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PROPERTY REPORT
Income Generating Fund 2
Updated 19.12.2012
PROPFUND 2 – DECEMBER 2012 UPDATE
WWW.PROPFUND.COM
Since the launch of the “Propfund 2 – Residential Fund” earlier this year over 40 investors have so far joined the fund allowing us to complete over €4,314,500 of property acquisitions.
The portfolio currently includes over 62 apartments in 4 separate apartment blocks which are fully rented generating a combined rental income of €352,779 which is a very attractive rental yield of 8.18%. Yet again income is clearly a priority for many investors, so our Residential property funds continue to attract a wide range of investors looking for a safe income generating investment.
Propfund 2 has secured over 80% loan-to-value financing from German banks with interest rates as low as 3.3% fixed for the next 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.
Market conditions in Germany are still very strong and the outlook for 2013 is very positive. Property prices and rents continue to increase and interest rates are at an all time low making for excellent buying conditions. Propfund 2 will continue to purchase similar properties into the fund during the first few months of 2013 and is inviting new investors to share in the success of this fast growing property portfolio.
Propfund Germany 2 is open for subscription: Invest from €30,000
SOLID RETURNS FORECAST FROM EXCELLENT ACQUISITIONS MADE SO FAR THIS YEAR!
PROPERTY UPDATE – THE STORY SO FAR… DECEMBER 2012
No. of units 62
Purchase price €4,314,500
Current value* €4,586,127
Rental income €352,779
Rental yield 8.18%
* Based on a market resale factor of 13
APARTMENT BLOCKS 4
As an investor in Propfund Germany you will benefit from a forecasted 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.
PROPFUND 2 ACQUIRED PROPERTIES AND PERFORMANCE DATA
TOTAL Freiberg Schönefeld Neukölln Treptow-KöpenickPurchase Price 12.23 4,314,500 € 536,500 € 1,698,000 € 1,280,000 € 800,000 € Rental income 6.35 352,779 € 68,868 € 128,456 € 93,535 € 61,920 € Area 4,627 qm 1,084 qm 1,611 qm 1,173 qm 759 qmnotary fee 1.37% 59,131 € 6,706 € 21,225 € 19,200 € 12,000 € stamp duty 4.81% 207,678 € 18,778 € 84,900 € 64,000 € 40,000 € due dilligence 0.28% 12,000 € 3,000 € 3,000 € 3,000 € 3,000 € refurbishment 3.24% 140,000 € 140,000 € - € - € - € Bank fee 0.59% 25,600 € 5,500 € 5,000 € 9,100 € 6,000 € Commission 4.44% 191,548 € 31,922 € 60,619 € 60,928 € 38,080 €
Total 14.03 1069.97 4,950,457 € 742,406 € 1,872,744 € 1,436,228 € 899,080 € Total interest repaymentFinance 1a 3.33% 1.95% 3,410,000 € 550,000 € 1,350,000 € 910,000 € 600,000 € Finance 1b - € - € - € - € - €
Equity 1,540,457 € 192,406 € 522,744 € 526,228 € 299,080 € Rent 8.18% 352,779 € 68,868 € 128,456 € 93,535 € 61,920 € property management 4.50% -16,652 € -3,099 € -5,781 € -4,677 € -3,096 € interest rate 3.33% -113,695 € -22,165 € -43,200 € -30,030 € -18,300 € management 4.00% -14,111 € -2,755 € -5,138 € -3,741 € -2,477 € administration 4.10% -14,464 € -2,824 € -5,267 € -3,835 € -2,539 €
Costs -158,922 € -30,842 € -59,385 € -42,283 € -26,412 € Return before capital and reserve 193,857 € 38,026 € 69,071 € 51,252 € 35,509 € Gross Yield on equity 12.58% 19.76% 13.21% 9.74% 11.87%Sinking fund 3 €/qm 0.80% -12,269 € -3,252 € -3,222 € -3,518 € -2,277 € Repayment 1.95% -66,380 € -11,000 € -27,000 € -16,380 € -12,000 €
Return after capital and reserve 115,208 € 23,774 € 38,848 € 31,354 € 21,232 € Payout based on this investment 7.48% 12.36% 7.43% 5.96% 7.10%
WWW.PROPFUND.COM
Units 24
Purchase price €1,698,000
Rental yield 7.56 %
Rental Income €128,456
Units 11
Purchase price €536,500
Rental yield 12.8 %
Rental Income €68,868
WWW.PROPFUND.COM
Freiberg, Germany
A beautiful classical building in the centre of Freiberg consisting of only 11 apartments which are fully rented. The inside of the building was completed renovated in 2012 and €140,000 will be spent on renovating the exterior in 2013. The project was purchased from a local bank at well below market value. With a rental yield of 12.8% .
