Transcript Investment Oportunity

Investment Oportunity
Arad, Romania
The project
• Purchase of 79700 sqm.
• Location: 3 km from the city center.
• Area goes through Important Infrastructure
Investments funded by the World Bank.
• The project consists of landscaping the
land plot. Building of the road, division into
plots of 450-550 sqm with all the utilities
on them.
Location
Location
The concept
• Due to the development of the real estate market and
increase of income land available for house construction
ranges between 100-200 euros per sqm depending of
the area.
• Most of the plots on sale are around 1000sqm and
above due to the layout of the city from the 20 century.
• Therefore a plot of land costs around 100.000 euros
which is expensive for the majority of the population.
• In few areas of the city there are big plots of land
available which can be turned into new residential areas
• Our project comes to serve the demand for smaller plots,
around 530 sqm available with all the utilities (gas,
electricity, drainage, new roads and sidewalks)
The concept part. II
• On the plot of 79700 sqm can be landscaped 115 plots
of 450-550 sqm.
• The rest of the land will be occupied by the road and
green area.
• Each plot should be sold between 20000-30000 euros.
Usually the first plots are sold cheaper and as the area
becomes populated the price increases.
• Total investment for this project is 1.5 million euros
consisting of the price of land and the cost of utilities.
• Guaranteed return for the investor on this project is 30%
for 2 years.
Conclusion
• The demand for such land plots (around 500 sqm) is
really high.
• Most of the big plots of land inside the city cost above 50
euros/sqm and the small plots with utilities on them cost
above 80 euros/sqm.
• Our selling price will be 40 euros/sqm which will make it
the most attractive project in Arad.
• The price for the 79700 sqm is only 14 euros/sqm
because part of the land was purchased before the
announcement of the infrastructure investments in the
area.
• The infrastructure investments will change the entire
area making it much more attractive for the citizens.
Partnership Proposal
• Investment needed of 1 million euros which represents
67% of the total.
• Guaranteed return for this project is 30% for two years.
• The owner guarantees the 1 million euros loan with the
entire property.
• Parcels sale will start in june 2009 and all the money
received for each parcel will go directly into the investor
account until it will cover the investment plus the
return(1.3 million euros)
• If the sales go as predicted investor could get his money
back in only one year.