2016 (1)
news www.firmusgroup.pl
Increasing profitability of rental apartments
News from the Dune Restaurant Café Lounge
The customers trust us
Summary of 2015 Interview with Stein Christian Knutsen, the President of Firmus Group
Stein Christian Knutsen the President of Firmus Group
(Translated to English from the original version in Polish language) The highest number of parking spaces and storage apartments sold in a year areas) was close to 130 milon the one hand. On the lion PLN. other - the broken record What caused such a big inof the value per one square terest in the development? metre of a holiday apartStein Christian Knutsen ment at the Polish seaside. – the President of Firmus Firmus Group, a group Group, says: The important of developer companies aspect is not only its preinvesting in Mielno, can stigious location, literally consider last year very only a few steps from the successful. beach, but also the custoThe success in the form mers’ trust towards us as a of 114 apartments sold developer and the anticipaby Firmus Group last year ted end result which surely was possible thanks to the appeals to the imagination. completion of a develop- The customers are not diment called Rezydencja scouraged by prices frequPark and commencement ently higher than requested of two new ones: Rezy- by our competitors as they dencja Park Rodzinna (32 are certain that the purchapremises) and Dune B (151 se will be worth it and they apartments). All of them will get the invested money are located in Mielno on back plus some earnings, if the Baltic Sea. they buy the apartments for Dune B apartment building commercial purposes. And turned out a real hit in the of- if they buy them solely for fer by Firmus Group in 2015. their own needs, they know This was the second out of they will own truly unique three Dune Resort parts, ho- properties. using about 350 apartments Are apartments by the sea altogether. The construction good investment? That’s just a fact and has process was started at the end of last year’s holidays and been thoroughly proven alsale was commenced at the ready. same time. As at the year’s end, 90 out of 151 premises offered were sold (over 60 continued per cent) . All the same, the on pages value of the sold utility area in the entire development (apartments in Dune A and B,
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Having a privately-owned seaside apartment offers an opportunity for a comfortable stay and earning safe income
Summary of 2015
Surely, income twice that of a bank deposit and having a possibility to make a trip to the Baltic Sea at any time are the most important arguments in favour of investing in a seaside apartment. The profitability from renting out apartments is increasing and due to this the whole market is growing.
Interview with Stein Christian Knutsen, the Pre
The custom (Translated to English from the original version in Polish language)
(Translated to English from the original version in Polish language)
Visualization of Dune B
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ixty percent of Poles spending holidays in Poland invariably decide to go to the seaside. It has not changed for years. On the other hand, holiday accommodation facilities are expected to meet higher and higher requirements. Poles look for convenience and find it, among others, in new apartment buildings. Luxurious seaside apartments are offered by Firmus Group which operates in Mielno (Western Pomerania province). This developer’s offer may be used to illustrate current market trends. Firmus has already implemented several apartment investment projects in Mielno, while others are pending. A three-part Dune Resort is its flagship project. Its first part called Dune A has been operating for more than two years. All of the 114 apartments that it consists of have been offered for sale and have already acquired their new owners. Just like over 60 percent of 151 premises designed in Dune B, which is currently under construction. It turns out that persons who purchase apartments to rent out are mostly interested in relatively small, studio type (single-) and two-room ones. Apartments of this type are still on offer in Dune B. What makes them so popular? This can be explained by information provided by Marcin Kokot of City Apartments, the company having several years of experience in this sector, one of two companies commissioned by the owners to handle DUNE A apartments. City Apartments is in charge of apartments which have achieved even a 50-percent rental income growth year-on-year! Marcin Kokot explains that this has been achieved thanks to both a
larger number of days on which the apartments were rented to visitors as well as an average 8-percent increase in rental rates that took place in 2015: ‘We were able to quote higher prices than in 2014 because Dune facility had become a recognisable brand. An increased interest in renting studio-type apartments was also caused by the fact that in 2015 we highly emphasised the need to prepare an offer that would be attractive to a new target group, namely those who visit the Middle Pomerania region on business’, continues Marcin Kokot. ‘They mostly come off-season and perceive apartment rental as an alternative to a typical hotel room. For ten years our company has been offering a group of apartments intended for this category of customers. In 2015, we decided to extend the group by adding DUNE apartments. The effect has been spectacular. We have recorded a noticeable increase in one- and two-day stays. This has translated into the financial result’. According to Marcin Kokot, apartment owners will continue to achieve higher income when the other part of the Dune Resort complex is put in use. It will house an all-year-round SPA & Wellness centre with a complex of swimming pools, jacuzzi, wellness treatment and message parlours. ‘This will give a whole new perspective’, anticipates Marcin Kokot. ‘Tourists who search booking platforms often tick swimming pools in search filters as an important selection criterion. They do so even if later the pools are not used. Once DUNE B apartment building is put in use, the complex will become an all-year-round facility. I hope that average occupancy rate may then reach even 80-90 percent’.
