Propfund 2 has acquired over €4.3 million worth of residential properties in Germany generating €352,779 in annual rental income. The portfolio includes 62 apartments across 4 blocks that are over 80% financed with low interest rates. The fund managers expect steady increases in rental income and property values over the next few years based on strong market conditions in Germany. Propfund 2 will continue acquiring similar income-producing properties and is inviting new investors to join.

1. Income Generating Fund 2
PROPERTY REPORT
Updated 19.12.2012

2. PROPFUND 2 – DECEMBER 2012 UPDATE
SOLID RETURNS FORECAST FROM EXCELLENT ACQUISITIONS
MADE SO FAR THIS YEAR!
Since the launch of the “Propfund 2 – Residential value and the fund managers expect a steady
Fund” earlier this year over 40 investors have so increase in the rental income and the value of the
far joined the fund allowing us to complete over portfolio in the next few years.
€4,314,500 of property acquisitions.
Market conditions in Germany are still very strong
The portfolio currently includes over 62 apartments and the outlook for 2013 is very positive. Property
in 4 separate apartment blocks which are fully prices and rents continue to increase and interest
rented generating a combined rental income of rates are at an all time low making for excellent
€352,779 which is a very attractive rental yield buying conditions. Propfund 2 will continue to
of 8.18%. Yet again income is clearly a priority purchase similar properties into the fund during
for many investors, so our Residential property the first few months of 2013 and is inviting new PROPERTY UPDATE – THE STORY
funds continue to attract a wide range of investors investors to share in the success of this fast SO FAR… DECEMBER 2012
looking for a safe income generating investment. growing property portfolio.
Propfund 2 has secured over 80% loan-to-value Propfund Germany 2 is open for subscription:
financing from German banks with interest rates as Invest from €30,000
low as 3.3% fixed for the next 10 years. All projects APARTMENT BLOCKS 4
have been purchased below the current market
No. of units 62
Purchase price €4,314,500
Current value* €4,586,127
Rental income €352,779
Rental yield 8.18%
As an investor in Propfund Germany you will benefit from a forecasted dividend of 7-10% PER
YEAR. Over a period of 10 years, investors can expect to earn up to 170% RETURN over and * Based on a market resale factor of 13
above their initial investment.
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3. PROPFUND 2 ACQUIRED PROPERTIES AND PERFORMANCE DATA
TOTAL Freiberg Schönefeld Neukölln Treptow-Köpenick
Purchase Price 12.23 4,314,500 € 536,500 € 1,698,000 € 1,280,000 € 800,000 €
Rental income 6.35 352,779 € 68,868 € 128,456 € 93,535 € 61,920 €
Area 4,627 qm 1,084 qm 1,611 qm 1,173 qm 759 qm
notary fee 1.37% 59,131 € 6,706 € 21,225 € 19,200 € 12,000 €
stamp duty 4.81% 207,678 € 18,778 € 84,900 € 64,000 € 40,000 €
due dilligence 0.28% 12,000 € 3,000 € 3,000 € 3,000 € 3,000 €
refurbishment 3.24% 140,000 € 140,000 € - € - € - €
Bank fee 0.59% 25,600 € 5,500 € 5,000 € 9,100 € 6,000 €
Commission 4.44% 191,548 € 31,922 € 60,619 € 60,928 € 38,080 €
Total 14.03 1069.97 4,950,457 € 742,406 € 1,872,744 € 1,436,228 € 899,080 €
Total interest repayment
Finance 1a 3.33% 1.95% 3,410,000 € 550,000 € 1,350,000 € 910,000 € 600,000 €
Finance 1b - € - € - € - € - €
Equity 1,540,457 € 192,406 € 522,744 € 526,228 € 299,080 €
Rent 8.18% 352,779 € 68,868 € 128,456 € 93,535 € 61,920 €
property management 4.50% -16,652 € -3,099 € -5,781 € -4,677 € -3,096 €
interest rate 3.33% -113,695 € -22,165 € -43,200 € -30,030 € -18,300 €
management 4.00% -14,111 € -2,755 € -5,138 € -3,741 € -2,477 €
administration 4.10% -14,464 € -2,824 € -5,267 € -3,835 € -2,539 €
Costs -158,922 € -30,842 € -59,385 € -42,283 € -26,412 €
Return before capital and reserve 193,857 € 38,026 € 69,071 € 51,252 € 35,509 €
Gross Yield on equity 12.58% 19.76% 13.21% 9.74% 11.87%
Sinking fund 3 €/qm 0.80% -12,269 € -3,252 € -3,222 € -3,518 € -2,277 €
Repayment 1.95% -66,380 € -11,000 € -27,000 € -16,380 € -12,000 €
Return after capital and reserve 115,208 € 23,774 € 38,848 € 31,354 € 21,232 €
Payout based on this investment 7.48% 12.36% 7.43% 5.96% 7.10%
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4. Freiberg, Germany
A beautiful classical building in the centre of
Freiberg consisting of only 11 apartments which
are fully rented. The inside of the building was
completed renovated in 2012 and €140,000 will
be spent on renovating the exterior in 2013. The
project was purchased from a local bank at well
below market value. With a rental yield of 12.8%
.
