GERMAN LISTED PROPERTY
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This structure utilises the asset class of LISTED BUILDINGS in the country of Germany.The developer DOLPHIN TRUST GMBH raises investment funds via the method of a Loan Note Instrument that enables the purchase of listed buildings, which are subsequently sold to German citizens.The Investor’s capital and interest is secured on the building by a FIRST LEGAL CHARGE. This first legal charge is registered with the German Land Registry and is held by an appointed Independent Security Trustee. It is the Security Trustee’s duty to ensure the investor’s funds are safeguarded and interests protected.
Dolphin Trust GmbH was originally launched in 2008, uniting a group of companies that had worked together for over 25 years and have since developed a reputation as a leader in the niche market of redevelopment of Listed Buildings. Since November 2014, Dolphin Capital and their associated international partners rebranded to Dolphin Trust to allow for trademark protection of the company name which was needed for a strong brand identity and to allow for further expansion within the group.
Dolphin Trust GmbH offers a secure short-term opportunity focusing on the unique Listed Building sector in Germany. They offer clients the chance to play a part in restoring historic buildings in some of Germany’s oldest cities and give these distinctive buildings a new life, creating a new future for history.
Following extensive Due Diligence, Dolphin Trust develops premium apartments within Listed Buildings which are sold to high-rate taxpaying German citizens. These citizens can avail of a unique tax break on the cost of refurbishment which make the apartments very desirable.
Dolphin Trust have offices across Germany focusing on the sourcing, construction and sales of German Listed Buildings and also have a global presence with offices in the United Kingdom, Ireland and an Asia Pacific headquarters in Singapore.
Why Invest in Germany
» RENTAL CULTURE
Germany has the highest proportion of rented property in Europe averaging 57.4%, in Berlin this leaps to an average of 84%.
» PROPERTY SHORTAGE
The demand for both rental and purchase of property is far outstripping the demand, and the annual shortfall of new property is largely documented by the German government.
» PROPERTY YIELDS
Rents in Germany are low but are widely expected to increase significantly over the next 10 years. Last year’s rent increase in Berlin was 9%.
» INVESTORS CONFIDENCE
Germany is Europe’s largest economic engine with the third largest economy in the world. International businesses continue to be attracted to Germany since it is widely regarded as safe haven of Europe.
|Bank Beating Returns||Minimum fixed return per annum (income model): 10%|
|Exit||After term (2 or 5 years) investors can withdraw funds and interest|
|Security||Investment secured with FIRST Legal Charge on the underlying asset|
|Track Record||Proven track record and full audit trail available|
- The building is usually bought significantly below market value with planning for apartment units. Discounts of up to 70% are possible, for these are often derelict buildings. Being listed makes these buildings quite rare as only 1% of the buildings in Germany are listed. The purchaser has first charge on the building so their capital is secured.
- An in depth sales brochure is completed and the apartments are offered for sale to the German market as a Tax Break. The apartments are sold off plan to the German market through 4,000 specialised sales agents who deal with these kinds of tax break properties.
- The selling agents prepare a due diligence on the building selected prior to any commitment on behalf of Dolphin, the investment promoter. They have to be satisfied that they will complete the sale of the units when they enter into a sales contract.
- Dolphin’s selling agents have Professional Indemnity Insurance in place.
- The apartments are sold and contracts are signed with the German investors.
- The renovation begins.
- Throughout the process, investors receive their profit on a six monthly basis.
- The building is complete and the investor is paid the balance of their capital and profit.
- The target market for the sale of listed building properties is those German investors who currently pay 40% or more income tax. Currently this equates to a target population of 10.4 million citizens (12.6% of the population / 24.1% of the workforce). German tax law allows German tax payers to depreciate the costs for the refurbishing / modernising work carried out on a Monument status building.
STEP BY STEP PROCESS
Step 1: Derelict buildings are sourced and extensive due diligence is carried out on the property and locality.
