Investing Policy

Investment Objective

The investment objective of the Company is to achieve capital growth and income via investments in residential property in Berlin and in other cities in the former German Democratic Republic (Former GDR).

Investing Policy

The Company will invest in residential property in Berlin and other cities in the Former GDR. While the Group’s focus will continue to be on residential property, urban apartment blocks typically include a proportion of commercial property at street level which can augment rental returns. Where this type of mixed-use property is perceived to add value to the Portfolio, the Company intends to invest in such opportunities. In addition, the Company may purchase entirely non-residential units of up to 25 per cent. of its total assets, provided such investments can be acquired for less than replacement cost.

The Company will concentrate on providing total returns to Shareholders through appreciation in the Portfolio’s capital value and rental yields. The Directors intend to reinvest all income generated until such time as a dividend policy is deemed more appropriate and to seek maximum leverage on the Group’s properties. Current market conditions allow for approximately 70% loan-to-value ratio depending on the property type.

last updated on 02/05/2018