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Invest in the idyllic beauty of ancient Greece

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.

Nothing in this document constitutes an offer or solicitation.

© Urban Exposure Ltd, 2006

Off plan Investment Opportunity: Prinos Village, Crete


Confidential
March 2006
© Urban Exposure Ltd 2006
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Contents

1. Introduction .................................................................................... .....5


2. The region....................................................... ....................................5
3. Prinos Village................................................................ ........................7
4. Getting there........................................................................ ................7
5. Activities on the island.................................................................... .........7
6. The Developer................................................... ..................................10
7. The Resort...................................................................... ....................10
8. Apartment specifications....................................................... .................11
9. Guarantees................................................................. ........................12
10. Furniture packages........................................... ...................................12
11. Mortgage Guarantee ...................................................... ......................12
12. Rental Market and Projected Open Market Income.........................................12
13. Use of Apartments by owners....................................... ...........................12
14. Capital growth............................................................................. .......13
15. Finance.................................................................... ........................13
16. Inspection visits.......................................................... ........................14
17. Payment schedule and purchase procedure............................................. .....14
18. Currency.................................................................................... .......15
19. Tax 15
20. Legal......................................................................... ......................15
.................................................................................... ............16
Appendix 2: EXAMPLES OF FLOOR PLANS................................................. ..17
Appendix 3: RUNNING COSTS AND UTILITY PROVISIONS..................................20

Off plan Investment Opportunity: Prinos Village, Crete


Confidential
March 2006
© Urban Exposure Ltd 2006
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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;

 15% Discount incorporated into purchase price


 Costs paid for 3 years: including mortgage payments, service charge & utilities
 Full furniture package included
 Solicitor’s and notary fees paid
 Purchase tax paid
 Financing of up to 85% available (subject to status)
 Excellent capital growth potential
 Fully managed rental pool with free use for apartment owners

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.

Off plan Investment Opportunity: Prinos Village, Crete


Confidential
March 2006
© Urban Exposure Ltd 2006
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1. Introduction

Urban Exposure has secured an outstanding investment


opportunity on the beautiful island of Crete exclusively
for its investors. Not only does the development have
excellent capital growth potential in the short and long
term but the purchase price has been negotiated to
include all costs associated with the purchase of the
property (such as solicitors and notary fees) in addition
to the payment of all ongoing costs including mortgage payments for the first 3 years.

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

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
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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

Crete is the largest of the Greek islands and located


at the southern most part of Europe. The island is
rich in natural beauty and has 1000 km of dramatic
coastline as well as high mountains and rugged
countryside. Life on Crete is relaxed and informal and
the cost of living is affordable. In addition to this the
island also has a rich cultural heritage which its
people are very proud of, hence the Greek building
regulations are every strict to protect the island from over development. Crete alone accounts
for ¼ of the entire Greek tourist trade and is the only place on earth that you can visit the
reputed birthplace of Zeus the King of the Gods!

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
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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

Located on the North


West coast and within a
10-minute drive of
Rethymno, Prinos is an
idyllic location for this
exclusive development. The development will be within walking
distance of the beach and has great views of both the coast and
mountains. The location gives a feeling of seclusion as well as being ideally located for all the
bars, shops and historic sites that Rethymno city centre has to offer.

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.

5. Activities on the island

Historical Attractions - Crete is crammed with ancient


archaeological sites and the island is a paradise for
history enthusiasts but some highlights are:

• Knossos - Other local attractions include the


infamous Palace of Knossos. Home to King Minos this
palace dates back to 1900 BC and houses more
than 1000 rooms

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
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• 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.

Water Sports - Most organised beaches in the Rethymno


and surrounding areas offer water skiing, wind surfing, sea
parachuting and other water sports. There are also some
excellent dive centres around the island.

