Frankfurt - Westend

 Renovation Loan
Project listed: 05.08.2020
Frankfurt,
Germany
6.5%
Annual yield
Term: 31 months
Mortgage rank:
Second
Interest payment schedule:
At Project Completion
Interest payments
30.11.2020
Paid

Project updates

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November 30, 2020

Update from the developer:

Within the first three months of the purchase, the purchase price was processed and the project team was commissioned in accordance with the developer's targets. Since the real estate project enjoys a certain degree of awareness in the Frankfurt area, the developer has already received initial inquiries from investors for the global sale - even without the start of our sales activities, which the developer generally only aim at when the project is advanced. This development confirms the developer's assessment that the market environment for residential real estate has remained constantly attractive or has even improved, as it is benefiting from the current weakness in commercial and retail real estate. The project has thus started successfully and the course has been laid for a positive course of the project!

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Risk rating

CriteriaFrom -2 to 2
Property type0
Loan Structure0
Pre-sales1
Experience0
Development's licence0
Macro-location1
Micro-location1
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Investment length2
EBITDA Margin2
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Project rating
B
Originator rating
A

Descripton

Micro apartments in Frankfurt's top location: high-quality apartments in the immediate vicinity of the banking district

  • Project property: conversion of a former office property into 77 high-quality, furnished micro-apartments in a top location
  • A fixed interest rate of 6.50% pa
  • Maximum term of 31 months (03/31/2023)
  • Minimum term of 12 months (31.08.2021) *
  • Security in the form of a mortgage and guarantees
  • The building has already been purchased and the building permit for the renovation is available
  • The sooner you subscribe, the more interest you can earn. Because you start your individual interest run immediately after allocation - even while an issue is still in progress.

* Your paid-up capital will earn interest after the 14 day cancellation period. The issuer can, for example in the event of early project completion, repay from the specified minimum term.

Video presentation.

Project description

Frankfurt is the city of superlatives: the most important financial center in Europe, home to the European Central Bank, the Deutsche Bundesbank and the German stock exchange and also the seat of a large number of the largest European commercial banks. Unemployment is low and the proportion of high-income academics is high. The city can also point to the largest increase in population since 2008. New housing construction can no longer meet demand.

As part of the “Frankfurt - Westend” project, it is planned to convert a former office property and build exclusive, furnished micro-apartments. The building has already been purchased and the building permit for the renovation is available. The property can be found at Eschersheimer Landstrasse 105-107 in 60322 Frankfurt am Main and is within walking distance of the Goethe University and in the immediate vicinity of the Frankfurt School of Finance and Management and the Frankfurt banking district. Due to its central location, the property is perfect for reallocation.

The existing seven and a half floors of the commercial property are being extensively renovated. It is planned to build a total of 77 furnished apartments with a total living area of ​​2,349 m². The high-quality apartments will have sizes between 19 and 54 m² and some will have their own balconies. Eleven underground parking spaces and 81 bicycle parking spaces will be created in the basement. In addition, five additional parking spaces will be built on the outside area, three of which will be used by car-sharing vehicles. Following the construction work, the property is to be sold to a global investor.

The equipment of the property will be based on the requirements of modern urban living. A high-quality material creates an inviting atmosphere and the living space is optimally used with built-in furniture. Digital control elements ensure good energy efficiency, among other things.

Macro location Frankfurt am Main

As the largest city in Hesse and the fifth-largest city in Germany, Frankfurt am Main offers many popular sights in addition to the strongly represented financial industry, a unique skyline and the international airport. Places such as the Frankfurt Römer or the Paulskirche shape the cityscape and attract tourists year after year. There is something for everyone in this city - whether it's the latest architecture or historic buildings in the elegant old town. The city has been enjoying a steady increase in population for years. Brexit further increases the influx: International financial institutions are drawn to the financial metropolis on the Main, including well-known names such as Goldman Sachs, JP Morgan and Barclays. Experts estimate that Brexit will shift around 750 to 800 billion euros in balance sheet volume from London to Frankfurt. As a result of the Brexit vote alone, 1,500 new jobs have already been created in Frankfurt am Main - a further 2,000 jobs are to be added.

