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- highly confidential -1 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
GERMAN USUFRUCT FUND I
(GUF-I)
PRESENTATION
- highly confidential -2 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
1 Fund Description……………………………….…………………….......... 04
2 Term Sheet ………………………………….………………………............... 06
3 The EUR 400 Trillion Pension Gap …………………………..…… 07
4 Usufruct Market Size…………………………………………………...... 09
5 Value Creation and Financials………………………………………… 10
6 Acquisition Pipeline………………………………………………………. 17
7 Team…………………………………………………………………………………… 22
8 Social Impact……………………………………………………………………… 25
9 Attachments…………………………………………………………………..… 26
CONTENTS
- highly confidential -3 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
DISCLAIMER
This presentation relates to the PPM of a DIFC Fund to be incorporated in
accordance with the Collective Investment Law 2010 and Rules of the Dubai
Financial Services Authority (“DFSA”) as amended from time to time.
This presentation must be read in conjunction with GUF-I Private Placement
Memorandum and other related documents.
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FUND DESCRIPTION (GUF-I)
WHY INVEST IN GUF-I
FUND DESCRIPTION GUF-I is purchasing real estate from retirees in Germany while granting them a lifelong right to live in the
property (Usufruct). The fund therefore purchases the asset with the an average discount of >40% and
“collects the rent upfront”. The fund has therefore no rental risk and can return higher yields to the investor
while, at the same time, significantly reducing any investment risk.
✓ GUF-I has a higher expected return profile than comparable real estate funds
✓ GUF-I has no rental risk and has a 100% rental guarantee
✓ GUF-I has no property insurance/ maintenance costs
✓ GUF-I concept allows to purchase “off market” properties in prime locations normally not available
✓ GUF-I has a higher “enhancement value add opportunity” due to “off market” properties
✓ GUF-I is not impacted by Government regulations such as rent caps and others
- highly confidential -5 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
BERLINGUF-I invests predominately in Berlin, one of the most undervalued capitals in the world.
INVESTMENT STRATEGY
GUF-I is based on a 4 pillar investment strategy providing a safe haven investment with a double digit return profile (base case net IRR 12%).
RESIDENTIALGUF-I invests only in off market prime residential real estate with enhancement potential.
GERMANYGUF-I invests exclusively in Germany, one of the most stable economies in the world.
USUFRUCTGUF-I invests only in real estate with Usufruct contracts and can therefore buy properties with a discount >40% (no rental risk).
12
34
- highly confidential -6 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
FUND TERM SHEET
RESPONSIBLE ENTITIES
FUNDHIGHLIGHTS
FEE STRUCTURE
KEY PARTNERS
Fund Name German Usufruct Real Estate Fund I (GUF-I)
General Partner CES Investments Limited
Fund Manager CES Investments Limited
Fund DIFC Registration Number 3980
Fund Administrator APEX
Legal Representative BSAH Ahmad Bin Hazeem & Associates LLP
External Auditor Russel Bedford
Fund Profile Real Estate (Usufruct)
Target Market Germany
Fund Size EUR100 million
Minimum First Close EUR10 million
Minimum Subscription Amount EUR1 million
Fund Life 7 + 1 years
Initial Closing Q3 2020
Anticipated net IRR 12%
Dividend 1.5% in Y2 rising to 6% by Y7
Fund Domicile DIFC, UAE
Service Charges and Arranging Fee 2% of investor commitment
Management Fee 1.5% p.a. on AUM
Performance Fee 10% above hurdle rate of 7.5% with high water mark
Financial Model Review PWC
Licensed Actuary (Germany) Peter Schramm
German Real Estate Partner Engel & Völkers
- highly confidential -7 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
THE RETIREMENT PROBLEM
The German EUR 150 billion pension gapmoney.com
The Global EUR 400 trillion pension gapWorld Economic Forum
8%
deficit
12%
deficit
01Germany has
already a
Pension Gap of
over 12%
02Next
Generations are
saving less
money
03Interest rates
did erode over
13 years
04Fast aging
population –
2020 cross over
point
- highly confidential -8 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
PROBLEM:52% of Germans own their home. However, retirees do not qualifyfor mortgages. Therefore many retirees are asset rich but cash poor.They are forced to struggle in life battling increasing cost of livingand healthcare.
