|Criteria||From a+ to d||Project rating|
Macro Location Analysis
Loan To value
Purpose of the loan
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
|1. Top location|
Munich is one of the most outstanding real estate locations not only in Germany but throughout Europe. In Europe, properties in Munich are the most expensive after Paris, Basel and Geneva. The limited supply and good economic dynamics have caused Munich's property prices to rise sharply for years. This continues to make Munich an extremely attractive investment location.
|2. Attractive interest rate|
For residential properties, 6.0 % p.a. represents a very good return - especially in combination with the property's extremely good location. This is an ideal investment for investors who want to invest in a location with stable value such as Munich.
|3. Experienced issuer|
The Issuer FORMHAUS Wohnbau Hofangerstraße GmbH & Co. KG is a member of the FORMHAUS Group. FORMHAUS develops residential real estate in economically strong Munich. Since 2015 the project development volume has already exceeded € 500 million. So far 215 properties have been realized.
The Issuer is a company of the Formhaus Group. For over 40 years and in its second generation, a dedicated team of competent architects, engineers, project managers and real estate experts has been developing single-family homes, semi-detached houses, townhouses and flats in selected locations in Munich and the surrounding area.
|Project||New construction of an apartment in Munich|
|Living space||830 m²|
|Location||Hofangerstraße 5, 81735 Munich|
|Minimum duration||24 months|
|Repayment||Single or global sale|
|Interest rate payments||Final interest payment|
"The basis of the more than ten-year boom remains the low level of new construction activity. In our opinion, the imbalance is likely to worsen rather than ease for the time being". (Market Report Deutsche Bank Research on 10.9.2020, p.1)
The urban development possibilities for expanding the housing supply in Munich are limited. Munich has an average of only 1.72 persons per household, which is undercut among the metropolises only by Berlin. This means that between 2009 and 2019, new housing was created in Munich for around 108,600 people, while the population increased by 155,700.
The limited supply and good economic momentum have caused Munich's property prices to rise sharply for years. Since 2009, housing prices in the portfolio have risen by almost 180% and new condominiums by almost 130%.
In 2019, too, the prices for existing flats rose by 7.6%, which is a stronger increase than the prices for new flats, which rose by 5.4%.
From an international perspective, housing prices in Munich, Germany's most expensive and probably strongest economic city, are not out of line. According to Numbeo, Munich's average prices per square meter outside the city center in September 2020 were EUR 7,800, an increase of around 3.5% compared to 2019, putting Munich in fourth place in a European comparison. Only Paris, Geneva and Basel are currently more expensive. In 2016, Munich was still in 14th place at EUR 5,250.
The new building project "Wohnen am Hofanger" is located at Hofangerstraße 5 in the Perlach district of Munich. The location directly at the Ostpark is extremely attractive. Beer garden, lake and the Michaelibad form a wonderful local recreation area. Due to the immediate vicinity of the underground station "Michaelibad", the property is optimally connected to public transport. It takes only 13 minutes by train to the main station. The attractive location is reflected in the prices: in the area, square meter prices for newly built flats average 8,411 euros.
For iFunded projects, the interest is calculated from the day of investment. Investors don't have to wait until the project is fully funded in order for their investment to start generating income.