Wunstorfer Straße 33

 Refinancing
Hannover,
Germany
4.5%
Annual yield
-
LTV
Term: 48 months
Mortgage rank:
Second
Interest payment schedule:
Quarterly

Descripton

Project Presentation

The property at 'Wunstorfer Strasse 33' is a fully let apartment building in a good location in Hanover. The well-maintained existing building comprises 14 rental units (12 residential units and 2 commercial units) with a total floor space of approx. 1,288 m². It currently generates a net annual rent of approximately EUR 118,000, which corresponds to a net rent of just under EUR 7.6/m².

Note in times of the coronavirus
Affordable residential properties in urban locations have proven to be in a better position than other asset classes in earlier economically difficult phases, as living space is a basic human need.   Further information about COVID-19.

The existing building is surrounded by all-important amenities for daily needs and is excellently connected to Hanover's public transport network thanks to its proximity to the Wunstorfer Strasse underground station. By car, it takes only a few minutes to reach the city center of Hanover and about 20 minutes to reach Hanover airport.

Hanover is the capital of the state of Lower Saxony and is the 13th largest city in Germany with about 540,000 inhabitants. Hanover is an important business location and a supra-regionally important shopping city. The cultural scene is considered to be diverse, with numerous and in part internationally renowned theatres and museums. The cityscape is characterized by numerous public green spaces, a high density of street art and numerous architectural monuments.

 

Deal Highlights

Already annual rental income of € 118,000

The annual net rental income currently amounts to € 118,000, which corresponds to a sustainable net rent of just under € 7.6/m² that is customary for the location. In view of the good location within Hanover and the immediate vicinity of the underground station, a low vacancy rate is expected in the coming years.

Rental income through crisis-proof residential rents

The well-preserved existing building has a usable floor space of approx. 1,288 m² divided into 14 rental units. The majority of these rental units are used as apartments (12), and only two of them are used as commercial space. About 80% of the rental income therefore comes from crisis-resistant residential rents, which are characterized by a low risk of default.

Rendity Instant Interest - Interest from the 1st day

Investors receive immediate interest from the time they pay in their investment, which is paid out at the end of the subscription period. With the Rendity Sofortzin, investors receive interest for their invested capital not only for the loan term, but also for the time before. This means that investors also receive interest on their investment during the subscription period. The immediate yield is paid out to the Wallet after the end of the subscription period.

Regular additional income - 4.50% p.a. Distribution every 3 months

Investors receive quarterly distributions of 4.50% p.a. on their invested capital during the term of the investment. The invested capital is repaid to the investors at the end of the term.

Germany as an investment location

Germany is the largest economy in Europe and in recent years has developed into the second-largest real estate investment market in the world. In addition to national investors, there is now an increasing number of international investors who have confidence in the German business location.

Experienced real estate investor

Behind the borrower is the founder of the Velum Group, a real estate company with a portfolio of approximately 1,000 units and more than 15 years of real estate experience in Austria and Germany.

 

Rendity interest portfolio

The Rendity interest portfolio serves to secure our investors. Before the start of each project, the respective borrower has to pay an interest deposit in the amount of the interest of half a year into a separate escrow account. The interest deposit deposited by the borrower is subject to fiduciary custody and may only be used to compensate investors for interest payments not made or missing capital repayments.

 

Investment-Case

For the purpose of partial refinancing, Lares Grundbesitz Hannover GmbH intends to raise qualified subordinated loans of up to € 600,000.

The borrower is the owner of the property with the address Wunstorfer Strasse 33, 30453 Hanover. The apartment building comprises 14 rentable units with a total floor space of 1,288 m². Annual net rental income of roughly EUR 118,000 is currently generated, which corresponds to a local rent of EUR 7.6/m².

The house is part of the existing portfolio of Lares Grundbesitz Hannover GmbH, which currently consists of 11 apartment buildings, all located in Hanover. In total, the portfolio comprises 10,619 m² of usable space divided into 155 lettable units. The majority of the portfolio is residential (9,382 m²), the remaining 1,237 m² is commercial. The portfolio currently generates annual net rent of roughly EUR 970,000 and has a fair value of EUR 18,443,000. The financing structure of the portfolio on the banking side consists of variable and fixed-interest mortgage loans.

Business Case

During the holding period, the owner will optimize the portfolio. In addition to technical improvements (such as conversion, extension and expansion measures), beautification measures, this also includes increasing income in the form of legally permissible rent increases or new lettings. After the successfully completed optimization phase, the existing building at Wunstorfer Strasse 33 is to be sold by 2023 at the latest, ideally at a lower return - i.e. at a higher absolute price in relation to the rental income - than the purchase was previously made or refinanced.

Project Costing

Purchase Price: €1.255.000

Purchase additional charges: €81.575

Total Investment: €1.336.575

Total usable area: 1.288m²

Occupancy rate: 100%

Annual net rental income: €118.000 

 

LOCATION

Hanover is the capital of the state of Lower Saxony. Situated on the southern edge of the North German lowlands on the rivers Leine and Ihme, the town was first mentioned in 1150 and received its town charter in 1241. Since 1875, Hanover has been called a major city and with 543,300 inhabitants (end of 2019) is one of the 15 most populous cities in Germany.

