By James Scanlon

For the Post

Maghull, Merseyside, seems an unlikely place to set up a business called Prague Property Investments. But as part of a new breed of companies offering "fly to let" opportunities for foreign investors, PPI is doing so well that it opened an office on Wenceslas Square this month.

The company, established in 2003, is in the business of reserving off-plan (that is, not yet built or finished) apartments directly from developers in Prague, then brokering them at a profit to clients back in the United Kingdom. PPI stresses location, accessibility and the relatively low prices here to attract investors ranging from professional people with money to spare to footballers looking for future security after hanging up their cleats. The buyers aren't so much interested in taking up residence in their newly bought property as renting it out to tenants — hence the term "fly to let."

PPI's move to Prague was prompted by a limited property market in the United Kingdom and optimistic forecasts for the growing market here. "We went to Prague essentially to expand our portfolio," says PPI Director Neil Wilson. "Then it became clear that the Prague market was bigger and better than we ever envisaged."

Wilson and his partners started by reserving 10 units in the Central Park development in Žižkov. But the demand was so great that they ended up reserving a total of 143 — and moving them all. "[Central Park units] were just launched on the Czech market at 65,000 Kč [per square meter], but we actually sold ours to clients here at 51,500 Kč [$2,300] 15 to 18 months ago," Wilson says. (PPI gets discounts by buying in bulk.)

As demand continues to grow, so do the number of deals PPI is making in Prague. The company is snapping up flats in developments ranging from Nova Harfa to River Diamond, with an emphasis on riverside living.

"The riverbank really inspires us now," says Wilson. "We're working in developments at both ends of the river. We're in River Lofts in Holešovice, right where Prague Marina is going to be, and we're in River Diamond in Karlín."

To date, PPI has brokered a total of 700 apartments in Prague. According to Wilson, this is due not only to the prices and profit potential here, but to the company's sales strategy in the United Kingdom.

"We have put in place a very sizeable marketing machine in the UK in terms of exhibitions and seminars that we run ourselves," he says. "One of the biggest marketing outlets we've got is Reeds Rains, the largest northern-based independent estate agents in the country. They've just been taken over by an even bigger company, so within the next couple of months we'll have a presence in over 400 high street outlets in the UK."

PPI ferries promising clients to Prague, currently at a rate of about 10 a week. They're able to see development sites, take in the atmosphere of the locations and decide whether it's suitable to their needs, all courtesy of the company. Potential customers pay £199 (8,200 Kč/$370) per person (or £299 per couple) for flight tickets and accommodations at the Carlo IV Boscolo hotel. If they buy, the cost is refunded.

To ensure that investors' money isn't at risk, PPI deals only with larger developers such as Finep and Real Estate Karlín Group. And the company has legal counsel here and in the United Kingdom to help cut through a lot of the red tape and bureaucracy that foreigners buying property in Prague face.

The company expects to further consolidate its efforts in the wake of opening its Prague office this month. Partner companies such as European Reality (which serves as landlords for absentee owners, collecting rent and making repairs), Astute Finance and Anthony Seddon & Co. Solicitors will all be based in one block.

"When we take clients to Prague, we'll be able to simply knock on doors of different suites within the same building," Wilson says. "Clients can meet the finance people who have put their mortgage in place for them, they can meet the lettings and management company who will actually look after everything after completion, and of course they can meet the solicitors who will take them through the process, from reservation right through to exchange and onto completion afterwards."