» Marlion Residence
Use the links below to navigate through the information provided on Marlion Residence:
EXECUTIVE SUMMARY
• We are pleased to present you an opportunity to purchase a luxury apartment in Hurghada, Egypt. This exclusive aparthotel development consists of 272 apartments all with stunning views of the Red Sea, and completes in March 2010.
• Marlion is located on the beaches of Hurghada; an area which is very much in the early stages of the property investment revolution. It is an area which is expected to produce prolonged growth. Although difficult to ascertain the amount of capital growth due to the infancy of the market, it is still envisaged that an average of 15 – 20% is foreseeable over a 12 month period. Upon completion, all owners will benefit from a 5 year rental guarantee of 10% NET per annum.
• With foreign nationals now having the option to buy in Egypt, property prices have been rising consistently in the Sahl Hasheesh and Sharm El Sheikh area, and at present are almost 4 times greater than Hurghada. Bearing this in mind, there is even fewer opportunities to purchase apartments in Hurghada directly on the beach. With Marlion being 15 minutes away from the old town – the tourist hub of the region, we have compiled an excellent package purely aimed at UK and overseas investors as follows:
- Prices from £700 per sqm - Discounted by approx 15% – Prices of similar projects are selling at over £950 per sqm.
- Low purchase costs with unique exit strategy in place.
- Guaranteed 10% NET rental income per annum for 5 years with a renewable contract
- Furniture packs included with all apartments
- Price increase of 10% in place for end 2008
- Excellent ‘Buy 2 Sell’ option to resell before completion, with a potential uplift of 20% in first year of investment.
- Unique exit strategy in place – with 2nd stage property market just taking off in Hurghada, all investors have an opportunity to re-sell, pre-completion within a 2 year window.
- Upto 65% finance available upon completion (STS) for investors wishing to complete.
- All properties are freehold and complete in March 2010.
- No capital gains tax or inheritance tax.
- Prices start from £36,000 (including furniture pack)
KEY HIGHLIGHTS
- Situated 15 minutes walking distance from Downtown (El Dahar) which is the old part of Hurghada – A quite location between Hurghada Town and the new tourist sector.
- 10 minutes from Hurghada International Airport with regular flights from the UK.
- A total of 272 apart-hotel units on 4 floors.
- Rental guarantee of 10% NET per annum for 5 years with 28 days free use of the apartment for the owner.
- All units come with re-assignable contracts to resell before completion.
- Front line beach development - one of the very few locations in Hurghada that is not taken up by hotels.
- A dedicated private beach will be further developed to capitalise on this superb location with a large swimming pool by the beach.
- Fabulous views north, east and south across the crystal clear waters of the Red Sea
- Completely freehold with balconies set amongst communal gardens - All penthouse apartments will have individual rooftop terrace.
- Communal areas include two large pools, restaurant / bar, shops, jacuzzi, and gym.
- Whole area will be extensively landscaped with palm trees and other plants.
- Its rare location in Hurghada makes these apartments exceptional value, and ensures a high resale value.
- 20 years building guarantee on all apartments.
- Prices are cheaper by approx 15% to the current market value.
- Finance offered by several Egyptian banks for a 12 year period at 6.5% - 7% per annum.
- Only £2,000 reservation fee plus 35% upfront payment required for the first 50 investors – no further payments until completion (March 2010).
- Further investors will be required to pay £2,000 reservation fee plus a stage payment of 35% followed by 15% in 6 months. The remaining balance will be due upon completion.
- Price increase of 10% scheduled for end 2008.
- Equity growth of around 25%-35% on each unit with a minimum return on investment of around 90% .
- The developers will assist in reselling apartments prior to paying the final payment before completion in March 2010.
THE DEVELOPMENT
• An overview - Marlion is a stunning aparthotel development of 4 floors plus rooftop terraces with 272 apartments. With some of the ground floor units being taken up by shops, restaurants and services, all apartments will be designed with modern material of the highest quality.
• At first glance, this extraordinary building from the air looks very much like any other development. However, the side elevation tells a different storey. With all apartments having breathtaking views across the crystal clear waters of the Red Sea, each residence offers selective clientele a framework for optimum comfort and a lifestyle of the highest standard.
• Located in Hurghada, Marlion is situated in an enviable position in a quite and scenic area with outstanding views and just 15 minutes walking distance from Downtown (El Dahar) which is the old part of Hurghada. There is also easy access to the surrounding area, particularly El Gouna. Also Sharm el - Sheikh and Sahl Hasheesh are only a small distance away.
• Set in landscaped gardens with swimming pools, a private beach, Marlion has an air of tranquillity and peace surrounding the site.
• With a complete furniture pack available to each purchaser (at additional cost) and a guaranteed rental income of 10% for 5 years, these apart-hotel units offer an excellent long-term investment opportunity.
