Propfund 2 Property Report

• 1. Propfund 2- Property reportLast updated 01/08/2012 2012

2. Summary With the equity the fund has raised to date it has acquired and reserved a total of 52 apartments worth 3,414,500. The apartments are located in 3 separate projects in Berlin and Freiberg. With over 95% occupancy rate, the properties are generating a combined rental yield of 8.2%. The fund has secured over 82% loan-to-value financing from German banks with low fixed interest rates for 10 years. All projects have been purchased below the current market value and the fund managers expect a steady increase in the rental income and the value of the portfolio in the next few years. The fund has shortlisted similar projects for acquisition in August and September 2012.Propfund Germany 2 GmbH & Co. KG2012 3. Price: 676,500 Sale Agreed Rental income: 68.868 Yield: 10,18 % Sqm: 1.084 No. of units:11 Building Year: 1900 Refurbished: 2012 Mortgage:81% LTVFreiberg Equity: 192.406Propfund Germany 2 has acquired a residential makes them very attractive to tenantsapartment block consisting of 9 apartments and as does the size and layout. A rental yield of Off market deal2 commercial units in the main shopping street over 10% and a square meter price of 624 81% financingin Freiberg close to Dresden. The property isare the unbelievable facts of this Propfundvery attractive to tenants as they are in theinvestment! Our due diligence results are, 10,18% Rental Yielddirect centre of Freiberg. Supermarkets, that Freiberg is in the catchment area of 3,95% Interest rate for 10 yearsrestaurants and all necessary amenities are in Dresden and has a very stable propertydirect vicinity of the building. 81% LTV financing market. There was only one comparative Over years no vacancyhas been agreed with the Sparkasse Freiberg foroffer in the vicinity of our building for Purchase price 624 /ma term of 25 years with fixed interest rates of1.105 /m! The purchase contract and3.95% for 10 years with an annual capitalbank loan agreement was signed in Catchment area of Dresdenrepayment of 2%. All the units have been June 2012.completely refurbished in the interior which Propfund Germany 2 GmbH & Co. KG2012 4. Financial Breakdown Freiberg, GermanyPurchase Price F 9.82 676,500 Rental income 5.29 /qm68,868 Plus purchase costsNotary fee1.25%6,706 Stamp duty3.50% 18,778 Due dilligence0.44%3,000 Bank fee1.00%5,500 Broker Fee5.95% 31,922 Total Purchase Costs 742,406 interestrepayment 81.30%Mortgage 4.03%2.00%550,000 Investor Equity 25.92% 192,406 Annual Rent10.18%68,868 Less annual costsProperty management 4.50% - 3,099 Interest rate 4.03% -22,165 Fund management 4.00% - 2,755 Fund administration 4.10% - 2,824 Sinking fund 3.00/qm 1.69% 3,252 Total Annual Costs-30,842 Annual Profit before mortgage repayment38,026 Gross Yield on equity19.76%Mortgage Repayment2.00% -11,000 Annual Profit after mortgage repayment 16,162 23,774 Payout based on this investment12.36% Propfund Germany 2 GmbH & Co. KG2012 5. Price: 1,698,000Reserved Rental income: 125.900 Yield:7,41% Sqm:1.611,06 No. of units: 24 Car spaces: 24 Building Year:1997 Mortgage: 85% LTVBerlin Schnefeld/WaltersdorfEquity: 422,744Propfund Germany 2 has successfully reserved The average of the net rent at the moment is24 apartments in a residential complex in6,51 /sqm whereas new tenants will pay up 85% LTV financingBerlin-Schnefeld/ Waltersdorf, right beside the to 7,76 /sqm, so there is a lot of potential 3,15% fixed interest ratenew BBI International Airport of Berlin. A low for future growth. Each house consists of 4purchase price, strong rental income and apartments with two 50 sqm apartments and 7,41% Rental yield with potentialmortgage financing of over 85% LTV withtwo 80 sqm apartments. The houses are for future growthSparcasse Bank make this portfolio one of thelocated very close to the airport but not inmost exciting residential investments by the the direct flight path of the aircraft. Propfund High demand due to new airportPropfund Group to date. The 6 houses are 2 is acquiring each house for 1.054 /sqm Lots of potential New tenants