Why invest in Germany

Reports
	German open ended funds
	Berlin Office Market
	Frankfurt Office Market
	Hamburg Office Market
	Munich Office Market
Source: CBRE

The German property market is rebounding, after several years of underperformance. Industrial and political reforms are having a solid effect on business competitiveness and performance, and the economy is performing strongly.

German business confidence is at a 15 year high, and employment is growing throughout the country. Rental yields are very attractive versus peer countries, making this an excellent time to invest in commercial property in this mature, stable Euro-zone economy.

German Key Facts & Data.

• Population 82m.

• Capital city Berlin.

• GDP €2,200bn.

• 35% ofEuro-zone economy.

• Third largest economy in the world.

• The World’s largest exporter.

• Reforming government agenda, led by Angela Merkel. First female Chancellor.

• Recovery in corporate profits underway – huge growth in stock market DAX index.

• Yield – interest rate gap on German commercial property. Rental income covers interest on borrowings and pays down debt.

• Property market is rebounding, with very good medium term potential.

Smart Finance in conjunction with it’s business partners will set up the initial structure for the syndicated property investment, and oversee it’s on-going management. 

The syndicate will pool the equity of investors, and use their collective muscle to purchase top quality commercial properties that would otherwise be beyond the reach of the individual investors involved.

It is intended to borrow 65% and 80% of the purchase price, using the syndicates equity for the remainder. It is proposed to purchase quality properties that have strong prospects for rental growth and capital appreciation. All properties will be of quality construction, well-located, and pre-let to quality tenants.

Each syndicate, depending on the equity raised, will own either a single or multiple properties. In the case of multiple properties it is intended to provide exposure to different cities and sectors, thus reducing the associated risks, through diversification.

The borrowings for each of the syndicates will either be raised locally in Ireland, or in the country where the property is been purchased, but either way, it will be on a non-recourse basis. This ensures that the lending institution only has a hold over the property, and not over any of the client’s personal assets.

For investors with the means to invest directly in commercial property, Smart Finace offers a comprehensive property procurement service. Please contact us for further information.

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Patrick Matthews trading as Smart Finance is regulated by the Central Bank.