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Ref: PV196

Bornaische Str 25 500.000 Euro Investment Opportunity 1074 Sqm – Potential 12% Yield

Property Description: This is a primarily residential apartment block located in the highly popular region of Connewitz, lying around 2km to the south of Leipzig City Centre. Located around 300m from the B2 road, the property enjoys good access to the AutoBahn and destinations southwards. The property is well-served for public transportation with 4 tram lines and a 4 bus routes serving all regions of the city for the Connewitzer Kreuz, around 300m of the property. In the locality is the southern part of the Clara Zetkin Park which leads down towards the lakes and the popular Cospundener See. The region is characterised by a wealth of commercial and leisure outlets and being in close proximity to a large sector of the city's University campus proves popular for young people and young families. The property was originally built around 1922. The property has been constantly improved and renovated by the owner and is very well presented. No significant works should be expected in the medium to longer term of ownership. Of attraction to current and potential tenants are the balconies to the rear of the property, overlooking the small but pleasant courtyard.


PV 196 – Bornaische Str Investment Overview: There are 5 levels to the property, each with differing configurations. The are 9 residential apartments and 2 commercial units. Internally the apartments have been upgraded and have laminate flooring and a good level of refurbishment. The property is fully let and offered for sale at just over 465 Eur per sqm, representing very good value in this location. Property Potential: The property lies in an area which is very well-supported for both residential and commercial tenancies and has a stable current tenancy list. With the property fully renovated with balconies etc to a good standard, the potential lies in an increase in the rental level over the medium term to move rents nearer to the current market level. Current new tenancy agreements in this type of property would lie in the region of 4.2 to 6 Eur psm, depending on size of unit. The current rentals are around 20-25% below current rental levels. A programme of rental reviews should be considered as part of the management plan and any new tenancies made should be considered at this higher level. Investor Profile: With a good tenant structure in place and in an area of strong tenant demand, this property will appeal to an investor who seeks a lower-risk and stable investment. Around 30% of the property is currently offered on a commercial basis and the differences with this type of tenure should be considered. In terms of finance, the property offers little risk and should present well to banks. Finance of a level between 70-80% should be expected, depending on client status and bank chosen. Cash Flow:1

Assuming finance is taken to a level of 70%, a monthly cashflow after finance payments and all management costs of 1.639,79 EUR should be expected. With potential to move to 2.556,32 EUR. Financial Information: Price Current Rental (annual) Current Yield (%) Potential Yield (%) Agent Fees (5%) + vat Year of Construction Total Living Area m2 Price m2 Cash Flow Current/Predicted Per Month

500.000 Euro 49.100 Euro 9,8% 12% 25.000 Euro 1922 1074 sqm 465 Euro 1639,79 / 2556,32 Euro

1 Based on a 10yr fixed rate of 4.65%, repayment over 20yrs with mgt fee of 16Euro per apartment +VAT


Rent List:

Apartment GFM (Commercial) 1FL 1FR (Commercial) 1FM 2FL 2FR 3FL 3FR 3FM 4FL 4FR Total

Size (sqm)

Rental Status €/m²

235.55 Rented 60.80 Rented 84.75 Rented 59.65 Rented 63.50 Rented 147.45 Rented 63.50 Rented 72.40 Rented 74.49 Rented 35.00 Rented 176.50 Rented 1073.59 Average

Net Rent HK BK in € in € in € 3.87 912.72 269.36 275.43 3.82 232.08 78.50 58.63 4.00 339.00 51.29 83.41 4.29 256.00 70.00 50.00 3.64 231.00 72.50 44.50 3.73 550.00 132.00 132.00 3.82 242.64 45.68 45.13 4.03 292.00 80.00 50.00 4.10 305.41 112.79 39.47 2.86 100.00 31.50 21.00 3.58 631.71 208.50 111.50 3.79 Monthly 4092.56 1152.12 911.07 Annually 49110.72 13825.44 10932.84


Additional Pictures:

Rear Courtyard

Balconies MAP


About Proventure We are a company working with a range of the very best German agents. We have offices in Grantham in the UK and in Germany. As professional property investors ourselves, our strategy for investing is simple and is based on solid fundamentals delivering cashflow positive property. With over 15 years' experience of investing in the European market: We began to focus on Germany 5 years ago; Berlin being the first city that we invested in. Once established there, we began to look further afield and discovered more hotspots in Germany that met our exacting criteria. So why are we doing this? We now have invested in a significant portfolio of German property and have been through the long (and occasionally painful!) process of due diligence to ensure that we have the right locations, the right properties for the right price, the right people to trust and the right finance available. Through our contacts we now have access to many properties not yet on the the open market. We want to meet, and work, with people like you (well you have read this far - so you might be interested in property investment!) and assist you to make some solid investments in the German market. We promise to deliver unbeatable property in an unbeatable way. To ensure we do this, we offer our guarantee below: Our 10-point Guarantee To You: 1. We will offer you the very best deals currently in the market place. 2. We will attend to every aspect concerning research and subsequent purchase, according to your needs. 3. We will assist you in finding the most competitive finance deals available, subject to status. 4. We will communicate with you regularly as progress towards purchase is made, every step of the way. 5. We will deal with your case in a confidential manner, as you would expect. 6. We will produce property management plans to maximise your return. 7. Our fees made to you will be fully open and very competitive, up to half of the charges made by our competition. 8. We will be with you after purchase, to attend to any matters as long as you require. 9. We will offer full management of your investment at very competitive rates, as you require. 10.We ask each customer for feedback and share this feedback – our reputation is the key of our business.

Please get in touch if you require any further information


PV196