CONTENTS
BERLIN: MACRO OVERVIEW 04
ECONOMY 06
EDUCATION 08
TECHNOLOGY SECTOR 10
INFRASTRUCTURE 12
HOUSING MARKET 14
THE DEVELOPMENT 16
AREA MAP 18
COMPARABLES MAP 20
SPECIFICATIONS 26
ILLUSTRATIVE RETURNS MODEL 27
DEVELOPER 30
DISCLAIMER 31 BERLIN: MACRO OVERVIEW
3.63 million population as of 2018*
Witnessing significant population and employment growth, Berlin has matured over the last ten years. In an economic, cultural, and political sense, the global city of Berlin has officially arrived.
* Latest data available ECONOMY ECONOMY
GERMAN ECONOMY BERLIN ECONOMY - - With a record-breaking employment rate and GDP growth of Berlin operates as Germany's centre for goverment, 20.7% (2011-2017), the upturn in Germany's economy makes it technology, education, and culture. Boasting a well-developed the undisputed economic centre of Europe. infrastructure, faster growing office workforce than London or Paris, and strong GDP growth, the city presents a striking case for investment.
2.2% rise in Germany’s GDP in 2017 – the largest increase since 2011
No.2 location for foreign direct investment (FDI) in Europe #1 3.1% PwC's best global city for GDP growth in 2017 Population of 87.2 million as of 2017 – investment in 2018 16% of Europe's total population
3.6% unemployment rate - a record low and far below the European average of 8.7%
1,395,000 Over 700,000 GROWTH CHAMPION working population in 2017 international citizens in 2017 - (+4.4% year-on-year) – up from 650,000 in 2016 German growth continues to outpace that of other European Union countries.
Largest student city in Germany with 4 million Berlin's forecast population students 185,000 by 2035
(real GDP, 2008Q1=100) Germany All other EU countries
Sources: PwC, EY, Urban Land Institute, Real Capital Analytics, Knight Frank Sources: PwC, Bulwiengesa, Knight Frank, Berlin.de, Fast Company business magazine
6 7 Tegel
EDUCATION EDUCATION BERLIN A STUDENT'S CITY - Berlin is Europe’s third most popular study destination, attracting Mitte students of all backgrounds and interests. Enticed by world- 2 class universities and colleges offering free tuition, the city hosts 4 1 185,000 students annually.
EINBECKER 47
40+ Higher education institutes in Berlin Karlshorst
1st Most affordable city for international students Dahlem
Best city overall for international students 6th 3 7th Top Student City Treptow- Köpenick
1. Humboldt University of Berlin Times World University Ranking: 67th 33,000 students – 17% international students
2. Charité – University of Medicine Berlin Times World University Ranking: 90th 7,000 students – 19% international students
3. Free University of Berlin Times World University Ranking: 104th 35,000 students – 21% international students
4. Technical University of Berlin Times World University Ranking: 131st 22,500 students – 22% international students
8 9 TECHNOLOGY SECTOR TECHNOLOGY SECTOR
BERLIN’S GROWING TECH INDUSTRY MEDIASPREE - - With high-profile start-ups and universities dotted across the Focused on creating a new home for entertainment and city Berlin is, and will remain, Germany’s ‘laboratory’. Playing telecommunications companies, Mediaspree is one of Berlin's a leading global role in digital transformation and innovation, largest property investment projects to date. Located along the Berlin’s growing technology sector is attracting a significant banks of the River Spree, the regeneration area is already proving number of students, young professionals, companies and attractive to both established firms as well as start-ups. investors to the capital.
NOTABLE TENANCIES AND BUILDINGS WITHIN THE AREA INCLUDE
USD3 billion 67% USD680 million East Side Mall 37,800 sqm of rental space and 110 shops Amount of venture Of Germany’s Investment in the new capital put into start- start-ups are Siemens industrial The Mercedes-Benz Arena ups in 2017 alone located in Berlin and technology hub Entertainment venue with a 17,000-person capacity 'Siemensstadt' Universal Music HQ Stream Tower 90 m tall office building - main tenant online retailer Zalando
Coca-Cola / O2 World / The TV Dockyard
1 DAY 100,000 #1 Berlin offers the A new start-up New jobs to be highest post- is founded every created by tech graduate tech day in Berlin start-ups by 2020 salary in Europe Mediaspree KAYAK Technology Center Einbecker 47
Universal Music HQ
Zalando Volkswagen Digital Lab
Coca Cola
Porsche Digital Lab Einbecker 47 to Mediaspree
200m 20min / 22min
10 11 INFRASTRUCTURE INFRASTRUCTURE
TRANSPORTATION NEW AIRPORT MAP - To accommodate Berlin’s growing number of international Tegel visitors and residents, the city is building an impressive new airport which is set to only increase the city’s profile and appeal.
