Estimated return

According to the Fund’s business model and with a conservative financial planning the components of the net return are:

Profit on rental

Cooperating with professional on-site service providers the Fund manages the rental and the operation of its assets very efficiently. Based on historical and present market conditions, long time rent can make 16,5 EUR and short time rent can make 38 EUR per m2/month. Deducting the different expenditures, the profit is around 4% per year on the invested money.

Increase of assets’s value

Historical data shows a 85% total increase in sale prices in the last 7 years, a 8,2% average per year. Even there is now guarantee for this term to continue, analysing the market movements and key factors we predict a slighter but still impressive 5,0% increase per year for the next 5-7 years.

Developer’s margin

The fund itself will not manage development projects, but invests into off plan apartments with a cash out in 12-18 months. In individual cases the Fund manages reconstruction projects of existing real estates with a re-sell in 12 months. The calculated yield of these investments is 16,5% on a yearly basis.

Interests

Even the present interest rates, especially on bonds are significantly higher, we estimate a 3% annual interest on the liquidity as an average for 7 years.

Taking these factors into consideration in our model the returns are the following:
(not a guaranteed yield, demonstration only)

3.9% short term rental yield on 20% of the AV
+0.8%
3.7% long term rental yield on 40% of the AV
+1.5%
4.1% net increase on 60% of the AV
+2.5%
16.5% yield on developments, 35% of the AV
+5.8%
3% interest on 5% of the AV
+0.2%
fund management fee
-1.5%
TOTAL per year
 9.2%
Of course there is no guarantee for any return rate for the future. But please consider that there are 5 different income sources in the business plan. If a special circumstance hits one or two of these pillars, a still significant return may be reached and there is no real chance of loosing asset value.

Disclaimer: These data are for informational purposes only and do not constitute legal information or offer. Please request the official offering documentation using the the contact form.

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