• The Sponsor has already signed land purchase agreement and an agreement with local contractor on a fixed construction cost basis. The plot has a total area of 1,183 sqm. The developer is providing €450,000 as equity for the project.
• Aachen is the westernmost city in Germany, located near the borders with Belgium and the Netherlands, 61 km (38 mi) to the west of Cologne. The population of Aachen at the end of 2019 was 249,000 people (+ 6.2% for 8 years), 60,000 of them (almost 25%) are students.
• The property will feature 46 apartments ranging from 23 to 47 sqm. The gross construction area is 2,220  sqm and the lettable area is 1,933 sqm.  The property also includes 23 parking spaces. The property will be let to a service apartment operator on a 25 years lease contract for €352k per annum.
• The total projects costs are estimated at 6.9m inclusive of VAT composed of: €1.2M land cost, €4.8M hard costs, €700k soft costs and €200k senior financing costs. GDV is estimated at €7.3M based on a 4.9% cap rate. Profit inclusive of VAT refund is estimated at €1.2M. Sources of the funds include €4.4M (63% LTC) senior construction loan, €2.1M (30% LTC) Mezzanine loan and €450k (7% LTC) equity contribution.
• The Sponsor is looking for £2.1M mezzanine loan that will be used for the acquisition of the land and further construction costs and will be provided under a second charge to the property (as fixed in the Grundbuch , German land register).  The developer provides a personal guarantee which covers the full amount of mezzanine loan and interest rate for the whole term of investment.

Market Environment
Aachen is the westernmost city in Germany, located near the borders with Belgium and the Netherlands, 61 km (38 mi) to the west of Cologne. The population of Aachen at the end of 2019 was 249,000 people (+ 6.2% for 8 years), 60 thousand of them (almost 25%) are students. Aachen is a city of students. One of Germany's leading institutes of higher education in technology, the RWTH Aachen University, is located in the city. With more than 45,000 students enrolled in 162 study programs, it is the largest technical university in Germany. RWTH Aachen is a founding member of IDEA League, a strategic alliance of five leading universities of technology in Europe. The university is also a member of TU9, DFG and the Top Industrial Managers for Europe network.

The project is located not far from the Aachen city center. There are Lidl and Netto supermarkets, schools, a gym, and a post office nearby.

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Distance to key locations:
- Aachen city center
- 4km (15 mins by car)
- RWTH Aachen University
- 5.5 km (15 mins by car, 40 mins by bus)
- Dusseldorf Airport 85 km (1h by car)
- Cologne Bonn Airport 80 km (50 min by car)