SOLUTION: GUF-I offers to purchase the property under a Usufruct contractgiving a lifetime right to live in the property. Usufruct is defined inthe BGB §§ 1030–1089 and has been used in Germany forcenturies. This option provides immediate liquidity for the retireesand allows them to stay in their homes. Funds can be used toincrease quality of life and/or provide support to loved ones.
THE SOLUTION – USUFRUCT FUNDRetirees with valuable property but shortfall in liquidity
Retirees unlocking property value throughUsufruct and gaining immediate liquidity
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MARKET SIZE GERMANY
ADDRESSABLE MARKET IN EUR BILLION
677
7 34
0
100
200
300
400
500
600
700
800
AddressableMarket
USUFRUCTMarket 2020
USUFRUCTMarket 2030
5%1%
TOTAL MARKET
Total residential real
estate market in
Germany.
USUFRUCT MARKET2020
USUFRUCT MARKET2030
GERMANY:EUR 7 billion
GERMANY:EUR 34 billion
11%
41%
48%
Own their Property and are < 65
Own their Property and are > 65
Don't own their Property
EUR 6.2
trillion
- highly confidential -10 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
FUND VALUE CREATION
Fund purchases the propertywith an average discount of> 40% (usufruct). Value Add 1is already locked in afterpurchase.
01 PropertyAcquisition
DiscountDay 1
Value Add
Pro
pert
yV
alue
Acq
uis
itio
nP
rice
During the holding periodcapital appreciation gains willbe recognized.
02
Property Value Enhancement strategy implementation.
03PropertyEnhancement
Total Value Add
04 3 Layers of Value Add
Cap
ital
App
r.
Enhancement
DiscountDay 1 Value Add
CapitalAppreciation
Enhancement
Value Add 1
Value Add 2
Value Add 3 Total Value Add
Acq
uis
itio
nP
rice
01 01
02 02
Acq
uis
itio
nP
rice
01 01
02
Acq
uis
itio
nP
rice
Capital Appreciation
Cap
ital
App
r.
03 03
CapitalAppreciation
- highly confidential -11 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
0206GENDER:
Female
AGE:
75
LIFE EXPECTANCY:
13 years
PROPERTY VALUE:
EUR 1,000,000
DISCOUNT:
46%
PAYMENT:
EUR 524,000
GERMANY:EUR7 billion
The Usufruct discount allow us to get “the rent upfront”.
The discount reduces every year increasing the asset value automatically.
The Usufruct discount translates to a 6.1% rental yield which is realized automatically.
The Fund has no rental risk and is guaranteed 100% occupied.
Pu
rch
ase
Pri
ce
Guaranteed Average Annual Rental Yield (unleveraged)
6.1%
Mark
et
Pri
ce
Discount 46.3% 41.5% 37.8 34.0% 30.2% 26.4% 22.7% 18.9%
The discount represents the rent which the Fund accounts for “upfront”
Ren
t “u
pfr
on
t”
Years
01 PropertyAcquisition EXAMPLE – PROJECT LEVEL
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BEFORE
Old Single Family Home
AFTER
Modern Duplex
GUF-I creates value by obtaining building permits. The fund provides prime land and increases buildable area while modernizing the project.
02 PropertyEnhancement EXAMPLE – PROJECT LEVEL
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At a most likely scenario the Fund expects an average growth rate of 4.4%. over 8 years
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
Optimistic Scenario V Shaped Recovery
CAGR: 7.5% p.a.
Most Likely Scenario U Recovery
CAGR: 4.4% p.a.
Pessimistic Scenario Recession
CAGR: 0% p.a.
COVID-19
ImpactBerlin – historical appreciation of 10% per year
Berlin – one of the most undervalued capitals
Stress test –
3 different Scenarios
03 CapitalAppreciation
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-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
Value add based on the above example using most likely assumptions:
• Acquisition Discount (Rental Yield)
• Enhancement Strategy
• Capital Appreciation M
ark
et
Pri
ce
Acq
uis
itio
n P
rice
0206GENDER:
Female
AGE:
75
LIFE EXPECTANCY:
13 years
PROPERTY VALUE:
EUR 1,000,000
DISCOUNT:
46%
PAYMENT:
EUR 524,000
44%
19%
37%
Rental Yield
Enhancement
CapitalAppreciation
04 3 Layers of Value Add EXAMPLE – PROJECT LEVEL
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EXPECTED FUND PERFORMANCE
Fund performance if the Fund had been launched in 2007, just before the financial crisis (without any enhancement value add).