However, even the current results are already impressive’. Compared to 2014, in 2015 average return on invested capital (for all types of DUNE apartments, i.e. studio, two- and three-room ones) increased by 1 percentage point. Therefore, anyone whose apartment investment recorded in 2014 a 7-percent profitability per annum, last year could enjoy an eight-percent return on invested capital. That’s a lot, when you consider the fact that the market offers mortgages at interest rates of below 4 percent per annum. Artur Tomaszewski, credit advisor, explains, ‘For anyone who invests 15 percent of his own resources and finances the remaining investment value with a mortgage at the lowest interest rate since 1989, currently approx. 3.7 percent, purchase of a seaside apartment becomes one of the most profitable investments, highly competitive compared to bank deposits for example. Taking into account additional benefits resulting from refund of the goods and services tax, in the amount of 8 percent of the price of residential premises and 23-percent in case of a parking place and a constant steady increase in immovable property prices in Poland, the period of return on this type of investment becomes even shorter. Following this way of thinking, it is really possible to repay a loan taken to purchase an apartment within more or less 10 years, and in consequence become an owner of immovable property located in an attractive tourist resort. Then, one may rent out the property, live there (e.g. upon retirement) or put it up for sale collecting a large sum of money on a one-off basis.
In 2015, the number of days in DUNE during which the apartments “worked” for their owners increased. Two-room apartments were among those most frequently rented. Average number of days during which they were occupied by guests amounted to nearly 180, and one of them was even occupied for 220 days a year. However, the highest profitability - upon confrontation of the revenue generated and capital involved in the purchase - was recorded for the smallest studio-type apartments. Interestingly, the best results were achieved by an apartment which does not even have a sea view, but is instead provided with a terrace and a small garden. ‘This proves that guests appreciate and rank high in booking platforms properly prepared and furnished apartments as well as additional services at an appropriate level, be it the quality of breakfast served at the restaurant or permanent availability of a fitness room’, explains Marcin Kokot of City Apartments. ‘Of course, our efforts as a professional rental operator are not meaningless either. The fact for example that the offer is promoted on a number of specialist platforms and the information reaches potential customers through multiple channels. We have already gained a lot of experience in this respect, and it pays off. That is why, in the summer we have recorded a nearly one hundred percent occupancy rate. Excluding business customers, visitors stay in DUNE on a regular basis - beginning from Easter until late September, which means that the season is getting longer. This is beneficial for Mielno as well, since apartments for sale purchased to be rented out draw an attractive group of wealthy guests’.
What is most important to point out in this is that this is not a result of a “pyramid game” but that it is based on economic sense. When You earn between 7-12% on your investment in an apartment and You can borrow money from the bank for 2,5-3,5% - You would be silly not to use the opportunity. We see this by existing customer, who already have bought an apartment, are buying more apartments and following us from project to project. They have seen the light and discovered that investing in an emerging economy is good business. Except for the best locations in Capital cities and Financial Metropoles, apartments with sea frontage are always the most expensive residential real estate which money can buy. This is a global phenomenon and nothing particular for the Polish sea side. The best locations and with the best quality will always be the most expensive – They will increase in price the most over time. Even in bad times, the best locations and quality will always be more sustainable. This might become very particular for Poland, since Poland has one of the smallest coastlines per capita based on the markets which we compare ourselves with. Prices in Dune are not low? When/if/ will they pay back? Are there any reliable calculations? In my opinion our prices in Dune have always been too low and that’s why we keep on increasing them for every project and the closer we get to completion. The fact that earlier buyers also buy more apartments in new projects are also a confirmation of
this – They read the numbers and see the profits. We have two very professional companies who are operating apartments in Dune for other owners and their statistics are impressive. Like I mentioned – owners see from 7-12% profits from their apartments after sharing income with the operator. This should not be possible in a fully functioning market when the interest rates are so low. It’s like picking-up money on the street. It means that we should dramatically increase the prices and/or not sell any apartments at all – just keep all the apartments for ourselves and by that also the profits. When it comes to increase of value I strongly believe that the prices in Dune will over the next years increase with 50% as the whole resort becomes completed. How many Apartments are already sold in new Dune? The exact number I don’t know as this increases daily, but I think that it is around 85 apartments with a total sales amount of 75 million zloty. This represents approximately 60% of sales for the project. Based on the fact that we still just have a “hole in the ground” and another 18 months of construction ahead of us it can only be interpreted as the buyers have trust in us and in the quality which we deliver.
