Professional Documents
Culture Documents
Prinos Village
Crete
March 2006
Page 2 of 25
Important
The information contained in this report is confidential and is set out as a general outline of an investment opportunity.
All descriptions, references and other details are given in good faith, as is external market information that has been
gathered by Urban Exposure or is believed to have derived from reputable and reliable sources. All opinions, judgments,
and all financial forecasts and projections contained in this document are necessarily of a subjective nature and subject
to uncertainty. The analysis is based on sources believed to be correct and reliable and represent the opinion of Urban
Exposure as at the date of this document.
Neither Urban Exposure nor any of the sources quoted or relied upon assume any responsibility for any direct or indirect
damage or loss suffered due to reliance on the information contained herein.
The information contained in this report, including any part thereof, may not be reproduced or quoted to third parties
beyond the intended recipient without the prior written permission of Urban Exposure and/or the sources quoted or
expressly relied upon herein.
Contents
Summary Information
Urban Exposure is pleased to present you with the opportunity to purchase a luxury apartment on
the beautiful island of Crete. The exclusive development consists of 78 apartments, due to
complete in May 2007. Located in a stunning valley with spectacular sea views and within walking
distance of the beach, it is only 10 minutes drive of Rethymno – a popular tourist harbour town.
Urban Exposure has compiled an excellent package of discounts and incentives for purchasers as
follows;
Please make reservation enquiries as soon as possible to avoid disappointment. Please contact
Urban Exposure on 020 7763 7186 or email prinos@urbanexposureuk.com with any queries or to
make a reservation.
1. Introduction
Excellent levels of financing are available (subject to status and bank lending criteria) and the
price of investing in this Mediterranean paradise is incredibly reasonable compared with other
European destinations.
2. The region
Greece
Greece has long been a popular holiday destination due to its wonderful climate, beautiful
scenery, fascinating heritage and delicious cuisine. The Greek mainland and its archipelago of
1400 islands (169 of which are inhabited) boast a 5000 year old history and are home to just over
10 million people. The islands are divided into six groups: the Cyclades, the Ionian, the
Dodecanese, the islands of the North-Eastern Aegean, the Sporades, and the Saronic Gulf islands.
The two largest islands, Crete and Evia, do not belong to any group.
Some facts at a glance:
Population: 11 million
Area: 131,957 sq km
Religion: Greek Orthodox 98%, Muslim 1.3%, Other 0.7%
Currency: Euro
Key Industries: Tourism, Shipping, Food and Tobacco, Textiles, Chemicals, Metal
Products, Mining and Petroleum.
Key Trading Partners: Germany, Italy, France, Great Britain, USA
President: Karolos Papoulias
Prime Minister: Costas Karamanlis
Ruling Party: New Democracy Party.
Crete
A well known holiday destination on Crete, Rethymno is a gorgeous harbour town that manages to
cater to tourists and holiday makers whilst retaining its charm through its fabulous Venetian
architecture. It has a vibrant nightlife and plenty to keep holiday makers with all interests
occupied. Visitors to Rethymno can enjoy the hustle and bustle of a pretty Greek town as well as
the idyllic solitude of Crete’s beautiful coast or mountains within a short walk or drive.
3. Prinos Village
4. Getting there
Crete has two international airports: the bigger and principal one is Heraklion and the other is
Chania. Frequent charter flights link both to many European cities during high season; flights are
currently less frequent during winter. However there are plans to introduce direct flight during
the off peak season which will greatly increase the rental potential for property on the
island. Both airports have regular flights to/from Athens (about 50 minutes from Heraklion and 40
minutes from Chania) so connections are easily made.
• Nikos Kanzantzakis – The author of Zorba the Greek is buried just outside Iraklio.
• Dikteon Cave – Reputedly the birthplace of Zeus, king of the gods.
Golf - Crete’s first 18 hole championship golf course was opened in July 2003. Based to the east
of Heraklion the 6430 yard 71 par course. The course also comes with the full range of practice
facilities for novice golfers, tourists and golf club members. This includes a double- ended
covered driving range with practice bunkers, short game area and practice putting green. There
is also a second putting green adjacent to the first tee. There are plans to construct another
course on the island.
drinks, music and dancing in the clubs, and folk dances to live music played on the bouzouki.
Whether dining at a local taverna or an elegant restaurant, there are a delightful variety of
restaurants serving Greek specialities and international cuisine.
6. The Developer
A House on Crete is a construction and development company based near Rethymno on Crete.
The company is run by British born Mark Last, who has over 20 years property development
experience and has lived on the island for 9 years. Their portfolio includes exclusive small
developments, restoration work and bespoke luxury villas. They have an excellent reputation on
Crete for the outstanding quality of their work and the truly personal service they provide to
their customers. More information is available at www.a-house-on-crete.com.
