WARMEST WISHES FOR A HAPPY HOLIDAY SEASON AND A WONDERFUL NEW YEAR
STAY IN TOUCH WITH PROPFUND – FOLLOW US ON FACEBOOK There’s no easier way to keep yourself up to date with all you need to know about the German residential property market. We regularly update our page with the latest news from the market, publish latest reports and share the success of our investment strategy through presentations and video content. It’s also a great way to get to know more about the company and the people behind it. You’ll see our daily office life, get to know who’s responsible for the fund and managing properties and it will also give you a little insight in German traditions for doing business and general lifestyle. To follow us on Facebook
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BERLIN GENDARMENMARKT
13 APARTMENT BLOCKS ACQUIRED IN 2012: 8% AVERAGE RENTAL YIELD MARCO KNOBLAUCH Group Managing Director
NEWSLETTER
DECEMBER 2012
“It has been a very busy and exciting 2012 for the asset management teams here in Berlin. This year we’ve created two new collective investment funds for international investors and also opened three funds for private investors. The German residential property market has been very popular for investment as the overall market conditions still remain very positive. Property prices are still
low but rising, the rents are increasing steadily, at a faster rate of inflation at the moment and finally interest rates are at their lowest for the last 20 years. Propfund Germany took advantage of these unique market conditions by acquiring 13 apartment blocks for over €20million consisting of 330 apartments. Most of the apartments are already fully rented and we are very happy that the
average rental yield is now over 8% ensuring each of our funds maintain profitability each year for our investors. We look forward to welcoming more investors to Propfund during 2013 as we continue to create wealth and profitability from the world’s most exciting real estate market.”
WWW.PROPFUND.COM
PROPFUND’S NEW WEBSITE IS LIVE NOW For the last couple of months Propfund Germany team has been creating a new design for a website. As pictured in the image, the base of the new website will be a video screen. We hope that this new way of communicating through videos will make it easier for our investors to understand the product and to display the most important information in a more convenient way. Video screens will allow our investors to view all the latest news and updates for the fund using videos, images or presentation materials. We also improved our Investor login section for our investors and agents and Download centre page
to make it easier to receive all the latest updates and collateral about different funds. Don’t forget to check it out on www.propfund.com
CHECK OUT OUR NEW VIDEO SECTION ON VIMEO.COM At the end of September, the Propfund Germany marketing team in Berlin were creating videos about the company, fund strategy and explaining different parts of the product. We hope that in this way our investors will get more engaged with the product and it will give more personal insight of the fund structure and the people behind it. Product and company videos are also translated into Russian and German. You can find all of the videos on Propfund Germany VIMEO channel online here: Propfund Videos
PROPFUND EXPANDS ITS ASSET MANAGEMENT TEAM IN ADVANCE OF A BUSY 2013 Over the last couple of months Propfund has been increasing its staff resources in Property Management, Financial Accounting and Asset Management divisions in advance of a busy 2013. The number of properties under management is growing every month which adds the management responsibility of tenants, increased number of financial transactions and the number of assets & companies under management in the Group. We are delighted that a number of new appointments have been made in recent weeks which will allow each fund to continue to make further acquisitions in 2013 with confidence.
NEWSLETTER
DECEMBER 2012
WWW.PROPFUND.COM
10 YEAR FIXED INTEREST RATES – ONLY 3% P.A. There has never been a better time to invest in German real estate. Yet again this year, income and security of equity are clearly the priority for many investors, so our Residential Property Funds continue to attract a wide range of investors looking for a safe income generating investment. Market conditions in Germany are still very strong and the outlook for 2013 is very positive. Property prices are steadily increasing in line with rental increases of between 3%-5% pa in certain areas. But it is not only the rising property prices that is attracting
international investors to Germany, the main factor right now is the low cost of fixed interest rate finance. In just one year we have seen interest rates drop from an average of 4% to now 3%. The option to fix this low cost of financing at 3% for the next 10 years is very attractive to all types of investors and one which many believe won’t be available forever.