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omers trust us the President of Firmus Group
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Rezydencja Park Rodzinna takes the final stretch
Finishing works in the apartment building Rezydencja Park Rodzinna are coming to an end. The complex with 32 apartments is located at Orła Białego Street in Mielno. The official opening is planned for the beginning of May this year. Almost half of the apartments have already been sold. It is the third building that the Construction Company Kuncer built for Firmus. (Translated to English from the original version in Polish language)
Visualization of Dune Resort
This is very satisfying to observe – There is no better marketing than a satisfied customer! Where are the buyers from? Who are they? The buyers are mainly from the larger cities in Poland. They are mainly business owners or executives in private businesses. But, we also start to see foreigners buying – even though we have not done ANY marketing abroad. In fact, we have one buyer from European Royalty and a film director from Holly-
wood already as buyers, so it can be interesting to follow the paparazzi activity at Dune in the future. What shall be done to make people come by the Baltic sea also in autumn or winter? A lot of people are already coming, but the potential is much much larger. It’s very simple – People want more facilities of quality and diversity. A wider specter of services and facilities will open the potential to Polish as well as international custo-
mers. Why are people going to Mazury in the winter? Look at the trees and the lakes? Why are people going to Zakopane and the mountains when there are no snow? - No, they are going there because that they have more to offer. Spa, entertainment, culinary experiences, medical treatments, educational events as well as corporate events. The corporate market with conferences and larger facilities will be very important for Mielno in the future.
Laying the foundation stone of Dune B
Visualization of Rezydencja Park Rodzinna
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revious investment projects are four neighboring apartment buildings in the complex of Rezydencja Park. The success of this investment prompted Firmus Group to design and build Rezydencja Park Rodzinna offering 32 two- and three-room apartments with an average area of 36 to 53 sqm, and three apartments of 71 sqm. “The idea of small apartments was a success,” says Cezary Kulesza, Marketing and Sales Manager in Firmus. “Customers appreciate the functional layout of the rooms, the high standard of finish as well as the furnishing.” The architecture of Rezydencja Park Rodzinna resembles the style of the adjacent complex. The façade is decorated so it looks like timber-framed construction, which is a distinguishing feature of the buildings’ exterior, making a reference to one of the most characteristic ways of historic construction in the region of Pomerania. Each apartment of Rezydencja Park Rodzinna is equipped with a terrace or a spacious balcony. Their area varies between 8 and 21 sqm, depending on the apartment. 20 parking spaces were designed in the garage area,
located in the lowest floor of the building, another 12 – outside, within a closed area. The building is equipped with an elevator and a spacious reception lobby. Apartments in Rezydencja Park Rodzinna will be delivered on a ‘turnkey’ basis, meaning hardwood floors, tiled floors and complete fixtures in the bathrooms, internal doors with natural veneer finish, and furnished kitchens equipped with built-in Bosch household appliances. Over 40 percent of the apartments in Rezydencja Park Rodzinna have already been sold. The developer obtained the average price of 8,500 PLN (gross price)/1 sqm. Two-bedroom apartments are the most popular. Most of the buyers live 2-3 hours drive from Mielno. They treat the apartments as their
second homes. They intend to use them often, but at the same time, they are interested in commercial letting, so when they are away from Mielno, they can profit from rent. A professional company takes care of finding individuals interested in renting, and provides day-to-day servicing and maintenance. The revenues generated from intensive renting exceed the costs of a mortgage loan, making buying an apartment a better investment than for example a bank deposit. Firmus is preparing interior designs of display apartments that will be ready in spring. During the first visit, clients interested in the purchase will be able to feel like in their own flat. They will have a choice to buy fully furnished apartments or furnish them on their own.