Step 2: Bank Finance is secured for high-net worth German Citizens with a German Bank.
Step 3: International equity is raised.
Step 4: Derelict Site is purchased with investment capital from bond issue.
Step 5: Funds are managed by an independent law firm.
Step 6: A Certified Land Owners Charge is granted over the German Building for investor’s security.
Step 7: Apartments are marketed and sold off-plan to German Citizens.
Step 8: Part funds are drawn down.
Step 9: Investors are paid back – Investor Exits.
Step 10: Renovation and construction work begins.
Step 11: Projects are completed and apartments are handed over to their new owners.
Since 1993 Dolphin has been involved with numerous redevelopment projects resulting in the sale of over 4,000 individual residential units. Development projects have been undertaken in the following locations:
Stuttgart / Baden-Württemberg
Neustadt am Rübenberge, near Hannover
- Short term investment
- Term options as short as 24months’ duration
- Fixed 10% return per annum
- First legal charge on the asset
- Proven track record and full audit trail
- Full Due Diligence pack available
- The asset class is listed German property
- Low Risk Investment
- Interest of up to 15% for longer term options
The Dolphin Trust opportunity has two options. With both options interest of 10% per annum is payable over either a 2-year or 5-year term.
- The Deferred Income Option
When the Deferred Income Option is chosen, all interest payable on the amount loaned is rolled up and payable only at the end of the term (there are no regular interest payments). At the end of the chosen term lenders will receive the original money lent, all accrued interest plus a bonus interest payment of 2% for lenders who choose the 2-year term or 10% for lenders who choose the 5-year term.
Deferred Income Option 2 & 5 Year examples
|Term Option||Interest per Annum||Bonus||Bonus Conditions||Total % Return at end of term||Example Return on £100,000 loan|
|2 Years||10%||2%||The 2% bonus is payable at the end of the 2 Year Deferred Income option only||22%||£22,000|
|5 Years||10%||10%||The 10% bonus is payable at the end of the 5 Year Deferred Income option only||60%||£60,000|
- The Income Option
Lenders choosing the Income Option can enjoy the same interest payments (10% per annum over either a 2-year or a 5-year term) but interest payments are made every 6 months. The original money lent is then returned at the end of the chosen term.
- The developer has been trading successfully for five years completing more than 200 projects in the process with a sales turnover of €3billion. They provide a range of quality investments for clients in the UK. They also have offices in the UK, Ireland, Germany and Singapore.
- They can be contacted at any time and their service record is excellent bringing you both peace of mind and transparency. The Developer is in the top 4.4 per cent of best rated companies in Germany!
- Your Investment is protected with a first ranking Legal Charge registered over the asset – German Listed Property. They don’t let this go until full repayment of both the capital and loan interest is made to the investors. This legal charge is a First not second charge.
- The investment uses a system of what we call Loan Note mechanism. This is a legally binding document issued from a lender (investee) to a borrower (Investor). In simple terms It is a form of IOU so the payee can receive payments with interest over a certain time frame at the end of which the loan is repaid. Formally executed as a deed.
Defined Exit Strategy
- Once Dolphin purchase the listed building, they pre sell it and receive the full amount. So if a building was purchased for £1 million, it is pre-sold for £5 million. Dolphin then draw down the funds over 7 phases to refurbish the building. However, the first 30% drawdown is transferred to the German solicitor representing the investors and held there until contract payments are made to the clients. So 30% of £5 million equals £1.5 million. This is more than enough to cover the investor’s capital and return. It also showed that the funds being returned are not reliant on the property being refurbished and completed. Once the investor is paid back, the first legal charge is removed.
- Investors won’t need to officially withdraw at the end of their chosen term as monies will be sent from the investee straight to their bank account. See the brochure for more details.
It’s not just cash and SIPP investors that put their trust in Dolphin. Large investment groups too have profited from investing in Dolphin, as illustrated by this EUR 42 Million UK Hedge Fund Deal.