1. Share in Germany’s No.1
Residential Property Portfolio 2012

2. WHY PUT ALL YOUR MONEY INTO ONE PROPERTY
when you can join together with like minded investors
and purchase the whole building at a lower price
with higher returns.

3. Agenda
 Introduction
 German Property Market
 Properties acquired 2011
 Portfolio description
 Investment features
 Investment model
 ROI Projections
 Propfund’s role
 EURIX Group
 Getting started
Share in Germany’s No.1 Residential Property Portfolio 2012

4. The idea is very simple…
Where an individual investor could purchase one
apartment in Germany for €140,000 with a rental
yield of 5.5% and with a 60% mortgage, Propfund
Germany would bring all these investors together
to purchase the entire building resulting in the
same apartment being purchased for €100,000
with a rental yield of 8% with an 80% mortgage.
With this model Propfund investors make a lot
more money with little or no involvement
compared to investing privately themselves.
Share in Germany’s No.1 Residential Property Portfolio 2012

5. Returns
Forecasted dividend of 7-10% per year.
170% return in 10 years time
Invest €50K in Germany and Make 170% ROI
Your Exit Amount: €135,000
Share in Germany’s No.1 Residential Property Portfolio 2012

6. German property market

7. Germany – The Worlds most stable property economy
German Real estate market is very active with
institutional investors
Economic growth in 2011 – 3% GDP
Unemployment levels are falling
Investor confidence very strong
High rental occupancy levels in major cities
84% rental occupancy in Berlin
Property Prices and Rents continue to rise
No.1 residential property investment market in the world
Share in Germany’s No.1 Residential Property Portfolio 2012

8. What the media says in 2012…
“German residential sector is regarded as a secure investment”
CBRE
“Apartment costs up by around 8% in 2011”
GSW Immobilien
“The most dynamic rent market is in Berlin, where prices rose by 9%”
Jones Lang LaSalle
“Housing prices rose by 5.5% last year— more than twice as much
as in 2010.” TD
International
“Analysts expect prices for German real estate company shares to
rise by 5-15% over the next twelve months”
Dr. Zitelmann
Share in Germany’s No.1 Residential Property Portfolio 2012

9. Housing price development is healthy
DB Research expects a further rise in the price
of housing in Germany. Prices for houses should
rise by 3% annually until 2015, condominiums by
even more. No talk of a bubble: “Historically and
in terms of disposable income, housing remains
attractively valued and thus, even with price
increases of 5% per year through 2015, there is
no threat of overheating.”
Over the long term, prices are not likely to go
through the roof because of both the regulatory
environment, which has a moderating effect on
rent, and the demographic trend, which, “in less
than ten years,” will have a negative influence on
prices.
Share in Germany’s No.1 Residential Property Portfolio 2012

10. Berlin housing market
 Properties are valued as a multiple of the rental income
 Property Prices and Rents are low in Berlin and rising
 Berlin is a population of tenants – 84% of Berliners rent
Germany’s capital city has huge potential for growth!
Share in Germany’s No.1 Residential Property Portfolio 2012

11. Properties acquired 2011

12. Propfund Germany 1- Subscribed in 2011
With the combined equity of 80 investors in 2011, Propfund 1
acquired 6 portfolios totalling 240 units, bringing the total
acquisitions to €12,602,500 with an exciting rental yield of 9,4%
240 properties & 27 car spaces
Portfolios purchased for €12,602,500
Current portfolio value (12.5) €14,800,000
Acquired 20% below current market value
External bank financing – 85% LTV
Average apartment price €53,072 (€744/sqm)
Rental income – €1,187,233
Rental yield – 9.4%
Rental Occupancy 98%
Cash surplus pa – €287,670
Profit 7.4% pa equity invested
Don’t miss your chance in 2012!
Share in Germany’s No.1 Residential Property Portfolio 2012

13. PROPFUND GERMANY 2
Open for investments, April 2012

14. Portfolio Description
Residential apartment blocks
Over 500 units worth over €30,mil
8% average rental yields
Low purchase prices – 12.5 times the annual rent
No renovation required
All buildings tenanted
Immediate income generating portfolios
Share in Germany’s No.1 Residential Property Portfolio 2012

15. Investment Features
Invest via a SIPP or as a Private investor
Invest from €30,000
German Federal Financial Authority approved
Low purchase prices – 12.5 times the annual rent
€10,mil in Private Equity and €20,mil in bank financing
Returns paid to investors yearly – forecast 7%-10% per annum
Investors can expect to earn 170% ROI over 10 years
Safe and secure investment
Share in Germany’s No.1 Residential Property Portfolio 2012

