Hotel Westerpark

Investing with a loan-to-value of 67%

With this proposition, you have the opportunity to invest in a hotel with 35 rooms located in Amsterdam as the underlying asset. The intended duration of this proposition is 36 months with a fixed interest rate of 6.5% per year. As an investor, you will have a first mortgage right on the property and assignment of rental income as security. The loan-to-value ratio based on the underlying asset is 67%.

The property comprises 35 hotel rooms and is situated near Westerpark in Amsterdam. This budget-friendly hotel is leased until 2042 and subleased by the hotel operator to COA, an independent administrative body of the Dutch government. The temporary lease to COA provides additional security and stable income, enhancing the financial stability of the project.

The loan is provided to the project owner to repay the current bank loan and partially release the equity. The collateral has been owned by an affiliated company of the initiator for a considerable period and has been successfully operated. Over the past decades, the initiator has carefully built a diversified real estate portfolio in Amsterdam and its surroundings.

Key features of this proposition include:

  • Fixed interest rate of 6.5% per year;
  • Intended duration of 36 months;
  • First mortgage right;
  • Assignment of rental income;
  • Loan-to-value ratio of 67%;
  • Occupancy rate of 100%;
  • Stable rental income;
  • Excellent maintenance condition;
  • Experienced project owner;
  • Monthly payouts;
  • Immediate interest accrual from deposit;
  • One-time brokerage fee of 0.45%.

Projected return

The graph below shows the cumulative yield over the duration at the fixed interest rate of 6.5% per year. In the example provided, with a minimum investment of € 5,000 throughout the proposition's duration, a total of € 975.00 in interest will be paid out. The initial and accrued interest will be paid in the first month following the closure of the proposition. Subsequently, you will receive the fixed interest amount monthly in arrears. At the end of the intended duration, you will be repaid through refinancing or the sale of the property.

Cumulative return during the funding period

Investment €5,000
Fixed interest 6,5%
Estimated duration 36 months
Total return €975.00

Crowdrealestate valuation

Crowdrealestate has assigned this investment a risk rating of A (Defensive). This is due in part to the first mortgage right with ample equity, the location of the property, and its 100% occupancy rate, making it a stable and solid investment.

A
23 22 21
B
20 19 18
C
17 16 15
D
14 13 12
E
11 10 9
Mortgage right Crowdrealestate's investors will get the first right of mortgage on the property. 5 points
Loan-to-value De loan-to-value op basis van de getaxeerde marktwaarde in de huidige staat bedraagt 67%. 2 points
Match location with industry The strategic location of the property aligns well with tenant needs, contributing to stable demand. 3 points
Occupancy rate Full occupancy with a long-term lease ensures a consistent revenue stream. 3 points
Project stage The project involves existing construction, which carries less risk compared to projects in the development phase. 3 points
Trackrecord The promoter has owned the property for a long time. 3 points
Duration The target term is 36 months. 2 points
Additional security Pledge of rental income. 1 points
Total 22 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

The loan is provided to the project owner to repay the current bank loan and partially release equity. The minimum threshold for this proposition is €2,335,000, and the target amount is set at €5,000,000. As an investor, you will have a first mortgage right on the property and assignment of rental income as security.

The 35 hotel rooms near Westerpark were appraised in November 2023 with a current market value of €7,480,000. Based on the maximum principal amount of the loan from Crowdrealestate and the appraised market value, the equity released amounts to €2,480,000, with a loan-to-value ratio of 67%. Therefore, the underlying value of the mortgage registration is comfortably covered.

Investors Crowdrealestate €5,000,000 First mortgage right
Surplus value €2,480,000
Total scale €7,480,000

Project description

The property comprises 35 hotel rooms within a budget-friendly hotel near Westerpark in Amsterdam, along with associated hotel facilities. The hotel rooms are situated on the ground floor of the complex, enhancing accessibility and comfort for guests. The complex houses multiple hotels as well as offices. The operation of the 35 hotel rooms in this proposition has recently been taken over by the current operator, G-Experience.

The hotel's strategic location near key tourist attractions and business facilities such as Westerpark and Amsterdam's business districts enhances its appeal to both tourists and business travelers. This central location provides guests with easy access to major attractions and businesses in the city, making the hotel an ideal choice for various types of visitors. The current temporary lease to COA also benefits from the excellent location, ensuring stable income and addressing societal needs for suitable accommodation for asylum seekers.

Market description

In Amsterdam, a policy has been implemented to restrict the establishment of new hotels, primarily aimed at managing tourist flows and preserving livability for residents. These restrictive measures have resulted in a slowdown in hotel development within Amsterdam, concentrating existing demand on available accommodations. This policy not only helps regulate tourist flows but also maintains potentially higher hotel prices and values in the city due to limited supply. This makes the city attractive for existing hotels due to high occupancy rates and strong operational performance.

Europe is currently facing a refugee crisis, with hundreds of thousands of refugees from countries such as Syria, Iraq, Ukraine, and Afghanistan seeking a better life in Europe, including the Netherlands. There is a significant need in Amsterdam for sufficient and suitable accommodation facilities. Under the dispersal law, Amsterdam is required to accommodate a large number of asylum seekers. The temporary lease to COA (Central Agency for the Reception of Asylum Seekers) addresses this need excellently.

End user

The hotel property, located on Willem de Zwijgerlaan in Amsterdam, is operated by G-Experience, which has been active at this location since 2021. The operator has secured a long-term lease contract extending until April 2042. In collaboration with the Amsterdam municipality, the hotel operator has subleased all hotel rooms to COA (Central Agency for the Reception of Asylum Seekers) since March 2024. This sublease contract runs until March 2025 with an option to extend for an additional 12 months. The long-term lease agreement with the operator and the possibility of extending the sublease to COA provide financial stability, enabling the hotel to maintain high occupancy rates and consistent income.

Underlying organisation

The loan is provided to project owner Berchem 350 B.V. in formation for refinancing the property. This current bank loan on the property, which serves as the underlying asset of the proposition, will be repaid. Additionally, equity will be released, which the initiator will use for real estate projects both domestically and internationally.

The initiator has owned the subject property for a considerable period and has demonstrated success in managing and operating a diversified real estate portfolio in the Amsterdam region. Over the past decades, they have carefully built an extensive real estate portfolio consisting of both residential and commercial properties. This provides a solid and diversified asset base.

The total equity across the initiator's portfolio is substantial, highlighting the financial stability of the organization. To date, financing for this portfolio has primarily been through bank loans. This strategy has established a robust financial structure with a proven track record in real estate operation and management.