What is the first offer from quirion Sachwerte all about?
The financing objects are the Städtisches Kaufhaus and the Reclam-Carrée in Leipzig, both buildings steeped in tradition. When it opened in 1901, the Städtisches Kaufhaus in the city centre was one of the first purpose-built trade-fair houses in the world, and thus an important model for modern trade fairs. The Reclam-Carrée is the former headquarters of the well-known Reclam publishing house and sits in the Graphisches Viertel, which borders directly on Leipzig's city centre. The investment1 in the financing of these two buildings pays interest of 3 percent per year. The subscription period for this offer ends on 12/10/2021. The investment in the financing runs until 30/9/2025. The term can be extended by the issuer up to four times, by one year each time. This option allows for a later point of sale, so that there is no need to sell during a weaker phase of the market — an important contribution to protecting the capital paid in.
What sets this offer apart from other real-estate investments?
High barriers to entry and high ongoing costs put many people off real-estate investments. For the first offer from quirion Sachwerte, the minimum investment is just €500. In this way, private investors gain access to high-quality properties. Unlike in many other cases, this investment involves no hidden costs: there is a service fee on the respective holding of 0.48 percent per year and a one-off placement fee of 1.5 percent on the subscription amount. The industry-standard sales commission that quirion receives from the provider is passed on to investors in full. The comparatively low costs are due in part to the use of digital securities.
What are digital securities?
The share certificate takes the form of a digital token. In blockchains, transactions are grouped together in a block, and the blocks are stored in a decentralised way, in the chronological order of the transactions. The technology used does not require any central administrative authority and enables „smart contracts“ — a kind of automated contract management. The technology saves a great deal of effort and cost compared with conventional securities administration. The tokens are stored in a personal wallet, a kind of digital safe-deposit box. This costs investors nothing extra, and no special app or software is needed to access the tokens.
Why these particular properties?
The two objects are premium properties that are currently especially sought after among real-estate investors. No wonder: good location, diversified tenant structure, tenants with strong credit ratings. Properties like these have comparatively low probabilities of default. Both buildings are centrally located in one of the most dynamic real-estate markets in Germany and are almost 100 percent let. The usage structure of the more than 80 tenants in total is broadly diversified, covering offices as well as retail and residential space. The anchor tenants include, among others, the Free State of Saxony, the Fraunhofer Centre and the Max Planck Institute.
What does „investment in the financing“ mean?
The digital security securitises a share in a bond. A bond is nothing other than a stake in a financing arrangement with a certain term, for which the investor receives interest. Bonds, too, are debt instruments. The issuer's total investment is registered as a land charge ranking directly behind the financing bank. The financing rests on a solid footing: the Städtisches Kaufhaus and Reclam-Carrée properties are financed 46 percent through a bank loan, 39 percent through the digital securities and 15 percent through the owner's equity. According to a valuation report, the value of the properties already stands around 14 percent above the combined total of the bank financing and the investment. This risk buffer will grow further as the bank loan is repaid up to 2025. The free cash flow after management and bank financing currently stands at around 200 percent of the interest. So there is an additional, healthy safety buffer for both the repayment of capital and the interest payments to investors.
Further information on the offer and on the opportunities and risks of the investment can be found here.
Straight to the offer? Then head this way.
