Share in Germany’s No.1 Residential Property Portfolio
2012
Reserved Property Purchase price: € 536.500
Freiberg
(Renovation:
€ 140.000)
Rental income: Yield: Sqm: No. of units: Building Year: Refurbished: Mortgage:
€ 68.868 10,18 % 1.084 11 1900 2012 102% LTV
Propfund Equity: €192.406 (Includes cost of renovation)
Propfund Germany 2 has reserved a residential apartment block consisting of 9 apartments and 2 commercial units in the main shopping street in Freiberg close to Dresden. The property is very attractive to tenants as they are in the direct centre of Freiberg. Supermarkets, restaurants and all necessary amenities are in direct vicinity of the building. 102% LTV financing has been agreed with the Sparkasse Freiberg for a term of 25 years with fixed interest rates of 3.95% for 10 years with an annual capital repayment of 2%. All the units have been completely refurbished in the interior which makes them very attractive to tenants as does the size and layout. The exterior of the building requires refurbishment immediately after purchase. A rental yield of over 10% and a square meter price of 624 € are the unbelievable facts of this Propfund investment! Our due diligence results are, that Freiberg is in the catchment area of Dresden and has a very stable property market. There was only one comparative offer in the vicinity of our building for 1.105 €/m²! It has been agreed with the vendor that a purchase contract will be signed at the end Mai 2012.
Propfund Germany 2 GmbH & Co. KG
2012
Complete new refurbished Yield over 10 % Offers in the area up to 1.105 €/m². We are purchasing for 624 €/m²
Propfund Germany 2 GmbH & Co. KG
Over years no vacancy Solid long term tenants Catchment area of Dresden Main shopping street
2012
Properties shortlisted for acquisition
Summary Shortlist Portfolio No.
Name, location
Portfolio 1a
Berlin- Spandau, Eckschanze strasse
€ 1,550,000.00
7.59%
€ 577,017
Portfolio 1b
Berlin- Reinickendorf
€ 2,285,000.00
7.39%
€ 709,109
Portfolio 2
Berlin Buckow
€ 1,700,000.00
7,69%
€ 701,940
Portfolio 3
Berlin- Spandau, Fieldstrasse
€ 1,583,000.00
8,17%
€ 623,930
Portfolio 4
Minden
€ 3,100,000.00
7,96%
€ 981,920
Portfolio 5
Dresden
€ 6,600,000.00
7,61%
€ 1,977,620
Propfund Germany 2 GmbH & Co. KG
Purchase price
Rental Yield
Propfund Equity
2012
Location map – Berlin properties Propfund Germany 2 GmbH & Co. KG
2012
Portfolio 1a Purchase price: € 1,550,000 Rental income: Yield: Sqm: No. of units: Car spaces: Building Year: Mortgage:
Berlin – Spandau, Eckschanze Strasse The portfolio is being sold off-market by an existing property fund. The higher than average rental yield of 7.59% for this project in Berlin is a clear indication of the excellent price (purchase factor 13.17). The deal is subject to acquiring a sister project in Berlin- Reinickendorf. Supermarkets, restaurants and all necessary amenities in the centre of Spandau are only 200metres away. 77% LTV financing has also been agreed with IBB Bank for a term of 34 years with fixed interest rates of 3.43% for 10 years and annual capital repayment of 1.5% per annum.
Following a study of the government rental database (Mietspiegel), results show that the average rental in the area is 6,61euro/sqm where the actual average in this project is 5,98euro/sqm as the projects in this condition are in greater demand and tenants will pay a little more for rent than in other buildings. It is also important to note that new tenants with new contracts could expect to pay 6,81euro/sqm which also shows significant potential for future growth.
Propfund Germany 2 GmbH & Co. KG
€ 117,672 7.59% 1,578 29 24 1976 77% LTV
Equity: €577,017
Offers in the area selling up to 1.370 €/m².
We are purchasing for 982 €/m²
No refurbishment required
Only 1500 m from the center of Spandau with a big shopping center
Multiple exit strategy options due to low purchase price
2012
Portfolio 1b Purchase price: € 2,285,000 Rental income: Yield: Sqm: No. of units: Car spaces: Building Year: Mortgage:
Berlin – Reinickendorf, Amendestrasse Airport Tegel will closed in June this year, so this area improve dramatically and become even more attractive for tenants and home owners. New tenants with new contracts pay 6,99 €/m² so there is a lot of potential to grow the rental income in the future. The average purchase price in this area is approximately 1.355 €/m². We are aware on only one other building for sale in the vicinity that requires refurbishment which is for sale for 1470 €/m². We have an opportunity to purchase this project for only 980 €/m². The portfolio is being sold off-market by an existing property fund. The higher than average rental yield of 7.39% for this project in Berlin is a clear
Propfund Germany 2 GmbH & Co. KG
indication of the excellent price we have The higher than average rental yield of 7.39% for this project in Berlin is a clear indication of the excellent price we have managed to secure with the existing vendors (purchase factor 13.53). The deal is subject to acquiring a sister project in Berlin- Spandau. 83% LTV financing has also been agreed with IBB Bankfor a term of 34 years with fixed interest rates of 3.44% for 10 years and annual capital repayment of 1.5% per annum.
