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H & K  REAL ESTATE HOLDING, LLC

H & K REAL ESTATE HOLDING, LLC

H&K Real Estate Holding, LLC has been founded in Dec. 2015 for the purpose of acquiring a fully rented commercial real estate in Germany.

Newark, Delaware, US

construction, real estates, rental income

This company and others may be fundraising.

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Company Overview

Business Purpose:


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Acquisition of a commercial real estate object. The object is rented to tenants and is, therefore, generating rental income right from the first day onwards. This ensures the operation of the real estate object including all expenditure as well as the dividends and the redemption of the crowdfunding loan.

Executive Summary:

H&K Real Estate Holding LLC has been founded in December 2015 for the purpose of acquiring a real estate for investment.

H&K Real Estate Holding LLC will also manage and operate the real estate object.

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The founders are experienced businessmen and in the case of the present owner a Managing Director of two medium-sized companies. The shareholder has been active with management tasks for, the last seven years in a medium-sized industrial Enterprise. In the last few years he has also been active as self-employed. In this Capacity he has also familiarized himself with the real estate market creating own Projects.

We are acquiring a real estate object for investment built in 1976 with approximately 80 flats and two commercial units, all being in excellent conditions. The purchase price appears to be attractive.

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Comparison of present average prices for similar real estate objects:

General Average Price EURO 845.20 per square meter without Underground parking

Purchase Price of the object we intend to acquire EURO 672.77 per square meter including underground parking.

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Our offer to investors:

15 per cent Dividend of the gross cold rent (without heating) starting on day one of the takeover of the building. Moreover, a Dividend of also 15 per cent of the surplus value between the original financing and the final assessment value of the building after 15 years.

Basis of the calculation of the dividend is the gross rental income. This assures a fair and transparent documentation for each investor. As an additional advantage, we pay a guaranteed performance of

18 per cent Bonus

of their original investment, payable after the period of the crowdfunding loan will have expired.

Of the gross revenues to investors. Moreover, the capital of the investors is secured by a ground register filing. It is further anticipated that the value of the object will be taking a favorable development over the next years. Affordable flats will continue to be in high demand in Germany.

There is an additional demand for apartments adapted for elderly people which hast to be covered. Here is our market advantage, disposing of

  • Affordable apartment
  • A company active in health care and care for elderly

and this company being a tenant in the object itself.

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The total capital requirement amounts to 5,1 million EURO and includes the purchase price, the ancillary costs for the purchase as well as the expenses for refurbishing and smaller repairs.

Structure

H&K Real Estate Holding LLC is the formal owner of the real estate object and is the borrower of the crowdfunding finance.

As the management company Hiltscher & Kahn OHG is acting on behalf of H & K Real Estate Holding LLC .

External Partners

  • All tax matters will be handled by an external tax advisory office;
  • All legal matters will be taken care of by a law firm which is specialized in rental matters and corresponding laws;
  • Marketing any vacant flats in the future will be entrusted to a local real estate agent or the administrating company.

Market Assessment

Market Potential

The principal reason to acquire this real estate was that it has been operating for a number of years without any problems. It is highly important to dispose of a core of tenants being the guarantors for a safe flow of rental payments. Therefore, we do not have to seek a market to find tenants for this object.

Furthermore, the object is in a rental segment disposing of sufficient clientele. Caused by a changing structure in that region, we have now reached a basic rent for flats in that area which promises a certain growth potential for the future.



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Source: Official records

From the rental price development in the sizes relevant for us it can be seen that the trend is upward. This also corresponds with our projections.

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In the framework of structural changes, the city is about to realize new projects in order to create new employment and to upgrade the city as business location. Therefore, the expected increase of the workforce and the market for flats, especially in the low and medium segments, will certainly stabilize and, due to higher demand, will lead to further increased rental income.

Germany, due to extremely low birth rates, does need this increased immigration. In turn, the number of elderly persons will increase for natural reason (demographic reasons, the population will get older).

These facts will also contribute to the likelihood of finding tenants renting all available flats of the building.

KPIs

113.87% ROI

Company Slideshare

Traction

LAUNCH CROWDFUNDER PAGE TO ACCREDITED INVESTORS TO GAIN TRACTION

March, 2016

STRUCTURE FINANCE / LOAN REQUEST PACKAGE

November, 2015

AGREEMENT WITH SELLER OF THE PROPERTY

October, 2015

MARKET RESEARCH

March, 2015

THE IDEA WAS BORN

January, 2015

Testimonials

I know Mr. Hiltscher now for 30 years. He has always appeared as an intelligent and keen man that in the situation was to be put a financially threatened company, after his takeover as a manager, again on stable legs. With his visions he could make the taxi - and chauffeur's company to one of the leaders in the region. Mr. Hiltscher is reliable and innovative. Walter Kahn
Walter Kahn Managing Director
Walter Kahn
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