GERMANY Berlin. Konstanzer

Transcription

1 GERMANY Berlin Konstanzer

2 CONTENTS ABOUT IP GLOBAL 02 BERLIN: MACRO OVERVIEW 04 ECONOMY 06 SUPPLY 09 DEMAND 10 SALES MARKET 11 RENTAL MARKET 12 CHARLOTTENBURG 14 THE DEVELOPMENT 16 THE AREA 18 COMPARABLES MAP 20 SPECIFICATIONS 23 RETURNS MODEL 25 DEVELOPER 28 CONTACTS 30

3 ABOUT US When IP Global first entered the property market in Berlin in 2014, prices were a fraction of other comparable capital cities and still are. After investing in eleven developments, our confidence in Germany s capital has proven prescient and it is now considered one of the top cities in Europe for real estate investment. ABOUT IP GLOBAL IP Global s mission is to change the way the world views global real estate investment, placing it on a level footing with other recognized asset classes. We provide our clients with access to the best opportunities and deliver an endtoend service that guides them through every step of their investment journey. TRACK RECORD KÖDA NEUKÖLLN Köda is a sleek studio apartment complex that redefines optimal modern living in Berlin s most upandcoming neighbourhood, Neukölln. Project: 48 units Exclusive to IP Global Developer: T&T Grundbesitz Gmbh Completion date: June 2018 USA Total projects: 19 since 2011 Total investment value: USD146 million AUSTRALIA Total projects: 17 since 2013 Total investment value: USD168 million RIVER GARDENS KÖPENICK River Gardens is an opulent riverside residence set in one of Berlin s most affluent areas. Project: 20 units Exclusive to IP Global Developer: MediConsult Completion date: December 2019 GERMANY Total projects: 11 since 2014 Total investment value: USD60 million UK Total projects: 82 since 2009 Total investment value: USD2 billion 02 03

4 BERLIN: MACRO OVERVIEW 3.67 million population as of 2016* Berlin is the secondlargest city in the EU and at the heart of the country s longstanding tradition of innovation. BERLIN RANKS N 1 #1 Investment & Development Prospects #1 Expected Increase in amount invested #1 Expected Increase in Rents #1 Expected Increase in Capital Values PwC Emerging Trends in European Real Estate 2018 report * Latest data available

5 ECONOMY NATIONAL UNEMPLOYMENT RATE % Unemployment rate ECONOMY GERMANY A FOUNDING MEMBER OF THE EUROPEAN UNION AND THE EUROZONE, GERMANY HAS THE LARGEST ECONOMY IN EUROPE AND THE FOURTHLARGEST WORLDWIDE. As a renowned safe haven for international capital, Germany s economy has emerged as a robust economic and political force in Europe amidst times of economic and political uncertainty. As a result, Germany has become a primary destination for international investors worldwide with inbound capital flows reaching record levels in March Unemployment rate Average trend Sources: tradingeconomics.com Deutsche Bundesbank These trends are also reflected in the national labour market statistics with the unemployment rate at its lowest level since GDP ANNUAL GROWTH RATE % Annual growth rate BERLIN The capital s economy has been on a strong upward trend for over 10 years now, with GDP reaching EUR35,627 per capita and exports to the US market alone totalling over EUR1.7 billion as of GDP Index: 2010 = 100, price adjusted and chainlinked GDP Average trend Sources: tradingeconomics.com Deutsche Bundesbank The country s economy has continued to experience consistent economic growth, with GDP surpassing forecasts and rising to 2.8% by the end of Germany Berlin Brandenburg Hamburg Source: IHK Berlin 06 07

6 ECONOMY SUPPLY STARTUP HUB BERLIN HAS BECOME THE MOST PROMINENT HUB FOR INNOVATION AND ENTERPRISE IN EUROPE WITH ALMOST 39,000 STARTUPS EMERGING IN 2015 ALONE. Investors have bolstered this trend, with startup companies primarily in the ecommerce, health, FinTech, and software sectors attracting almost EUR3 billion of venture capital investment in BERLIN S HOUSING MARKET IS STRUCTURALLY UNDERSUPPLIED WITH A SHORTFALL OF AT LEAST 80,000 UNITS AS OF EDUCATION HOUSING SUPPLY AND DEMAND FOR NEW BUILDINGS 2017 QS BEST STUDENT CITIES RANKING: BERLIN AFFORDABILITY FOR INTERNATIONAL STUDENTS BEST EUROPEAN CITY TO STUDY BEST CITY OVERALL FOR INTERNATIONAL STUDENTS Germany is now the world s third most popular destination for tertiary education after the US and the UK, bringing in students of all backgrounds and interests. Berlin offers free education for all and its universities and colleges attract more students than anywhere else in the country. Source: JLL Building completions Building permits New housing demand In addition to the 80,000 unit shortfall, the Secretary of State for Construction and Housing has outlined the requirement for at least an additional 20,000 units per annum up until ,000 units were completed in 2016 and forecasts suggest the number of completions may have risen as high as 15,000 for 2017 still well below the annual 20,000 unit requirement

