|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Purpose of the loan
|1. Berlin premium location|
Berlin will continue to grow in the coming years. New jobs will be created, for example, through the Siemensstadt 2.0 neighborhood development or the Tesla Gigafactory in nearby Grünheide. The property itself is located near the famous Kurfürstendamm. This offers investors the opportunity to invest in an exposed premium location in Berlin.
|2. Attractive interest rate|
For residential properties, 6.0% p.a. represents a very good return. An ideal investment for investors who only want to tie up their capital for a manageable time horizon.
|3. Business model with high margins|
The Issuer operates an extremely attractive allocation business. This involves purchasing an apartment building at the lowest possible price per square meter. The house is then divided into individual condominiums, which can then be sold at a significantly higher price per square meter. This high-margin business model enables the Issuer to achieve high profits.
|4. Experienced issuer|
The SCP Eisenzahnstraße 11-16 GmbH & Co. KG, whose founder and managing director Einar Skjerven has over 20 years of experience in the areas of real estate, capital markets, asset and fund management. He has already invested more than 1 billion euros in the real estate market. iFunded investors already know the Skjerven Group from various projects, which have now been successfully repaid.
The SCP Eisenzahnstraße 11-16 GmbH & Co. KG is a single-purpose company with the corporate purpose of implementing the Beautique Apartments project. The company will not acquire any further properties or take up any operational activities that do not directly serve to achieve the company's purpose. The general partner is SCP Verwaltung Selektion 03 GmbH, whose managing director is Einar Skjerven. He is the founder and managing director of the Skjerven Group and has more than 20 years of experience in real estate, capital markets, asset and fund management. He has already invested more than 1 billion euros in the real estate market.
|Number of living units||281|
|Rental space||13.120 qm|
|Location||Eisenzahnstraße 11-12, 14-16, 10709 Berlin|
|Minimum duration||12 months|
|Repayment||Single or global sale|
|Interest rate payments||Final interest payment|
The Berlin housing market will remain very tight in the coming years. 87% state that the Corona crisis is not currently leading to falling prices for condominiums. This is the result of the current housing market barometer of the Investitionsbank Berlin (IBB), for which about 200 experts from politics and economy were interviewed.
The signs in Berlin continue to point to growth. With an unemployment rate of 7.8%, which is comparatively low for Berlin, the number of people in employment rose significantly in 2019: 2.066 million Berliners were in work, 49,600 more than in the previous year. From 2014 to 2018 this increase amounted to 11.3 %, with an increase of 198,500 people in the service sectors alone. During the Corona crisis, unemployment figures soared to 10.8 % in July and have since fallen back to 10.1 %.
Growth drivers are for example the Tesla Gigafactory in Grünheide in Brandenburg on the eastern border with Berlin or Siemensstadt 2.0.
Taking all market segments into account, the offered prices for condominiums in Berlin 2019 have risen by 10.2% compared to the previous year to an average of 4,630 euros per square meter. This dynamic shows that demand in the purchase segment continues to exceed supply.
The property is located in the Berlin district of Charlottenburg-Wilmersdorf, approx. 2 km southwest of the "City West" city center, within walking distance of Kurfürstendamm. The underground stations "Konstanzer Straße" and "Adenauer Platz", which are within walking distance, as well as various bus stops in the vicinity provide good connections to the public transport network.
The big plus of the property is its proximity to the Kurfürstendamm, the flagship of the City West with its colorful mix of office, shopping, cultural and gastronomic offerings and living. The complete range of a city's offerings is linked there in short distances. The boulevard and its surroundings have undergone a remarkable update in recent years.
This also has an impact on the housing market in the form of increased demand and new offers. There is hardly any space for new commercial or residential buildings, which means that it is not uncommon for older properties to be completely core demolished or to have to make way for new projects that are tailored to contemporary needs.
The further south you go from Ku'damm, the calmer it gets. Wilmersdorf is located there, which is one of the decidedly middle-class, somewhat better-off districts of Berlin. The district captivates by its charm and is still very much in demand. Sophisticated corners are alternate with unagitated and simple residential streets and apart from urban flair, you will also find pleasantly quiet places here.
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.