Mountaineering/Walking - Crete is home to the famous


Samaria Gorge, Europe’s longest ravine which has
spectacular walks that last between 5 and 7 hours as
well as other fabulous nature trails through mountains and
lush vegetation and historical walks encompassing
ancient archaeological and religious sites. Organised
tours are available or you can just take a map and
explore!

Mountain Biking - Organised Mountain bike tours are


available as well as the opportunity to explore the
Cretan countryside by renting a bike on your own. The
countryside is easily accessible from Prinos by car or
foot.

Shops, Restaurants and Nightlife - Rethymno has an impressive


variety of shops selling designer labels, hand made jewellery,
fine antiques and high quality leather goods. You can enjoy

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
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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.

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
© Urban Exposure Ltd 2006
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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

Carefully designed to work with the contours


and slopes of an existing hillside, the resort
will be built to a high standard in a
traditional low-rise architectural style.
Apartments will be built in blocks of two,
with spectacular sea views from almost all
units. The resort will be fully managed by an
onsite manager, and facilities will include;
 A communal swimming pool
 A shop for food and conveniences
 Restaurant with garden terrace and poolside snack bar
 All apartments have been designed with well-proportioned spacious living areas, large
windows to allow in the light, and outdoor areas to enjoy the sunshine and sea views.

There are three types of apartment


available with the following average
sizes:
 Studios 35 m2
 1 Bedroom 50 m2
 2 Bedrooms 60 m2

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
© Urban Exposure Ltd 2006
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8. Apartment specifications

2 Bedroom Apartments

These apartments consist of 2 double bedrooms of 14


m2 and 13 m2 respectively, one bathroom fully
equipped with bathtub, toilet ball with flushing
device, washstand, mirror, laundry area.

One open plan kitchen and living area of 33 sq m.

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

These apartments consist of one double bedroom with


closet of 13.25 sq m and one bathroom of 4.80 sq m
fully equipped with bathtub, toilet ball with flushing
device, washstand, mirror and laundry area.

One open plan kitchen and living area 30 sq m.

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.

1 Bedroom studio

These apartments consist of one bedroom with closet


of 12.70 sq m, one bathroom of 4 sq m fully equipped
with bathtub, toilet ball with flushing device,
washstand, mirror and laundry area.

One open plan kitchen and living room of 16.30 sq m.

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.

Off plan Investment Opportunity: Prinos Village, Crete


Confidential
March 2006
© Urban Exposure Ltd 2006
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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.

10. Furniture packages

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.

11. Mortgage Guarantee

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.

12. Rental Market and Projected Open Market Income

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.

Apartment Weekly Rental Income


Studio 300 – 350 euros
1 bed apartment 400 euros
2 bed apartment 500 – 550 euros

13. Use of Apartments by owners

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).

Off plan Investment Opportunity: Prinos Village, Crete


Confidential
March 2006
© Urban Exposure Ltd 2006
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14. Capital growth

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.

Year Price in Euros % Increase


2000 75000
2001 85000 13.33%
2002 100,000 17.65%
2003 110,000 10%
2004 120,000 9.09%
2005 140,000 16.67%

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:

Purchase Equity of Growth Rate


Growth Rate Growth Rate
Apt Price in 15% on 5% pa
10% pa 15% pa
Euros Purchase
Value Equity Value Equity Value Equity
A1/6 178,483 26,772 196,777 45,066 215,964 64,253 236,043 84,332
A4/4 87,803 13,170 96,803 22,170 106,242 31,609 116,120 41,487
128,900 170,470
A9/1 19,335 142,112 32,547 155,969 46,404 60,905

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.

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
© Urban Exposure Ltd 2006
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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.

16. Inspection visits

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.