At base case the Fund anticipates to return a net IRR of 12%, while investing in off-market, prime residential real estate in Germany.
ANTICIPATED FUND RETURN (2020 to 2028) BASE CASE OPTIMISTIC
VALUE ADD 1: Property acquisition with av. discount of > 40% 40% 40%
VALUE ADD 2: Recession Assumption -15% 0% 0%
VALUE ADD 3: Property Enhancement Assumption 1% 2% 3%
EXPECTED NET IRR 5% 12% 16%
CRISIS TESTED FUND PERFORMANCE MODEL (2007 to 2015)
Historical NET IRR 13%
FUND PERFORMANCE STRESS TEST
FUND PERFORMANCE CRISIS STRESS TEST
HISTORICAL TESTED FUND PERFORMANCE MODEL (2011 to 2019)
Historical NET IRR 18%
FUND PERFORMANCE HISTORICAL STRESS TEST
Fund performance if the Fund had been launched in 2011 (without any enhancement value add).
Net IRR is calculated after subtraction of all fees and in-country taxes.
Annual Appreciation Assumption 2.5% 4.4% 7.5%
EXTREMELY PESSIMISTIC
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0
5
10
15
20
25
Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Total
EXPECTED DIVIDEND DISTRIBUTION
The Fund pays a minimum guaranteed payment of 1.5%.
In Y8 the remaining portfolio will be sold to a pension fund, REIT, hedge fund, private investors or other party.
4% 4% 4% 4% 4% 4%
TO
TAL R
ET
UR
N
INV
ES
TM
EN
T
207%
ANTICIPATED FUND RETURN PROFILE (EUR MILLION)
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PROCESS
The Fund is purchasing prime off market properties with Usufruct contracts in Germany, enhances and sells the same.
01 Client Acquisition 02 Enhancement 03 Divestiture
INVESTMENT ADVISOR
A deal pipeline of residential
German real estate with
Usufruct exceeding EUR40
million has already been
secured.
Add value through capital
appreciation and e.g. increase
of plot build up area and new
building permits.
Divest projects with expired
usufruct contract and/or non-
expired contracts after value
generation.
- highly confidential -18 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
Deal Pipeline >EUR40 million available
Example of Properties – Example 1
Price: Eur 1,49 million
Price with Usufruct: Eur 0.89 million
Seller: Female, Age 79
Discount: 39%
Life expectancy: 10 years
Land: 893 m2
BUA: 193 m2
Built: 1935
Enhancement Strategy – New Built
Allowance for New Built: 500m2
1,490,000
897,000998,001
1,107,4331,226,348
1,354,588
1,493,751
1,635,041
1,787,781
0
500,000
1,000,000
1,500,000
2,000,000
Market Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
BASE CASE (EUR)
Expected Value Increase
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Deal Pipeline >EUR40 million available
Example of Properties – Example 2
Price: Eur 3.2 million
Price with Usufruct: Eur 2.43 million
Seller: Female, Age 79 Male. Age 74 limited to 10 years
Discount: 36%
Life expectancy: 11 years
Land: 990 m2
BUA: 420 m2
Built: 1910
No Enhancement Strategy – resell strategy
Base Case Value Add (Euro)Expected value increase based on discount decrease,
enhancement and capital appreciation
3,200,000
2,430,000 2,515,556 2,731,167
2,962,050 3,209,194
3,473,647
3,756,522
4,059,001
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Price Y1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
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Deal Pipeline >EUR40 million available
Example of Properties – Example 3
Price: Eur 0.90 million
Price with Usufruct: Eur 0.55 million
Seller: Female, Age 75
Discount: 44%
Life expectancy: 12 years
Land: 1,400 m2
BUA: 140 m2
Built: 1965
Enhancement Strategy - Property Division
Allowance for New Built: 200m2
Base Case Value Add (Euro)
Expected value increase based on discount decrease,
enhancement and capital appreciation
900,000
549,000
651,733 689,010
756,340 828,996
907,336
991,744
1,082,624
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Price Y1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
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Deal Pipeline >EUR40 million available
Example of Properties – Example 4
Price: Eur 1.40 million
Price with Usufruct: Eur 1.12 million
Discount: 26%
Seller: Male, Age 80
Life expectancy: 8 years
Land: 1,300 m2
BUA: 160 m2
Built: 1940
Enhancement Strategy – New Built
Allowance for New Built: 500m2
Base Case Value Add (Euro)
Mark
et
Pri
ce
Dis
c. P
rice
Expected value increase based on discount decrease,
enhancement and capital appreciation
1,400,000
1,120,000
1,347,329 1,497,722
1,660,655 1,836,990
2,027,640
2,233,577
2,471,613
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Price Y1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
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THE TEAMMarkus GiebelMarkus Giebel, a German national, is the CEO of CES Investments. He was previously the CEO of Deyaar Development PJSC, a publicly traded real estate company. AtDeyaar Mr. Giebel was responsible for the development of over 1 million square meter of residential and commercial real estate with a combined value exceeding USD5billion. Before joining Deyaar he was the youngest ever Vice President of Corning, a fortune 500 company listed on the New York Stock Exchange. He holds several Boardpositions, and has over 20 patents in his name. He received several awards such as the CEO award, the Leadership award, the Entrepreneur award, the Inventor of the Yearaward amongst others. Mr. Giebel graduated with a Master from the Technical University of Munich and a MBA from the Swiss Business School.
