1. DKM Presents The Property Boom In Poland Davidoff Kleeberg & Maresch Residential & Commercial Real Estate in Poland

2. DKM Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Why Poland? E&Y, “European Attractiveness Survey” 2005

3. DKM Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch E&Y, “European Attractiveness Survey” 2005 Rank – No. 1 place for planned European Investment Destination

4. DKM Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch FDI Confidence index, Poland Ranks 5 th Globally

5. DKM Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Where to buy? Overseas flights European flights Domestic connections SZCZECIN GDAŃSK BYDGOSZCZ POZNAŃ ZIELONA GÓRA WROCŁAW KATOWICE KRAKÓW WARSAW RZESZÓW ŁÓDŹ

6. DKM Location Target market Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Where to buy?

7. DKM This is Capital Growth Yields on rentals 6%-7% Costs are all covered 85% + mortgages LTV Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Why are we here ?

8. DKM Off Plan – Yes! Old tenement blocks - No! Modern stock – Yes 2-3 years of capital Growth Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch What to buy?

9. DKM Whether 1 or 101 apartments Small Investors with one flat Professional Investors buying entire blocks of apartments Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Who are our Clients?

10. DKM Only 10%-15% deposit – fixes price Nothing to pay to developer until completion – even if that takes 24 -36 months or more Up to 30% growth per annum with off plan Normal system is 20% deposit – then staged payments Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Off Plan Sales

11. DKM Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Where to buy? Overseas flights European flights Domestic connections SZCZECIN GDAŃSK BYDGOSZCZ POZNAŃ ZIELONA GÓRA WROCŁAW KATOWICE KRAKÓW WARSAW RZESZÓW ŁÓDŹ Capital Special Economic Development Zone Best know Tourist City Industrial Centre Exhibition Centres

12. DKM Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Where to buy? Overseas flights European flights Domestic connections SZCZECIN GDAŃSK BYDGOSZCZ POZNAŃ ZIELONA GÓRA WROCŁAW KATOWICE KRAKÓW WARSAW RZESZÓW ŁÓDŹ Capital Centre of Poland

13. DKM Interest Only Mortgage 85% loan to value on costs 85% loan to fit out costs also Capital repayment mortgages also available Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Financing the deal

14. DKM SPV or Own name? 5 years + for 0% capital gains tax Ltd Companies get only normal tax breaks 1 month or up to 6 months to start operations in Poland for SPV Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Structuring the deal

15. DKM Local standard fit out PLN 1,000 Top quality fit out PLN 1500 + Quality fit out means less time without tenants Quality fit out means Tenants Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Interior design & fit out

16. DKM Allow 6-8 weeks to find tenants 1 month rent in advance and 1 month deposit No AST – but contract governed by Polish Civil Code – Fierce Letting competition Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Lettings

17. DKM Power of Attorney for everything Rent normally paid in PLN Pro - Active Letting service Regular visits to property Most clients never visit Poland Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Management

18. DKM Davidoff Kleeberg & Maresch Data supplied by With kind permission of Poland 2006

19. DKM Davidoff Kleeberg & Maresch Data supplied by Prices are rising across the residential and commercial property sectors Underlying the upturn in property prices is a benign economic environment of low interest rates and a stable economy But concerns of a bubble in many markets is frequently expressed by commentators including the IMF Residential & Commercial Real Estate in Poland Property price surge boost construction activity Poland 2006

20. DKM Sell in 5-10 years time To Polish first time buyers They are happy to buy ready to move into Even more mortgages available by then Zero rate TAX in personal name Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Exit Strategy

21. DKM Meet our English speaking team Visit Warsaw, Łódź or Kraków Now! See 4 or 5 development sites in each Meet the mortgage advisers & banks Discuss legal/conveyancing/title issues Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Visit Warsaw Kraków & Łódż

22. DKM Residential & Commercial Real Estate in Poland Davidoff Kleeberg & Maresch Recent Developments

23. DKM Services available Mortgages / Finance Legal – Conveyancing Interior Design Fitting out service Project management Residential Sales Commercial Sales Off Plan property purchases Land Sales Secondary Market sales Accountancy Services & Taxation advice Joint Venture Partnerships DKM Davidoff Kleeberg & Maresch Residential & Commercial Real Estate in Poland