7 DEMAND SALES MARKET BERLIN S BOOMING ECONOMY AND EXPONENTIAL POPULATION GROWTH ARE THE PRIMARY DEMAND DRIVERS IN THE HOUSING MARKET. BERLIN IS STILL GROWING RAPIDLY, WHILE ITS HOUSING MARKETS ARE DEVELOPING JUST AS DYNAMICALLY. POPULATION The supply and demand imbalance is expected to persist for the foreseeable future, which consequently will continue to put upward pressure on property prices. DEVELOPMENT OF CONDOMINUM PRICES Historical Forecast Trend Source: BerlinBrandenburg Statistics Office In 2016 alone, the population of Berlin increased by over 60,000 inhabitants and the BerlinBrandenburg statistics office expects a further increase of 7.5% between 2015 and Furthermore, 2025% of demand for Berlin residential real estate is coming from international property investors, creating a diverse and liquid primary and secondary market. Source: JLL Condominium prices IMBALANCE The large gap between supply and demand will take a considerable amount of time to diminish, evidenced by the fact that a 36% increase in the level of completions forecasted for 2017 would only serve to close the gap by 7.5%. Property prices in Berlin have been increasing by an average of 6.5% (EUR2,130) per annum since Furthermore, since 2009 demand has risen at increased levels with capital growth rates averaging 10.9% annually in response and totalling 11.4% in Berlin s top market segment for

8 RENTAL MARKET THE BERLIN RENTAL MARKET HAS BEEN PROFOUNDLY SHAPED BY THE FORCES OF SUPPLY AND DEMAND, EVIDENCED BY AN EXTREMELY LOW VACANCY RATE OF JUST 1.2%. DEVELOPMENT OF RENTAL PRICES Another major contributor to such a robust rental market is the remarkably low owner occupancy rate in Berlin of just 15.6%. This has resulted in consistent levels of rental growth of 6.1% per annum on average since 2006, with rents almost doubling in that time. Furthermore, due to increased levels of demand, average asking rents in Berlin increased by EUR10.80 per square metre in the first half of 2017, the largest recorded increase since By the end of 2017 rental growth had totalled 10.7% yearonyear in Berlin s top market segment. Source: JLL Rental prices 12 13

9 CHARLOTTENBURG LOCATED IN THE WELLESTABLISHED CENTRE OF FORMER WEST BERLIN, CHARLOTTENBURG IS PRIME REAL ESTATE % Internationality(2016) 40.52sqm Living space per capita 189,011 Population (2016) 6.4% Unemployment levels (2016) Balance of migration (2016) Historically home to Berlin s elite, Charlottenburg is a prestigious area of the city. It has managed to retain its illustrious roots and remains a preferred neighbourhood of Berlin s movers and shakers. Charlottenburg offers residents a variety of restaurants, cafés, highend stores and leafy parks to enjoy. There are also a number of theatres and arthouse cinemas in the area and great public transport connections to the city as a whole. Centred around Kurfürstendamm, Berlin s most luxurious shopping boulevard, Charlottenburg offers investors a unique opportunity to enter the German property market in one of the most soughtafter districts of Berlin

10 THE DEVELOPMENT KONSTANZER A modern highspecification residence, Konstanzer features lush garden views, private balconies and an open layout. With easy access to the rest of Berlin via UBahn, as well as Charlottenburg s longestablished restaurants, shops and schools, the development offers its residents a modern yet prestigious environment. 16 Computer generated images are intended for illustrative purposes only 17

11 KANTSTRAßE O SUHR ALLEE THE AREA KAISERDAMM KAISER FRIEDRICH STRAßE BISMARCKSTRAßE 8 NEUE KANTSTRAßE 11 HARDENBERGSTRAßE TRAVEL TIMES 4 TRANSPORT LIFESTYLE KURFÜRSTENDAMM LEWISHAMSTRAßE PAULSBORNER STR. 5 BRANDENBURGISCHE STR. 9 KONSTANZER KONSTANZER STRASSE KURFÜRSTENDAMM LIETZENBURGER STR LIETZENBURGER STR. UBahn Station Konstanzer Straße: 2 min Alexanderplatz: 30 mins UBahn EMPLOYMENT NODES Commerzbank PWM/ Commercial: 12 mins Kindergarten, Primary School, Jewish School Campus: 2 mins International School 14 mins Ku Damm (Tesla, Apple, Prada etc.) 2 mins UBahn 10 mins A m N Opera House Berlin: 7 mins UBahn University of Arts Berlin: 25 mins 9 mins German Central Bank: 14 mins UBahn Technical University of Berlin: 11 mins UBahn Deutsche Bank: (Global Risk Management) 14 mins UBahn GymFitX: 2 mins UBahn KranzlerEck: (BNP Paribas, Deloitte, Cisco) 11 mins UBahn KaDeWe: (Largest department store in Berlin, 40,000 visitors/day) 13 mins UBahn Savignyplatz (Bars and Restaurants): 18 mins UBahn 18 19

