Max Property Fund II (MPFII) Netherlands
Update January 2nd: we are closing the fundraising for this project, Max Property Gourp will continue to fundraise. All of the investments have been placed and are expecting the first interest payment on January 5th.
The expected fund closing date is by the end of this year, however your investment becomes active in 2 weeks after placing your investment, thus the interest begins to be counted from that day.
We are investing our personal capital in this deal, because it's another long term project (over 9 years), which some people can find unattractive, but we perceive this as another opportunity to diversify portfolio through time further, which would lower the risks which could be caused by economic cycles in shorter period of time. If investors would have the need to liquidate this investment, it's always possible to do that in Secondary Market.
This investment yields 6.25% rental income annualy and projects 4.25% annual capital growth. The fund managers will not charge fund's management fees. They will only earn after the exit of the portfolio and the surplus will be shared 50% with the investors.
Currently, the fund uses no leverage and yields 6.25% rental income, however due to the Dutch regulations within 3 years after the funds closing date the fund will try to leverage it (the LTV shall not exceed 60%) and the yield should be increased.
In the case the 6.25% cannot be paid out and for example 4% would be paid out the shortfall would still be owed to the investors. This would have to be made up in the subsequent years and if this would not be possible, it would come out of the 50% profit share Max Property Group received upon exit. As such the investors will be covered.
In case of excess income the surplus would be shared 50/50 with Max Property Group. If there is a substantial surplus of funds, a payment of extra interest could be initiated and the investors would be informed of such an event by the fund administrators and supervisors.
* 2% investment placement fee will be charged on your investment.
Max Property Fund II (MPF II) follows the successful fundraise of Max Property Fund I, which raised €2,395,000 during 2016/17 and invested in residential property in Rotterdam and surrounding cities.
MPF II is raising €2,495,000, which will also be invested in residential property in Rotterdam and surrounding cities.
- The Fund pays a fixed interest of 6.25% per annum, which is paid out quarterly on the 5th of January, 5th of April, 5th of July and 5th of October
- There is an additional 50% profit share upon exit, which includes the equity increase
- The Fund is administered and supervised by Confidon, an experienced Fund administrator and supervisor
- Funds are secured through a second charge on the portfolio (after the mortgage charge)
- Quarterly reports and annually audited accounts will be made available here
- Periodic newsletters about the Fund will be send out to inform you about purchases and important updates
For further information do not hesitate to contact Max Property Group or come by our offices in Rotterdam.