7. The Resort
8. Apartment specifications
2 Bedroom Apartments
The kitchens is fully equipped with fitted cupboards and sink with tap for hot – cold water. The
kitchen will be fitted with ceramic hob with extractor fan, oven and fridge freezer.
1 Bedroom apartments
1 Bedroom studio
The kitchen is fully equipped with fitted cupboards and sink with tap for hot – cold water. The
kitchen will be fitted with ceramic hob with extractor fan, oven and fridge freezer.
9. Guarantees
Copies of all guarantees including the Mortgage Guarantee, Construction Insurance and
Construction Guarantees, and Property Management documents are available to view on request.
Furniture Packages are included in the purchase price of the apartments. A complete inventory is
shown in Appendix 4, and images of internal finishes are in Appendix 5.
For the first 3 years all costs including mortgage payments, utilities and service charges will be
paid by the developer. All rental income earned from the property will be kept by the developer,
therefore the apartment will be effectively cost and income free. We believe this is a great way
to take advantage of the good capital growth prospects without having the inconvenience and
day-to-day worry of running costs and rental management. After the initial 3-year period has
expired, purchasers will have the option to keep the apartment in a rental pool, or to manage
this themselves. If the apartment is sold at any point during the first 3 years these benefits are
not transferable to the new purchaser.
The holiday season on Crete lasts for 30 weeks from April to October. Based on 75% occupancy for
a 30-week season we estimate that the development should achieve the following rents.
During the mortgage paid period all owners will be entitled to 50% discount on the use of the
apartment during peak season (June, July and August) OR up to 2 weeks free in April, May,
September or October PLUS up to 3 further weeks free during the winter months (November –
March inclusive).
Purchasers of apartments at Prinos Village will immediately benefit from the 15% discount that
Urban Exposure has secured on the development, providing them with instant equity in their
property. We are confident that property prices on the island of Crete are set to rise steadily over
the next few years due to the strong tourist trade and potential for development on the island.
There are plans to introduce direct flights to the island throughout the winter season which will
greatly increase the number of visitors to the island during the off peak season; as well as plans
for new golf courses to be built which is always a sign of affluence in any area.
Historical data for an 80 sq m property on inland Greece shows an average annual capital growth
of 13.35% over the past 5 years. This is based on off plan property sales in the Rethymno area.
Assuming capital growth in the area over the next 2 years of 5% pa, 10% pa and 15% pa then the
equity in the following properties would be:
15. Finance
Arranging a mortgage is a simple process and involves completing a 2 page Bank of Greece
application, attaching the appropriate ID (a colour copy of your passport) and 3 years tax returns.
In conjunction with the National Bank of Greece Urban Exposure has secured loans of up to 85% of
purchase price on properties at Prinos Village*.
Interest rates are from 3.72% during the first year and rise to between 3.92% and 4.42%
depending on the size of the loan. Mortgages are available for 15, 20 and 25 year terms.
*Please note that all rates are quoted directly from Bank of Greece, are subject to change and market conditions. Urban
Exposure makes no representations or warranties about the rates available and or the mortgage products offered now or
in the future by any institution.
Inspection visits to Crete are available to all potential purchasers who will need to pay for the cost of
the flight only. The developer will arrange airport collection and 2 night’s hotel accommodation. The
itinerary will include a project briefing at the developer’s office, site visit, lunch/dinner and a visit to
an English-speaking lawyer if required.
1. Reservation
• Please note that all reservations are considered provisional until the reservation
deposit is received in cleared funds to the nominated account
2. Exchange of Contracts
• Urban Exposure has allocated a solicitors firm to work on contracts on your behalf
3. Completion
• Please note that solicitor’s and notary fees are included in the purchase price of
the apartment
18. Currency
19. Tax
Purchase Tax is between 9% - 13% (on the first €15,000 tax is 9% and on the remainder tax is 11%
- 13%). Please note that purchase tax is included in the purchase price of units at Prinos Village.
Capital Gains Tax is currently under review in Greece but expectations are that it will be
between 10 – 30% depending on the value of the property and length of ownership. Please take
independent professional advice with regards to taxation planning.
20. Legal
Please note that all legal cost associated with the purchase of units at Prinos Village are included
in the purchase price. There are no restrictions on the purchase of property in Greece by
European citizens.
The property transaction is executed before the notary and in the presence of lawyers
representing the seller and purchaser. Legal procedures in Greece are fairly simple and if all the
papers are ready and in order a sale can be completed with relative ease by signing the official
contract prepared by the Notary.
All cost detailed below are approximations. The purchase price of the unit includes all service
charges and utilities payments for the first 2 years.
Satellite TV 660 euros per annum for package with UK live sports including premier
league football and films
Building Insurance 610 euros per annum on a mortgage of 100,000€. Fire and earthquake
cover is compulsory.
Kitchen
Living Room
Bedroom
Bathroom
Outside
Bedroom
Bedroom
Living Area 2