Slide 1

Blue Chip 30-61 Park Terraces Barsinghausen Property Investment including IER Rental Guarantee Up to 8.1% return on equity p./A. Slide 2 Secured capital: Real Estate Our project Park Terraces Barsinghausen is geared on the basis of long- term usage and investment. This investment provides security to future owners by way of: Location Furnishings Quality Price Return through IER rental guarantee Slide 3 Let your property do your saving for you! A perfect investment property is characterized by the best possible rental potential. This is the basis of the developments concept. BG apartments have a layout that simultaneously satisfies future tenants, while optimizing rental return for the investor. BG real estate experts build only in viable locations with lots of development potential in order to obtain a high increase in market value. Capital growth and simultaneous generation of passive income is assured. Investment property is an indispensable part of any quality financial portfolio. Population influx into the cities is as strong as ever, and experts believe the rural exodus is here to stay. Demand for rental housing in urban areas will most certainly exceed supply. When buying an investment property, the targeted use of outside over self-financing, increases the return on equity due to applicable tax optimization. The experts of Brueggmann Group have extensive know-how of the right financing model to be put in place. Get financial freedom through the over-the- years successfully tested BG investment property placement. The conditions for the acquisition of rental condominiums or multi-family homes are currently very favourable due to historically low interest rates and expected rent and price increases. But as long as location and development are in place. With returns of - depending on location - five to seven percent they are a good alternative or supplement to other forms of investment such as long-term bonds. Through the use of low-cost available outside financing and tax leveraging, the return on equity can reach upwards into double digits. Slide 4 Park Terraces Barsinghausen Obstacle-free living - no thresholds, or chair lifts. An energy efficient gas condensing boiler system with individual room controls is featured. In addition, supporting the heating system and to warm the water, a solar system is installed on the roof. The bathrooms are equipped with bathtub and shower, on ground level and with partitions of real glass. Living rooms and corridors are fitted with parquet flooring of decor oak and heated underfloor. Outdoor areas are designed to include existing tree population. The Development You acquire in a residential area with high quality buildings (usually EFH) a high-end property as an investment. The new construction is of solid structure and obstacle-free. All applicable provisions of thermal insulation are in accordance with established DIN 4108, ENEF standards, including the holding of an energy certificate. Sound absorption quality in accordance with DIN 4109 and fire protection ordinance with DIN 4102 are included. The two buildings together have 20 freehold apartments with 2 - to 4 rooms, bathroom, kitchen, some with guest toilet, storage room, terrace or balcony. Each apartment has a parking space (some two). The developers issue a long-term rental guarantee. The new residence is built near downtown, nestled between gardens, in a residential area adjoining retirement homes. You are surrounded by an optimal infrastructure, including shopping, medical services, a pharmacy, schools and kindergartens, with a train connection to Hannover within walking distance. Slide 5 Park Terraces Barsinghausen: Highly profitable Landscaping: The three-storey luxury condominium benefits from a modern exterior, consisting of two buildings with a total of 20 residential units in total (apartments with 1, 2 and 3 bedrooms and penthouses). Underground car parking is included. Furnishings With generously sized rooms, elegant bathrooms, terraces, Surveillance Video Equipped lifts, the apartments are interesting and attractive to tenants of an upscale social background (from individuals, to families with children). Furthermore, the apartments feature parquet floors and storage rooms. Surroundings The modern and elegant building project, Park Terraces is centrally located in Barsinghausen only a few minutes walk from the Marktstrasse (the pedestrian zone), the train station with connections to Hanover (for commuters), schools, kindergartens, sports and cultural facilities. Slide 6 Images of Barsinghausen Tradition: The Monastery of Barsinghausen Shopping: Marktstrasse street Slide 7 Images of Barsinghausen Deister PoolCulture Slide 8 Images of Barsinghausen Barsinghausen Sports SchoolIndustry Slide 9 Images of Barsinghausen City HallHannover Region Slide 10 Park Terraces Barsinghausen: Importance Investors are in good hands with the Brueggmann group. Development, sales, leasing and management of this investment property all originate from the same source. One contact for all matters that matter- this is what distinguishes the Brueggmann group. Add to this the extensive know-how of experts after years of managing investment based, only-the-very-best real estate. This Brueggmann Groups investment property is characterized by its excellent location and infrastructure, high-quality construction, practical furnishings and the right floor layout. The permanent rental potential of a property is thereby guaranteed. Due to its registration