Hanover is an important business location and a supra-regionally important shopping city. The cultural scene is considered to be diverse, with numerous and in part internationally renowned theatres and museums. Numerous international theatre, music and dance festivals take place annually. Since 2014 Hannover is a UNESCO City of Music. The cityscape is characterized by numerous public green spaces, a high density of street art and numerous architectural monuments, including representative buildings of the North German Brick Gothic, the Hanoverian School of Architecture, Brick Expressionism, Art Nouveau and classicist buildings by Georg Ludwig Friedrich Laves. While post-war buildings dominate in the city center, many districts have a considerable stock of old buildings and maintain their own identities.

The Hanover Adventure Zoo, the Maschsee Lake and the Herrenhausen Gardens are known nationwide, and the arched elevator in the New Town Hall is a worldwide rarity. With the world's largest exhibition center and numerous leading international trade fairs, above all the Hanover Fair, Hanover is one of the leading congress and exhibition cities in Europe. Every year the world's largest marksmen's festival takes place and since 1955 Hanover has borne the official honorary title 'Schützenstadt' (marksmen's city). The annual Maschsee Festival is the largest lake festival in Germany. Since December 2019 Hannover is officially on the shortlist for the title European Capital of Culture 2025.

Discover the surroundings

Herrenhäuser Gärten

The Herrenhäuser Gardens in Hannover consist of the Great Garden, the Mountain Garden, the Georgengarten and the Guelph Garden. The Great Garden in Herrenhausen is one of the most important baroque gardens in Europe and is the historical centrepiece of the Herrenhausen Gardens. The Berggarten, which is also located in Herrenhausen, developed from a vegetable and cultivation garden to a botanical garden. The rainforest house that was built here in 2000 was converted into an aquarium in 2006. A visit to both gardens is subject to a fee. The Georgengarten is located east of the Großer Garten and, like the Welfengarten, belongs to the Nordstadt district. Both gardens are designed in the style of English landscape gardens and are freely accessible. They are assigned to the portfolio of the Lord Mayor of the city administration of Hanover.

Leibniz Universität Hannover

With 30.196 students in the winter semester 2019/20, Gottfried Wilhelm Leibniz Universität Hannover, or LUH for short, is the second-largest university in Lower Saxony after Georg-August-Universität Göttingen. There is a choice of around 90 subjects. The University of Hannover is a member of the TU9 German Institutes of Technology e. V. In the winter semester 1987/88, 26,503 students were enrolled at the University of Hannover, 34.2 percent of whom were female. In the 1990/91 winter semester, the number of students enrolled exceeded the 30,000 mark for the first time. The proportion of women was 37.4 % this year, and 38.8 % the following year. In 1995, the departments of economics, law, and linguistics moved to a new location at Königsworther Platz: the Conti Tower of the former Continental AG headquarters. The 'Conti-Campus', with a floor space of around 20,000 m², was able to accommodate not only the individual departments but also a large library as well as a cafeteria and several cafés run by students.

Stichkanal Hannover-Linden

The branch canal Hannover-Linden (SKL), formerly known as the branch canal Linden, is an artificial waterway that connects the Mittelland Canal with the Lindener Harbour in the Hannover district Linden-Mitte. It was built between 1910 and 1915. The branch canal begins in Seelze-Lohnde at canal kilometre 149.59 of the Mittelland Canal and initially heads east. A marina is located in Seelze. After about 8 km the branch canal crosses the border to the city of Hanover. Then, in the district of Limmer, the connecting canal to the Leine branches off, which provides a connection to the Leine and the Ihme. The branch canal Hannover-Linden continues in a south-easterly direction to the Linden harbor lock. The lock raises the level by 7.80 m to the height of the harbor basin of 58.1 m above sea level. The federal waterway ends at km 10.75 and the harbour basin at km 11.2. The Braunschweig Waterways and Shipping Office is responsible for the federal waterway.

Neues Rathaus

The New City Hall in Hanover is the city hall of the capital of Lower Saxony and the headquarters of the Hanoverian city administration under its Lord Mayor. The Wilhelmine, palace-like magnificent building in eclectic style was built between 1901 and 1913. The New City Hall is embedded in the ten-hectare Maschpark on the southern edge of the city center, outside the historic city center of Hannover. The square in front of the north-northeast facing north wing is now called Trammplatz. It was created specifically in connection with the construction of the City Hall and was named after the then City Director Heinrich Tramm. The south side of the building faces the Maschteich.

Team

About Velum

Wir sind Profis für alles, was mit dem Ankauf von Zinshäusern, Grundstücken und anderen Immobilien zu tun hat. Wir nehmen unseren Job sehr ernst und bieten erstklassige Betreuung beginnend beim unverbindlichen Erstgespräch bis hin zu einer Kaufabwicklung.

Als eigentümergeführtes Unternehmen sind unsere Entscheidungen nicht von Gremien oder Dritten abhängig. Sie kommunzieren direkt mit den Entscheidungsträgern – auch der Ankauf erfolgt direkt. Wir treten nicht als Vermittler, Zwischenhändler oder ähnliches auf.

Last but not least – wir setzen auf ein faires Miteinander; mit vielen Verkäufern sind wir auch Jahre nach dem Ankauf noch freundschaftlich in Kontakt.

Project originated by:

Documentation

4.5%
Annual yield
-
LTV
Term: 48 months
Mortgage rank:
Second
Interest payment schedule:
Quarterly