Ref: PV214

Scheffelstr 27820.000 Euro Investment Opportunity

1245 Sqm – Potential 9.5% Yield

Property Description:

This is a residential apartment block located in the highly popular region of Connewitz, lying around 2km to the south of Leipzig City Centre. Located around 300m from the B2 road, the property enjoys good access to the AutoBahn and destinations southwards. The property is well-served for public transportation with 4 tram lines and a 4 bus routes serving all regions of the city for the Connewitzer Kreuz, around 200m of the property. In the locality is the southern part of the Clara Zetkin Park which leads down towards the lakes and the popular Cospundener See.

The region is characterised by a wealth of commercial and leisure outlets and being in close proximity to a large sector of the city's University campus proves popular for young people and young families. The property was originally built around 1900. The property is very well presented. No significant works should be expected in the medium to longer term of ownership. Of attraction to current and potential tenants are the balconies to the rear of the property, overlooking the small but pleasant courtyard.

The property contains both front and back buildings with the front building set over 4 levels (including attic) and the back building is over 3 levels. The building is presented with all 19 units fully rented.

PV 214 – Scheffelstr 27

Property Description (continued):

The overall condition of the building is very good with a full renovation having been completed in 1995. Internally the apartments have laminate flooring. The individual apartments offer a range of sizes from 41sqm to 88sqm per apartment. There are balconies to the rear of the building.

At an asking price of 658,26 Eur per sqm, this building in a popular location offers value for money.

Property Potential:

With the property fully tenanted, the work for the investor can be minimal in the medium term. In the short term, there is potential to increase the rents paid by some tenants – the current rent per sqm ranges from 2,39 Euro to 5 Euro. Even by increasing rents to a modest 4.50 Euro/Sqm will increase the yield to 8,35%. Realistic rent levels are in the region 5-5 Eur which would result in a yield above 9.5% after a full review. All the rents should be expected to show potential to increase over the medium term.

Investor Profile:

With a full-tenant structure in place and with the property in good condition, this property should appeal to an investor seeking to make a solid investment with potential to grow.

In terms of finance, the property should present very well to banks. Finance of a level between 70-80% should be expected, depending on client status and bank chosen.

Cash Flow:1

Assuming finance is taken to a level of 70%, a monthly cashflow after finance payments and all management costs of 1089 EUR should be expected. With the cashflow moving to 2448 EUR as the property realises its potential.

Financial Information:

Price 820.000 Euro Current Rental (annual) 61.548,24Euro Current Yield (%) 7,51%Potential Yield (%) 9.50%Agent Fees 4% of purchase price + vatYear of Construction 1900Total Living Area m2 1245,71 sqmPrice m2 658,26 Euro Cash Flow Current /Potential Per Month 1089 / 2448 Euro

1 Based on a 10yr fixed rate of 4.65%, repayment over 20yrs with mgt fee of 16Euro per apartment +VAT

Rent List

Rear

Street view

Click here to see in Google Maps

Stairway

Balconies

About Proventure

We are a company working with a range of the very best German agents. We have offices in Grantham in the UK and in Germany.

As professional property investors ourselves, our strategy for investing is simple and is based on solid fundamentals delivering cashflow positive property.

With over 15 years' experience of investing in the European market: We began to focus on Germany 5 years ago; Berlin being the first city that we invested in. Once established there, we began to look further afield and discovered more hotspots in Germany that met our exacting criteria.

So why are we doing this? We now have invested in a significant portfolio of German property and have been through the long (and occasionally painful!) process of due diligence to ensure that we have the right locations, the right properties for the right price, the right people to trust and the right finance available. Through our contacts we now have access to many properties not yet on the the open market.

We want to meet, and work, with people like you (well you have read this far - so you might be interested in property investment!) and assist you to make some solid investments in the German market.

We promise to deliver unbeatable property in an unbeatable way. To ensure we do this, we offer our guarantee below:

Our 10-point Guarantee To You:

1. We will offer you the very best deals currently in the market place.

2. We will attend to every aspect concerning research and subsequent purchase, according to your needs.

3. We will assist you in finding the most competitive finance deals available, subject to status.

4. We will communicate with you regularly as progress towards purchase is made, every step of the way.

5. We will deal with your case in a confidential manner, as you would expect.

6. We will produce property management plans to maximise your return.

7. Our fees made to you will be fully open and very competitive, up to half of the charges made by our competition.

8. We will be with you after purchase, to attend to any matters as long as you require.

9. We will offer full management of your investment at very competitive rates, as you require.

10.We ask each customer for feedback and share this feedback – our reputation is the key of our business.

Please get in touch if you require any further information