Sales Office Mielno, Piastów 1A/E Street + 48 94 342 22 22 www.firmusgroup.pl
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News from the Dune Restaurant Cafe Lounge
The Dune Restaurant Café Lounge, which is located in the first building of the Dune Resort has made its guests accustomed to the exquisite cuisine and great atmosphere it offers. From time to time, new attractions appear. Recently ‘Fresh Fish from Unieście’ has been added to the menu, there is also live music every Friday and Kids Corner on Sundays. (Translated to English from the original version in Polish language)
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ive music has been present every Friday at the Dune Restaurant Cafe Lounge since December last year. Dominik Kępa, Restaurant Manager, explains: “We promote local musicians, but we are open to everybody who would like to play at our place. We have planned shows by people who already made it big, for example in TV programmes like ‘Poland’s Got Talent’. We’ll have musicians known to wider public, but also total debutants. We prefer good mood generating music styles. That’s why we choose soul, smooth jazz, ballads. In our series of events, there will also be a place for rock but acoustic one and vocals accompanied by the guitar. Guitar, saxophone, piano and strings prevail. Sometimes music coincides with our weekly culinary topics. In warmer seasons, we plan concerts of somewhat bigger music bands, who will perform on the restaurant’s terrace. ” Currently, the music starts at 7 p.m., when our guests arrive for Friday dinner. As an exception, during the Valentine’s Day week the musicians will play at Dune Restaurant Cafe Lounge
The musicians : Remigiusz Błaszków and Przemysław Olszewski every day, and an occasional gift will be waiting for each Female Guest. As Dominik Kępa says, during summer, there will be live music three times a week, usually accompanying other events planned in the beach club. “When we propose our guests an evening with Mexican cuisine and tequila, it will be accompanied by Latino rhythms. The same for other kinds of music. We want our regular
events to be diversified, so all clients can find something interesting for themselves”. Thinking of well-being of the youngest guests, the restaurant arranged the Kids Corner. “We prefer the Polish name equivalent ‘Kącik Najmłodszego Gościa’,” emphasizes Dominik Kępa. “It’s a place where kids can find challenges for themselves, while adults are busy at the table. They have at
their disposal puzzles, logical games, building blocks, kitchen set, colouring pages – appropriate to their ages. Sometimes we organize special games for them. Before Christmas it was cutting out figures from gingerbread, during Italian evening – rolling out pizza dough.” Fish lovers and slow food enthusiasts are happy to see a new addition to the menu called ‘Fresh Fish from Unieście’. The species of the fish
is not specified on purpose, as you never know what fishermen will come back from the sea with. Sebastian Zeger, the Chef, explains, “The Baltic Sea is not very rich with species, but some of them are worth noticing. Sometimes we serve sea bass, sometimes cod or salmon. I happens that we buy a pikeperch straight from the vessel, fish living both in Jamno Lake and inshore waters of Baltic Sea. Both pikeperch and rarely available turbot, are my favourite ones, good for cooking.” And what if storm prevents fishermen from leaving the port, or frost will cover the lake with ice? “You may also count on fresh fish,” ensures Sebastian Zeger. “It may not come from Unieście, but it’s still imported as unfrozen. Quality of ingredients is the basis for satisfying our guests. We pay a lot of attention to it, as well as to the right fish processing methods.” The photograph presents one of the dishes served at Dune Restaurant Cafe Lounge – cod tenderloin. The meat is briefly fried in clarified butter, and then placed in an oven in a relatively low temperature (about 54 degrees Celsius,
The chef says: “We want the plate to always look lovely. Not each of them has to look the same. We indulge ourselves in some craziness in the artistic aspect of serving. But one is always the same: the dish must appeal with its appearance, because before we taste the food, we “eat with our eyes.” According to Sebastian Zeger, the restaurant menu has already begun to evolve to welcome the coming spring, so there will be more novelties: “The menu will change completely, it will be even a little crazy, because there will be surprising combinations, such as beet-coconut-aloe dessert. But I am sure that our guests will love them. I cannot reveal more. I invite you to see for yourself and check out the new attractions at Dune Restaurant Café Lounge.”
but this is not a sous-vide technique). Roasting gives the flavour and creates a crispy crust, explains Sebastian Zeger. The dish is accompanied with mousse of fried tomatoes, grilled pak choi (a kind of oriental cabbage) pasted with miso, pepper mousse, marinated shallots, chive olive oil and a radish petal. It looks and tastes great!
R E S TAUR ANT C AFE LO UNGE
”Fresh Fish from Unieście” : cod/ pak choi/ chorizo/ radish/ parsley
Dune Restaurant, Mielno, Pionierów 18, For Reservation please call 501 870 858