17. Payment schedule and purchase procedure

1. Reservation

• A reservation form needs to be completed and sent to Urban Exposure

• A deposit of €1500 is payable directly by bank transfer to the developer

• If finance is required, a mortgage application needs to be completed and sent


back to Urban Exposure with supporting documents:

o Proof of identity (colour copy of passport)

o Proof of income (3 years tax returns – P60)

• 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

• Exchange of contracts will take place 28 days after reservation

• A 15% deposit is payable at this stage

3. Completion

• Contracts are completed and legal title transferred

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March 2006
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• Balance of 85% payable on completion (via mortgage funds if arranging finance)

• Please note that solicitor’s and notary fees are included in the purchase price of
the apartment

18. Currency

All transactions will take place in Euros.

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.

Purchase Process for Non EU Citizens


Whilst EU citizens can freely buy properties in Crete; there are certain restrictions for those
people outside of the European Union. However it is possible for non EU citizens to purchase in
Crete. It will in general take about 3 months longer. It is necessary for your lawyer and notary
public to apply to the Minister for the Interior in Greece and the office there will investigate your
position in the community and ensure that you do not have a history of any kind which might be
detrimental to the security of the island, this is because Crete is considered to be a border
territory. Please bear this in mind if you wish t purchase an apartment.

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
© Urban Exposure Ltd 2006
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Appendix 1: CLIMATE STATISTICS

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Appendix 2: EXAMPLES OF FLOOR PLANS

Sample Studio Apartment

Off plan Investment Opportunity: Prinos Village, Crete


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Sample One Bedroom Apartment

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Sample Two Bedroom Floor plan

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
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Appendix 3: RUNNING COSTS AND UTILITY PROVISIONS

All cost detailed below are approximations. The purchase price of the unit includes all service
charges and utilities payments for the first 2 years.

Heating: 0 – 800 euros Per Annum depending on usage

Water & sewage: 100 euros per annum

Electricity: 300 – 800 euros per annum

Security: 200 euros per annum

Telephone 350 euros per annum depending on usage

Satellite TV 660 euros per annum for package with UK live sports including premier
league football and films

Internet 500 euros for ADSL line

Building Insurance 610 euros per annum on a mortgage of 100,000€. Fire and earthquake
cover is compulsory.

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
© Urban Exposure Ltd 2006
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Appendix 4: SAMPLE FURNITURE INVENTORY FOR RENTAL HOMES

Kitchen

Chairs/Stools Table Ceramic Hob


Oven Extractor Fan Fridge Freezer
Lights Cooking Pots Drainer
Spatulas Cutlery Cutlery Tray
Kitchen Knives Bread Knife Chopping Board
Salad Bowl Egg Cups 24cm Dining Plates
21cm Deep Plate 18cm B'fast Plate Tea Cups & Saucer
Water Glasses Wine Glasses Can Opener
Pepper & Salt Plate Rack Kettle
Toaster Curtains Towel Hangers
Ash Tray Dustbin Bucket
Mop Wringer Broom

Living Room

Lights 3 Seater Sofa bed 2 Seater Sofa bed


Coffee Table Chairs TV
TV Stand Paintings Curtains
Aircon Unit Artificial Plants

Bedroom

Lights Single Bed Double Bed


Mattresses Night Stands Aircon Unit
Built in Wardrobe Clothes Hangers Blankets
Pillows Curtains Mosquito Plugs
Hair Dryer Iron Ironing Board

Bathroom

Lights Toilet Roll Holder Soap Dish


Cup & Holder Soap Tray Double Hook
Double towel Rail Mirror with Light Toilet Brush
Bin Shower Curtain

Outside

Balcony Light Clothes Horse Clothes Pegs


Umbrella Chairs Table
Sun beds

Off plan Investment Opportunity: Prinos Village, Crete


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March 2006
© Urban Exposure Ltd 2006
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Appendix 5: Internal Images

Bedroom

Bedroom

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Kitchen and Living Area 1

Living Area 2

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March 2006
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Appendix 6: Computer Generated Images of Houses and Development

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March 2006
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Off plan Investment Opportunity: Prinos Village, Crete


Confidential
March 2006
© Urban Exposure Ltd 2006