Investment project in Lake Constance, Germany, 8 000 sq.m

A new residential complex will be built on the shores of Lake Constance. The land plot is located on the first line directly by the water. The area facing the lake will be set aside as green space for the private use of the future flat owners.

Lake Constance or Swabian Sea is located in the foothills of the Alps. The lake is a resort area and one of the most fashionable places to live in southern Germany.

Prices per square metre range from €6,500 to €10,900. The average price per square metre in a new building in the area ranges from €11,500 to €13,000.

On the basis of the city building plan (B-Plan) there is a preliminary consent of the city administration. The project was submitted to the mayor and a positive pre-approval was obtained. Based on this, a preliminary design sketch, planning and calculation of the square meters have been developed.

The building permit will be formalised after the developer creates a project company for the construction of the residential complex and purchases the land from the created company. All the necessary legal documents have been prepared and the process will be started after all the details have been agreed upon with the future investor and his decision to enter into the project and become a founding member of the company.

The construction of the complex will be handled to the project company established jointly by the developer and the investor for the development project. The developer has forty years of experience. It has more than a hundred projects in its portfolio, including residential houses, retirement homes and service apartments.

Financial indicators of the project:

- Total investment: €4.200.000
- Project duration: 22 months
- Investor share in the project company: 40%
- Inerest yield of Investor: 95%
- Expected profit of investor: €4.027.990
- No brokerage commission - the project is directly from the developer

There are 2 possible ways to invest in the project:

1. Become a partner - to become a co-founder together with the developer in the project company and receive a percentage of the profit of the project.
2. Mezzanine loan - a direct loan to the project company set up by the developer for the construction of the complex.