12 COMPARABLES MAP KONSTANZER SCHILLER 45 OTTO SUHR ALLEE 1 room: Avg 30.1 sqm/eur9,812 psqm 2 rooms: Avg 50.3 sqm/eur9,742 psqm BISMARCKSTRAßE KAISER FRIEDRICH STRAßE WIELANDSTRASSE 41 3 rooms: Avg 97 sqm/eur10,443 psqm 4 rooms: Avg 153 sqm/eur11,835 psqm 5 rooms: Avg 155 sqm/eur8,787 psqm THE HIDE HARDENBERGSTRAßE 2 rooms: Avg 57 sqm/eur10,053 psqm 3 rooms: Avg 179 sqm/eur11,826 psqm KANTSTRAßE STENDAMM PAULSBORNER STR. HOCHMEISTERPLATZ 2 rooms: Avg 61.5 sqm/eur9,542 psqm 3 rooms: Avg 99 sqm/eur11,231 psqm 5 rooms: Avg 123 sqm/eur9,613 psqm BRANDENBURGISCHE STR. KURFÜRSTENDAMM LIETZENBURGER STR. CONSTANCE 1 rooms Avg 75 sqm/eur8,023 psqm 2 rooms: Avg 85 sqm/eur6,905 psqm L Westfälische Str. KONSTANZER 2 rooms: Avg 64 sqm/eur7,396 psqm 3 rooms: Avg 88 sqm/eur6,630 psqm 0 200m N 20 Computer generated images are intended for illustrative purposes only 21

13 SPECIFICATION Chic and ultramodern, Konstanzer features superior materials including hardwood floors in a variety of finishes, high quality tiles and elegant top of the line fittings. From start to finish renowned architects Tchiban Voss have provided residents with the highest quality surroundings, creating a serene and beautiful living experience. DOWNLOAD FLOORPLANS DOORS Handles: Hoppe Amsterdam rosette surrounded stainless steel, polished/matt. Internal doors: Prüm, solid core door element with a wooden frame, with round edges, white finish. Video Intercom: sks KINKEL Serie DS 2010, hands free speakerphone system with colour display, white, polished. SURFACES Wood Flooring: Natural wood parquet floors by Joka and white finish skirting board. Bathroom Wall Tiles: 30 x 60 cm Villeroy & Boch stoneware tiles. Bathroom Floor Tiles: 60 x 30 cm Villeroy and Boch stoneware tiles. BATHROOM FITTINGS Fittings: Features top of the line fittings by KERAMAG RENOVA, HansGrohe and Dornbracht. Other: Kermi heated towel rail. 22 Computer generated images are intended for illustrative purposes only Computer generated images are intended for illustrative purposes only 23

14 RETURNS MODEL HOW MUCH WILL MY PROPERTY INCREASE IN VALUE? Price (EUR) Capital appreciation (%) Illustrative property value (EUR) Capital appreciation (%) Annual growth ILLUSTRATIVE PROPERTY VALUE 396, , , , , , , , , , ,554 CAPITAL APPRECIATION 7.0% 14.1% 20.6% 26.4% 31.5% 36.1% 40.1% 43.6% 46.7% 49.3% ANNUAL GROWTH % 6.65% 5.65% 4.80% 4.08% 3.47% 2.95% 2.51% 2.13% 1.81% DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L I) which is licensed under the Estate Agents Act 2010 of Singapore. The IP Global Kuala Lumpur office is in conjunction with Complete Real Estate & Management Sdn Bhd ( P / VE (1) 0246). WARNING: Property values and rental yields can fall as well as rise. 24 Computer generated images are intended for illustrative purposes only 25

