invest in high yield buildings in germany
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Invest in High YieldBuildings inGermany
1The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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Decrease of bond yields worldwide
4The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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Decrease of bond yields worldwide
Life insurance returns are
declining everywhere in Europe
Germany: 2,75 %
France: 2,90%Austria: 1,15% 2,33%
Switzerland: 0,59% 1,99%
Belgium: 2,4%
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In this time of crisis our company offershigh and safe returns.
The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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OUR STRATEGY
The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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Step 2 : The Purchase
Purchase Price : EUR 600.000
Annual Rental Income : EUR 60.000 10%
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At a real estate auction this building is bought by us for
EUR 600.000. With an annual rental income of EUR 60.000 the rental
yield of the building becomes 10% per year.
The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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Step 3 : The Resale
Excellent LocationPerfect Condition
Office building :
Purchase Price :Annual Rental Income :
EUR 600.000
EUR60.000 10%
Profit margin from sale (780.000 - 600.000) =Rental income for 3 years (3 X 60.000) =
180.000 180.000
Total Profit : EUR 360.000 60% profit in 3 years or 20% per year
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3 years later the building is sold for EUR 780.000
The total profit of the 3 year investment :
Initial investment : EUR 600.000
The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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Conditions for buying a building
Purchase Price much lower than thefair market value(30%-40% discount)
High rental yield
Strategic location
Excellent quality buildings
16The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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Price Evolution of Real Estate in Europe (2000-2011)
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The German real estate market is unfluctuating
The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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Some facts about German real estate
- 40% of the population are home owners
- In the last 10 years :
10% increase in real estate prices
10% increase in housing rentals
- The rent represents between 10% and 12% of
a householdsexpenses
- The average price per square meter in the 40 biggest
German cities is lower than 2300
- National rental yields between 6% to 8%
19The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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Our target market
The German real estate market bought and sold in 2012 for 107 Billion euros101 Billion euros through real estate agents, advertisements, etc.
Conventional Market94,40%
6 Billion eurosthrough auction sales
Resale Market
Buying Market 5,60%
Target Market21
The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213
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1
The average purchase price of a
property during an auction is 62 of its
fair market value.
Welt a. Sonntag
Rental yield : 710%
Frankfurter Rundschau
Rental yield: 7,14
Examples of legal notices (source : ARGETRA GmbH official website of
German real estate auctions)
Examples of German real estate auctions
The data presented in this presentation is for information purposes only and can not be considered as contractual elements ref.BCGP061213