18 Repossessed Blocks, 11.3% Net Yield,

Features of this property

• 18 blocks - 64,000,000 EUR
• 10 west Germany and 8 east Germany
• Ground space 291,679 sqm
• Living space 194,000 sqm
• Rented 162,000 sqm (16.5% unlet)
• 3221 residential apartments, 56 commercial, 573 parking spaces
• Cold rent 7,223,500 EUR per year

Property Description

This portfolio has been repossessed. Because of the sensitivity of the information we have only been allowed brief information. Each block will be sold at auction. There are a number of buyers who know about this but we are the only seller. We are in direct contact with the receiver and have the opportunity to buy the complete portfolio before auction. It is difficult to say what the investment stratgey should be here until we study each block in detail. But we will not be allowed to access this information until we can prove that we have potential buyers with enough resources. We know that some of the blocks will require some work but we have no more detail. But based on the cold rent and what information we have we can estimate a mortgage of approx 57-64 million. So the potential buyer will need to prove that they have cashable assets of approx 5-11 million EUR (to allow for personal contribution and fees). In addition because the portfolio has been repossessed, the receiver is currently receiving all rent. Last month the account held approximately 5 million EUR and each month it increases. All debts and the receiver will be paid out of this account. The remainder will be for the buyer. We do not know these costs.

We have analysed the portfolio based on the general location, pictures and existing cold rent.

Because of the location of some blocks they need to be managed by a company who knows the location well and has experience in that location. Our German block partner would be happy managing all the West German blocks and the Berlin block. We would suggest a rough stategy of selling most of the East German blocks, some immediately and some after some better block management. You can roughly estimate selling price of 10 times cold rent for these. This should raise approx 25-30 million. The remainder should be held and managed, increasing the rent and value.