Already refunded

Weseler Straße 6-8

Duisburg

Return

5.25% 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

The "Weseler Strasse" property is an almost fully let residential and commercial building in the north of Duisburg. The property has a total usable space of 2,471m² and comprises 23 residential units and 4 commercial units. The property is rented out except for two residential units and currently generates € 178,500 in annual rental income (as of August 2019). Due to the low actual rents compared to the Duisburg average, there is an attractive development potential for new leases. The property is continuously maintained, therefore no investments beyond regular maintenance are expected in the near future. A large commercial unit on the ground floor was not generally renovated until 2018.

Duisburg

Duisburg is a large city with almost half a million inhabitants in the Rhine-Ruhr metropolitan region. It lies at the mouth of the Ruhr into the Rhine and is the fifth largest city in the state of North Rhine-Westphalia. Historically characterised by the coal and steel industry, Duisburg is currently undergoing a process of change towards a city that is increasingly concentrating on the production of high-tech products. Duisburg is connected to the global economic network via the Duisburg-Ruhrorter Häfen, the world's largest inland port, as part of the new Silk Road.

Development of rental prices in Duisburg (per m²)

In recent years the attainable rents in Duisburg have grown continuously. Small apartments (30m²) still cost 6€/m² in 2011. In 2018 it was already over 7€/m². A similar growth, albeit at a lower starting level, was recorded for rents in larger apartments.

Deal Highlights

Annual rental income of € 178,500 already

The annual net rental income currently amounts to € 178,500. With new letting of the two vacant units and progressing new letting of further residential units that become vacant, the annual net rental income is expected to increase to € 202,600 within 4 years as planned.

Regular additional income - 5.25% p.a. Distribution every 3 months

Investors receive quarterly distributions of 5.25% p.a. on their invested capital during the term. The invested capital is repaid to the investors at the end of the term.

Almost 100% leased

The house is currently 94% leased and there have been no long-term vacancies in the past. Due to efficient apartment sizes, full occupancy can be expected in the future as well. The 60 m² and 71 m² units that have just become vacant are already being re-let.

Experienced inventory manager: BDRE Group

The BDRE Group is active in the project development and financing of real estate. In the past 8 years, the group has successfully implemented more than 50 projects together with its partners, moving a volume of more than 480 million euros.

Inhouse Asset Management

The careful management of the property at "Weseler Strasse 6-8" is carried out by the BDRE Group's in-house asset management team, which has decades of real estate experience and excellent knowledge of the market.

Investment Case

For the purpose of partial financing, BDRE Vierte Grundwert GmbH intends to take up qualified subordinated loans of a maximum of € 500,000.

the borrower is the owner of a rented apartment building in Duisburg with the property address Weseler Strasse 6-8. the apartment building comprises 27 rentable units with a total floor space of 2,471 sqm and currently generates annual net rental income of approximately € 178,500. this corresponds (including consideration of vacancies) to a monthly net rent of € 6.02/m². In relation to the rented space, the average net rent is € 6.36/m².

During the term, the lender receives a quarterly distribution of 5.25% p.a.

Financials

Purchase Cost
1.750.000 €
Additional purchase costs
275.350 €
Financing costs
99.650 €
Total investment
2.125.000 €
Total usable space
2.471 %
Occupancy rate
94 %
annual net rental income
179 €

Finance Structure

Location

Duisburg is an independent city, located at the mouth of the Ruhr and Rhine rivers. It is located in the Rhine-Ruhr metropolitan region with a total of around ten million inhabitants. The city belongs to both the Lower Rhine (region) and the Ruhr area and is located in the administrative district of Düsseldorf. With almost half a million inhabitants, it is the fifth largest city in the state of North Rhine-Westphalia after Cologne, Düsseldorf, Dortmund and Essen.

Historically, Duisburg is characterized by the iron and steel industry and still produces one third of the pig iron produced in Germany. With the decline of the coal and steel industry, steel production and metal processing in Duisburg has increasingly focused on the manufacture of high-tech products in recent years.

Local logistics as one of the hubs of Central Europe are an important economic sector for the city within the Ruhr area but also in the center of the European economic area. For example, the Duisburg-Ruhrort ports, at the mouth of the Ruhr into the Rhine, are the largest inland port in Europe. With a total area of 10 km², the area of the actual port stretches from the port basins at the mouth of the Ruhr along the Rhine up to Duisburg-Rheinhausen.

Rating

B
CategoryRatingPoints
LocationSecondary
2
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
9
B
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

Many years of real estate and financing experience in Germany

All in all, the management of the BDRE Group, consisting of the owner Mr. Till Brauner and Mr. Thorsten Sowada as Managing Director, has many years of experience in the real estate and financial sector.

Till Brauner entered the Berlin real estate business ten years ago and was co-founder of a successful development company. In 2017 he sold his shares to establish BDRE as a venture capital group and to expand his acquired knowledge and use it in a more complex way. He was already able to live out his passion for new things and the challenges they posed in his earlier professional career. For four years he was responsible for sales in parts of Eastern Europe for a large German car manufacturer. As Vice-President, he built up the importer in Dubai and then lived in Moscow for five years as Director, where he repositioned the brand and drove it to new heights. Born in Bavaria and living in many places around the world, he sees himself as a representative of the Bavarian way of life "A word is a word and does not need paper" in the team and generally enjoys the internationality of the people. As the owner, he is responsible for the international expansion of the group, the development of new business areas.

The co-founder, managing director and "foreign minister" of the BDRE Group is always on hand worldwide wherever there is an interest in German real estate investments. As a true "Berliner", he sees himself not only as senior partner of the BDRE Group for the operative business and the Family & Friends investors, but rather as an ambassador for Berlin. No matter where in the world he sits at the table with investors, in the end Thorsten Sowada never misses the opportunity to invite everyone personally for a currywurst at his favourite Berlin sausage counter on Ku'damm. The marketing and network specialist opened Potsdamer Platz with his agency, organized the festive opera gala of the German AIDS foundation for over 10 years and opened the largest German Mercedes-Benz dealership to date. After a request to take over the support of an automobile manufacturer in Russia, the cosmopolitan did not hesitate for long, opened a branch in Moscow and managed to present local and international companies on unknown territory with well thought-out live communication.

BDRE Group

BDRE Group

Till Brauner
Till Brauner
Thorston Sowada
Thorston Sowada