Berlin, Schönefeld
Residential complex in Berlin-Schönefeld, consists of 24 apartments located right beside the new BBI International Airport of Berlin. Propfund 2 acquired each house for 1.054 €/sqm and no refurbishment is required. The average of the net rent is 6,51 €/sqm whereas new tenants will pay up to 7,76 €/sqm, allowing a lot of potential for future growth.
Units 19
Purchase price €1,280,000
Rental yield 7.31%
Rental Income €93,535
Units 8
Purchase price €800,000
Rental yield 7.74%
Rental Income €61,920
WWW.PROPFUND.COM
Berlin, Neukölln
Residential apartment block consisting of19 apartments in a popular residential area in Berlin. Rental yield of 7.31% is higher than average and 71% LTV financing has also been agreed with fixed interest rates of 3.0 %. All apartments are in very good condition and with no refurbishment required.
Berlin, Treptow-Köpenick
Property is located very close to the river Spree, in a densely populated district which is in the catchment area of the city centre and Berlin’s new international airport. All 8 apartments are rented by long term tenants. The building is in great condition and was fully refurbished in 2008 making each apartment an attractive family home.
INVEST W30,000
FINANCIAL BREAKDOWN
FINANCIAL BREAKDOWN
FINANCIAL BREAKDOWN
FINANCIAL BREAKDOWN
INVEST W100,000
INVEST W50,000
INVEST W250,000
Resale forecast 13 €108,793
Plus Cash Reserve incl. 50% sinking fund 22,495
Less Balance of the Mortgage - 248,037
Profit from the resale after paying back Mortgage 263,251
Less Initial equity repaid to Investors - 230,000
Net Profit for Distribution 233,251
Fund Manager profit share 10% - 23,325
Investor profit share 99,75% 229,926
Anual Payouts over term 84.75% 225,425
Total Investor profit before tax 255,351
184.50%
Resale forecast 13 €362,644
Plus Cash Reserve incl. 50% sinking fund 28,316
Less Balance of the Mortgage - 2160,123
Profit from the resale after paying back Mortgage 2210,837
Less Initial equity repaid to Investors - 2100,000
Net Profit for Distribution 2110,837
Fund Manager profit share 10% - 211,084
Investor profit share 99.75% 299,753
Anual Payouts over term 84.75% 284,750
Total Investor profit before tax 2184,503
184.50%
Resale forecast 13 €181,322
Plus Cash Reserve incl. 50% sinking fund 24,158
Less Balance of the Mortgage - 780,061
Profit from the resale after paying back Mortgage 2105,418
Less Initial equity repaid to Investors - 250,000
Net Profit for Distribution 255,418
Fund Manager profit share 10% - 25,542
Investor profit share 99.75% 249,877
Anual Payouts over term 84.75% 242,375
Total Investor profit before tax 292,252
184.50%
Resale forecast 13 €906,610
Plus Cash Reserve incl. 50% sinking fund 220,789
Less Balance of the Mortgage - 7400,307
Profit from the resale after paying back Mortgage 2527,092
Less Initial equity repaid to Investors - 2250,000
Net Profit for Distribution 2277,092
Fund Manager profit share 10% - 227,709
Investor profit share 99.75% 2249,383
Anual Payouts over term 84.75% 2211,875
Total Investor profit before tax 2461,258
184.50%
Based on a forecast rental increase of 2.5% per annum and a resale factor of 13 times the annual rent, Propfund Germany 2 can generate significant profits for its shareholders. Please see below the latest 10 Year forecast based on investments ranging from €30,000 – €250,000
WWW.PROPFUND.COM
Total annual payments over 10 years holding period 69.1% €20,725
Plus lump sum after 10 years 100% €29,926
Plus your initial investment back 100% €30,000
That’s a total return of: 269% (€80,651)
Total annual payments over 10 years holding period 68.2% €34,083
Plus lump sum after 10 years 100% €49,877
Plus your initial investment back 100% €50,000
That’s a total return of: 268% (€133,960)
Total annual payments over 10 years holding period 67.5% €67,479
Plus lump sum after 10 years 100% €99,753
Plus your initial investment back 100% €100,000
That’s a total return of: 267% (€267,232)
Total annual payments over 10 years holding period 67.1% €167,667
Plus lump sum after 10 years 100% €249,383
Plus your initial investment back 100% €250,000
That’s a total return of: 267% (€677,050)
Propfund Germany 2 GmbH & Co. KGFriedrichstraße 82,10117 Berlin-Mitte
T: +49 (30) 499 05 09 50E: [email protected]
www.propfund.com