Property  in   Berlin   Property  in   Berlin   Property  in   Berlin   Property  in   Berlin   Property  in   Berlin   Property  in   Berlin   Property Berlin   Property 

The Germania Property Fund 

  The Germania Property Fund offers the private investor an excellent opportunity to increase his wealth through real estate in a way normally only open to institutional investors. The Fund invests in a pool of residential, retail and commercial property.

 The funds aim is to acquire high-yielding residential and commercial properties at prices below their market value. As there are currently sufficient volumes of real estate from bankruptcies and liquidity squeezes in major companies on the market, property prices are extremely low.

   Interest rates are also at an all-time low. The combination of these factors has created an extremely favourable situation for investors.

   It makes sense, therefore, to buy now at prices below market value and to sell at a substantial profit when the economy is stronger. In the meantime the rents received provide a respectable return.

   Only the investors decide, at the partners’ meeting, which properties the company should buy. And - an innovation on the German market - properties enter the fund at cost price, without the usual “up front” premium for the initiator.

   The Fund is designed as a “blind pool”. A blind pool is a fund into which money flows without the properties to be acquired being known, although clearly defined investment criteria already exist. Management decides on the basis of the investment criteria which properties should be bought. The capital already accrued can be used flexibly to pick out the best opportunities the market has to offer, and a high yield can be achieved.

   Nobody knows how long interest rates will stay so low. Rising prices and possibly an increase in interest rates can be expected in the near future. Investors should make use therefore of this limited window of opportunity, the first of its kind in German economic history since the Sixties. The situation is comparable with that of the early Nineties in the US, after the failure of the savings banks. At that time huge opportunity funds often achieved average returns of between 24% and 48% per annum. It is exactly these US funds, and other foreign institutional investors, who have recognized similar opportunities on the German property market and are currently acquiring residential property on a large scale.