Invest in German residential properties indirectly – with a bond in Swiss franc
With this bond, you benefit from today’s market conditions in Germany: the demand for apartments has substantially increased, but construction in Germany does not cover said demand for apartments. According to calculations made by the German Economics Institute, more than two million new apartments will be required in Germany in the coming years (Die Welt, 20/12/2015). This applies to an even larger degree today.
More on the German real estate market
“Association: Berlin needs 300,000 apartments and rent is increasing”
(Berliner Morgenpost, 19/11/2015)
“Rent on the outskirts of Berlin are now also rising significantly”
(Berliner Morgenpost, 20/11/2015)
“Risen from ruins”, no real estate bubble in Germany
(NZZ, 01/06/2016)
Special aspects of the product
- High diversification of investments in apartments without risky lump formation
- High efficiency gains, since the entire value creation process takes place within one’s own group
The emission returns of the bond are used to invest in real estate located in Germany. To this end, the Lichtensteiner Issuer, which is part of the well-connected real estate group in Germany, will grant, among other things, loans within one’s own group in Germany. Thus, investments are indirectly made in rental apartments in Germany, which are initially purchased and then actively managed and optimised. The entire corporation of the German real estate group manages around 20,000 apartments, whose rental income partly covers the interest of the bonds.
Due to the large number of individual leases, it is unlikely that all the tenants will terminate their leases at the same time; so, fundamentally as a result, stable rental income and thus bond interest rates are secured. Through subsequently selling the purchased and optimised properties, profits are generated that allow for the repayment of the granted loans, and thus the repayment of the bonds.