at the official Land Register, the highest possible protection for this investment property is acquired. Real Estate is a tangible asset retaining its value in inflationary times. Ongoing rental income is a passive financial vehicle, providing benefits for many generations. In addition: Real estate fulfils everyones basic need for living space Slide 11 Park Terraces Barsinghausen: Value Guaranteed Low Risk: Compared to other forms of investment, real estate as an investment is of a particularly secure value, and as such an excellent low-risk investment opportunity. Because largely immune to fluctuations of the financial markets and well located, it is a good hedge against inflation in many ways. Plus up to 8.1% return on equity per year! Secure Value Properties are stable and at all times hold a certain value. In addition to providing regular additional income they contribute to private financial security in old age. Furthermore, certain tax benefits from their property may under certain circumstances be obtained. Value that stimulates Increase in value of real estate is based on factors other than those of equity funds or interest rates of savings schemes. A positive trend in the field of residential property continues to be maintained according to forecasts. Slide 12 Park Terraces Barsinghausen: Security Return on Security Whether you get a good return on real estate in the long-term depends on various factors - of which location is the most important. Its benefits are affected, for example, by urban development and demand. But we offer our investors at the Park Terraces Barsinghausen a rental guarantee, plus a rental cancellation clause covered by a protective insurance policy. Rental Security Furthermore, we offer an advantageous purchase price including generous, very popular floor plans whereby you can enter into home ownership starting at approximately 249990 EUR. This is a real alternative for investors, compared to those often opaque investment funds. And where your investment is secured under land registry law. Slide 13 Value Protection and Appreciation Brueggmann Group offers Location, Location, Location Only the very best Up to 8.1% return on equity per year. Serious Competent Rental guarantees Rating Very good - peaceful Near city centre Easy to reach Large Grounds Location First rate construction quality Low energy costs (KfW 70 Standard) Optimal Apartment layout Quality Slide 14 Development data We create living space at Rehrbrinkstrae 22 in Barsinghausen (Hannover Region). Timeless architecture, designed layouts and very high quality furnishings. At 22 Rehrbrinkstrae a small residential ensemble with 20 exclusive condominiums including lift (obstacle free) in an excellent location is being built. For extra comfort, underground parking space provided. Additional Development data + Each apartment has a storage room + Overall plot size total ca 2,500 m + Reference: Guaranteed completion autumn 2015 + Construction: Fall 2014 Slide 15 Payment Plan For the entire purchase price (housing and underground parking) the following payment schedule applies: 25.0% at contract 12.5% after walls up, including carpentry work 12.5% upon completion of roof surfaces and gutters as well as the basic installation of heating, plumbing and electrical systems 15% upon installation of windows and completion of interior plaster, except touch-ups 15% after completion of concrete and tile work in bathrooms 15% after completion of the faade work, visitation readiness and proceeding towards transfer of ownership 5% upon full completion Slide 16 Project plan Surrounding greens, entailing a modern landscape design Slide 17 Floor Layout Unit B layout Slide 18 Price Prices reflect base prices for ground floor flats Slide 19 2 room Apartment 105,66 square meters 1 underground parking space Fitted kitchen, terrace, storage room from 249.990 (GF) Surface AreaFurnishings Livingroom 30,22 Terrace/South- West Bedroom20,38Fitted wardrobes Kitchen14,22Fitted kitchen Hall18,64 Guest WC2,13 Bathroom10,15 Terrace17,5 m2 3,75m2 max. living utilization Slide 20 Exclusive Features Exclusive fitted kitchens, fitted wardrobes in bedrooms. Slide 21 3 Room apartment 125,83 square meters 1 underground parking space Fitted kitchen, terrace, storage room from 298.990 (GF) Surface areaFurnishings Livingroom 31,81 Terrace/South- West Bedroom21,5Fitted wardrobes Kitchen10,32Fitted kitchen Hall8,25 Guest WC1,69 Bathroom9,87 Terrace11,25 m2 3,75m2 max. living utilization Bedroom 220,31Fitted wardrobes Diningroom 11,83 Slide 22 Spacious floor layout Modern, comfortable, secure value Slide 23 4 Room Apartment 135,31 Square meters 2 underground parking spaces Fitted kitchen, terrace, storage room from 319.990 (GF) Surface areaFurnishings Livingroom 31,16 Terrace/South- West Bedroom15,14Fitted wardrobes Kitchen13,11Fitted kitchen Hall16,98 Guest WC1,86 Bathroom11,89 Terrace24,18 m2 3,75m2 max living utilization Bedroom 219,09Fitted wardrobes Bedroom 316,33 Fitted wardrobes Slide 24 Penthouse 2 versions of buildings A & B Slide 25 2 Room Penthouse 105,66 Square meters 1 underground parking space Fitted kitchen, terrace, storage room 298.000 Surface AreaFurnishings Livingroom 30,22 Terrace/South- West Bedroom20,38Fitted wardrobes Kitchen14,22Fitted kitchen Hall18,64 Guest WC2,13 Bathroom10,15 Terrace24,5 m2 3,75m2 max. living utilization Slide 26 3 Room Penthouse 125,83 Square meters 2 underground parking spaces Fitted kitchen, terrace, storage room 338.000 Surface AreaFurnishings