Units 11
Purchase price €536,500
Rental yield 12.8 %
Rental Income €68,868
Berlin, Schönefeld
Residential complex in Berlin-Schönefeld,
consists of 24 apartments located right beside
the new BBI International Airport of Berlin.
Propfund 2 acquired each house for 1.054
€/sqm and no refurbishment is required. The
average of the net rent is 6,51 €/sqm whereas
new tenants will pay up to 7,76 €/sqm, allowing
a lot of potential for future growth.
Units 24
Purchase price €1,698,000
Rental yield 7.56 %
Rental Income €128,456
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5. Berlin, Neukölln
Residential apartment block consisting of
19 apartments in a popular residential area
in Berlin. Rental yield of 7.31% is higher than
average and 71% LTV financing has also been
agreed with fixed interest rates of 3.0 %. All
apartments are in very good condition and with
no refurbishment required.
Units 19
Purchase price €1,280,000
Rental yield 7.31%
Rental Income €93,535
Berlin, Treptow-Köpenick
Property is located very close to the river Spree,
in a densely populated district which is in the
catchment area of the city centre and Berlin’s
new international airport. All 8 apartments are
rented by long term tenants. The building is in
great condition and was fully refurbished in 2008
making each apartment an attractive family
home.
Units 8
Purchase price €800,000
Rental yield 7.74%
Rental Income €61,920
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6. Based on a forecast rental increase of 2.5% per annum and a resale factor of 13 times the annual rent, Propfund Germany 2 can generate
significant profits for its shareholders. Please see below the latest 10 Year forecast based on investments ranging from €30,000 – €250,000
INVEST W30,000 INVEST W50,000
Total annual payments over 10 years holding period 69.1% €20,725 Total annual payments over 10 years holding period 68.2% €34,083
Plus lump sum after 10 years 100% €29,926 Plus lump sum after 10 years 100% €49,877
Plus your initial investment back 100% €30,000 Plus your initial investment back 100% €50,000
That’s a total return of: 269% (€80,651) That’s a total return of: 268% (€133,960)
FINANCIAL BREAKDOWN FINANCIAL BREAKDOWN
Resale forecast 13 €108,793 Resale forecast 13 €181,322
Plus Cash Reserve incl. 50% sinking fund 22,495 Plus Cash Reserve incl. 50% sinking fund 24,158
Less Balance of the Mortgage - 248,037 Less Balance of the Mortgage - 780,061
Profit from the resale after paying back Mortgage 263,251 Profit from the resale after paying back Mortgage 2105,418
Less Initial equity repaid to Investors - 230,000 Less Initial equity repaid to Investors - 250,000
Net Profit for Distribution 233,251 Net Profit for Distribution 255,418
Fund Manager profit share 10% - 23,325 Fund Manager profit share 10% - 25,542
Investor profit share 99,75% 229,926 Investor profit share 99.75% 249,877
Anual Payouts over term 84.75% 225,425 Anual Payouts over term 84.75% 242,375
Total Investor profit before tax 255,351 Total Investor profit before tax 292,252
184.50% 184.50%
INVEST W100,000 INVEST W250,000
Total annual payments over 10 years holding period 67.5% €67,479 Total annual payments over 10 years holding period 67.1% €167,667
Plus lump sum after 10 years 100% €99,753 Plus lump sum after 10 years 100% €249,383
Plus your initial investment back 100% €100,000 Plus your initial investment back 100% €250,000
That’s a total return of: 267% (€267,232) That’s a total return of: 267% (€677,050)
FINANCIAL BREAKDOWN FINANCIAL BREAKDOWN
Resale forecast 13 €362,644 Resale forecast 13 €906,610
Plus Cash Reserve incl. 50% sinking fund 28,316 Plus Cash Reserve incl. 50% sinking fund 220,789
Less Balance of the Mortgage - 2160,123 Less Balance of the Mortgage - 7400,307
Profit from the resale after paying back Mortgage 2210,837 Profit from the resale after paying back Mortgage 2527,092
Less Initial equity repaid to Investors - 2100,000 Less Initial equity repaid to Investors - 2250,000
Net Profit for Distribution 2110,837 Net Profit for Distribution 2277,092
Fund Manager profit share 10% - 211,084 Fund Manager profit share 10% - 227,709
Investor profit share 99.75% 299,753 Investor profit share 99.75% 2249,383
Anual Payouts over term 84.75% 284,750 Anual Payouts over term 84.75% 2211,875
Total Investor profit before tax 2184,503 Total Investor profit before tax 2461,258
184.50% 184.50%
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7. Propfund Germany 2 GmbH & Co. KG
Friedrichstraße 82,
10117 Berlin-Mitte
T: +49 (30) 499 05 09 50
E: info@propfund.com
www.propfund.com