16. Investment model & ROI projections

17. Investment Model
3 SIMPLE STAGES
Stage 1: Purchase the property
•Apartment block for sale €1,000,000 (10 apartments at €100,000/apt) Purchase
•If purchased individually €140,000/apt
•Annual rental income: €80,000 (Purchase factor is 12.5 times annual rental income) Factor 12.5
•Investment based on a purchase price of €1,000,000 plus 10% closing costs.
•80% bank financing + 20% private equity
Stage 2: Manage the portfolio each year
•Collect the annual rent: €80,000 (increase by approx 2%-3% per annum - €100,000 after 10 years) 7% ROI
•Manage all the annual costs: €59,000 per annum Each year
•Generate the annual cash surplus: €21,000 (grows as rent increases per annum)
Stage 3: Resell each year = minimum forecast years 7% of the €300,000 private equity
•Shareholder payout the property after 10 €21,000=
•2%-3% increase in rent pa = 20%-30% increase in Property value over 10 years 100% ROI
•Mortgage balance reduced by approx. 20% over 10 years
in 10 yrs.
•Property resale value: €1,300,000 (strategy is to resale the portfolio for a price 13 times annual rent)
•Profit from sale of the portfolio: €300,000 after all closing costs
(€210,000 over 10 years = 70% ROI) + (€300,000 = 100% ROI) = (€510,000 = 170% ROI)
Share in Germany’s No.1 Residential Property Portfolio 2012

18. Creating wealth for investors
Invest €50,000
Earn an average dividend of €3,500 per year
for 10 years. (7%pa)
PLUS €50,000 lump sum after 10 years
PLUS your initial investment back
That’s a total of €135,000!
Share in Germany’s No.1 Residential Property Portfolio 2012

19. Investment examples
Share in Germany’s No.1 Residential Property Portfolio 2012

20. Role of Propfund
To set up the legal construction to enable multiple
investors in to invest together
To obtain approval from the German regulator to
offer the fund
To raise the private equity from multiple private
investors and SIPPs
To source, negotiate, and purchase the properties
To complete all the due diligence and organise the
bank financing
To manage all the properties and collect the rent
each month
To co-ordinate any maintenance or refurbishment
required
To perform annual tenant reviews and increase the
income from the portfolio each year.
To sell all the properties on completion of the fund
To pay annual dividends to investors and profits from
the sale of the portfolio after 10 years
Share in Germany’s No.1 Residential Property Portfolio 2012

21. The EURIX Group

22. EURIX Group
Propfund Germany is part of the EURIX Group
Real estate Investment since 1996
Founded by Marco Knoblauch and Detlef Martin
– approx 20 staff
Head office Berlin. Offices in London, Dublin & Zurich
Expertise in Property Acquisition, Investment and Asset Management
3 Syndicated Property Funds under management
Over 1000 properties under management in Berlin. (300 units Group
owned)
Real Estate partner of Germany’s largest network of Financial Advisors
Member of the German Real Estate Association
Share in Germany’s No.1 Residential Property Portfolio 2012

23. EURIX Group
Share in Germany’s No.1 Residential Property Portfolio 2012

24. Summary…
By investing in Propfund Germany 2, you benefit from:
Lower Purchase Prices
Better finance conditions
Higher rental yields
Lower risk
No hassle, Fully Managed investment
Multiple Investment options
 Excellent Returns!
Forecasted dividend of 7-10% per year.
170% return in 10 years time
Invest €50K in Germany and Make 170% ROI
Your Exit Amount: €135,000
Share in Germany’s No.1 Residential Property Portfolio 2012

25. Joining the Fund

26. Getting Started
 Read a copy of the investment prospectus. Decide the amount you
would like to invest.
 Complete the Investment Instruction and return this to your advisor.
 The Trustee signs the necessary documents and returns copies of
these to the investor.
 Once you have received the documents you need to transfer the funds
to the Propfund bank account.
 Receipt of funds is first confirmed by email. Once the 14 days “cooling
off” period has expired, confirmation of funds along with a share
certificate is sent to you by post, this completes the investment process.
Share in Germany’s No.1 Residential Property Portfolio 2012

27. Thank You
Propfund Germany 2 GmbH & Co. KG
Friedrichstraße 82,
10117 Berlin-Mitte
T: +49 30 499 05 09 50
E: info@propfund.com
Share in Germany’s No.1 Residential Property Portfolio 2012