15 RETURNS MODEL RETURNS MODEL WHAT WILL MY GROSS RENTAL INCOME BE? 10YEAR PROFIT Rent (EUR) Rental yield (%) Profit EUR Gross profit: Rental income and capital appreciation Net profit: Gross profit minus acquisition costs, running costs, mortgage costs and tax liability Rental income Rental yield Property price at purchase: EUR396, RENTAL INCOME 17,520 18,685 19,803 20,870 21,882 22,837 23,733 24,572 25,354 26,079 RENTAL YIELD 4.4% 4.7% 5.0% 5.3% 5.5% 5.8% 6.0% 6.2% 6.4% 6.6% Property value at sale (year 10): EUR592,554 LTV: 70% (EUR277,760) Mortage interest rate: 2.90% (25 years) 10year gross profit: EUR417,089 Rental income: EUR221,335 10year gross rental income: EUR221,335 Capital appreciation: EUR195,754 DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L I) which is licensed under the Estate Agents Act 2010 of Singapore. The IP Global Kuala Lumpur office is in conjunction with Complete Real Estate & Management Sdn Bhd ( P / VE (1) 0246). WARNING: Property values and rental yields can fall as well as rise. DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L I) which is licensed under the Estate Agents Act 2010 of Singapore. The IP Global Kuala Lumpur office is in conjunction with Complete Real Estate & Management Sdn Bhd ( P / VE (1) 0246). WARNING: Property values and rental yields can fall as well as rise

16 DEVELOPER Since its inception in 2009, New York based developer Adam America Real Estate Investment has been developing high quality multifamily housing. They have extensive experience in all areas of the development process, including architecture, financing, construction and marketing. Their handson approach has led to their reputation for delivering top quality units in ideal settings. With more than 550 apartments completed and approximately 1,500 additional units under construction or in predevelopment, Adam America Real Estate Investment is a wellestablished privately held real estate development and investment company with an extensive track record. GALERIE Long Island City GALERIE Long Island City 28 29

17 CONTACTS DISCLAIMER Please note: floor plans, prices and images are for information purposes only and are subject to change from time to time. Areas shown are approximate measurements. IP Global is not licensed to sell Schiller 45 in Germany. For more information on other investment opportunities in Berlin that may be available in the near future, please contact us. E: W: HONG KONG BEIJING T: T: SHANGHAI SINGAPORE T: T: You acknowledge that: (i) the information contained in this document and such other material issued in connection therewith (the Content ) are provided for information purposes only and will not be regarded as advice on securities or collective investment schemes or other financial or investment advice; (ii) the Content is not intended for the purpose of advice, dealing or trading in securities or collective investment schemes; (iii) the Content may include certain information taken from property surveys, stock exchanges and other sources from around the world; (iv) the Content is provided on an as is basis and by way of a summary and we do not guarantee the accuracy, completeness, or timeliness of the Content; (v) the Content may be subject to the terms and conditions of other agreements to which we are a party; (vi) none of the information contained in the Content constitutes a solicitation, offer, opinion, or recommendation by us to buy or sell any security, or provision of legal, tax, accounting, or investment advice or services regarding the profitability or suitability of any security or investment; (vii) you should not rely on the Content as the sole means of making any investment decision relating thereto and you should seek professional, independent and specific advice on any such investment decision; (viii) the property market is volatile and illiquid and property prices and rental yields may fluctuate widely or be affected by a broad range of risk factors; (ix) all plans and specifications in the Content are intended as a guide only and are subject to such variations, modifications and amendments as may be required by the relevant authorities or the relevant developer s consultants or architects; (x) all renderings and illustrations in the Content are artists impressions only and all measurements are approximate subject to final survey and confirmation; (xi) the Content is not intended for use by, or distribution to, any person or entity in any jurisdiction or country where such use or distribution would be contrary to law or regulation; and (xii) the Content has not been authorised or approved by the Securities and Futures Commission of Hong Kong or any regulatory body of competent authority whether in Hong Kong or elsewhere. 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You should consult an appropriate professional advisor for legal, tax, accounting, or investment advice specific to your situation, as to whether any governmental or other consents are required or if any formalities should be observed for the purposes of making such investments as are mentioned in the Content. If you are unsure about the meaning of any of the information contained in the Content, please consult your financial or other professional advisor. THIRD PARTY REFERENCES References to third party publications are provided for your information only. The content of these publications are issued by third parties. As such, we are not responsible for the accuracy of information contained in those publications, nor shall we be held liable for any loss or damage arising from or related to their use. 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Ltd. nor its representatives engages in activities such as dealing or advising on securities or providing asset management services. Therefore, neither IP Real Estate Investments Pte. Ltd. nor its representatives are (or are required to be) licensed under the Securities and Futures Act (Cap. 289 of the laws of Singapore). IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L I) which is licensed under the Estate Agents Act 2010 of Singapore. The IP Global Kuala Lumpur office is in conjunction with Complete Real Estate & Management Sdn Bhd ( P / VE (1) 0246). The full text of our disclaimer set out in and accessible at

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