Based on the poll, we will be organising a presentation on the German Government Listed Property Investment that yield 12% pa or better. This product has been highlighted by SIAS (Security Investment Association Singapore) and is UK SIPP approved.
The organiser has generously agreed to provide some light refreshment of drinks and snacks if we can have enough people attending. I hope you can try to attend and make this seminar a success for our group.
This session is specially organised only for our SVIG group members and we have the opportunity to have intimate Questions & Answers session with the top management. Don't miss this if you want to explore this investment. I also heard they will share another more exciting products as well.
We will start at 2.30pm on 17th November 2012 (Sat). Do come earlier at[masked]pm to enjoy the refreshment and network with members. See you all !
If you can't find the venue on that day, please call Ms Joyce Ang at 97544184.
You can access the product brochure via the link here:
Here are some details of the product from the company:
GERMAN LISTED BUILDING INVESTMENT OPPORTUNITY
Investment tenure: Max 12 months
Investment minimum sum: SGD 10k (no exchange rate risk)
Investment returns: Fixed at 12% of investment sum
Short-Term Investment; Principal & Profits Assured:
Investment returns may be earlier if listed building is sold before the expected tenure of 12 months. In the event the listed building is not sold within 12 months, the developer will buy back the listed building and return investors 100% of their invested amount due to the provision of “Buy-Back’ clause in the legal contract.
Only 1% of Germany buildings are classified as listed buildings. The listed buildings are usually more than 100 years old. The German government’s mission to upkeep these listed buildings, as they represent facet and culture of the city. Only a few selected developers are allow to buy such listed buildings from the government.
These developers after they have bought over the listed buildings, refurbish them, and sell it to German home investors and home seekers. Such investment is particularly attractive to Germans who are in the highest tax rate of as high as 45%. The investment allows them qualify for a 9% tax rebate for the 1st 8 years. From the 9th-12th year, they can deduct 7% from their tax bill. The total tax break savings could help them to pay for this property investment in full. Hence, such refurbish properties are very popular to the local Germans and are minimally affected by the European crisis.
Our participation as an investor comes at the initial stage where we are one of the sources of funding (major sources are pension funds, private funds manager, high net worth individuals and banks) for the developer in the purchase of listed buildings (at the original state) where it is bought at very much below valuation due to the age and condition of the buildings. While pending the funding sources, the developer will start marketing the building to German investors concurrently.
Investment returns may be earlier if listed building is sold (to the home buyers) before the expected tenure of 12 months. In the event when the listed building is not sold within the agreed tenure of 12 months, developer will buy back the remaining units as they are bound by the buy back clause in the contract.
√ Investments starts from SGD $10k
√ Fixed 12% returns
√ Maximum investment tenure 12 months
√ Registered to the land registry
√ First Charge on building
√ Developer buy back upon the 12th month (if not fully sold to home buyers)
√ No exchange rate currency risk (All in SGD)
√ Full Transparency; No other legal cost & admin charge
√ Capital + Profit Preservation (exceed Singapore inflation rate)
√ Low risk; UK self invested personal pension (SIPP) approved
Proven track records of clients' investment exited before 12 months and they got back 100% of their principal and 12% interest.
Points to Note
1. Once a listed building is identified, building plans and cash flow analysis will be prepared by the developer Dolphin Capital GmbH. An indicative valuation will then be done on the completed project. Only projects that passes the sourcing criteria will be sent to investors to source for funding.
2. Investors keen to invest in a particular listed building project fund into an escrow account. An acknowledgment of receipt from Dolphin Capital GmbH and BK Law will be sent to the investors.
In addition, security is organized for the investors’ capital + payouts. Investors are registered to the land registry of Germany and placed as first charge on the building to safe guard their capital and profits.
3. In-depth sales materials are completed and the apartments are offered for sale to the German market with tax breaks as an incentive. They are sold through agents who only handle properties with tax incentives, pension fund investors, FourGates financial services and banks e.g. Deutsche POSTBank, majority owned by Deutsche Bank.
4. The apartments are sold and contracts are signed with the German buyers. German government allows German Banks to approve loans of up to 100% loan to value on Listed Buildings. This further facilitates the sale of these apartments as no large initial capital outlays are required.
5. Once the loans are approved and sales are completed, the developer will then ask for the first disbursement from the banks. The loan will then be disbursed to the escrow account.
6. Part of the loan amount will then be used to return investors their capital and profits. i.e. 112% of their initial investment amount.
7. Once capital and profits are returned to investors, ownership (first charge) of the property will then be transferred to the bank as a collateral against the loan that was given to the German buyer.
8. The remaining amount of the loan disbursed will be transferred to Dolphin Capital to start the refurbishment process.
9. Refurbishment commences.
10. A developer buy-back is in place which ensures that the investors receive their capital + payouts within 12months even if the units are not fully sold to the German buyers.
Besides winning the SME Asia One Award, we recently took part in Securities Investment Association of Singapore (SIAS) Investment Week.
Please take a look at the following link for their write up on us.