Central Berlin

Landmark building in the heart of Berlin

Total investors Funding target
€ 1,002,683 € 1,000,000
Holding period
18
This project has been successfully repaid.
5,0% Interest p.a.
18 Months ca. Term
  • Investment type Loan
  • Interest payments Semi-annually
  • Funding threshold € 100,000
  • Funding target € 1,000,000
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Note in accordance with section 12 (2) of the German Investment Act (Vermögensanlagengesetz):
The acquisition of this financial instrument involves considerable risks and can lead to the complete loss of the capital employed.

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Central Berlin
  • 5,0% Interest p.a.
  • 18 Months ca. Term
  • Semi-annually Interest payments
  • 79 Months Repayment

INVESTMENT OVERVIEW

Fixed interest rate of 5% per annum (Semi-annual payment)

No fees for the investor - neither agio premium nor ongoing management fees

No additional funding obligation for investors

Berlin real estate market with lots of potential

Project is led by an experienced entrepreneur team

Existing residential real estate with ongoing rental income

Top location in the heart of Berlin (3 min from Alexanderplatz)

Safer due to assigned income claims *

* The for the benefit of the investors subordinated security in the form of security assignment of withdrawal claims of shareholders means that the shareholders may only make limited withdrawals from the assets of the issuer prior to full repayment of the loan amount. An additional pool of assets, which could be used in case of failure of the issuer to provide additional recoverable assets, is not provided by this security assignment.


THE INVESTMENT OFFER
Type of investment Subordinated loan
Borrower BSA Berlin Verwaltungs GmbH & Co. Immobilien 7 KG Uhlandstraße 175, 10719 Berlin
Loan size max. 1,1 Mln. Euro
Inteded use of loan Renovation of the facade, common areas and vacant apartments
Charges to investors None
Minimum investment 250 Euro
Interest rate 5,00% p.a.
Duration 18 months
Repayment At maturity
Interest payments Semi-annually
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THE PROPERTY | CENTRAL BERLIN
Property Residential real estate at Strausberger Platz 15-18, Berlin-Friedrichshain (in close proximity to Berlin-Mitte)
Construction year 1952-1953
Plot area 2.210 m2
Number of units 78 apartments and 7 commercial units
Total lettable area 6.355 m2
Currency Euro
Occupancy rate Ca. 80%
Annual rental income 0,4 Mln. Euro
Borrowed capital Ca. 6,4 Mln. Euro
Own capital Ca. 3 Mln. Euro
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Property

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CENTRAL BERLIN: A piece of history

The DDR is history. And so is everything that shaped the DDR: The unique aesthetics, the photography, the art and the design. Today, this out of the ordinary view has rarity and collector value. On the Strausbergerplatz, located in close proximity to the Alexanderplatz, one can still enjoy that rare view.

Europe's longest monument

The Karl-Marx-Allee and the Strausbergerplatz are already widely regarded official architectural monuments. With a length of 2.5 kilometers from Strausbergerplatz to Proskauer Straße it is Europe's longest architectural monument. For this reason, in 2012 the Berlin Senate made the request for it to be added as a UNESCO World Heritage Site.

Real estate with character

Central Berlin located on the Strausbergerplatz and is more than just a property: It is an important part of German history which can be found in the book 'Central Berlin: DDR Limited' (available in bookstores). Part of Central Berlin is also a unique gallery where visitors can immerse themselves in the former way of life and marvel at the DDR classics.

Approved by real estate professionals

The Skjerven Group has been investing in the Berlin residential real estate market for more than 10 years. The CENTRAL BERLIN property was thoroughly examined by the company before it invested about 3 million euros of equity (its own capital) into the project. Investors now have the opportunity to invest in a property that has been tested by real estate professionals over iFunded.

Location

Purchase prices for Berlin apartments with lots of potential

For a world metropolis Berlin has unusually low house prices. For a 120 square meter apartment about 4,900 euros per square meter is currently the norm. In London it is more than 30,000 euros, in Paris more than 16,000 euros and even in Rome it is still more than 7,000 euros per square meter. The huge price differences Berlin has compared to other world metropolises shows the potential the city still has. In recent years the German capital has already made some good progress: Since 2009, the average prices for condominiums have already risen already by 86 percent.

