GERMAN RESIDENTIAL INVESTMENT PROGRAM

Since mid-2005, LEG has targeted the multi-family property market in Berlin, Germany. Assembling a local platform of property managers, attorneys, tax advisors, lenders and brokers, LEG has succeeded in acquiring 5,500 residential units in six transactions worth €310 million ($400 million). Much of this portfolio has been acquired in a joint venture with PSP Investments of Canada. LEG has completed a number of dispositions over this period, delivering stellar returns to investors.

LEG is responsible for sourcing transactions, acquisition due diligence and investment underwriting and asset management of the portfolios.

I. Why Berlin?

Lincoln Equities believes that targeted investments in the Berlin real estate market have tremendous upside potential with little downside risk. The Berlin market seems rife with opportunity for the following reasons.

• Rental Rates in Germany and Berlin, in particular, are extremely low as a percentage of personal income when compared to other major cities in Europe. 

• Prices per square meter for quality residential real estate in Berlin are extremely low for a major city by global standards.

• In recent years, major foreign investors have taken notice of Berlin real estate investment prospects, and have completed major transactions.

• The owner occupancy rate in Berlin is very low, at 15%, and overall in Germany at 43% as compared to the average ownership rate in the European Union of 65%. 

• Vacancies in the Berlin submarkets targeted by Lincoln Equities are typically less than 3.00%.

• Distinctive to Berlin are the city’s cultural attractions. Berlin offers a wide variety of culture within the city, housing three opera houses, two-concert halls, more than 150 theatres, 265 cinemas, 170 museums, 300 galleries, more than 250 public libraries, and eight symphony orchestras. The city is also the center for education -- housing three universities, four colleges of fine arts, nine schools of applied science, as well as some 250 non-university research institutions.

• The new  international airport at Schonefeld will make Berlin the hub between East and Western Europe. With this new development Berlin is expected to attract real estate investment and corporate relocations from large companies interested in maintaining a presence in Germany’s capital.

II. Local Expertise

LEG has studied the Berlin market and has gleaned a great deal of understanding and insight into the subtleties of location and submarkets over its 7 years of activity in th city.

Additionally, LEG has built an impressive team comprised of local real estate and business experts in Berlin to help effectively source opportunities and manage investments with the utmost financial control and operating efficiency. From attorneys to accountants and tax advisors, lenders to brokerage professionals, LEG has assembled a very strong local management team in Berlin.