• The construction work on Marlion will commence in March 2008 with an expected completion in March 2010. Building licenses have already been granted from the municipal authorities and are available for inspection if required.
• All Marlion apartments include a 20 year structural guarantee as well as a 1 year minor defects guarantee. The 20 year guarantee is provided for structural faults direct by the developer.
Apartment Specifications
• All apartments will include the following:
- Connection for central Air condition and heating system.
- Floor to ceiling fitted wardrobes.
- All electric sockets and electric fittings for lighting.
- Telephone system to central operator including, sockets for video, TV, telephone, ISDN and high speed Internet connection.
- Luxury bathroom with white ceramic tiles to walls and floor, contemporary satin finish tap ware, thermostatic showers, integrated cabinet with mirrored doors.
- Sprinkler system.
- Fire alarm system.
- Front door with security fittings.
- Terrace / Balcony with fully fitted floor tiles, double glazed sliding windows.
- Full furniture pack included with each apartment.
• For further details, contact us for a full Specification Sheet.
THE OPPORTUNITY
Buy-to-let Guarantee
- Apart-hotel consisting of 272 apartments on 4 floors, all with sea views
- All apart-hotel units come with full furniture packs included in the price.
- All apartments come with a 5 year rental guarantee of 10% per annum gross, managed by Sigma Hotel Management.
- This rental income is ongoing as the hotel will continue to operate and will require the use of the apartment (Many rental guarantees are bogus and the cost is built into the price – i.e. the client is simply getting back some of the money put in).
- Owners will have use of their apartments for 28 days per year.
- The hotel will be managed by Sigma Hotel Management in Hurghada – ie Sigma are retaining our involvement in the development for the long-term, which we believe is a very positive message to investors of confidence in the ongoing opportunity the development offers.
- The investor will enjoy a substantial income stream, with no individual effort to rent the property themselves.
- There will also be a substantial increase in unit price based on local property values/inflation and the p/e based upon the income stream.
Furniture packs
• All apart-hotel units come with full furniture packs included in the price.
Buy-to-sell Option
• This is an excellent opportunity to acquire an apartment in an emerging location and with prices starting from £36,000 for a studio apartment, it is sure to attract many investor clients who wish to see an excellent return on their investments within an 18 to 24 month time frame.
• This entire development will be ready around March 2010 and so will appeal to both the buy-to-sell and the buy-to-let investor.
• With these prices, the initial deposit of 35% means that the level of entry into this investment is £14,600 and with the current 15% discount and even with all costs considered and assuming a very modest 20% increase in prices over the next eighteen months, investors should realize a staggering 100% return on their investment, if their apartment is resold prior to completion.
• Although this deal is structured purely for the buy-to-let approach, investors have the option to flip their units prior to completion. Sigma will assist all purchasers to resell their units before the final payment is due and realise a return of over 100% on their initial investment. For those investors who wish to take delivery of the apartment and who may need financing, loans for up to 65% LTV can be arranged and with competitive interest rates.
• Sigma Management Company guarantees each owner a return of 10% per annum on their unit for 5 years after completion. The purchaser will also have use of the unit for 28 days each year at no extra cost. In addition, due to the location of this unique development, the capital appreciation is estimated to be around a modest 15% per annum.
• The project is situated in the highly regarded beach front area of Hurghada and is just a short distance from the shopping areas of the town centre and less than a ten minute drive from the old town. Its central location will make it very popular for renting and re-selling.
Resale Strategy
• One of the main reasons this particular project makes an attractive investment is that an investor can purchase properties because of the attraction of a high return on their investment over a relatively short time period.
• From an investment perspective, investors reserve one or a number of these properties with the intention of never taking delivery. In other words, the property is sold on again before completion at the increased market price therefore making the investor a profit.
• The added bonus to this investment opportunity is that due to payment terms agreed with the developers, the investor only has to invest a minimum of 35% of the purchase price of the property plus a £2,000 reservation fee as their initial investment. The property is then put back on the market before the remaining amount is due and sold at the “retail” price, thereby giving the investor their initial deposit back as well as the difference between the retail and wholesale selling prices.
• For our investor clients, the developer will place their property back on the market after 14-18 months from now. Once sold, investors get back their initial deposit plus the profit made less deductions for sales commissions etc. (Usually 5% of the sales price) The net result is that each investor will realise anywhere around 90% returns on their investment in a relatively short time frame.
How the Investment Works?
• In conjunction with Sigma Property, we have put together this unique investment opportunity for the serious investor that offers a 50% guaranteed return over 5 years through a rental guarantee. If resold prior to completion, potential returns on investment of more than 90% can be achieved.
