How the absence of management fees affects owners and tenants
Against the backdrop of high interest rates, the main risk for those investing in real estate is not a slowdown in market growth, but the premature emergence of capital costs in the investment cycle. In situations where cash flow is depleted in the early years, the internal rate of return (IRR) becomes "compressed" before the asset has a chance to demonstrate its true value. This highlights the difference between investment deals focused on short-term gains and strategies designed for the long term.
Thus, financing in Royal Central Park is not limited to short-term interest benefits. It is a structured financial model that offers investors the freedom to manage cash flow, allowing them to hold onto apartments until the market begins to grow actively, rather than forcing them to exit investments under pressure from interest rates. The first three years are not just a "grace period," but a carefully designed buffer that helps optimize IRR.
Interior of an apartment in the Atlas building (Y2), phase The Essence
This approach has long been applied in international real estate investment practices. Studies show that large projects with phased implementation and infrastructure integration tend to have higher price growth rates than isolated initiatives. For example, according to Savills' report on urban real estate in Asia, apartments in large master-planned communities in Singapore, Seoul, and Shanghai have demonstrated an average price increase of 20-40% compared to projects outside comprehensive plans in the same development cycle. This growth is driven not by speculation, but by the accumulation of value during the completion of infrastructure, landscaping, and population density increases.
In London, research conducted by CBRE on master-planned areas such as Canary Wharf and King’s Cross shows that at the initial stage, apartment prices were significantly lower than after the projects reached sustainable operation. Over 7-10 years, property values increased as these areas transformed from "development zones" into new functional centers of the city. The main price increase occurred after investors overcame the phase of maximum capital expenditures, highlighting the importance of holding assets throughout the cycle.
Similar examples can also be seen in integrated urban areas of Dubai, such as Downtown Dubai and Dubai Marina. According to Knight Frank, apartments in these locations show long-term price growth exceeding the average level, thanks to their ability to attract residents, companies, and international investments, while smaller projects around them demonstrate lower growth rates and greater volatility. The key factor remains not the 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 holding costs allows investors to apply a strategy proven effective in international master-planned projects: acquiring the asset at an early stage, holding it during growth, and starting to repay financial obligations only after reaching a new price level. As market value increases 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 the 5 towers of phase The Essence — officially on sale since January 2026.
This is the difference between passive and strategic leverage. Passive leverage forces the investor to simultaneously borrow funds and lose cash flow, which compresses IRR from the very beginning. Strategic leverage, on the other hand, allows borrowing at the right time and making capital expenditures only as asset prices rise, thereby strengthening the investment position.
From a profitability perspective, investors in Royal Central Park are not just taking advantage of the "three-year grace period" to purchase an apartment. They are acquiring a structure that allows them to maintain their position during Bishkek's growth phase without reducing IRR due to interest payments. In an environment where time is a key competitive advantage, this is the main value that Royal Central Park offers its long-term investors.
Modeling Financial Leverage (Interest Model)
To illustrate the effectiveness of financial leverage, a model has been developed based on interest ratios, regardless of the absolute value of the apartment. 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 developer covers the interest costs for the client.
Landscaped garden of phase The Essence — large-scale urban complex All-in-one Royal Central Park
The model assumes that the asset value increases by 35% in the first year, after which it stabilizes 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 reaches 135% of the initial level, while the debt remains at 70%. The equity value is 65%, which corresponds to the difference between the asset value and the debt. This results in a capital gain of 35 percentage points compared to the initial 30% equity, representing about 117% return on equity (ROE) over the three-year period, not accounting for 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:
Data on the mortgage program in Royal Central Park
- Lending bank: Kompanion Bank
- Maximum loan amount: up to 70% of the total apartment cost
- Grace period on principal and interest: 3 years — the developer RCA Living pays the interest for the client during the first 3 years
- Maximum loan term: up to 15 years
- No early repayment fee
- Quick and simplified loan processing, with a special advantage — an apartment in Royal Central Park is accepted as collateral under the loan agreement
