Propfund Germany 2 presentation v2

Share in Germany’s No.1

Residential Property Portfolio 2012

WHY PUT ALL YOUR MONEY INTO ONE PROPERTY

when you can join together with like minded investors

and purchase the whole building at a lower price

with higher returns.

Introduction

German Property Market

Properties acquired 2011

Portfolio description

Investment features

Investment model

ROI Projections

Propfund’s role

EURIX Group

Getting started

Agenda

Share in Germany’s No.1 Residential Property Portfolio 2012

Where an individual investor could purchase one

apartment in Germany for €140,000 with a rental

yield of 5.5% and with a 60% mortgage, Propfund

Germany would bring all these investors together

to purchase the entire building resulting in the

same apartment being purchased for €100,000

with a rental yield of 8% with an 80% mortgage.

With this model Propfund investors make a lot

more money with little or no involvement

compared to investing privately themselves.

The idea is very simple…


Forecasted dividend of 7-10% per year. 170% return in 10 years time

Invest €50K in Germany and Make 170% ROIYour Exit Amount: €135,000

Returns

2012Share in Germany’s No.1 Residential Property Portfolio

German property market

German Real estate market is very active with

institutional investorsEconomic growth in 2011 – 3% GDPUnemployment levels are fallingInvestor confidence very strongHigh rental occupancy levels in major cities84% rental occupancy in BerlinProperty Prices and Rents continue to riseNo.1 residential property investment market in the world

Germany – The Worlds most stable property economy


“German residential sector is regarded as a secure investment” CBRE

What the media says in 2012…

Share in Germany’s No.1 Residential Property Portfolio

“Apartment costs up by around 8% in 2011” GSW Immobilien

“The most dynamic rent market is in Berlin, where prices rose by 9%” Jones Lang LaSalle

“Housing prices rose by 5.5% last year— more than twice as much as in 2010.” TD International

“Analysts expect prices for German real estate company shares to rise by 5-15% over the next twelve months”

Dr. Zitelmann

2012

Housing price development is healthy


DB Research expects a further rise in the price of housing in Germany. Prices for houses should rise by 3% annually until 2015, condominiums by even more. No talk of a bubble: “Historically and in terms of disposable income, housing remains attractively valued and thus, even with price increases of 5% per year through 2015, there is no threat of overheating.”

Over the long term, prices are not likely to go through the roof because of both the regulatory environment, which has a moderating effect on rent, and the demographic trend, which, “in less than ten years,” will have a negative influence on prices.

2012

Berlin housing market


Properties are valued as a multiple of the rental income Property Prices and Rents are low in Berlin and rising Berlin is a population of tenants – 84% of Berliners rent

Germany’s capital city has huge potential for growth!

2012

Properties acquired 2011

Propfund Germany 1- Subscribed in 2011


With the combined equity of 80 investors in 2011, Propfund 1 acquired 6 portfolios totalling 240 units, bringing the total acquisitions to €12,602,500 with an exciting rental yield of 9,4%

240 properties & 27 car spaces Portfolios purchased for €12,602,500 Current portfolio value (12.5) €14,800,000 Acquired 20% below current market value External bank financing – 85% LTVAverage apartment price €53,072 (€744/sqm) Rental income – €1,187,233Rental yield – 9.4%Rental Occupancy 98%Cash surplus pa – €287,670Profit 7.4% pa equity invested

2012

Don’t miss your chance in 2012!