Due to open in October 2020, the Berlin Brandenburg Airport will be one of the 15 busiest airports in Europe, seeing 34 million passengers annually. BERLIN Europe’s Centre BERLIN CENTRAL STATION Mitte • With a majority of the continent only a 3 hour plane ride or 24 hour car journey from Germany, the country Lichtenberg is Europe's geographical centre • 50% of the EU population lives within 500km of Germany’s borders EINBECKER 47
Cross-country connectivity
Dahlem • Berlin’s Central Station is the largest train station in Europe with 1,800 trains and an estimated 350,000 passengers a day • 200 million consumers live within a day’s commute of Berlin
EINBECKER 47 Treptow- Köpenick City-wide public transport
BERLIN BRANDENBURG • Berlin has the lowest number of motor vehicles per head INTERNATIONAL AIRPORT of any German city, with 317 cars per 1,000 people
12 13 HOUSING MARKET HOUSING MARKET
DEMAND SALES AND RENTAL MARKET - - A booming economy and continued population growth remain the primary demand drivers of the Berlin housing market. Between 2006-2017 Berlin's population grew by over 360,000 and is forecast to rise by another 200,000 by 2030. 12.5% 7.1% 1.1%
CAPITAL RENTAL VACANCY GROWTH* GROWTH* RATE*
*2018 figures
The profoundly low levels of supply and increasingly high levels of demand have put pressure on Berlin's sales and rental markets, which both have seen consistent growth in recent years.
INTERNATIONAL COMPARISON - SUPPLY Home to one of Europe's lowest home ownership rates at 15%, Berlin housing market is also vastly more affordable than - other major cities. In the French capital, for instance, a similar purchase price would equate to approximately 50% less floor Berlin's construction activity has been slow to react to the space, demonstrating the attractive future growth potential city's sharp population growth. This has led to the housing in Berlin's market. market being structurally undersupplied, with only 15,670 apartments completed in 2017 and an increasing backlog of at least 84,000 units.
The Secretary of State for Construction and Housing estimates that the city requires 20,000 units to be completed per annum, up to 2030, in order to meet the demand.
BERLIN: DEMAND VS. SUPPLY -
Residential completions (RHS) Population (resident registrations (LHS))
Sources: JLL, CBRE Berlin Hyp (2017), Knight Frank Sources: JLL, CBRE, Knight Frank, World Population Review THE DEVELOPMENT
Einbecker 47 brings modern convenience to one of the greenest areas of Berlin. Providing easy access EINBECKER 47 to the best of Berlin's education, employment, and recreation hubs, the development is set in the tranquil East Berlin neighbourhood of Lichtenberg, near the famous 400-acre Tierpark.
16 Computer generated images are intended for illustrative purposes only 17 Allee der Kosmonauten Märkische Allee AREA MAP AREA MAP
1 EINBECKER 47 Josef-Orlopp-straße LandschaftsparkTHE AREA Herzberge Cemetary The leafy district of Lichtenberg in East Berlin boasts beautiful parks, TRANSPORT LINKS Bornitzstraße independent eateries and increased affordability than its more gentrified neighbouring areas. Once dominated by young families, the area is fast 1 Berlin-Lichtenberg 3 Tram Station becoming the new place-to-be for Berlin's young professionals, students and U-Bahn / S-Bahn Station 6min creatives. 6min / 2 min Gotlindestraße With thousands of students across four educational institutions, Mediaspree and
Ruscherstraße convenient transportation links all close at hand, Lichtenberg boasts the perfect Marzahner Chaussee 2 Tram Station combination of metropolitanGISELHERSTEIG accessibility and local neighbourhood atmosphere. Rüdigerstraße 10min / 5 min
7 Rhinstraße EMPLOYMENT NODES Gensinger Str. 1 Mediaspree (Warschauer Str. Station) LICHTENBERG 2 Cemetary 20min Magdalenen straße Skandinavische Str. Rosenfelder Ring 3 EDUCATION 2 3 4 1 Alt-Friedrichsfelde 1 1 1 Leibniz Institute for Zoo and Wildlife Research Einbecker Str. 2 6min / 16min 6 Wönnichstraße Margaretenstraße 2 HWR Berlin School of Economics and Law Metastraße 5 Massower Str. Marie-Curie-Allee
Buchberger Str. Archenholdstraße Lincolnstraße Lichtenberg Campus Zachertstraße 1 9min / 23min
Münsterlandstraße WEITLINGKIES 3 HTW University of Applied Sciences Berlin 10min / 15min
Leopoldstraße Weitlingstraße Zoo 8 4 Catholic University of Applied Social Sciences Berlin 1 Rummelsburger Str. FRIEDRICHSFELDE 14min / 28min
Lückstraße AMENITIES
Am Tierpark Volkradstraße 1 Richter's Bakery 5 Quelle Bar RUMMELSBURG 1min 7min / 2min
2 Chanti Hair Salon 6 Post Oce Hauptstraße 1min 10min / 3min
3 Supermarket 7 Lichtenberg General Hospital 2min 15min / 6 min Sewanstraße 3 Treskowallee 4 4 8 Robert-Siewert-Straße Lichtenberg Pharmacy Tierpark Zoo Berlin 7min / 2min 20min / 7min
Liebesinsel
18 19 Kratzbruch COMPARABLES MAP THE DEVELOPMENT
THE ONE Avg 42 sqm Tegel Avg EUR8,741 psqm BERLIN
QUARTIER CW 56 Avg 37 sqm Avg 40 sqm Avg EUR8,303 psqm Avg EUR9,454 psqm
L85 EINBECKER 47 Avg 28 sqm Avg 31 sqm Avg EUR9,650 psqm Avg EUR7,573 psqm BERLIN CENTRAL STATION Mitte Lichtenberg
LUISE11 Avg 27 sqm WAVE Avg EUR9,006 psqm Avg 38 sqm Dahlem Avg EUR7,956 psqm
PURE Avg 58 sqm Avg EUR8,717 psqm
Treptow- Köpenick
1 km
For more information, please speak to one of our consultants.
