Commercial property 1 040 m² in Prague, Czech Republic

District

This property is in the district Prague 2. Within walking distance from Wenceslas Square (3 min. on foot).

A condition of a property in excellent condition (the renovation is required inside).

The useful area of Apartments is 911 sq.m.

In 1998 complete reconstruction of a property and was made including a facade of the building and a superstructure of a penthouse. At the moment on each floor 2 bathrooms and 6 rooms. On the adjacent site there is a parking lot of 3-4 cars. There is an opportunity to expand to 8.

Amounts of the investments

Project cost is 1,830,000 euros Maintaining property (complete execution of the transaction — repair of a property — 2.5% of real estate value – 45,750 euros Reconstruction of the existing Apartments (together with an entrance and the elevator and heating) – 325 euros for sq.m. ITOGO repair – 1040kh325=338000evro Total: 2,213,750 euros

Calculation of profitability at resale of a property

In this district at the moment the cost of 1 sq.m after repair of one-room and two-room apartments is from 3000 euros to 3800 euros.

We take the cost of sale of 3,300 euros for 1 sq.m of living space.

713 sq.m – total area of Apartments

713 x 3300 = 2,352,900 euros

198 sq.m – the room on the first floor + a penthouse on the top floor

198 sq.m x 2500 (cost of 1 sq.m on 1 floor) = 495,000 euros

TOTAL: 2,847,900 euros – 4% (sales tax) = 2,733,984 euros

2,733,984 euros (income) — 2,213,750 euros (expense) = 520,234 euros (net income)

(23.5% profitability from resale)

In profitability sale of parking lots is not includeded (from 13,000 euros everyone)

Also and time and which will be required on reconstruction – from 6 months to 9 months (is more detailed by drawing up the estimate)