When cash flow is exhausted in the early years, the IRR appears "compressed," highlighting the importance of the financial time structure in Royal Central Park. It's not just about short-term benefits, but about building a financial model that provides cash flow flexibility for investors. This allows holding apartments until the market begins to grow actively, avoiding forced exits from investments under pressure from interest rates. The first three years serve not merely as a "grace period," but are intended to create a financial buffer that helps optimize the IRR.
Interior of an apartment in the Atlas building (Y2), phase The Essence
This approach is not a novelty in global real estate investment practices. Global studies show that large urban projects with phased implementation and infrastructure integration demonstrate higher price growth rates than standalone projects. According to Savills' report on integrated urban real estate in Asia, apartments in large master-planned communities, such as Singapore, Seoul, and Shanghai, showed an average price increase of 20-40% above that of projects outside of integrated plans within the same development cycle. The reason for this is not speculation, but the gradual accumulation of value as infrastructure is completed and population density increases.
In London, CBRE studies of master-planned areas such as Canary Wharf and King’s Cross show that at early stages, apartment prices are significantly lower than during the stable functioning of projects. Over 7-10 years, property values significantly increased as these areas transformed from "development zones" into new functional centers of the city. Price increases occurred after investors overcame the period of highest capital expenditures, highlighting the importance of holding assets throughout the cycle.
In Middle Eastern countries, integrated urban areas in Dubai, such as Downtown Dubai and Dubai Marina, also demonstrate similar examples. According to Knight Frank data, apartments in these areas show long-term price growth above average due to their ability to attract residents and international capital, while smaller projects around them exhibit lower growth and high volatility. Again, the key point is not the interest rate at the time of purchase, but the ability to hold the asset during the formation and revaluation of its value.
Returning to Royal Central Park, the three-year structure without additional maintenance costs allows investors to apply a strategy successful in global master-planned projects: to acquire at the initial stage, hold the asset during growth, and begin servicing financial obligations only after the new asset reaches a new price level. As the market grows and assets are revalued, the loan-to-value (LTV) ratio naturally improves, easing the debt burden relative to asset value.
Image of Royal Central Park and 5 towers of phase The Essence — on sale from January 2026.
This is the key difference between passive and strategic leverage. Passive leverage forces the investor to simultaneously borrow funds and lose cash flow, which compromises the IRR from the very beginning. Strategic leverage, on the other hand, allows borrowing at the right moment and paying for capital expenditures only after the asset's price has increased and the investment position has strengthened.
From a profit-making mechanics perspective, investors in Royal Central Park do not just have benefits for three years. They acquire a structure that allows them to hold positions during the growth of the Bishkek market without reducing the IRR against the backdrop of interest. In a cycle where time becomes a key competitive advantage, this is the main value that Royal Central Park offers to long-term investors.
Modeling Financial Leverage (Interest-Based Model)
To illustrate the effectiveness of financial leverage, regardless of the absolute value of the apartment, the model is entirely based on percentage ratios. The investor uses a capital structure of 30% equity and 70% bank loan, with a three-year grace period on principal and interest, during which the interest expenses for this period are covered by the developer.
Landscape garden of phase The Essence — large-scale urban complex All-in-one Royal Central Park
This model assumes that asset prices will increase by 35% in the first year, after which they will stabilize for the next two years. This reflects a conservative scenario that allows for the isolation of the net effect of financial leverage.
Under these conditions, after three years, the asset value is 135% of the initial level, while the debt remains at 70%. The equity value reaches 65%, which is the difference between the asset value and the debt. Compared to the initial 30% equity, this results in a capital gain of 35 percentage points, corresponding to approximately 117% return on equity (ROE) over the three-year period, excluding additional growth factors such as rental income or refinancing.
Visualization of the central garden of phase The Essence, inspired by the concept of a Greek garden
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INFORMATION BLOCK:
Details of the mortgage program in Royal Central Park
- Lender: Kompanion Bank
- Maximum loan amount: up to 70% of the apartment's value
- Grace period on principal and interest: 3 years — interest covered by the developer RCA Living during the first 3 years
- Maximum loan term: up to 15 years
- No prepayment fee
- Simplified loan processing, with the option to use the purchased apartment in Royal Central Park as collateral for the loan agreement
