Housing Worms

Investing in solid German rental housing

With this proposition, you invest in 52 flats and 84 garages/parking spaces in Worms, Germany. The target term is 18 months and the fixed interest rate is 7.25% per annum. As an investor, you will receive a second right of mortgage with additional collateral. The loan-to-value of this proposition is 78%.

The apartment complex in Worms was built in 1994 and is in good condition. All 52 flats are let. The occupancy rate is therefore 100%.

The loan is granted to the promoter Orthos Wohnen Portfolio 4 GmbH. This property company is part of Omega AG. Initiator Omega has a large-scale residential property portfolio consisting of around 7,000 units spread across Germany.

Key features of this proposition:

  • Intended term of 18 months;
  • Fixed interest rate of 7.25% per annum;
  • Second right of mortgage;
  • Loan-to-value of 78%;
  • Additional collateral;
  • Spread across 52 flats and 84 garages/parking spaces;
  • Good state of repair;
  • Occupancy rate of 100%;
  • Experienced underlying organisation;
  • Monthly payment;
  • Free of one-off brokerage fees;
  • Directly interest-bearing from deposit;
  • Investing can be as little as €500.

Projected return

The chart below shows the cumulative yield over the term at the fixed interest rate of 7.25% per annum. In the example below, with a deposit of €5,000, a total of €543.75 in interest is paid out throughout the term of the proposition. The initial and accrued interest will be paid in the next month after closing the proposition. Thereafter, you will receive the fixed interest amount monthly in arrears.

The proposer intends to sell the properties within 18 months. If repayment is not made on time, the Crowdrealestate Loan can be extended once by 12 months. Any suspension is only possible in exceptional cases and after signing an extension agreement. An extension is therefore only possible after agreement by Crowdrealestate and Foundation Collateral Agent Crowdrealestate.

Cumulative return during the funding period

Investment €5,000
Fixed interest 7,25%
Estimated duration 18 months
Total return €543.75

Crowdrealestate valuation

Crowdrealestate has assigned a risk rating of B (Cautious) to this investment. Also given the experience of the promoter, the spread across 52 flats and 84 garages/parking spaces and the occupancy rate of 100%, this is a stable and solid investment.

23 22 21
20 19 18
17 16 15
14 13 12
11 10 9
Mortgage right Crowdrealestate investors will get the second right of mortgage. 4 points
Loan-to-value The loan-to-value is 78% of the appraised market value. The properties were appraised in March 2023. 2 points
Match location with sector The location is an excellent fit for end-users. 3 points
Occupation Volledig verhuurd. 2 points
Project phase Existing investment properties. 3 points
Trackrecord The promoter is experienced. 3 points
Duration The target term is 18 months. 2 points
Extra securities These include an interest deposit, pledging of shares and joint and several liability (Selbstschuldnerische Bürgschaft). 1 points
Total 20 points

How does Crowdrealestate valuation work?

Please note: Crowdrealestate valuation is intended to provide you, as an investor, insight into the key characteristics of this project and is not an internal screening model of Crowdrealestate. This project was extensively screened by Crowdrealestate prior to placement.

Funding structure

This proposition releases part of the surplus value for the benefit of various real estate activities of the promoter. The threshold amount is set at €1,400,000 and the target amount at €1,555,000. Crowdrealestate investors are hereby granted the second right of mortgage. In addition to the loan through Crowdrealestate, a bank loan was raised for the property in the amount of €7,005,000.

The properties were appraised in March 2023 at a total market value of €10,925,000. Based on this market value, the loan-to-value is approximately 78%. Crowdrealestate's investors receive the second right of mortgage in this proposition. The underlying value of the mortgage subscription is sufficient to cover this.

Bank loan €7,005,000 First mortgage right
Investors Crowdrealestate €1,555,000 Second mortgage right
Surplus €2,365,000
Total scale €10,925,000

Project description

The underlying value of this proposition consists of 52 flats and 84 garages/parking spaces. The property is located in the city of Worms. The flats have a total lettable floor area of 4,410 m². The appraiser assessed the maintenance condition of the properties as good.

The flats are located at Am Krankenhaus 18, 20 & 22 and Scipiostraße 11 and were built in 1994. Worms has around 84,000 inhabitants and is located in the state of Rhineland-Palatinate. Nearby cities include Frankenthal (about 11 km), Mannheim (about 22 km) and Frankfurt am Main (about 72 km). The object of this proposition is located in the Herrnsheim district of Worms with all daily amenities within walking distance.

Market description

Germany has a solid rental market. More than half of the German housing market consists of rental properties. Rental prices are still relatively low in many places compared to the Netherlands, making Germans more likely to prefer renting to home ownership. Tenants in Germany are also known for their Gründlichkeit, thoroughness.

As in the Netherlands, the average household size in Germany is declining. The individualisation of society and an ageing population play a major role in this. As a result, there is an increasing demand for smaller rental properties. The properties in the proposition meet this demand.

End user

Rental income from the property is currently around €471,000 per year. This with the current occupancy rate of 100%. The average monthly rent of the property in Worms is €8.91 per sqm. The average monthly market rent for comparable properties is approximately € 9.10 per m² according to the valuer in Worms. The contract rent is therefore in line with the market.

Underlying organisation

The loan will be granted to the promoter Orthos Wohnen Portfolio 4 GmbH. This property company is part of Munich-based Omega AG. Initiator Omega has a large-scale residential property portfolio consisting of around 7,000 units spread across Germany.

The initiator has built up an extensive track record and has a property portfolio of around 7,000 units spread across Germany. Its activities focus mainly on residential real estate across Germany. In addition, advisory and asset management work is carried out for institutional real estate investors.

The promoter successfully funded the propositions 'Residential Stralsund I' and 'Residential Stralsund II' at the end of last year and 'Aparthotel Frankfurt I' and 'Aparthotel Frankfurt II' earlier this year via Crowdrealestate. These propositions are running as forecast.