Tag Archives: property loan note

Berlin Germany Property Investment

Germany Property Investment: strongest economy in Europe?

Germany Property Investment:  Why invest in the strongest economy in Europe?

Have you considered investing in German real estate?  When it comes to Germany Property Investment, it’s worth considering the numbers first.

 

 

Berlin is a German hotspot. It is still growing rapidly whilst its housing markets are developing just as dynamically. Rents and prices are rising and there is an increase in new development projects. These developments are fairly diverse with public housing corporations and private developers to exclusive city centre projects to international buyers.

Berlin’s economy and population are growing, rents and property prices are rising. The population has been growing at more than one percent a year without taking into consideration the refugees. In 2015 alone, the population increased by 48,000. This is expected to continue for the next 5-10 years. A healthy economic standard and employment demand all contribute to these numbers. The city is also very attractive, lots of amenities and space for all types of lifestyle, education, leisure, culture and creation.

It wasn’t long ago that by socio-economic standards that Berlin was below the other top six locations in Germany. Berlin is now catching up. The Housing Market Report Berlin 2017 shows that many of the stereotypes about the Berlin housing market are incorrect. The number of employees in the City has increased by 29% between 2205-2015. Unemployment has significantly reduced during the same period. Not to mention the GDP rising.

Around 15,000 new apartments are being built each year. This only accounts for 0.7% of the stock! Supply is still growing much slower than demand. Asking rents in Berlin have been rising for years too.

In fact new construction relaxes the market. Expensive apartments contribute to the highest level of segments in the market.  They in turn free up existing and more affordable apartments or provide housing for newcomers or first time buyers.

Take a look at the numbers for Germany Property Investment

400,000 new apartments needed every year to eliminate housing shortage

120,000 by which the target misses each year

4,400,000 apartments needed to be built by 2030 to meet demand

Number 1
largest economy in Europe

Number 1
export powerhouse

Number 1
Largest budget surplus in Europe

Do the signals look positive for investors considering Germany Property Investment?

Empire property holdings update

Empire Property Holdings May Update

Empire Property Holdings Update

Empire Property Holdings is an investment opportunity providing a fixed return for up to 4 years at 15% pa. This update is to show you the ongoing developments of the company and how their business model allows for an above average yield for an investor. Empire are developing a number of buildings not just one. To ensure that clients and potential clients can obtain as much transparency from this investment we would like to show you the latest updated photographs from the sites acquired. Empire Property Holdings have been very busy over the last 19 months. With a few developments near to completion, it would be a great time for you to see what they have been up to.

Empire Property Holdings are not just developers but they are investors too.  They have refinanced the majority of the developments they have created to keep in their portfolio. The New Commerce House refinance has recently been completed. Following this successful refinancing, Empire Property Holdings acquired Newspaper House in Blackburn with plans in place to develop 66 apartments.

Newspaper House, Blackburn

Empire Property Holdings have completed the acquisition of Newspaper House in Blackburn.  A planning application has been submitted to build 66 flats with car parking with an extremely positive response.

  • £850,000 Purchase price
  • £2,640,000 Development Costs (£40,000 per unit x 66)
  • £3,490,000 Total Cost
  • £429,000 Income (66 units x £125 per week x 52 weeks)

A benefit to the site is a rear warehouse which has been leased back to the Lancashire Telegraph for 12 months.

The development is near to completions with some of the apartments partially let. And this is even before completion showing the demand for the units.  The remaining work is the lift refurbishment, which is due to be completed within the next month. Some of the external fascia has been modernised to give a fresh modern appeal to the building.

This development is ready to be refinanced at the end of May. In tune with the business model it will then allow Empire Property Holdings to acquire the Thornhill Street site. Buy, develop, refinance repeat!

Thornhill Street, Wakefield

On the refinancing of King Charles House, Empire will purchase the Thornhill Street site which has the benefit of full planning consent to change the current use to C3 apartments.

  • £850,000 Purchase price
  • £480,000 Development costs (16 units x £30,000)
  • £1,330,000 Total Costs
  • £112,320 Income (16 units x £135 per week x 52 weeks)
  • £50,000 Further Commercial Income
  • £162,320 Total income

Thornhill Street

Globe Works, Bolton

Empire Property Holdings have purchased another site as part of their property loan note investment. Globe Works a former town centre mill in Bolton on acquired on 3rd May 2017.

A former mill to residential conversion via full planning permission, which will create 24 one bedroom, 90 two bedroom & 10 three bedroom apartments.

  • £1,700,000 – Purchase Price
  • £6,200,000 – Development Cost (124 units x £50K)
  • £7,900,000 – Total Cost
  • £1,024,800 – Income (24 1 beds x £600 x 12) (90 2 beds x £700 x 12) (10  3 beds x £800 x 12)
  • £12,800,000 – Valuation based on 8% yield
  • £8,960,000 – Refinance exit (70% LTV)

 

Globe Works Bolton

Globe Works Bolton

Globe Works Bolton

The Investment Opportunity

2 Year Income
Year 1: Interest at 10% p.a. payable every 6 months.
Year 2: Interest at 12% p.a. payable every 6 months
Total Interest 22%

2 Year Growth
Year 1: Interest at 10% p.a.
Year 2 (compounded) Interest calculated at 12% p.a.
4% bonus
Total Interest 27.2%

4 Year Growth
Years 1-4: Interest at a total 60%
Total Interest 60%

For further information contact us on 0203 026 8820 or register your interest HERE

Worldwide Investment

What’s new in the world of investment?

The Bank of England is releasing trails of information into the media to suggest an interest rate rise possibly by the end of the year. Experts believe with the Chinese Black Monday, lowering oil prices and the turmoil in the global markets that bank interest rates will not increase until February of 2016. The Chinese stock market nosedived by a whopping 8.5% recently sending investors into panic. Even to the point that the Chinese reduced their bank interest rate in attempt to soften the blow.

Oil prices have hit an all-time low this year on the back of the Chinese market with many employees within the industry being laid off. Economists are predicting that US Federal Reserve will suspend their September interest rate increase and Bank of England’s forecast to be put back after the early 2016 forecast. Analysts have stated that the weakness in emerging markets is now spreading to developed markets. That in turn doesn’t make a base rate increase viable in the US or UK in the coming months ahead.

How has this effected worldwide investment? Whilst the unpredictability of the stock market has kicked in, the fixed rate returns of asset back investments that Barrington Howe specialise in continue to thrive. With the business models strong enough to stand a drop in the market, these secured assets continue to raise millions in private funding giving above average returns in the form of fixed rate bonds and property loan notes. With interest rates still at an all-time low, bank savings are still receiving an extremely low return and have done so for over 5 years. The decision on where is the best place to invest always poses a conundrum. However, fixed rate asset backed alternative investment is still thriving.