|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. Jobcenter as tenant|
With the Jobcenter in Sömmerda as the sole tenant of the property with a lease agreement for the next nine years until 31 December 2029, rental income is secured for the entire term of the project. It is therefore an extremely low-risk investment.
|2. Land charge as security|
In addition to the first-class tenant, the issuer offers investors security in the form of a subordinate land charge amounting to the funding amount of up to EUR 500,000 on the property at Auenstraße 2 in 99610 Sömmerda near Erfurt.
|3. Risk/return ratio|
The fixed interest rate of 5% p.a. is very attractive in relation to the extremely low risk of the investment. Investors invest in a property with the state as tenant and receive an interest rate similar to a property with a commercial tenant.
|4. Issuer with very good track record|
APPC Beteiligungs-GmbH is part of the Treuenburg Group, an owner-managed real estate company based in Erfurt. The Issuer has a long and positive track record. Good examples are the Erfurt Portfolio I and Erfurt Central projects, which have already been successfully financed via iFunded and repaid to investors prematurely with a higher than agreed return. The company has been investing in leveraged real estate for over a decade and is specialized in real estate investments in Central Germany. The Treuenburg Group currently manages over 180 million euros of German real estate assets.
APPC Beteiligungs-GmbH is part of the Treuenburg Group, an owner-managed real estate company based in Erfurt, the capital of Thuringia. The company has been investing in leveraged real estate for over a decade and since 2015 has also offered international investors the opportunity to invest in Central Germany. The issuer is extremely specialized in real estate investments in Central Germany, which is the company's major unique selling point. The portfolio consists of residential, commercial and retail properties in Central Germany. The Treuenburg Group currently manages over 100 million euros in German real estate assets.
|Project||Renovation and refurbishment measures|
|Number of commercial units||1|
|Location||Auenstraße 2, 99610 Sömmerda near Erfurt|
|Regular Term||30 months|
|Interest rate payments||Semi-annual interest payment|
Thuringia's engine of growth has for years been manufacturing, whose gross value added has more than quadrupled since 1991. The share of manufacturing in Thuringia's economic output is above the national average.
Thuringia is perfectly connected in terms of transport. Erfurt in particular is, therefore, a popular venue for conferences. Since 2017, the Thuringian capital has been part of the new ICE route Berlin - Erfurt - Munich, making it Germany's most important hub for long-distance trains. Further multi-million investments in the local infrastructure are being made in the course of the Federal Garden Show, which is coming to Erfurt in 2021.
Erfurt is the most important economic center of Thuringia. Bosch, Siemens, Audi, Deutsche Bahn, BMW, Zalando, DHL - companies with illustrious names have settled in the state capital. In addition to the excellent geographical location, the venerable University of Erfurt and the University of Applied Sciences Erfurt are an important location factor for the region.
Besides Erfurt, larger companies are located in Jena (Zeiss, Jenoptik, Schott) and Eisenach (Opel, Bosch). Important locations for education and research in the Free State are Jena with the fourth-largest university in the new federal states, Erfurt and Ilmenau with its Technical University.
Sömmerda lies less than 30 kilometers north-east of Erfurt in the district of the same name. With approx. 19,000 inhabitants, the small town is a medium-sized center of the region. The property is perfectly connected in terms of infrastructure and is located in the immediate vicinity of the bus station and railway station (5 km to the motorway). All necessary facilities for everyday life can be found in Sömmerda: Schools, kindergartens, pharmacies, shops, doctors as well as leisure and local recreation facilities. The average purchasing power is 41,230 € per household.
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.