Olivier RichaudOlivier Richaud, a French national, is the CFO of CES Investments. He was before a senior manager with Apex Group located in Luxembourg in charge of the corporate client portfolio. He further has extensive experience in Mezzanine financing and was responsible for the Mezzanine debt portfolio for GS Lux Management Services. Mr. Richaud was further the senior advisor for Alter Domus with a focus on Private Equity and listed US companies. Mr. Richaud has several degrees including a Master in Management (audit, banking) from Audencia ESC Nantes.
Ward FerrayeWard Ferraye is responsible for compliance at CES Investments. Ward is an experienced Compliance Consultant with a demonstrated and proven history of working in thefinancial services industry. Ward not only designed the compliance manuals for many companies, but also provided the relevant training modules to embed a complianceculture within each entity. Skilled in administration, management, payroll, and invoicing he adds a multifunctional role to the organization. Ward has a strong background infinance including an Anti-Money Laundering Specialist Certification focused in Anti-Money Laundering from ACAMS.
Madalina MasillaMadalina Masilla is the Investor Relations Manager (IRM) for CES Investments. Having graduated in Economics and studied Diplomacy at post-graduate level, Madalinaembarked upon an outstanding career in international business structuring. On the basis of her early prodigious output and creative problem-solving skills, Madalinaquickly progressed to advising clients in Europe, the Middle East and the Far East. For the last 5 years Madalina has been successfully heading the compliance departmentof Quantiq Limited, a management and business structuring consultancy based in the Dubai International Financial Center and Abu Dhabi Global Markets. Madalina has aproven track record in due diligence, corporate governance, enterprise structuring, compliance, and anti-money laundering.
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THE TEAMJurgen HerreJurgen E. Herre, a German national, is a member of the CES advisory committee. He was Managing Director of Hines Europe and member of the worldwideinvestment committee of the Hines real estate funds. Hines is a privately owned globally leading real estate development and investment company. Hines operates in24 countries and has US$ 133,3 billion under management. During his career Mr. Herre was involved in real estate projects with a value of more than US$ 25 billion.Prior to Hines Mr. Herre worked as a real estate investment banker for a leading German banking consortium. Mr. Herre is a Board Member in various companies.
Dr. Kassem LahhamDr. Kassem Lahham, a German national, is a member of the CES advisory committee. Dr. Kassem Lahham’s career path spans over more three decades in the financialindustry with a focus on finance, wealth management, legacy planning and private banking. With Levantine roots, he started his professional journey in Germany,where he was born and raised, as a private banker advising HNWI clients for the largest German Bank for more than 14 years. Along other degrees, he holds moreimportantly a Diploma in Economics from Germany, MBA and PhD in Finance from the USA. Since 2015 Dr. Kassem Lahham is heading the Private Banking Team forone of the largest Islamic Banks in the UAE.
Zaid MalehZaid Maleh is a member of the CES advisory committee. His professional career spans over 2 decades in Emerging Markets overseeing the establishment of world-class ventures across multiple asset-classes. He currently holds multiple board seats at leading institutions throughout the US, Europe and the Middle East. ZaidMaleh started his professional career as a Middle East Consultant at the United Nations Headquarters in Vienna back in 2000. He then held senior positions withinleading international banks in Vienna, London, Moscow and Dubai. Zaid Maleh is currently pursuing his PhD at the world-renowned Institute for Law and Finance atthe Goethe University in Frankfurt and holds an MSc in Investment Banking and Finance from the Vienna University for Economics & Business Administration.
