Underlying Project Overview

The Bad Kreuznach Residential Portfolio comprises 22 multi-family buildings with a total of 283 residential units, located in quiet and well-established residential areas throughout the city of Bad Kreuznach in Rhineland-Palatinate, Germany.

Originally part of the Vonovia/Deutsche Wohnen portfolio, the buildings were acquired by a local investor group in a strategic off-market transaction. The properties, built between 1952 and 1997, are in sound structural condition and will be gradually modernised from the owner’s equity, with an exit strategy based on unit-by-unit sales.

Modernisation is focused on improving windows, doors, stairwells, technical systems and facades. A leasing stop was implemented by the seller to allow immediate renovation of the current 29 vacant units. Rental income is expected to grow significantly through legal rent increases and natural turnover.

Project Highlights

• 283 residential units across 22 buildings

• Gross floor area: 17,491 sqm | Land area: 34,515 sqm

• Well-maintained buildings in decentralised but strong residential locations

• Construction years: 1952–1997 | Good structural condition, no gutting required

• Step-by-step modernisation funded from owner equity

• Unit sales planned over 3–5 years as value increases

• Secondary-ranking land charge as security instrument

Transaction Structure

This investment opportunity is structured as a secured private bond (Teilschuldverschreibung) issued under German law by a dedicated special purpose vehicle (SPV). The proceeds are used to finance the acquisition, planning, permitting and early construction stages of the project.

Key Terms (Overview)

• Instrument: Private bond (ISIN DE000A460BY4)

• Total Volume: EUR 2,600,000 (single tranche)

• Coupon: 9.08% p.a. (annual interest payment)

• Term: 36 months (19 February 2026 – 19 February 2029)

• Minimum Investment: EUR 100,000

• Security: Second-rank land charge (Grundschuld)

Disclaimer: This communication is provided for informational purposes only and does not constitute an offer or solicitation to the public. Investment information is available solely to qualified or professional investors upon request. All transactions are subject to applicable regulatory restrictions and require independent due diligence and investor verification.