Already refunded

Wohnhäuser in Leipzig

Leipzig

Return

4.5% p.a.

Duration

48 months

Project type

Income

Distribution

Quarterly

Notice according to § 12 (2) Vermögensanlagengesetz

This investment involves considerable risk and may result in partial or total loss.

Project Presentation

100% rented

The project is a portfolio of two beautiful, fully let turn of the century houses in Leipzig, the fastest growing city in Germany. The selected apartment buildings are located in sought-after locations in Leipzig (Leipzig-Südvorstadt and Leipzig-Gohlis) and comprise 29 rentable units with a usable space of 2,219 sqm. The properties are 100% let and generate € 152,832 in rental income per year (as of May 2019). Due to the low actual rents of the portfolio compared to the Leipzig average, there is an attractive development potential for new rentals. The buildings are constantly being maintained, so no major maintenance work is expected in the future.

Leipzig: the fastest growing city in Germany

For years Leipzig has been growing faster than any other German city. In recent years alone, Leipzig has grown by 10,000 to 12,000 inhabitants per year. In 2000, Leipzig had just under 490,000 inhabitants; today, more than 600,000 people call Leipzig their home. This population growth is due to the varied cultural landscape, the distinctive range of educational opportunities and the strong regional economic growth. International companies such as BMW, Porsche or Amazon have also recognised these positive developments and have settled large operating facilities and office complexes in Leipzig in recent years.

Consequently, this growth is also reflected in the rental prices of recent years. The entire rental market in Leipzig has been experiencing a sustained upward trend for years. Especially the rents for small residential units (as they are mainly found in the portfolio) up to 30m² and apartments with more than 100m² have risen significantly since 2011.

Deal Highlights

Already annual rental income of € 152,832

The annual net rental income currently amounts to € 152,832 and is expected to grow to € 185,000 within 4 years as new letting of vacant residential units progresses.

100% leased

Both apartment buildings are 100% rented. There are currently no vacancies. Due to the sought-after location and the efficient apartment sizes, full occupancy can also be expected in the future.

Experienced inventory manager

Johannes Rudnay and Johannes Roth-Pollack-Parnau look back on 25 years of combined financial and real estate experience. Work experience as managing directors of listed real estate companies, CFO of Austrian and international listed industry & software companies as well as management experience in the banking sector complete the respective profile. In the last 12 years, assets under management of more than € 2.0 billion have been acquired, optimized and realized mainly in Germany & Austria. JR Partners GmbH was founded in 2015 and has been successfully active on the German real estate market since then. Since its foundation, the company has built up a real estate portfolio of more than € 100 million.

Inhouse Asset Management

JR Partners optimizes and manages the properties directly and by its own employees. This guarantees a 360-degree overview.

Regular additional income - 4.5% p.a. Distribution every 3 months

Investors receive quarterly distributions of 4.5% p.a. on their invested capital during the term. The invested capital is repaid to the investors at the end of the term.

Growth market Leipzig

The Saxon city of Leipzig, with its function as a regional centre, forms the centre of the Leipzig-Halle conurbation, in which around 1.1 million people live. Leipzig is one of the fastest growing cities in Germany and is a typical "swarm city" that attracts a particularly large number of young people. The number of students is currently around 40,000 and the city is a centre for business, trade, transport, logistics and culture in eastern Germany. The economic development - as well as the demographic development - continues to show a strong upward trend. The dynamics of Leipzig's housing market continues unabated, with demand exceeding supply.

Investment Case

For the purpose of partial financing, JR P zwei Immobilienbeteiligungs GmbH, a 100% subsidiary of JR Partners GmbH, intends to raise qualified subordinated loans of up to € 500,000.

The borrower is the owner of two apartment buildings in Leipzig with the property addresses Eisenacher Strasse 44, 04155 Leipzig, and Brandvorwerkstrasse 30, 04275 Leipzig. The two apartment buildings comprise 29 units with a total floor space of 2,219 m² and generate annual net rental income of approximately € 153,000. This corresponds to a monthly net rent of € 5.75/m².

Distribution every 3 months:

During the term, the lender receives a quarterly distribution of 4.50% p.a.

Interest deposit:

The Rendity Interest Deposit serves to secure the investors. Before the start of each project, the respective borrower has to pay an interest deposit in the amount of the interest of half a year into a separate trust account. The interest deposit deposited by the borrower is subject to fiduciary custody and may only be used to compensate the investors for interest payments not made or missing capital repayments.

Financials

Purchase price Eisenacherstraße
2.190.000 €
Purchase price Brandvorwerkstraße
1.440.000 €
Additional costs
507.955 €
Total investment
4.137.955 €
Annual rent 2018
152.832 €
Estimated annual rent 2019
160.000 €
Sales proceeds Acceptance 2022
5.100.000 €

Finance Structure

Location

Since 2010, Leipzig has been one of the fastest growing cities in Germany and is experiencing an annual increase of around 10,000 people, which corresponds to annual growth rates of over 2%. Between 2012 and 2014, Leipzig was the fastest growing city in Germany and the actual development exceeded all forecasts. The growth is explained by the strong influx, the attractive labour market and the birth surplus in 2013 and 2014, which last occurred in 1965. In 2015, the population will increase by almost 16,000 and in 2016 by 10,000 inhabitants.

After the fall of the Berlin Wall, however, a number of large industrial settlements were also established, including Siemens (approx. 1700 employees), Porsche (approx. 2500 employees) and BMW (with partners and suppliers over 6500 employees at the Leipzig location). With the settlement of the latter two, the city was able to establish itself as a new automotive location. The entire Leipzig region is an important centre of the energy industry and Leipzig appears as the energy metropolis Leipzig. Leipzig operates the Energy and Environment Cluster and has a focus on economic development there.