Klaus HolscherKlaus Holscher, a German national, is a member of the CES advisory committee. He was engaged in the German real estate market since 1987. Mr. Holscher foundedKensington Luxury Real Estate Brokers LLC in Feb 2006. With this LLC he built up as a License Partner the brand Engel & Völkers in the UAE and the brandKensington International. With these both brands he led his company to the best License Partner for Engel & Völkers worldwide twice in a row. Klaus has more than25 years international experience in German based REC in real estate and finance. In Germany he was responsible for the marketing of luxury real estates for somewell-known developers e.g. Bayerische Hausbau, Deutsche Hausbau and BayernAreal.
- highly confidential -24 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
Oliver KuehnOliver Kuehn, a German national, is a member of the CES advisory committee. Oliver is one of the most renowned architects in Germany and has his headquarter inBerlin. He is a visiting professor at Huaqiao University, China and has a team of over 30 people working for him. Oliver is advising CES on the “Enhancement Strategy”in order to transform properties and provide the best value add proposals for GUF-I including building and concept pre-approvals.
Otto KieblerOtto Kiebler is the CEO of HausplusRente and has over 40 years experience in the banking and real estate sector. Mr. Kiebler is the pioneer for Usufruct offerings inGermany and has offices in several cities including Berlin. His company has currently a deal pipeline of over EUR40 million for Usufruct investments and CES hassigned a Letter of Intent with HausplusRente. With over 20 employees HausplusRente has a steady deal flow for prime Usufruct offerings providing an idealpartnership opportunity.
THE TEAM
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SOCIAL IMPACT
The Fund has a significant social impact foot print.
Assist Retired people to unlock LiquidityRetired people in Germany do not qualify for mortgage. In order to generate liquidity they are often forced to sell their home. However, in the German culture older people want to stay within their home as long as possible (do not replant an old tree). The Usufruct allows retired people to stay in their home and generated the often require liquidity to avoid hardship and to increase quality of life.
1
Reduce the Pension GapThe Usufruct model allows to reduce the country’s pension gap and is therefore a welcome financial tool by the Government.
2
Increase SpendingExtra liquidity will be unlocked and can be used to stimulate the economy.
3
Green Redevelopment OpportunityThe Fund’s strategy is to prepare the projects for redevelopment to maximize environmental aspects and population density in urban settings.
4
- highly confidential -26 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
ATTACHMENTS
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✓ GUF is not subject to Rent Payments (rent is pre-paid by the discount)
✓ GUF locks in >40% of future profits at day 1
✓ GUF is not exposed to possible Rent Caps
✓ German real estate market has very little volatility
✓ Berlin is an extremely undervalued city
✓ Berlin has over 200 nationalities and attracts international tenants
✓ German home ownership on a low level but increasing
✓ Berlin is a growing city (4.5% growth)
✓ Germany – a save haven investment country
✓ Germany is moving to a hybrid home office model
GUF-1 WHY INVEST IN GERMANY, BERLIN
- highly confidential -28 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
MARKET
INFORMATION
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GERMANY KEY FACTS
Germany is the largest and most stable economy in Europe.
15% of patents filed in the world
1st ranked in the Global National Brand
Index
28k PhD graduates every year from
Germany’s universities
4th largest economy in the world
14 EUR billion budget surplus in 2019
GERMAN GDP
FRANCE
UK
ITALY
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GERMAN HOUSING MARKET
The German Housing Market has a low volatility and is an extremely safe investment in uncertain times.
https://www.businessinsider.com/chartshowswherehousescostthemost20152?nr_email_referer=1&utm_source=Sailthru&utm_medium=email&utm_term=Business%2520Insider%2
520Select&utm_campaign=BI%2520Select%2520%2528Wednesday%2520Friday%2529%25202015-02-27&utm_content=BISelect
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BERLIN HOUSING MARKET
Berlin is one of the most undervalued Capitals in the world and has an enormous capacity for growth.
Berlin is one of the fastest growing cities in Germany.
Berlin requires over 200,000 new homes.
