the city centre and one of the FIRST developments in the city.

With just these 33 units currently under construction and 3,400 new jobs only 6km down the road, this is an ideal investment for anyone looking for long term capital growth and excellent rental potential in a market that is right at the beginning of its property price growth curve in the Czech Republic – one of the most investor-friendly CEE property markets.

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