Kreuzstraße 16

 Development loan
Leipzig,
Germany
6%
Annual yield
-
LTV
Term: 18 months
Mortgage rank:
Second
Interest payment schedule:
Quarterly

Descripton

Project Presentation

The project involves the revitalization of an apartment building in Leipzig, the fastest growing city in Germany. The apartment building is located in the city centre of Leipzig within walking distance of the historic old town and comprises 7 residential units with a living space of 732m² and two commercial units with a usable area of 106m².

Leipzig: the fastest growing city in Germany

For years Leipzig has been growing faster than any other German city. In recent years alone, Leipzig has grown by 10,000 to 12,000 inhabitants per year. In 2000, Leipzig had just under 490,000 inhabitants; today, more than 600,000 people call Leipzig their home. This population growth is due to the varied cultural landscape, the distinctive educational opportunities and the strong regional economic growth. International companies such as BMW, Porsche or Amazon have also recognised these positive developments and have settled large operating facilities and office complexes in Leipzig in recent years.

Consequently, this growth is also reflected in the rents of recent years. The entire rental market in Leipzig has been experiencing a sustained upward trend for years. Especially the rents for small residential units up to 30m² and apartments with more than 100m² have risen significantly since 2011.

 

Deal Highlights

Attractive interest rates - 6.00% annual distribution

Investors receive an annual return of 6.00% on their invested capital. The return is distributed to the investors every year. The invested capital is repaid to the investors at the end of the 18-month term.

Leipzig as a growth market

The Saxon metropolis of Leipzig, which functions as a regional centre, forms the centre of the Leipzig-Halle conurbation, in which around 1.1 million people live. Leipzig is one of the fastest growing cities in Germany and is a typical 'swarm city' that attracts a particularly large number of young people. The number of students is currently around 40,000 and the city is a centre for business, trade, transport, logistics and culture in eastern Germany. The economic development - as well as the demographic development - continues to show a strong upward trend. The dynamics of Leipzig's housing market continue unabated, with demand exceeding supply.

Building permit has already been granted

After the purchase of the property, the building permit has already been successfully obtained and construction work has begun.

Rendity instant interest - interest already from the deposit

Investors receive from the deposit of the investment the Rendity Instant Interest, which will be paid after the funding period.

Apartment house according to the most modern standard

A total of 7 exclusive residential units and 2 commercial areas with a total floor space of 838m² and state-of-the-art equipment.

BDRE Group: Many years of real estate and financing experience in Germany

The BDRE Group is active in the project development and financing of real estate. In the past 8 years, the group has successfully implemented more than 50 projects together with its partners, moving a volume of more than 480 million euros.

Investment-Case

For the purpose of partial financing, BDRE Süd-Leipzig GmbH, a 100% subsidiary of BDRE Asset Management GmbH, intends to raise qualified subordinated loans of up to € 525,000.

The Borrower is the owner of the property with the address Kreuzstraße 16 in 04103 Leipzig. A total of seven residential units with a total of 732 sqm and two commercial units with a combined usable space of 106 sqm will be revitalised and subsequently sold individually. The properties have already been acquired, the planning phase has been completed and construction work is already in full swing. Sales of the apartments have already started and construction activities are expected to be completed in the second half of 2020.

Yearly distribution:

During the term, the lender receives of 6.00% per year.

Short term:

The lender receives his invested capital back after the sale of the apartments. According to the plan, this should take place after 18 months at the latest.

Since 2010, Leipzig has been one of the fastest growing cities in Germany, with an annual increase of around 10,000 people, which corresponds to annual growth rates of over 2%. Between 2012 and 2014, Leipzig was thus the fastest-growing major city in Germany and the actual development exceeded all forecasts. The growth is explained by the strong influx, the attractive labour market and the birth surplus in 2013 and 2014, which last occurred in 1965. In 2015 the population will increase by almost 16,000 and in 2016 by 10,000 inhabitants.

After the fall of the Berlin Wall, however, a number of large industrial settlements were also established, including Siemens (approx. 1,700 employees), Porsche (approx. 2,500 employees) and BMW (with partners and suppliers, over 6,500 employees at the Leipzig location). With the settlement of the latter two, the city was able to establish itself as a new automotive location. The entire Leipzig region is an important centre of the energy industry and Leipzig appears as the energy metropolis of Leipzig. Leipzig operates the energy and environment cluster and has a business development focus there.

In autumn 2006 Amazon completed its second and largest German logistics centre. In 2008, the European air hub of the postal freight subsidiary DHL went into operation, which was previously located in Brussels. This has created 3,500 jobs directly at the airport and around 7,000 in the immediate vicinity.

Discover the surroundings

Adjacent to Leipzig's city centre is the Graphic Quarter which has its origin around 1900. At that time the Graphic Quarter was the centre of the German book trade with well-known publishing houses such as Reclam and Brockhaus as well as countless large printing companies. After the Second World War, many companies moved their headquarters to West Germany and it was not until the 1990s that the district was revitalised with the construction of the Brockhaus Centre. Today, printing presses hardly rotate here at all, but the construction cranes are turning instead. Due to its central location, the Graphic Quarter has developed into one of the most sought-after residential areas in Leipzig and is therefore one of the top addresses in the city.

The Graphic Quarter is part of the Unesco initiative Leipziger Notenspur which is a 5.1km long promenade that leads through the entire Leipzig city centre and deals with the musical traditions of Leipzig. At 23 stations, audio files are made available with explanations and musical examples such as those of Johann Sebastian Bach.

Zoo Leipzig

Leipzig Zoo is a 26-hectare (2.1 hectares of which are water) large park-like zoological garden on the Rosental, northwest of Leipzig city centre. It is one of the most species-rich zoos in Europe. Since 2000, the zoo has been undergoing large-scale conversion and expansion under the project name 'Zoo of the Future'. Until 2022, a conversion in individual themed areas is to take place. According to the Sheridan Zoo Ranking by the British Anthony Sheridan, Leipzig Zoo has been ranked second best zoo in Europe (after Schönbrunn Zoo) and first in Germany for several years.

Red Bull Arena

The Red Bull Arena, formerly known as the Zentralstadion, is the largest stadium in Saxony and, after the Olympiastadion Berlin, the second largest in eastern Germany. The football stadium is part of the Leipzig Sports Forum and is located in the immediate vicinity of the Arena Leipzig, which was inaugurated in 2002, the Festwiese as well as smaller sports facilities. he stadium was newly built for the 2006 Football World Cup and is embedded in the greened rampart of the 'old' Central Stadium, whose main building was preserved. The Red Bull Arena is the home ground of the Bundesliga club RB Leipzig and holds 42,959 spectators.

Hauptbahnhof

Leipzig Hauptbahnhof is the central passenger station in Leipzig and, with around 120,000 travellers and visitors every day, together with Bremen Hauptbahnhof, it ranks 12th among the most frequented long-distance stations of Deutsche Bahn. The terminus station with 23 platform tracks, 22 of which are used for passenger traffic, is one of the 21 stations of the highest station category 1 of DB Station&Service. With a covered area of 83,640 square metres, it is the largest terminus station in Europe in terms of area. The facade of the reception building facing the city centre is 298 metres wide.

Project originated by:

Documentation

6%
Annual yield
-
LTV
Term: 18 months
Mortgage rank:
Second
Interest payment schedule:
Quarterly