PROPFUND GERMANY 2 Open for investments, April 2012

Residential apartment blocksOver 500 units worth over €30,mil8% average rental yields Low purchase prices – 12.5 times the annual rentNo renovation requiredAll buildings tenantedImmediate income generating portfolios

Portfolio Description


Invest via a SIPP or as a Private investorInvest from €30,000German Federal Financial Authority approvedLow purchase prices – 12.5 times the annual rent€10,mil in Private Equity and €20,mil in bank financingReturns paid to investors yearly – forecast 7%-10% per annumInvestors can expect to earn 170% ROI over 10 yearsSafe and secure investment

Investment Features


Investment model & ROI projections

3 SIMPLE STAGESStage 1: Purchase the property

•Apartment block for sale €1,000,000 (10 apartments at €100,000/apt)

•If purchased individually €140,000/apt

•Annual rental income: €80,000 (Purchase factor is 12.5 times annual rental income)

•Investment based on a purchase price of €1,000,000 plus 10% closing costs.

•80% bank financing + 20% private equity

Stage 2: Manage the portfolio each year

•Collect the annual rent: €80,000 (increase by approx 2%-3% per annum - €100,000 after 10 years)

•Manage all the annual costs: €59,000 per annum

•Generate the annual cash surplus: €21,000 (grows as rent increases per annum)

•Shareholder payout each year = minimum forecast €21,000= 7% of the €300,000 private equityStage 3: Resell the property after 10 years

•2%-3% increase in rent pa = 20%-30% increase in Property value over 10 years

•Mortgage balance reduced by approx. 20% over 10 years

•Property resale value: €1,300,000 (strategy is to resale the portfolio for a price 13 times annual rent)

•Profit from sale of the portfolio: €300,000 after all closing costs

Investment Model


100% ROI

in 10 yrs.

Purchase

Factor 12.5

7% ROI

Each year

(€210,000 over 10 years = 70% ROI)

2012

+ (€300,000 = 100% ROI) = (€510,000 = 170% ROI)

Creating wealth for investors


Invest €50,000Earn an average dividend of €3,500 per year

for 10 years. (7%pa)PLUS €50,000 lump sum after 10 yearsPLUS your initial investment backThat’s a total of €135,000!

2012

Investment examples


To set up the legal construction to enable multiple investors in to invest togetherTo obtain approval from the German regulator to offer the fundTo raise the private equity from multiple private investors and SIPPsTo source, negotiate, and purchase the propertiesTo complete all the due diligence and organise the bank financingTo manage all the properties and collect the rent each monthTo co-ordinate any maintenance or refurbishment requiredTo perform annual tenant reviews and increase the income from the portfolio each year.To sell all the properties on completion of the fundTo pay annual dividends to investors and profits from the sale of the portfolio after 10 years

Role of Propfund


The EURIX Group

Real estate Investment since 1996Founded by Marco Knoblauch and Detlef Martin

– approx 20 staffHead office Berlin. Offices in London, Dublin & ZurichExpertise in Property Acquisition, Investment and Asset Management3 Syndicated Property Funds under managementOver 1000 properties under management in Berlin. (300 units Group

owned)Real Estate partner of Germany’s largest network of Financial AdvisorsMember of the German Real Estate Association

EURIX Group

Propfund Germany is part of the EURIX Group


EURIX Group


Summary…By investing in Propfund Germany 2, you benefit from:


Lower Purchase PricesBetter finance conditionsHigher rental yieldsLower riskNo hassle, Fully Managed investmentMultiple Investment options

2012

Excellent Returns! Forecasted dividend of 7-10% per year. 170% return in 10 years time

Invest €50K in Germany and Make 170% ROI Your Exit Amount: €135,000

Joining the Fund

Read a copy of the investment prospectus. Decide the amount you would like to invest.

Complete the Investment Instruction and return this to your advisor.

The Trustee signs the necessary documents and returns copies of these to the investor.

Once you have received the documents you need to transfer the funds to the Propfund bank account.

Receipt of funds is first confirmed by email. Once the 14 days “cooling off” period has expired, confirmation of funds along with a share certificate is sent to you by post, this completes the investment process.

Getting Started


Thank You

Propfund Germany 2 GmbH & Co. KGFriedrichstraße 82,10117 Berlin-Mitte

T: +49 30 499 05 09 50 E: [email protected]