In autumn 2006 Amazon completed its second and largest German logistics centre. In 2008, the European air hub of the postal freight subsidiary DHL, which was previously located in Brussels, went into operation. This has created 3500 jobs directly at the airport and around 7000 in the immediate vicinity.

Explore the surroundings

Gohlis-Süd is a very special piece of Leipzig. If you walk along the old cobblestone pavement of Menckestraße, pass the Schillerhaus and see the Gohlis palace a few hundred metres away, you feel as if you are transported to a completely different time. Then you stroll through the old Gohlis of the 18th century and could almost imagine sitting with Schiller in the shadow of his house and sipping a 'Scheelchen Heeßen' together. Gohlis-Süd is located in the northern part of the city of Leipzig, on the western side connected to the city centre and its central districts by the park landscape of the Rosental with its zoological garden. Tram no. 4 travels to and through Gohlis, crossing the Parthe, which borders the small quarter in the south; tram lines 10 and 11 also run on Georg-Schumann-Straße. Shopping centres to stock up on daily necessities - the Gohlis Arkaden, for example - are close by.

Magnificent villas

With its magnificent old villas in Wilhelminian and Art Nouveau style and its surprising architectural extravagances in new modern garb, the quarter has an unmistakably upper middle-class character. It is not for nothing that the vernacular jokes 'If it's too good for you, you'll move to Gohlis'. The quarter is mainly used as a residential area and can be described by its pleasant peace and quiet. By the way, this metropolitan tranquility is mainly sought by singles and married couples. The average household size is a small 1.9 persons. The unemployment rate is low. The old centre of the district - the already mentioned Menckestraße - is always worth a walk and offers with its Schillerhaus and the Gohliser Schlösschen only two of many attractions of the district. A visit to the Gosenschenke with the telling subtitle 'Ohne Bedenken' (Without Concerns) is particularly recommended - in a cosy atmosphere, the typical Leipzig drink tastes particularly good. Those who prefer Mediterranean food will find a rich selection of special delicacies in the Restaurant Mytropolis

Leipzig Zoo

Leipzig Zoo is a 26-hectare (2.1 hectares of which are water) large park-like zoological garden on Rosental, northwest of Leipzig city centre. It is one of the most species-rich zoos in Europe. Since 2000, the zoo has been undergoing large-scale conversion and expansion under the project name "Zoo of the Future". Until 2022, a conversion in individual themed areas is planned. According to the Sheridan Zoo Ranking by the British Anthony Sheridan, Leipzig Zoo has been ranked second among the best zoos in Europe (after Schönbrunn Zoo) and first in Germany for several years.

Red Bull Arena

The Red Bull Arena, formerly known as Zentralstadion, is the largest stadium in Saxony and, after the Olympiastadion Berlin, the second largest in eastern Germany. The football stadium is part of the Leipzig Sports Forum and is located in the immediate vicinity of the Arena Leipzig, which was inaugurated in 2002, the Festwiese and smaller sports facilities. he stadium was newly built for the 2006 Football World Cup and is embedded in the green wall of the "old" Central Stadium, whose main building was preserved. The Red Bull Arena is the home ground of the Bundesliga club RB Leipzig and holds 42,959 spectators.

Central Station

Leipzig central station is the central passenger station in Leipzig and is equipped with

location-map_47_b8e5830fb6

Rating

A
CategoryRatingPoints
LocationPrimary
1
VacancyOccupied
1
Development StageManagement
1
Track RecordMore than € 250 million developed
1
Asset TypeResidential
Duration36 months or more
3
Existing Bank FinancingYes
Pre Sales>20%
1
Total
8
A
Rendity Rating are for informational purposes only. Real estate projects may fail. In the worst case, even the total loss of the invested capital can occur. You should therefore only invest funds you can afford to lose. Moreover, funds should be spread across various projects (diversification). Please note the respective documents for each project as well as the Risk Notice.

Team

JR Partners was founded by Mr. Johannes Rudnay and Mr. Johannes Roth-Pollack-Parnau to provide selected family offices, foundations and private individuals with access to professional real estate and asset building services. Since its foundation in 2015, a real estate portfolio of € 100 million Assets Under Management has been built up, which is spread over nearly 500 residential units in the cities of Berlin, Dresden, Halle, Leipzig and Riesa. JR Partners currently manages 33 portfolio properties, including the Leipzig portfolio.

Many years of real estate and financing experience in Germany and Austria

In total, the two managing directors, Johannes Rudnay and Johannes Roth-Pollack-Parnau, have 25 years of experience in management positions in the real estate and finance industry.

Johannes Rudnay has more than 14 years of experience in residential and commercial real estate investments. As managing director he was significantly responsible for the management and development of a listed real estate company. Under his leadership the portfolio was doubled and various closed-end real estate funds were successfully structured and placed. He gained extensive experience, among other things, as managing director and supervisory board member in various investment and real estate development companies and in project financing at an international bank.

Johannes Roth-Pollack-Parnau has 27 years of professional experience in industry, IT & real estate. He gained extensive experience as Managing Director and CFO in various companies, including a leading listed IT software company. Mr. Roth Pollack-Parnau is a successful founder of a real estate investment club with a focus on real estate investments in Austria, Germany and Romania.

JR Partners GmbH

JR Partners GmbH

Johannes Rudnay
Johannes Rudnay
Johannes Roth-Pollack-Parnau
Johannes Roth-Pollack-Parnau