Welcome

I’d like to welcome you to the monthly update from ProVenture, especially if this is your first issue. We hope you find this short newsletter of interest and that it keeps you up-to-date with the property investment scene in Germany.

Please click on the items on the left to read the content or scroll down to read the whole newsletter

Results of the April 2010 Ifo Business Survey

German Economy Shifts into Higher Gear

The Ifo Business Climate for industry and trade in Germany improved again strongly in April. The firms are considerably more satisfied with their current business situation, this survey component having now improved strongly for the second month in succession. Also with regard to the business outlook for the coming half year, the surveyed firms are again more optimistic than before.

In manufacturing the business climate index has risen once more. The manufacturing firms have again given clearly more favourable assessments of their business situation. Also with regard to their business expectations in the coming half year they are more hopeful than in the previous month. They also see better opportunities for exports. Currently, the firms are utilising their equipment and machines at a clearly stronger rate than at the beginning of the year. The capacity utilisation rate in industry is now somewhat below the long-term average. Company plans to reduce personnel are again more seldom.

The business situation has also brightened further in retailing and in wholesaling. In both distribution sectors the firms have assessed their current business situation more positively than before. They also view the six-month outlook less critically.

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Greek Crisis Weighs Heavily on Euro

New lines of Credit for ProVenture

As I type, the dollar is at its highest rate against the currency at a rate of 1.29 USD:EUR. Politics will dominate the trading in the pound sterling ahead of the 6 May general election, and beyond, if no party holds a majority. This compounds the anxiety over one of the highest government deficits in the world as a proportion of GDP, making sterling the currency to sell by investors concerned by solvency issues. However, the UK is comparable to other developed countries in terms of the magnitude of its deficit, short-term funding needs and total debt outstanding, leaving sterling looking oversold. Sterling has recovered to 9 month highs against the battered Euro, trading at 1.17 as we speak.

In terms of finance for investment, we are opening up new lines for credit to give clients more of a range in securing finance most suitable for them. This work is on-going during May. Please get in contact if you are looking to finance any deals in the very near future.

Contact Us for more Information

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9-12% Yields Achieved

80% LTV

We hosted 8 client visits in April, around the average activity. Clients continued to look for yield investments and mainly targeted Leipzig for their focused search. That said, we are experiencing a higher demand for quality property and yield property in Berlin, where value is improving and rent levels are increasing. Due to a combination of increased demand from international and domestic clients in Leipzig, yields are under pressure but still remain in the 9-12% range. All deals brokered this month attracted 80% loan-to-value finance.

An increasing emphasis on finding new markets will be made in the coming months, to ensure a good range of options are in place for our clients.

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Thanks Iceland!

Mat gets a chance to reflect on Leipzig for Longer

We have all got our own volcano stories to tell. Some have been directly affected, business people and holiday makers across the world, those going to family events and funerals and lets not forget the poor Icelanders who had to evacuate their homes sharpish before being treated to a real fireworks display. My favourite image is of the businessmen who were stripped of any dignity at the ports attempting to get to England. As the ferries have a strict no foot passenger rule, they had to make it up the ramps on a vehicle. Children’s bikes were the decided weapon of choice to cunningly get around this rule. The vision of a line of Dragon’s den types panting furiously up the ramp on a Raleigh Tomahawk is one to tuck away in a safe place in our Volcano-memoires.

Hell, even the leafier parts of North London have been hit, with only 4 types of fresh olives now being available in their local garage, the imports of fresh goods hitting us all…

Click here to read Mat’s full musings

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Your Life in Property

Property Investment Guide

We have a few copies left from the first print run of our book “Your Life in Property” available for our newsletter subscribers and can mail out to you for free – just drop us a line with your postal address and we will pop one in the post

Click here for the e-version of the book

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Ref: PVTBC – Studio in Tiergarten
	Price: 34,950 €
	Type: Apartments
	City: Berlin
	Potential Yield: 8.5%
	Approx. Size: 37 sqm
Located around 5 minute walk to Turmstr U Bahn station (2 stops to Zoo Central Station)

ProVenture Clients Only
	Price: 340,000 € Fixed
	Type: Apartments
	City: Leipzig West
	Net Yield: 10.82%
	Approx. Size:
Contact ProVenture for details

Ref: PV301 Selection of single apartments
	Price: 29,000 €
	Type: Apartments
	City: Leipzig
	Potential Yield: 10%
	Approx. Size: 57 sqm
All apartments will be tenanted at the time of purchase. Rents for tenants currently occupying apartments are approximately at market level, but are expected to raise in line with inflation over the period of investment.

ProVenture Clients Only
	Price: 1M € Guide
	Type: Apartments
	City: Berlin – Wedding
	Yield: 8.1%
	Approx. Size:
Only 540 Euro psm – contact us for details .

Ref: PV271 Residential and Commercial
	Price: 350,000 €
	Type: Residential
	City: Leipzig
	Potential Yield: 13.96%
	Approx. Size: 1055 sqm
A fantastic opportunity – this property can be delivered fully tenanted.

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