Description
ID 35330
Strategy:
1. Purchase of an apartment building with a current yield of about 5.6% per annum;
2. Increase of rental rates due to renewal of agreements with tenants within 5 years;
3. Resale of the object at a higher price.
The project is being implemented jointly with a German management company specializing in apartment buildings in North Rhine-Westphalia.
Legal structure: creation of a project company with direct investor participation.
Attraction of a loan in the amount of 65 - 80% of the cost of the object. Fixed rate for up to 10 years: 1.2 - 2.0%.
With 17.8 million inhabitants, North Rhine-Westphalia is the largest federal state in Germany in terms of population and population density.
Essen has a population of 590.000 people, one of the main economic centers of the federal state.
In the last 7 years, rental rates in Essen have increased by 30%.