paylocated 5 minutes away from the new terminalswhich is a great price especially consideringand are very attractive to employees from thethey were built only in 1997 and no up to 20% moreairport and other clients from the aviationrefurbishment is required. No refurbishment requiredindustry. Propfund Germany 2 GmbH & Co. KG2012 6. Financial BreakdownSchnefeld/Waltersdorf, BerlinPurchase Price F 13.491,698,000 Rental income 6.51 /qm125,900 Plus purchase costsNotary fee1.25%21,225 Stamp duty5.00%84,900 Due dilligence0.18% 3,000 Refurbishment 0.00% - Bank fee0.35% 5,000 Broker fee3.57%60,619 Total Purchase Costs1,872,744 interestrepayment85.39%Mortgage 3.15%2.00% 1,450,000 Investor Equity 22.57%422,744 Annual Rent 7.41%125,900 RESERVEDLess annual costsProperty management 4.50% -5,666 Interest rate 3.15% - 45,675 Fund management 4.00% -5,036 Fund administration 4.10% -5,162 Sinking fund 2.00 /qm0.76%3,222 Total Annual Costs- 61,538 Annual Profit before mortgage repayment 64,362 Gross Yield on equity 15.22%Mortgage Repayment2.00% - 29,000 Annual Profit after mortgage repayment 35,510 32,139 Payout based on this investment 7.60%Propfund Germany 2 GmbH & Co. KG 2012 7. Price: 1,180,000Reserved Rental income: 82.871 Yield:7% Sqm:1.258 No. of units: 17 Car spaces: 17 Building Year:1974 Mortgage: 80% LTVBerlin ReinickendorfEquity: 351.636Propfund Germany 2 has reserved a residential We are aware on only one other building for No refurbishment requiredapartment block consisting of 17 apartments sale in the vicinity that requires refurbishment Parking spaces in the courtyardin a popular residential area in Berlin-which is for sale for 1470 /m. We haveReinickendorf. At the moment, with a lot of purchased this portfolio for only 945 /m Lot of potential New tenantsnoise due the approaching aircrafts landing infrom an existing property fund. 80% LTVpay up to 6,21 nearby Airport Tegel, tenants are paying an financing has also been agreed with IBB Bankaverage of 5,49 /m up to 6,21 /m. Airport for a term of 34 years with fixed interest rates Solid long term tenantsTegel will closed in March 2013, so this area of 3.10 % for 10 years and annual capital The roof was replaced in 2006will improve dramatically and become even repayment of 1.5% per annum. It has beenmore attractive for tenants and home owners.agreed with the vendor that a purchase Heating system replaced in 1997New tenants with new contracts pay 6,21 /mcontract will be signed at the end of Augustso there is a lot of potential to grow the rental 2012.income in the future. Propfund Germany 2 GmbH & Co. KG 2012 8. Financial BreakdownReinickendorf, Berlin Purchase Price F 14.241,180,000 Rental income 5.49 /qm 82,871 Plus purchase costs Notary fee1.25%14,750 Stamp duty5.00%59,000 Due dilligence0.25% 3,000 Refurbishment 0.00% - Bank fee0.50% 4,760 Broker fee3.57%42,126 Total Purchase Costs1,303,636 interest repayment80.68% Mortgage3.10% 1.50% 952,000 Investor Equity 26.97%351,636 Annual Rent 7.02% 82,871 Less annual costs Property management 4.50% -3,729 Interest rate 3.10% - 29,512 Fund management 4.00% -3,315 Fund administration 4.10% -3,398 Sinking fund 2.00 /qm0.69%2,516 Total Annual Costs- 39,954 Annual Profit before mortgage repayment 42,917 Gross Yield on equity 12.21% Mortgage Repayment1.50% - 14,280 Annual Profit after mortgage repayment 29,537 26,121 Payout based on this investment 7.43%Propfund Germany 2 GmbH & Co. KG 2012 9. New projects The Propfund 2 acquisition team has shortlisted three residential apartment blocks consisting of 182 apartments with underground car parking in popular residential areas in Berlin-Spandau, Steglitz and Neuklln.Propfund Germany 2 GmbH & Co. KG 2012 10. Contact your investment advisor today to share in this portfolio!Benefit from:Lower Purchase PricesBetter finance conditionsHigher rental yieldsLower riskNo hassle, Fully Managed investment Propfund Germany 2 GmbH & Co. KG Friedrichstrae 82,Excellent Returns 10117 Berlin-MitteT: +49 30 499 05 09 50 E: [email protected] Forecasted dividend of 7% per year 170% return over 10 years timePropfund Germany 2 GmbH & Co. KG2012