• Sigma Property has negotiated ‘wholesale’ prices for the whole 272 apartments. At this point, it is worth noting that Sigma is set to increase these prices by 10% by end 2008, resulting in an average increase of just over 25%-35% on the overall purchase price by the end of 2008. Even with this increase, the apartments are still a very attractive proposition for the secondary market.
Guarantees
• Like any investment opportunity, property is prone to risk. Although the level of return and resale is expected, it is not guaranteed. All assumptions have been based on the upward current trend of the property market in Hurghada which is expected to continue growing for at least 3 -5 years. With this confidence in mind, Sigma Property have further increased the potential of this investment by setting up a dedicated sales operation in Hurghada that will market all re- sales via local estate agents and develop a rental management service. This resale operation is expected to be actioned after the second price increase at end of 2008 and prior to completion in 2010. It is envisaged that the bulk of the resales will be conducted in 2009.
Capital Growth
• Due to a steady increase of inward investment and renowned developers creating luxury resorts catering for a wide array of tourists, the Egyptian property market promises to offer excellent potential for all types of investors. Although capital growth has been slow to kick off in Egypt, with static prices until late 2005, the coastal areas around the Red and Mediterranean Sea are currently attracting as much as 20% capital growth per annum, with lower touristy areas still achieving a modest 10 - 15%. However, the Egyptian market is very much in its infancy and currently going through a very exciting time.
Launch Incentives
• In order to kick start the sales for Marlion, the developer is currently offering the following early bird incentives. The first 50 reservations will be entitled to paying only a £2,000 reservation fee plus a 35% deposit with NO FURTHER PAYMENTS UNTIL COMPLETION.
Price Increases
• All current prices include a full furniture pack with each apartment. In addition, all purchasers will also benefit from a 5 year rental guarantee of 10% per annum NET. There is a price increase of 10% scheduled for e n d 2 0 0 8 , and further price increases will be dictated by the trends in the market.
AVAILABILITY & PRICING
RENTAL MARKET
• With increasing interest focused on the Egyptian property market and its rapidly growing tourism industry, the rental prospect here is very strong. Whilst properties here sell for modest amounts, investors are seeing rate of returns that are quite high on the rental market. As demand starts to outstrip supply, investors are likely to see their returns climb even higher.
• The booming tourism trade is one of the biggest factors driving rental investment payoffs. Current estimates indicate a doubling of tourism in Egypt over the next ten years, with much of that focus on the Red Sea coast. This is very good news for investors in Hurghada. The region's star is rising fast and investors are already realising the potential.
• Hurghada, in particular, stands to gain a great deal from the increase in tourism and the fast-growing native middle class. The region has long been a favourite of Egyptian holidaymakers, giving it strong localised support. It has also boomed as an aquatics centre for decades its diving centre has been functioning since the 1980s. Now, as Hurghada develops its nightlife and earns the reputation of offering around-the-clock fun, a whole new group of tourists are making there way to this balmy Red Sea resort.
• All of this bodes very well for investors who purchase in Hurghada. Whilst the property prices here are quite low right now, experts do not expect them to remain so for much longer.
Rental Comparables in Hurghada
• Whilst the rental market here is still in its infancy, the prices for weekly rentals along the waterfront are quite promising. All indicators point to a rapid rise in rental incomes as well.
• Presently, rentals within Hurghada that offer a beachfront view are running between £195 and £600 per week. Some properties, however, do boast much lower prices, while some command much higher weekly rates. Some experts are estimating a 15% yield on properties that are purchased to let, but others suggest a 10% per annum rate. As demand starts to outstrip supply, the ROI is likely to increase along with pricing and property values.
Rental Occupancy
• The rental occupancy rate in Hurghada is a bit difficult to gauge. Rental properties here are booked out well in advance and hotels tend to run an average of 90% occupancy or above. As holidaymakers trek to the Red Sea for year-round adventure and the popularity of the region increases, the occupancy rates will also soar.
Forecast Rental Income
• The potential for solid rental income from Hurghada property is quite high. With estimates running between 10 and 15% per annum, Sigma Management is guaranteeing all owners a minimum 10% rental return on their units for the first 5 years. As demand in the region grows leaps and bounds, the guaranteed rental income can also increase to 12% to 15%. Whilst weekly rentals here are quite affordable at present, this is likely to change quickly to the benefit of early buyers that enjoy a low purchase rate. This is mainly due to the attraction of the area by young crowd's keen to experience the nightspots, cheap bazaars and internet cafes. It is expected that mortgage payments and bills can be covered easily from the seasonal rental income achieved.
INVESTMENT SCENARIOS
Buy and Sell - Short Term Flip (2-3 years)
Buy and Hold - Long Term (5-7 years)
» Hurghada Information• Find out more about the history, the area, activities and life in Hurghada, click here... |
» Egypt Developments• View our wide range of developments available for sale in Egypt, click here... |