20 Computer generated images are intended for illustrative purposes only 21 THE DEVELOPMENT
22 Computer generated images are intended for illustrative purposes only 23 THE DEVELOPMENT
24 Computer generated images are intended for illustrative purposes only 25 SPECIFICATIONS ILLUSTRATIVE RETURNS MODEL
SPECIFICATIONS - HOW MUCH WILL MY PROPERTY INCREASE IN VALUE? Einbecker 47 is a new-build boutique micro-apartment residence that redefines modern living, boasting a timelessly designed façade and considered details throughout. Price (EUR) Capital appreaciation (%)
EXTERNAL DETAILS INTERNAL DETAILS
Construction Terraces, balconies and a Underfloor heating and oak ground floor community parquet flooring throughout garden extend the residence’s units. living space into the outdoors. Large triple-glazed windows and terrace doors provide a wealth of natural light while ensuring that the units remain warm and quiet throughout the year. KITCHEN Gira Video Intercom System. Each unit features a fully fitted kitchen with an oven, cooking hobs, an integrated fridge Illustrative property Capital freezer, and washing machine Annual growth value (EUR) appreciation (%) where space allows.
All appliances provided by COMMON AREAS 0 1 2 3 4 5 6 7 8 9 10 BEKO and Zanussi. Underground facilities include ILLUSTRATIVE 171,000 191,007 212,237 232,289 250,943 268,073 283,626 297,614 310,090 321,140 330,866 a communal laundry room PROPERTY VALUE with 5 washer/dryer units, CAPITAL APPRECIATION - 11.7% 24.1% 35.8% 46.8% 56.8% 65.9% 74.0% 81.3% 87.8% 93.5% cellar storage room for every apartment and a 40 bicycle ANNUAL GROWTH 0 11.70% 11.12% 9.45% 8.03% 6.83% 5.80% 4.93% 4.19% 3.56% 3.03% parking area. BATHROOM
Modern bathrooms feature timeless design details, light grey tiling and sanitary elements from Villeroy & Boch, Groche and Geberit. DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited (“IPG”) to you pursuant and subject to IPG’s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee |the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent’s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore.
WARNING: Property values and rental yields can fall as well as rise.
26 27 ILLUSTRATIVE RETURNS MODEL RETURNS MODEL ILLUSTRATIVE RETURNS MODEL
WHAT WILL MY GROSS RENTAL INCOME BE? 10-YEAR PROFIT
GROSS PROFIT Rent (EUR) Rental yield (%) Profit
Net profit Balance of profit
Gross profit: Rental income and capital appreciation Rental income Rental yield Net profit: Gross profitminus acquisition costs, running costs, mortgage costs and tax liability 1 2 3 4 5 6 7 8 9 10
RENTAL INCOME 8,400 8,959 9,495 10,006 10,491 10,949 11,379 11,781 12,156 12,504 Property price at purchase: EUR171,000
RENTAL YIELD 4.9% 5.2% 5.6% 5.9% 6.1% 6.4% 6.7% 6.9% 7.1% 7.3% Property value at sale (year 10): EUR330,866 LTV: 70% (EUR119,700)
Mortgage interest rate: 2.90% (25 years) 10-year gross rental income: EUR106,120 10-year gross profit: EUR265,986 Rental income: EUR106,120 Capital appreciation: EUR159,866
DISCLAIMER: DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited (“IPG”) to you pursuant and subject to IPG’s terms and conditions including those specified in the Client Deed. Limited (“IPG”) to you pursuant and subject to IPG’s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee |the accuracy of the information. any investment decision. IPG does not and cannot guarantee |the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent’s Ordinance to deal with Hong Kong to properties outside Hong Kong and are not therefore licensed under the Estate Agent’s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore. licensed under the Estate Agents Act 2010 of Singapore.
WARNING: Property values and rental yields can fall as well as rise. WARNING: Property values and rental yields can fall as well as rise.
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