The growing labor market will further increase the demand for living space. But in the past, the supply of living space lagged far behind the demand, which caused prices to climb continuously. In 2019, around 6,800 sales contracts for land, apartments, homes and commercial properties were concluded. Over eight billion euros were generated, of which around 60% can be attributed to condominiums. From 2018 to 2019 alone, a price increase of around 13% was measured. The most expensive apartment reached a top price of over EUR 25,000 per m² last year.

 

Micro location Frankfurt Westend

The Frankfurt Westend is one of the densely built-up inner-city districts of the Main metropolis. In addition to the upper-class Wilhelminian style architecture, the district also houses residential and office buildings from various decades of the 20th century. In the south of the Westend is part of the Frankfurt banking district with its characteristic high-rise buildings.

The project property at Eschersheimer Landstrasse 105-107 is located in the heart of the city, in close proximity to the financial institutions located there. Furthermore, the Goethe University, the Frankfurt School of Finance and the University of Music and Performing Arts are within walking distance of the property.

Various shops, restaurants and other facilities for daily needs are also in the immediate vicinity. The property is also connected to local public transport via the nearby Holzhausenstrasse underground station. Even with old buildings, prices in excess of EUR 10,000 per m² could be achieved here last year. Due to the massive housing shortage in this exceptional location, small apartments are becoming increasingly popular. A trend of average apartment size towards micro-apartments can be seen here.

 

In Frankfurt am Main in particular, this trend will continue to increase in the future. The main reasons are the increasing number of one-person households, the lack of modern and efficient apartments in sought-after inner-city locations and the increasing demand from young professionals and project staff from all over the world. In addition, these small residential units enable employees to stay close to their workplace during the week and to save themselves the stress of commuting - especially in Germany's number one commuter city. Around 400,000 professionals make their way to the main metropolis every day - that's more than half of the people living in Frankfurt. Between Monday and Friday, every third person in Frankfurt is a commuter.

 

Security with this investment

To secure the loan claims, a trustee realizes a land charge in the amount of EUR 6,000,000 in second place after the first-tier financing creditor and his primary land charge in the nominal amount of up to EUR 20,800,000 on the property in Eschersheimer Landstrasse 105. 107 in 60322 Frankfurt am Main ordered and registered. Furthermore, the managing director of the issuer Mr. Robert C. Waidhaas and PRIMUS Vermögensverwaltungs GmbH, based in Frankfurt am Main, will order maximum guarantees totaling EUR 750,000.

 

Use of funds

The funds raised here will be used in part for the purchase price allocation, for incidental acquisition costs, incurred planning and project costs as well as for proportionate construction costs.

 

The enterprise

The project is carried out by ELA 105 GmbH and promoted by the two experienced project developers Mr. Robert C. Waidhaas and Mr. Lars Borghaus. Heureka Real Estate GmbH, based in Darmstadt, is a partner in ELA 105 GmbH. The company specializes in the realization of residential construction projects in the Rhine-Main-Neckar region. The company has already successfully completed the conversion of an office property into an apartment building in Frankfurt am Main, similar to its latest project "Frankfurt - Westend". Furthermore, she realized several new building projects in Darmstadt and is responsible for the construction of a hotel and the construction of 120 residential units in Mainz am Zollhof.

The entrepreneurial team

Robert C. Waidhaas

 

Mr. Robert C. Waidhaas worked in major international banks (Merrill Lynch, BNP Paribas, Bear Stearns) after completing his master's degree in commercial science and completed a postgraduate course in real estate economics. At the end of 2008 he was a co-founder of the project development company Heureka Development GmbH.

Lars Borghaus

 

Mr. Lars Borghaus is a graduate economist and real estate economist. After initial positions as project manager and portfolio manager, he founded various companies in the areas of project development and asset management. For example, he is a co-founder of PAMERA Real Estate Partners. In addition, Mr. Borghaus was Managing Director for Barings Real Estate Advisers.

 

 

Project originated by:

Documentation

6.5%
Annual yield
Term: 31 months
Mortgage rank:
Second
Interest payment schedule:
At Project Completion
Interest payments
30.11.2020
Paid
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