€168,945 7.39% 2,329 35 18 1976 77% LTV
Equity: €709,129 Only 100m to the main street of Reinickendorf. The roof was replaced in 1996 and new roof top apartments developed. No refurbishment required Parking spaces in the courtyard
2012
Portfolio 2 Purchase price: € 1,700,000 Rental income: Yield: Sqm: No. of units: Car spaces: Building Year: Mortgage:
Berlin – Buckow An rare opportunity to acquire a small middle class project only 11 minutes to the new BBI International airport in Berlin. It is a very quite neighbourhood as it is not in any of the flight paths from the airport. The ground plan of each apartment is like single family homes. Huge investment potential with this project as we have sold individual properties in this area for over 1,700€/m² and we have an opportunity to purchase this entire project for only 1,074€/m². Following a study of the government rental database (Mietspiegel), results show that the average rental in the area is 7,50€/m² where the actual average in this project is 6,80€/m²
Propfund Germany 2 GmbH & Co. KG
€ 130,764 7.69% 1,582 24 10 1985 70% LTV
Equity: €701,940 as projects in this condition are in greater demand and tenants will pay a little more for rent than in other buildings. The portfolio is being sold off-market by an existing property fund. The higher than average rental yield of 7.69% for this project in Berlin is a clear indication of the excellent price we have managed to secure with the existing vendors (purchase factor 13.00). 70% LTV financing has also been agreed with Hypovereinsbank (Unicredit) for a term of over 34 years with fixed interest rates of 3.7% for 10 years and annual capital repayment of 1.5% per annum.
Excellent location close to new BBI International Airport Built in 1985 with modern architecture Huge opportunity to develop the rental income and resale price of the portfolio No refurbishment required
2012
Portfolio 3 Purchase price: € 1,583,000 Rental income: Yield: Sqm: No. of units: Car spaces: Building Year: Mortgage:
Berlin – Spandau, Feldstrasse An opportunity to acquire a residential apartment block consisting of 25 apartments with underground car parking in a popular residential area in Berlin-Spandau. The portfolio is being sold off-market by an existing property fund. The excellent rental yield of 8.17% for this project in Berlin is a clear indication of the excellent price we have managed to secure with the existing vendors (purchase factor 12.23). The properties are very attractive to tenants as they have good access to all public transport and only 20 minutes to reach the city centre. Supermarkets, restaurants and all necessary amenities in the centre
Propfund Germany 2 GmbH & Co. KG
of Spandau are only 1400 metres away. 77% LTV financing has also been agreed with IBB Bank for a term of 34 years with fixed interest rates of 3.43% for 10 years and annual capital repayment of 1.5% per annum. No refurbishment required and new bathrooms have been installed. This project is typical for institutional investment due to the steady income from long term tenants, higher than average rental yield and multiple resale options due to the size of the portfolio and the small amount of private equity required for the purchase..
€ 129,382 8.17% 1,596 25 16 1974 77% LTV
Equity: €623,930 Only 1.500 m from the center of Spandau with a big shopping center Multiple exit strategy options due to low purchase price Offers in the area selling for average of factor 15 We buy for factor 12,23
2012
Location map - properties outside Berlin
Propfund Germany 2 GmbH & Co. KG
2012
Portfolio 4 Purchase price: € 3,100,000 Rental income: Yield: Sqm: No. of units: Car spaces: Building Year: Mortgage: 7
Minden An opportunity to acquire a prime real estate portfolio consisting of 35 residential apartments and one commercial unit with a AAA tenant. The complete house has been fully refurbished in the last 2 years. The higher than average rental yield of 7.96% for this project in Minden is a clear indication of the excellent price we have managed to secure with the existing vendors (purchase factor 12,57. 79% LTV financing has also been agreed with the Sparkasse Minden with a term of 25 years with fixed interest rates of 3.7% for 10 years and annual capital repayment of 2,0% per annum. Following the research of the rental market in
Propfund Germany 2 GmbH & Co. KG
€ 246,660 7.96% 2,977,00 35 67 1900 9% LTV
Equity: €981,920 in Minden tenants pay up to 6,33 €/m² for refurbished apartments. The actual we have in our project is an average of 5,00€/m² so we have great potential for growth even on todays prices. Considering we are generating a rental yield of nearly 8% with an average rental price per tenant 20% below the current market is a real sign of the great price for this building and its true potential for growth over the next 10 years. It has been agreed with the vendor that a purchase contract will be signed at the end of May 2012. Minden is a town of about 83,000 inhabitants in the north-east of Germany.
Brand new rental contracts
In the direct centre of Minden
Multiple exit strategy options due to low purchase price
Building permission for a new building with additional 679 m²Living space
2012
Portfolio 5 Purchase price: € 6,600,000 Rental income: Yield: Sqm: No. of units: Car spaces: Building Year: Refurbished: Mortgage:
Dresden The portfolio is being sold off-market by an existing property fund. The higher than average rental yield of 7.61% for this project in Dresden is a clear indication of the excellent price (purchase factor 13.14). Supermarkets, restaurants and all necessary amenities are in vicinity of the building. 80% LTV financing has also been agreed with Sparkasse Dresden for a term of 34 years with fixed interest rates of 3.88% for 10 years with an annual capital repayment of 1.5%. The actual average rent in this project is 5,60€/m² and it is important to note that new tenants with new contracts could expect to pay
Propfund Germany 2 GmbH & Co. KG
€ 502,000 7.61% 7,461,00 122 18 1930 2002 80% LTV
Equity: €1,977,620 Propfund Equity: €701,940 5,96€/m² which also shows significant potential for future growth. Since the last 10 years the number of inhabitants has grown by over 10% and in the future there will be a great demand for living space. This type of building is perfect for reselling as individual units to German investors which could be a very profitable exit strategy. Our research found an actual offer from the DKB Bank in Dresden. Same type of building / one apartment 110.000 € / 66,17 sqm => 1.662 €/sqm compared to 884/sqm which is what we are buying the entire project for.
Growing city => 10 % last 10 years
Perfect exit with a big profit
Offers in the area selling apartments for 1.662€/m².
We are purchasing for 884 €/m²
2012