Pilotengasse
Pilotengasse 118, 1220
Vienna, Austria
48.130638 | 16.294296
The proposed proposition has been developed in collaboration with local partner Whitestone, who has extensive experience in developing, managing and selling real estate in Vienna and Budapest. The Pilotengasse Vienna project consists of an investment in the purchase, development and the sale of 35 small-scale apartments. The plot along the Pilotengasse 118 is adjacent to the expansion location of Vienna ‘Seestadt Aspern’ and is well connected from an infrastructural point of view (road network, metro, bus, etc.).
This proposition is a duplicate of a successful development of Whitestone (condo22.at) which is located approximately 1.2 km further and was completed by the contractor last January on time and within budget. Except for a single apartment, everything has been sold at budgeted prices.
At the end of 2016, the plot with buildings on Pilotengasse was contracted by the local partner by means of a purchase option. During the pre-development phase, the due diligence was completed and the plan was drawn up in consultation with the architect. The ownership was transferred at the end of May 2017, after which the building permit can be applied for.
After the building permit has been granted, construction, which will take approximately 16 months, is expected to start after the winter period (spring 2018). The construction of the apartment complex for approx. 35 apartments (approx. 1,450 m2 salable), with outdoor space (balcony, terrace or garden), will be given a modern architecture. The complex has a basement (1 layer) for approx. 16 parking spaces. It is to be expected that, analogous to the nearby development of Whitestone (Condo22), during or soon after the construction period all apartments will have been sold as budgeted.
With the sale of the apartments and associated parking facilities, a return of 15% per year (ROI) is forecasted for investors, after an expected term of 30 months. The equity for the land and associated costs up to the start of construction is € 1,600,000.
Key data
Project name
Pilotengasse Vienna (FULLY FUNDED)
Location
Pilotengasse 118, 1220 Vienna
Initiator
REALIANCE Europe B.V. (REALIANCE)
Local partner
Whitestone Investment Advisory GmbH
Category
New construction of approximately 35 apartments
Expected investment term
30 months, completion end 2019
Exit strategy
Sale to end users/ investors
Participation
58 shares of € 25,000 available (preferably purchase of at least 2 shares)
Structure
Issue of shares in Dutch B.V., which acquires an interest in WBÖPG118 GmbH, which holds participations in the Austrian project company (WBÖPG118 GmbH & Co KG).
Equity Dutch investors
€ 1,450,000 (91%)
Equity initiators
€ 150,000 (9%)
Projected net capital growth
37.7% after 30 months
Projected return (ROI)
15.1 per year
Unique selling points
Housing development in stable, well-performing Vienna housing market.
In-fill location in a quiet side street of the rapidly developing expansion area (22nd district).
Public transport (bus and metro) in the immediate vicinity. Direct connection to the city center.
Building permit easy to obtain based on the existing zoning plan.
Favorable financing options for buyers with regard to historically low interest rates.
Prices for construction and sales at the level of the nearby ‘Condo 22’, a reference project and development of Whitestone which was completed in January 2017 and almost completely sold
Short investment term of 30 months based on realistic assumptions.
Acquisition and start-up costs are financed with equity. Bank financing intended for new construction (leverage of 26-74%).
Small units averaging approx. 50 m2, ideal for first buyers/end users.
Location
For more information you can reach REALIANCE at +31 (0) 20 21 03 180 or invest@realiance.nl
