The project involves the acqui­si­tion, com­pre­hen­sive ren­o­va­tion, and sub­se­quent rental of a res­i­den­tial prop­er­ty com­pris­ing 36 apart­ments, sit­u­at­ed in a prime and sought-after loca­tion in Frank­furt, Germany’s finan­cial cap­i­tal. The build­ing offers a total saleable liv­ing space of approx­i­mate­ly 1,782 square meters and includes 12 ded­i­cat­ed car park­ing spaces. Clas­si­fied sole­ly for res­i­den­tial use with no com­mer­cial zon­ing, the prop­er­ty presents a clear and focused invest­ment profile

The cap­i­tal raised will be strate­gi­cal­ly allo­cat­ed to sup­port both the acqui­si­tion and com­pre­hen­sive ren­o­va­tion of the tar­get prop­er­ty. This dual-pur­pose financ­ing approach is designed to unlock the full poten­tial of the asset and gen­er­ate sub­stan­tial val­ue cre­ation over the invest­ment period.

The prop­er­ty in ques­tion is cur­rent­ly expe­ri­enc­ing a high vacan­cy rate of approx­i­mate­ly 90%. The remain­ing ten­ants have either ini­ti­at­ed or are in the process of nego­ti­at­ing their relo­ca­tion. This cre­ates an excep­tion­al oppor­tu­ni­ty to repo­si­tion the asset through a com­bi­na­tion of struc­tur­al refur­bish­ment and tar­get­ed re-let­ting strate­gies, enabling a fresh start with opti­mized lease terms.

Fol­low­ing the com­ple­tion of refur­bish­ment, rental activ­i­ties will be accel­er­at­ed in the sec­ond year, tar­get­ing high-qual­i­ty ten­ants to cap­i­tal­ize on the prop­er­ty’s upgrad­ed con­di­tion and strong mar­ket fun­da­men­tals. The com­bi­na­tion of an attrac­tive acqui­si­tion price, strate­gic ren­o­va­tions, and new lease agree­ments is expect­ed to sig­nif­i­cant­ly enhance the prop­er­ty’s mar­ket value.

An exit is pro­ject­ed for the third year of the invest­ment cycle, with a tar­get­ed sale price of approx­i­mate­ly €27.1 mil­lion, inclu­sive of a stan­dard 2.5% bro­ker­age fee. This pro­ject­ed val­u­a­tion reflects the antic­i­pat­ed uplift from both oper­a­tional improve­ments and mar­ket appreciation.

Mez­za­nine Investor Participation

Mez­za­nine investors will ben­e­fit from a prof­it par­tic­i­pa­tion struc­ture. Based on con­ser­v­a­tive base case assump­tions, the spon­sor esti­mates a total project prof­it of approx­i­mate­ly €7 mil­lion, from which the mez­za­nine investors will receive 27.5% of the profit.

Pur­chase Price: The total pur­chase price, includ­ing all ancil­lary acqui­si­tion costs, is pro­ject­ed at €11.1 mil­lion. This amount is set­tled in four tranch­es, with sched­uled pay­ments span­ning from Decem­ber 2024 to Sep­tem­ber 2025.

Refur­bish­ment & Project Man­age­ment: A ded­i­cat­ed bud­get of approx­i­mate­ly €5.5 mil­lion has been ear­marked for exten­sive refur­bish­ment works and pro­fes­sion­al project man­age­ment. The antic­i­pat­ed dura­tion of this phase is approx­i­mate­ly 12 months, enabling a swift repo­si­tion­ing of the asset in the market.

Equi­ty Con­tri­bu­tion: The equi­ty por­tion is expect­ed to total €3 mil­lion and was pro­vid­ed by a rep­utable Fam­i­ly Office, demon­strat­ing strong spon­sor align­ment and finan­cial com­mit­ment to the suc­cess of the project.

Förder­dar­lehen (Sub­si­dized Loan): A sub­si­dized loan of €5.4 mil­lion is planned as part of the cap­i­tal stack, ben­e­fit­ing from favor­able terms to enhance project viability.

Mez­za­nine Cap­i­tal: An addi­tion­al €8 mil­lion in mez­za­nine financ­ing is being raised to sup­port the project, with attrac­tive risk-adjust­ed return poten­tial for investors.

The prop­er­ty is locat­ed on a cul-de-sac with vir­tu­al­ly no car traf­fic, right next to the KfW bank and oppo­site the Pal­men­garten, in the imme­di­ate vicin­i­ty of the Lafayette Saal, in prime loca­tion of one of Germany’s prime cities.

• No. of Apart­ments — 36 units
• Saleable Liv­ing Space — 1782 Meters Sq.
• Car Park Space — 12 Spaces
• Clas­si­fi­ca­tion — Res­i­den­tial, No Com­mer­i­cal Zoning