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ERFURT PORTFOLIO I

Existing properties in Erfurt and surrounding area

Total investors Funding target
€ 279.200 € 500.000
Holding period
49
This project has been successfully funded.
5,5% Interest p.a.
49 Months ca. Term
  • Investment type Loan receivables
  • Interest payments Semi-annually
  • Funding threshold € 250.000
  • Funding target € 500.000
  • Funding limit € 750.000
  • Time until repayment 43 Months
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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Investment Overview

Fixed interest rate of 5.5% p.a.

Term until 31st January 2023

Semi-annually interest payments

No obligation for investors to make additional contributions

Portfolio with a focus on residential properties

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

Issuer with high local market expertise

Subordinated land charge as security *

* Despite the use of these securities, the investment offer is associated with risks. For more detailed information, please refer to the offer documents, the risk information listed there and the Investment Information Sheet (VIB).

THE INVESTMENT OFFER

Type of investment Receivables from loans as other annex pursuant to § 1 para. 2 no. 7 VermAnlG
Issuer GPPC Beteiligungs-GmbH
Heinrich-Mann-Straße 3
99096 Erfurt
Seller of receivables iEstate Services GmbH
Uhlandstraße 175
10719 Berlin
Investment broker iEstate GmbH
Uhlandstraße 175
10719 Berlin
Investor target group Private and institutional investors
Intended use of loan Expansion and upgrading of the portfolio
Fees for investors No fees
Minimum investment amount 500 Euro
Interest rate 5.5% p.a.
Duration Ends on 31.01.2023
Repayment At maturity
Interest payment Semi-annually as at 30.06. and 31.12. of a year, for the first time as of 30.06.2019
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PORTFOLIO

Measured by the cold rents generated, about 79% of the real estate in the portfolio is located in the city of Erfurt. The remaining 21% are distributed relatively evenly among the cities of Nordhausen, Weimar, Neudietendorf and Sömmerda. By type of use, this is a well diversified portfolio with a focus on residential properties, which account for around 60% based on cold rents. One third of the portfolio is office space. In total, the portfolio achieves an annual rent of approximately EUR 1.5 million.

  • Office
  • Residential with commercial
  • Residential
  • Others

  • Erfurt
  • Gierstädt
  • Weimar
  • Neudietendorf
  • Sömmerda

PORTFOLIO KEY FIGURES

Properties in portfolio 22 properties
Locations Erfurt and surrounding
Units (total) 103 residential units
56 commercial units
Actual total rent p.a. 1,524,564 Euro
Gross rentable area Residential: 7,277 m²
Commercial: 13,572 m²
Total investment volume including transaction costs and portfolio optimization about 21,275,000 Euro
Senior loan (banks) 17,899,000 Euro
Equity capital about 3,376,000 Euro
Market value about 29,650,000 Euro
Planned mezzanine capital 500,000 Euro
Use of loan Expansion and upgrading of the portfolio
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THE COLLATERAL OBJECT

Address Am Roten Berg 7 in 99086 Erfurt
Utilisation Office with 11 commercial units
Parking spaces 24 underground parking spaces and 30 outdoor parking spaces
Year of construction 1997/1998
Rental area 3,873 m²
Cold rent per month 18,759 Euro
Type of security Secondary land charge in the amount of 750,000 euros plus interest
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About the micro location

  • Situated in the north of Erfurt
  • 450 meters from the nearest tram station
  • With line 5 in about 10 minutes to the city center
  • Nearest motorway feeder road to the A71 only 8 minutes away by car

Location

  • The purchasing power of 20,729 euros per inhabitant

    At 20,729 euros, Erfurt has the highest purchasing power per inhabitant in eastern Germany after Potsdam. The stable labour market with an unemployment rate of 5.7%, which is very low for eastern Germany, also fits into this picture.

  • Hidden champion for existing properties

    In Dr. Lübke & Kelber's 2017 Risk-Return-Ranking Ostdeutschland 2017, Erfurt ranks second in terms of the returns on equity that can be achieved on the market in good locations. "Here, market returns can be achieved that are significantly higher than the minimum returns determined on the basis of the location risk," the study concludes.

  • Small Venice offers extremely high quality of living

    According to an analysis by Dr. Lübke & Kelber, Erfurt is one of the five eastern German cities with the highest demand for rented apartments until 2025. Since 2003, the city has recorded continuous population growth and currently has around 213,000 inhabitants. The medieval old town centre with its cathedral, the Krämerbrücke bridge, 25 parish churches, 58 bridges and footbridges as well as numerous half-timbered and town houses gives Erfurt an incomparable charm with a high quality of living. The people of Erfurt also like to call their city Little Venice.

  • Central location in Germany and Europe

    Erfurt has perfect transport connections and is therefore often booked as a conference venue. Since 2017, the Thuringian state capital has been part of the new ICE route Berlin - Erfurt - Munich and thus the most important junction for long-distance trains in Germany. Further millions are expected to be invested in the local infrastructure in the course of the Federal Garden Show, which will come to Erfurt in 2021.

  • Over 14,000 companies

    Bosch, Siemens, Audi, Deutsche Bahn, BMW, Zalando, DHL - Erfurt is home to companies with a fine reputation. In total, there are now more than 14,000. In addition to its excellent geographical location, the venerable University of Erfurt and the Erfurt University of Applied Sciences represent an important location factor. A total of about 10,000 students are currently enrolled here.

APPLICATION OF FUNDS

As part of the real estate project, the issuer intends to use the capital raised via iFunded of up to EUR 750,000 to acquire new properties and to carry out maintenance and renovation work on properties in the investment property's existing portfolio. Subsequently, individual properties from the portfolio are to be marketed. Income is to be generated from current rental income and, if necessary, from the sale of the properties. The funds can also be used to refinance shareholder loans that were contributed after July 1, 2018.

The proceeds from the successful sale of the portfolio properties or the raising of further financing will be used to repay the capital (including interest) taken out by the issuer.

  • Equity
  • Investment capital (iFunded)
  • Bank loan

RISKS AND REWARDS

REWARDS

RISKS

  • Fixed interest rate of 5.5% p.a.
  • No fees for the investor: neither premium nor current management fee
  • No additional funding obligation for investors
  • Approximately one third of the portfolio is office space. Should the economy cool down, this could quickly lead to high vacancy rates.
  • For the investor, there is a risk of a total loss of the iEstate brokered asset investment.
  • No obligation for investors to make additional contributions.
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ISSUER

GPPC Logo

GPPC has been investing in real estate for over a decade and specializes in real estate investments in Central Germany, which is the unique selling point of the company. The two managing directors Torsten Pfeifer and Thomas Fritsch are both natives of Thüringen and look back together on more than 35 years experience in the real estate business.

STRUCTURE

There are various ways to invest in real estate via crowdfunding. Typically, the investors have acted directly as a lender. The mezzanine capital required by a project developer, or borrower, was put together out of a number of smaller loan amounts (of a maximum of 10,000 euros) from private investors. A newer approach is the purchase of loan receivables, based on a secured bank loan. This article explains how exactly this works and what the advantages are for the investor. See more

Documents

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