Newsletter September 2009
| September 2009 Update
|
Welcome
I’d like to welcome you to the monthly update from ProVenture. 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 following titles to read the content or scroll down to read the whole newsletter
|
|
|
|
|
|
FX Update
|
|
|
|
|
|
Exhibition Details
|
|
|
Including Some Huge and genuine reductions!!
|
German Economic Outlook
August was perhaps the most positive month for economic data in Germany for 12 months or more. The story that both Germany and France had lifted themselves from the “technical recession” (2 consecutive periods of contraction) with a GDP rise of 0.3% took observers by surprise. Looking at some of the data behind this rise, it was not just domestic initiatives such as the car scrappage scheme that pushed growth forward. Exports, key to the world’s biggest exporter, surged by 7% this month and hinted towards a wider recovery. Of equal interest was the rate of domestic consumption this quarter. German consumers, long berated internationally for not playing their part in supporting a global economic recovery, have increased spending at the fastest rate for more than two years. Details of Germany’s second quarter growth figures showed consumer spending in Europe’s largest economy rose 0.7 per cent, extending a 0.6 per cent rise in the first period. That was the fastest quarterly rise since the last three months of 2006.
Finally, some encouraging data emerged from the Ifo institute regarding business confidence. German businesses’ expectations about the six months ahead have seen the biggest improvement for at least 18 years. The Munich-based Ifo institute said yesterday that its closely watched business climate index had risen for a fifth consecutive month, from 87.4 in July to 90.5 in August. That was the highest since September 2008, before the intensification of the global economic crisis following the collapse of Lehman Brothers. The part of the survey covering expectations about the next six months rose even faster, from 90.4 to 95.0 – the biggest monthly rise since comparable data started in 1991.
It will be of great interest to see how the recovery develops over the coming months, if it is sustained, and if the recovery can sustain the increased appetite for investors in the German property market seen in the last 3 months.
Finance Update 
We now have an fx update from Gary Field – Senior FX broker at Cornhill FX:
The month of August continued the summer market trend of sharp exaggerated moves as liquidity was thin and the market remains nervous. There is still a strong correlation with currencies to the stock markets and risk appetite waxes and wanes with each data release. GBPUSD reached a ten month high on 5/8 of 1.70423 but within 2 weeks touched 1.6280 recovering to 1.6550 by 17/8 but then slipped to 1.6153 at the months end. The final push lower came ahead of UK 2nd quarter GDP figures which actually came in better than expected initiating a small recovery to 1.6250.
GBPEUR was similarly affected by the market sentiment but the Euro maintained its gains against the dollar as the pound slid. This saw the rate slowly decline over the course of the month from a high of 1.1822 in the first week to a two and a half month low of 1.1308 by 28/8. Overall even considering this decline we saw mostly range bound trading with the majority of activity between 1.1450 and 1.1750 but expect September to possibly see a breakout as we return to more liquidity and increased trading activity.
If you wish to contact Gary to discuss any foreign exchange trades – please call him on
+44 207 337 8679
ProVenture Activity 
August, although a little quieter due to the holiday period, still saw inspection trips from a diverse set of clients from around Europe with interest in Berlin, Dresden and Leipzig. Whilst our core-product of higher yield property (above 10%) remained the focus for many visitors, a trend towards quality investments in the better locations whilst retaining a 8% yield or so was noticed. Activity on the lettings scene has been particularly busy in the city oif Leipzig with 2 of our partners reporting record new tenancies for both July and August. Currently 3 dates for inspection trips in September are planned by ProVenture staff, although meetings outside these times are normally feasible.
London Property Exhibition 
The London Property Investor Show is becoming a regular slot in the ProVenture calendar and we are preparing now for this Autumn’s event on 22-24th October. This year’s show promises to be the biggest ever, with the combing of the usual show with the Overseas Property Professional show being added to the line up. The details of the show are at:
http://www.propertyinvestor.co.uk/london/index.asp
Why not come and meet one of the ProVenture team, a member of the sales team from Germany or our friendly German Banker (yes, we found one) who will be with us for the duration of the show. Just let us know if you would like us to mail you complimentary tickets for the show or for entry into one of our seminars.
Latest Property Offers
Below are links to some of the new property brought to the market during July. More property in Leipzig, Halle and Dresden will be brought to the market during August so please monitor the website.
Happy investing and good luck,
Mat
|
|
|
|
|
|
|
|
|
|
Leipzig-Neu Schoenefeld
165.000 Eur Guide Price
11.2% Yield
6 apartments
|
|
 |
Halle Zentrum
930.000 Eur Guide Price
9.1% Yield
25 units
Superb location and build standard
|
|
|
Gorlitz-Zentrum
115.000 Eur Guide Price
Part-tenanted
Front facade to refurb
Target Rent 30.000 Eur pa
|
|
Stop Press
3 apartments in Leipzig-Plagwitz. Total area 154 sqm. Price 89.000 Eur for the package. Fully tenanted with 9.1% yield.
Two new properties in Leipzig (South and West). Both priced below 400k Eur, delivered at 10% net yield. Please get in touch if any properties here or on the website prove of interest.
Want to read back issues of our newsletter? Click here
