Residential Development Project in Bavaria, Germany; Targeted Investor IRR = 19%
Property type: Residential building
• Number of Apartments: 40
• Number of Parking spaces: 60
• Tenure: Freehold
Investment type: Equity Investment in Development Project
Key Investment Points:
• Targeted Investor IRR: 19%
• Targeted Investor Equity Multiple: 1.38x
• Targeted Investment Period: 2 years
• Start of Project • Equity Investment: 2Q 2023
• Planning • Permits: 2Q 2023 - 3Q 2023
• Construction • Sales: 4Q 2022 - 1Q 2025
• Completion of Project • Return of Equity • Distribution of Profit: 2Q 2025
Funding Structure of Project:
• Investor (Limited Partner) Equity: 2,250,000 EUR (90% of Total Equity)
• Developer (General Partner) Equity: 250,000 EUR (10% of Total Equity)
• Total Bank Financing: 15,950,000 EUR
Location: Miesbach, State of Bavaria, Germany
• Miesbach is located in Bavaria, 48 km southeast of Munich, nearby Lake Schliersee and Lake Tegernsee, around which are the internationally renowned spas
• the population of Miesbach is more than 11,000 people
• the property is located close to the center of Miesbach
The proposed investment opportunity is to purchase a land plot located near the center of Bavarian town with a preliminary permit for the construction; to build the residential building for 40 apartments and 60 parking spaces; to sell property by apartment; and, finally, to make a profit and distribute the profit between Investor (Limited Partner) and Developer (General Partner). The Developer (General Partner) takes full operational responsibility, secures financing, guarantees completion of construction and sale of the property.
For these purposes Investor and Developer establish a joint-venture company: Investor - 90% of shares; Developer - 10% of shares. The project purchase as well as construction of the residential building will be financed with a bank loan projected to 85% loan to total cost ratio.
The targeted IRR to Investor is projected to be 19% with a cash equity multiple of 1.38x (Investor’s targeted Profit is 850.000 EUR on Investor’s Equity of 2,250,000 EUR). The expected term of the investment is 2 years.
If you are interested in this project, please get in touch using the enquiry form below.
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