Club investments in the construction of a 10-apartment building in Berlin.
The essence of the project: the purchase of a site, obtaining permission to build a 5-apartment house, selling apartments.
In the project costing, 30% of investments for construction costs are mortgaged, the rest of the construction is financed from sales.
Project term: 18 months.
The required investment is 1,365,486 €.
LTV — 55%.
The project costs are 3,065,486 €.
Sales price is 4,025,000 €.
Profit before tax 959,514 €.
Profit of the investor after taxes 321,437 €.
Investor IRR 16% p. a.
Marienthal is a quiet, expensive area of Hamburg with many parks. It is attractive to young families and located in the north-east of the city.