% of new homes requested in Berlin
Berlin Pricing Index
https://www.businessinsider.com/chartshowswherehousescostthemost20152?nr_email_referer=1&utm_source=Sailthru&utm_me
dium=email&utm_term=Business%2520Insider%2520Select&utm_campaign=BI%2520Select%2520%2528Wednesday%2520Frid
ay%2529%25202015-02-27&utm_content=BISelect https://guthmann.estate/de/marktreport/berlin/
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GERMAN HOME OWNERSHIP
Germany has a low home ownership ratio which is increasing Year on Year.
https://www.google.com/search?q=german+home+ownership&tbm=isch&ved=2ahUKEwjR9_KtsPzpAhUV4oUKHQoyBLEQ2-
cCegQIABAA&oq=german+home+ownership&gs_lcp=CgNpbWcQAzoECAAQQzoCCAA6BAgAEB46BggAEAgQHjoECAAQGFDsuERYhtlEYMbbRGgAcAB4AIAB6AGIAaofkgEGMC4x
NS42mAEAoAEBqgELZ3dzLXdpei1pbWc&sclient=img&ei=e4LjXpHODZXElwSK5JCICw&bih=881&biw=1745#imgrc=hYQ1nUMtxkc0cM
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FUND
INFORMATION
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FUND STRUCTURE
GUF-I Fund Established in the DIFC, Dubai regulated by the DFSA
Limited Partners (Investors)
Fund Manager
Investment AdvisorProperty 1
Administrator
Property 2 Property 3 Property 4
Investment Committee
Auditor
Financial Advisor
Risk Manager
SPVSPV Established in Luxembourg
Property …..
Duba
i, U
AE
Luxe
mbo
urg
Ger
man
y
Fund Manager
Fund Management Investment Management
- highly confidential -35 INVESTMENT OPPORTUNITY - GERMAN USUFRUCT REAL ESTATE FUND I
REAL ESTATE ACQUISITION FORECAST
Anticipated Deployment of Capital in Year 1 (EUR million)
0
2
4
6
8
10
12
14
16
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
The investment advisor together with Engel & Völkers, von Poll and/or other real estate partners will liaise with retirees and assist with the selection and acquisition process.
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GUF-I is investing in “Investment Grade Areas” only. These areas have been identified with a potential for maximum mid-to- long term appreciation, beating the average.
CREATING VALUE 3a: 0103 Enhancement
Strategy X% beating the city’s average
capital appreciation
Investment
Grade Areas
Non Investment
Grade Areas
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GUF-I IS A WIN-WIN PROPOSITION
The winning investment opportunity for uncertain times.
INVESTORProvides a high return
investment with a recession tested investment model.
GOVERNMENTAssists in easing a global Government problem to address the rising pension
gap and stimulates spending.
USUFRUCT HOLDERSolves the cash flow problem of a large population of retirees.
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With the Baby Boomers starting to dominate the retirement distribution, a retirement shift is underway.
The Silent Generation (war generation) was preserving assets and wealth, whereas Baby Boomers and Gen X are focusing on consumption.
A EUR 34 billion Usufruct market is developing in Germany.
THE RIGHT TIME FOR USUFRUCT IN GERMANY
The retirement shift is fuelling EUR 34 billion Usufruct market in Germany. CES is well positioned to lead the “Early Adopter” market.
Silent Generation
BabyBoomers
Gen X
FIRST MOVERSEARLY
ADOPTORS EARLY MAJORITY
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MARKET
PLAYERS
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USUFRUCT MARKET
Since 2009 specialised in the Usufruct Model. Established first in Munich andsince 2019 expansion into other major cities and regions in Germany. In MunichHaus Plus Rente sold properties worth around EUR300 million.
A former employee of Haus Plus Rente started DEGIV as a start up in 2015.DEGIV also specialises in the Usufruct Model in Munich and surrounding areas.
Market leader in the life annuity model. Deutsche Leibrenten AG does not useexternal investors, but purely invests their own equity. Currently, DeutscheLeibrente AG has more than 400 properties in their portfolio with a combinedvalue of EUR130 Million. For 2020 additional 400 acquisitions are planned.
Very large diversified trust since 1870 in Germany, operational in the fields ofeducation, agriculture, landscaping, artisanry, trade and textiles. For more than 17years they offer life annuity through their partner INITIUM AG.
On the onset of a fast maturing market.
The market has already transacted over Eur 1 billion in usufruct real estate.
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MARKETING
Awareness is starting to grow with TV Spots on the official German TV stations and several publications.
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www.cesinvest.ae
+971 4 399 7772
info@cesinvest.ae
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