STRONG INVESTOR CONFIDENCE IN GERMANY IN 2012
HARVEST FINANCIAL SERVICES ESTABLISHES A UNIT TRUST FOR SELF ADMINISTERED PENSIONS. With 50 staff managing over €600million in client funds, Harvest Financial Services is regarded as one of the market leaders in Ireland in various aspects of financial services such as pensions, property, stock markets, compliance, equities and deposits. Propfund is delighted to partner with Harvest to help Irish and UK investors conveniently invest in Propfund through their pension. There is a growing number of investors in Ireland and the UK who have decided to take control of where and when their pension funds will be invested. Due to the term of the investment and the relatively low risk of the German real estate market, Propfund is considered by many as an ideal investment for many pension funds. The Harvest team of financial advisors
NEWSLETTER
DECEMBER 2012
have established a ‘Unit Trust’ in Ireland which has been facilitating many investors to use their pension funds to invest in Propfund during 2012. This Unit Trust makes it very convenient for most Irish and UK pension funds to invest in Propfund and fully comply with all UK and Ireland pension and financial regulations. If you would like to speak with a Harvest Financial Advisor to find out how you could maximise the performance of your personal pension please contact David Healy to make an appointment by emailing: david.healy@propfund.com
2012 was the busiest year for Propfund & EURIX Asset Management for over 17 years. While there continues to be a global shortage of low risk investments for both private and institutional investors, Germany continues to remain in high demand. Propfund saw its investor database grow by over 40% in 2012 with investors joining its funds from Europe, Russia and the UAE. There is no market in the world, other than Germany, that offers the perfect combination of growth in property values year on year, a strong culture to continue to rent and the cost of borrowing at an all-time low which can be fixed for the next 10 years. Income and security of equity will continue to be the main priority for many investors in 2013 and Propfund is an ideal product to fulfil this strategy while maximising the potential from this exciting German real estate market. David Healy, Marketing Director
WWW.PROPFUND.COM
13 APARTMENT BLOCKS ACQUIRED IN 2012 With the equity all of the funds have raised in 2012, Propfund Germany acquired a total of 330 apartments worth €19,570,500. The apartments are located in 13 separate projects in Berlin, Detmold, Freiberg, Hildesheim and Minden. With close to 100% occupancy rate, the properties are generating a combined rental yield of 8.02%. The fund has secured over 80% loan-to-value financing from German banks with low fixed interest rates for 10 years. All projects have been purchased below the current market value and the fund managers expect a steady increase in the rental income and the value of the portfolio in the next few years. PROPFUND 1
PROPFUND 2
PROPFUND 2
PROPFUND 2
PROPFUND 2
DAVID HEALY Sales & Marketing Director
PROPFUND IS GENERATING 17% GROWTH ON EQUITY PER ANNUM “As an investor in Propfund Germany you will benefit from a forecast dividend of 7-10% PER YEAR. Over a period of 10 years, investors can expect to earn up to 170% RETURN over and above their initial investment. Each apartment block in our funds generates more income each month compared to the costs to manage the properties and it’s this profit which is distributed to all shareholders each year. Secondly, investors will also benefit from the profits generated from the resale of the portfolio. With only a 30% increase in the value of the portfolio over 10 years this will generate 100% return on equity for investors. With just E30,000 it is possible to invest in one of our residential property portfolios and share in the ownership of apartment blocks in Germany which are normally only available to high networth investors”.
SPANDAU, BERLIN
FREIBERG, GERMANY
SCHÖNEFELD, BERLIN
NEUKÖLLN, BERLIN
KÖPENICK, BERLIN
Price: €940,000 Rental yield: 7.8%
Price: €536,500 Rental yield: 12.8%
Price: €1,698,000 Rental yield: 7.56%
Price: €1,280,000 Rental yield: 7.31%
Price: €800,000 Rental yield: 7.74%
PROPFUND 3
PROPFUND 3
FELDSTRASSE, BERLIN
Price: €1,583,000 Rental yield: 8.17% PROPFUND 4
PROPFUND 4
PROPFUND 4
DETMOLD, GERMANY
BUCKOW, BERLIN
SPANDAU, BERLIN
REINICKENDORF, BERLIN
Price: €1,990,000 Rental yield: 8.23%
Price: €1,700,000 Rental yield: 7.69%
Price: €1,550,000 Rental yield: 7.59%
Price: €2,285,000 Rental yield: 7.39%
PROPFUND 4
PROPFUND 4
PROPFUND 7
YOU TOO CAN SHARE IN THIS INVESTMENT OPPORTUNITY. CONTACT US NOW TO SPEAK TO ONE OF OUR INVESTMENT CONSULTANTS: PHONE:
+49 (30) 499 05 09 50 (GERMANY)
EMAIL:
INFO@PROPFUND.COM
NEWSLETTER
DECEMBER 2012
MINDEN, GERMANY
TEMPELHOF, BERLIN
HILDESHEIM, GERMANY
Price: €1,830,000 Rental yield: 8.51%
Price: €1,385,000 Rental yield: 10.27%
Price: €1,993,000 Rental yield: 7.59%
WWW.PROPFUND.COM
SUCCESS WITH SEMINARS IN MOSCOW AND DUBLIN The German residential property market this year was attracting a lot of attention from investors all over the world, so in a last few months the Propfund Germany team were invited to participate in many seminars for clients in Moscow and Dublin. This year we’ve strengthen our partnership with Gordon Rock who is representing Propfund in the Eastern European market and we also created a successful
relationship with our exclusive partners in Ireland, Harvest Financial services, who’s clients are investing in Propfund through their pension funds. Due to the interest we received from the seminars, we are looking forward to repeat them again in 2013.
FUND’S CHECKLIST PROPFUND 1 Closed, fully subscribed in 2011. Note: Next AGM due in February 2013.
PROPFUND 2 Open for enquiries. Investment starts from €30,000.
BERLIN IS HOME FOR MORE THAN 60 CHRISTMAS MARKETS THIS YEAR
PROPFUND 3
If you want to experience true winter magic you have to come to Berlin. Starting early in December, Berlin becomes the capital city of the German Christmas Markets. Whether you prefer to visit a magical Christmas Market or a lively and urban one, this year Berlin offers you a choice of sixty Christmas Markets. Allow yourself to discover the vendor booths’ magic charm and unique Christmas gift items along the large boulevards and squares as well as on the small side streets and even in several museums. Most of the Christmas markets will present you carefully selected arts and crafts, ancient handicrafts, excellent food and best mulled wine you’ve ever tried. This is an ideal time to come to Berlin and embrace yourself with Christmas spirit and experience one of the Europe’s most famous capitals with strong traditions and excellent atmosphere.
Open for enquiries. Tailored for Russian investors. Investments start from €50,000.
PROPFUND 4 Private fund.
PROPFUND 7
Merry Christmas and a prosperous New Year! CONTACT US: Email: info@propfund.com Phone (Germany): +49 (30) 499 05 09 50
THERE’S NEVER BEEN A BETTER TIME TO INVEST! REQUEST A FREE INVESTMENT PACK
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