Amsterdam Overtoom II

Invest in a diversified portfolio

With this proposition, you have the opportunity to invest in three flats and a three-star hotel in Amsterdam as the underlying assets. The first phase of the proposition has already been successfully implemented and is now operational. The targeted term of this proposition is 36 months, with a fixed interest rate of 6.5% per annum. As an investor, you will receive a first right of mortgage and a pledge of rental income as security on both properties. The loan-to-value ratio of the underlying properties is 66%.

The three flats are located in the centre of Amsterdam at a short distance from the Vondelpark. The flats are fully let indefinitely. The second property consists of 32 hotel rooms in a three-star hotel near the Westerpark in Amsterdam. The hotel has been let until 2042. Currently, the hotel is temporarily sublet to COA

The loan is provided to the project owner to repay the current bank loan and partially release the surplus value. Both properties have long been owned by an affiliate of the promoter and successfully operated. Over the past decades, the initiator has carefully built up a diversified property portfolio in Amsterdam and its surroundings.

Key features of this proposition:

Fixed annual interest rate of 6.5%;
Targeted duration of 36 months;
First mortgage right;
Pledge of rental income;
Loan-to-value ratio of 66%;
100% occupancy rate;
Excellent maintenance condition;
Diversification within the proposition;
Experienced project owner;
onthly payouts;
Immediate interest accrual from deposit;
One-time brokerage fee of 0.45%.

Projected return

The graph below illustrates the cumulative returns over the investment period at the fixed annual interest rate of 6.5%. In the example provided, with a minimum investment of €5,000, a total of €975.00 in interest is paid out over the entire duration of the proposition. The initial and accrued interest will be paid out in the following month after the proposition closes. Subsequently, you will receive the fixed interest amount monthly in arrears. At the end of the intended investment period, repayment will occur through refinancing or sale of the properties.

Cumulative return during the funding period

Investment	€5,000
Fixed interest	7,5%
Estimated duration	36 months
Total return	€1,125.00

Crowdrealestate valuation

Crowdrealestate heeft aan deze investering een risicowaardering A (Defensief) toegekend. Mede gezien het eerste recht van hypotheek met een ruime overwaarde, de spreiding en de bezettingsgraad van 100% is dit een stabiele en solide investering.

A

23 22 21

B

20 19 18

C

17 16 15

D

14 13 12

E

11 10 9

Mortgage right	Investors with Crowdrealestate will have the first mortgage right on both properties.	5 points
Loan-to-value	The loan-to-value based on the appraised market value in the current condition is 66%.	2 points
Match location with sector	The strategic location of the properties aligns well with the needs of tenants, contributing to a stable demand.	3 points
Occupancy rate	Full occupancy with long-term leases guarantees a steady revenue stream.	3 points
Project phase	The project involves existing construction, which entails fewer risks compared to projects in the development phase.	3 points
Trackrecord	The initiator has owned the properties for a considerable amount of time	3 points
Duration	The target term is 36 months.	3 points
Additional security	Pledge of rental income.	1 points
Total		23 points

Funding structure

The loan will be granted to the project owner to repay the current bank loan and partially release the surplus value. The threshold amount for this proposition is €2,335,000 and the target amount has been set at €5,000,000. As an investor, you will receive a mortgage right on both properties as security.

The three apartments on Overtoom were valued in February 2024 at a market value in their current condition of €1,345,000. The 32 hotel rooms near Westerpark were valued in November 2023 at a market value in their current condition of €6,230,000. The total market value of both properties together is €7,575,000, which confirms the solid underlying value of this proposition.

The surplus value based on the maximum principal amount of the loan via Crowdrealestate and the above-mentioned market values amounts to €2,575,000 and the loan-to-value ratio is 66%. The underlying value of the mortgage registration therefore provides ample coverage.

The securities for the benefit of the investors are registered in the name of Crowdrealestate's independent foundation. The foundation initially obtains a second mortgage right, which will become a first mortgage right after the planned repayment and cancellation. In addition to the mortgage right, additional securities apply, such as a rental pledge, a DSCR and an LTV covenant. A complete overview of all applicable covenants and securities is included in the parallel debt agreement.

Investors Crowdrealestate	€5,000,000	First Mortgage right
Surplus value	€2,575,000
Total scale	€7,575,000

Project description

The three residential apartments at Overtoom 87 are situated within a historic and monumental building dating back to 1873, occupying the second, third, and attic floors. These apartments collectively span 210 square meters, comprising units of 70 m², 72 m², and 68 m². They are characterized by high ceilings and classic details typical of their period of construction, rendering them not only unique but highly desirable in today's housing market. The location of these apartments is exceptionally advantageous, situated on Overtoom, one of Amsterdam's main thoroughfares, close to Vondelpark. This offers a unique blend of urban vibrancy and proximity to expansive green spaces, significantly enhancing the quality of residential living.

The second property consists of 32 hotel rooms within a three-star hotel near Westerpark in Amsterdam, complete with a reception area, lobby, restaurant, and patio. The hotel was fully modernized by its operator and tenant in 2021. Its strategic location near major tourist attractions and business facilities, such as Westerpark and Amsterdam's business districts, enhances its appeal to both tourists and business travelers alike.

Market description

The Amsterdam housing market continues to demonstrate resilience with positive outlooks for 2024, particularly for rental properties. The strong demand for rental housing is bolstered by a growing economy and high employment levels. Analysts from CBRE and Rabobank predict a stable to slightly rising trend in rental prices for the foreseeable future. With average rental prices aligning with the increasing demand, portfolio occupancy rates are expected to remain high, further enhancing property values.

In Amsterdam, policies have been implemented to restrict the establishment of new hotels, primarily aimed at managing tourist flows and maintaining 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 aids in regulating tourist flows but also potentially keeps hotel prices and values in the city higher due to limited supply. This makes the city attractive for existing hotels, given their high occupancy rates and strong operational performance.

End user

The three apartments are fully leased indefinitely, generating approximately €54,000 in annual rental income. According to the appraisal report, this rental rate is market competitive in Amsterdam. Market rents are currently estimated to be around 15% higher than the current rent, indicating potential for future rental increases or maintaining a high and stable occupancy rate. These factors underscore the attractiveness and value stability of the real estate in this popular and strategically located neighborhood of Amsterdam, close to amenities and Vondelpark.

The three-star hotel, 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 Municipality of Amsterdam, the hotel operator has subleased all hotel rooms to the COA since March 2024. The sublease contract is valid until March 2025 with an option for an additional 12-month extension.

Underlying organisation

The loan is provided to project owner Rembrandt 87 B.V. in formation for refinancing the properties. This current bank loan against the underlying value of the proposition will be repaid as part of this process. Additionally, the released equity will be utilized by the initiator for real estate projects both domestically and internationally.

The initiator has owned the subject properties for an extended period and has demonstrated successful management and operation of a diversified real estate portfolio in the Amsterdam region. This extensive portfolio, carefully built over decades, includes both residential and commercial properties, providing a solid and diversified asset base.

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

Supplementary files

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The crowdfunding services offered by Crowdrealestate are not covered by the deposit guarantee scheme. This means that investments you make through our platform are not protected by the statutory deposit guarantee scheme that applies to savings held with banks. Likewise, investors cannot claim compensation under the investor compensation scheme. Therefore, you run the risk of losing your entire investment without any right to compensation.

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