Livingroom 31,81 Terrace/South- West Bedroom21,5Fitted wardrobes Kitchen10,32Fitted kitchen Hall8,25 Guest WC1,69 Bathroom9,87 Terrace24,18 m2 3,75m2 max. living utilization Bedroom 220,31Fitted wardrobes Diningroom 11,83 Slide 27 When purchasing a property, buyer cost items must be added, which are not included in the purchase price. These are the particular costs related to an investors financing of the purchase price, plus any separately demanded additional collateral, as well as the immediate acquisition costs such as notary fees, land registry fees and land transfer tax. As are, running costs incurred after transfer of ownership rights, benefits and encumbrances, mainly of house and property expenses such as electricity, gas, water, heating, insurance, property management, land taxes, maintenance reserve, etc.) or follow-up care costs thereof. These costs investors may recuperate through the legal framework with a particular tenant (excluding maintenance reserves and administrative costs). The purchase price for the properties already includes the cost of services and official fees presumed for a sale, in particular all conceptual, marketing and sales costs (5-7%). For this reason, an investor may not be able to recuperate the original purchase price paid for during a short-term resale of his property. For this purpose, it is required that he not include or attempt to increase the market value of the property itself with costs initially compensating for services included in the purchase price and functions, the so-called carrier fees. Short-term speculative gains therefore must constitute the absolute exception and should not be the focus of the purpose of this investment. Financing risk Financing usually proceeds from private equity. The purchaser runs the risk that borrowings costs exceed ongoing rental income or through other benefits that the acquirer expects, for example tax savings. With financing provided by third parties (banks, etc.) it should be noted that the terms (interest and repayment) are time-limited and the investment in future therefore having to be funded again. After the initial fixed interest rate period, the financing bank will set a new reference to the then market rates, as a condition for loans granted. The then-current interest rate may be higher than at the beginning of the investment. There can also be a deterioration of income arising from diminished rental income. Increases in the amount payable for a possible loan coupled with lower rental income, means that the investor must cover the resulting shortfall by raising his own financial input. Insofar as he is unable to do so, there exists the risk of loss of capital vis--vis the propertys real value. Maintenance reserve A maintenance reserve is made to pay for repairs to the common property areas (roof, faade, staircase, heating system etc.) should the need arise. Your degree of participation is determined by decisions made at the owners' meeting. If the maintenance reserve is not sufficient to cover the maintenance costs of the common property, any additional costs are to be borne by the individual owners (special assessment). Investment Property Investment in real estate has always been considered as a particularly crisis and inflation-safe enterprise since it ensures a high degree of stability of value, and as long as it was conceived with the future in mind. Properties are largely independent of fluctuations in capital markets. They meet the most important criteria for a long-term investment such as safety, profitability and capital growth and are therefore and for many generations one of the most popular investments for retirement. Investment prospects The investment perspective of real estate capital investments is aligned with the long term. Short-term speculative gains are the exception and should not be the target of such an investment. In addition, tax benefits, which are often associated with a real estate investment, are not intended to constitute the main reason for an investment decision, since tax benefits can only serve as incentive for investment, while properties must prove themselves over decades on tenant and buyers' markets. A real estate investment is a business initiative. Independent of other type of work income, it represents additional revenues for a familys future security or retirement in general. Due to demographic development it is now generally accepted that any national old-age pension alone is no longer sufficient to maintain an accustomed to standard of living in retirement. This pension gap needs to be closed by private pension plans. An aligned, permanent real estate investment is a key component to the secured asset accumulation of those private pensions. Tax Perspectives In addition to the general advantages of real estate investments, rental income may have tax benefits positively affecting the profitability of the investment. Investors are advised to consider the tax implications of an investment by consulting a taxation expert. Copyright for all by Brueggmann Group 2014 Information for investors Slide 28 Brueggmann Gruppe Berlin Brueggmann e.K. Unter den Linden 16 10117 Berlin + 49 30-9203832094 - Mail: info@brueggmanngruppe.deinfo@brueggmanngruppe.de Hamburg Neuer Wall 50 20354 Hamburg +49 40 20932490 Mail: direktion@brueggmann.orgdirektion@brueggmann.org Web: www.brueggmanngruppe.dewww.brueggmanngruppe.de Coomercial register Charlottenburg - HRA 48773 B Business license pursuant to 34 c GewO of the Harburg district