Strausberger Platz: Well located

Strausberger Platz is located in the Friedrichshain borough and in very proximity to the Mitte borough. The public transport is very good. The U-Bahn, which operates right on Strausberger Platz, is only two stops away from Alexanderplatz. From there all parts of the city can be reached by S- and U-Bahn as well as by bus and tram. Right on the Strausberger Platz and at the subsequent Karl-Marx-Allee, numerous shops and restaurants can be found.

Dynamic property prices

Strausberger Platz is located in one of the two postal code areas where recorded rents have had the most dynamic increase in Friedrichshain-Kreuzberg. In the two areas around the Ostbahnhof (10243) as well as around the Ostkreuz (10245), the average asking rent per square meter in 2015 rose by 11.1 percent and now reached an average of 11.11 euros per square meter for all market segments. The net rent in the upper market segment at the microlocation of Strausberger Platz in postal code area 10243 is 18.32 euros per square meter which is higher than the comparable average for Berlin which amounts to 15.91 euros. The median sale price for condominiums in Friedrichshain-Kreuzberg is € 3,604 per square meter. In the middle segment it varies between 2,296 Euro and 4,950 euros.

Centrally located and in a good neighborhood: Strausberger Platz is only three minutes away from Alexanderplatz.

Karte

RISKS AND REWARDS

REWARDS

RISKS
  • Fixed interest rate of 5% per annum (Semi-annual payment)
  • No fees for the investor - neither agio premium nor ongoing management fees
  • About 80% of the property rented out
  • No additional funding obligation for investors
  • Berlin real estate market is booming
  • Project is led by an experienced entrepreneur team
  • Existing real estate with ongoing rental income
  • The renovation costs may be higher due to unforeseen circumstances
  • It may be that the demand for apartment sales decreases leading to lower market prices, which would reduce the project profit
  • For the investor, there is a risk of total loss, as stated in the terms of iEstate investments. Moreover, it is conceivable that, for example, an individual borrowing of the respective investment amount or payable tax contributions causes further payment obligations. This can even lead to the insolvency of the investor.
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IFUNDED-RISK ASSESSMENT

B
  • A
  • B
  • C
  • D
  • E

For each project on iFunded the risk is determined using a standardized procedure. There are a total of nine criteria, by means of which the project risk will be assessed. Depending on the severity of the individual risk criteria, risk points will be awarded and added up at the end. Depending on the number of risk points, the real estate project is classified into one of five risk classes. The risk categories go from A to E, with A being low risk and E for higher risk. Here you can download the detailed evaluation scheme as PDF: iFunded Risk Assessment.

The CENTRAL BERLIN project comes to a total of 11 risk points and is thus classified in the risk category B. This risk assessment is made up as follows:

Risk criteria Specification Risk points
Debt ratio 60 % 3
Equity ratio 34% 1
Macro location Berlin 0
Micro location Strausberger Platz 1
Occupancy rate 80% 0
Number of tenants >10 1
Development phase Existing property with little maintenance backlog 0
Issuer experience invested 200 million euros in the Berlin residential real estate market 1
Securities Personal guarantee 2
2nd class debt 2
Profit transfer claims 0
Overall 11
* iFunded does not perform any kind of investment advice and does not constitute any risk evaluation for a individual investor whether the investment suits a investors personal risk profile. The risk evaluation is based on standardised criteria, which are evaluated during the the structuring of the investment. The actual performance of the investment in the future can be adverse. Even with a low risk profile there is a remaining risk of a total loss of the investment for any investor.

Financing Structure

Developer

UNTERNEHMERTEAM

Issuer for the subordinated loan is the BSA Berlin Verwaltungs GmbH & Co. Immobilien 7 KG. Its managing director Einar Skjerven has more than twenty years experience in investment and asset management and is an expert in residential real estate investments in Berlin, where he has already successfully invested 200 million euros.

Documents

Central Berlin Expose.pdf [ English | Deutsch ]
Central Berlin Investment Memorandum.pdf [ Deutsch ]
Subordinated Loan Agreement and Nomineeship Agreement Central Berlin.pdf [ English | Deutsch ]
Widerrufsbelehrung.pdf [ Deutsch ]
Central Berlin Consumer information for distance selling.pdf [ English | Deutsch ]
Central Berlin Investments - Information Sheet.pdf [ English | Deutsch ]
Information on the financial investment brokerage Regulation.pdf [ Deutsch | English ]
iFunded Risk Assessment.pdf [ English | Deutsch ]

Please note that this is merely a non-binding convenience translation. If you have problems of comprehension, please seek external support.

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