ApartHotel Amstelveen (Ground floor)

First mortgage right with a loan to value of 65%

You are investing in this proposition in a long-term leased hotel building (ground floor) in Amstelveen as the underlying asset. The intended term of this proposition is 36 months, and the fixed interest rate is 6.85% per year. As an investor, you will be secured with a first mortgage right and a pledge on rental income. The loan-to-value of the underlying asset is 65%.

The hotel building is located to the north of Amstelveen, 8 kilometers from the center of Amsterdam. The property is leased to a renowned hotel operator for a period of 18 years. The building contains a total of 151 apartments and studios. The object of this proposition concerns the ground floor and several appurtenances.

The loan is provided to the project owner to repay the current bank loan and partially release the equity. The collateral has been owned by an affiliated company of the initiator for quite some time and is successfully operated. Over the past decades, the initiator has carefully built up a diversified real estate portfolio in and around Amsterdam.

Key features of this proposition:

Fixed interest rate of 6.85% per year;
Intended term of 36 months;
First mortgage right;
Pledge on rental income;
Loan-to-value of 65%;
Long-term lease (100% occupancy rate);
Renowned hotel operator;
Stable rental income;
Good state of maintenance;
Experienced project owner;
Monthly payout;
Interest accrues immediately upon deposit;
One-time brokerage fee of 0.45%.

Projected return

The graph below shows the cumulative return over the term at the fixed interest rate of 6.85% per year. In the example below, with the minimum investment of €5,000, a total of €1,027.50 in interest is paid over the entire term of the proposition. The first and accrued interest will be paid in the month following the closing of the proposition. Subsequently, you will receive the fixed interest amount monthly in arrears. At the end of the intended term, the loan will be repaid through refinancing or sale of the properties. The presented return forecast is based on expected market conditions and project planning. There is no guarantee that these results will actually be achieved.

Cumulative return during the funding period

Investment	€5,000
Fixed interest	6,85%
Estimated duration	36 months
Total return	€1,027.50

Crowdrealestate valuation

Crowdrealestate has assigned a risk rating of A (Defensive) to this investment. Given the first mortgage right with substantial equity and the long-term lease agreement with a renowned hotel operator, this is considered a stable and solid investment. Although this investment is classified as defensive, investing through crowdfunding always carries risks, including the risk of losing your entire investment. Please refer to the Essential Investment Information Document (EBI) for a detailed description of the risks.

A

23 22 21

B

20 19 18

C

17 16 15

D

14 13 12

E

11 10 9

Mortgage right	Investors with Crowdrealestate will have the first mortgage right.	5 points
Loan-to-value	The loan-to-value based on the appraised market value in the current condition is 65%.	2 points
Match location with sector	The central location of the hotel building aligns well with the tenant's needs and the stable demand for the proposition.	3 points
Occupancy rate	Full occupancy with an 18-year lease agreement.	3 points
Project phase	The project involves existing construction, which entails fewer risks compared to projects in the development phase.	3 points
Trackrecord	The initiator has owned the properties for a considerable amount of time.	3 points
Duration	The target term is 36 months.	2 points
Additional security	Pledge of rental income.	1 points
Total		22 points

Funding structure

The loan is provided to the project owner to repay the current bank loan and partially release the equity. The minimum target amount for this proposition is €3,100,000, and the goal is set at €5,000,000. As an investor, you are secured with a first mortgage right and a pledge on the rental income.

The hotel property (ground floor) was appraised in November 2023 at a market value of approximately €7,685,000 in its current condition. The equity based on the maximum loan principal via Crowdrealestate and the aforementioned market value is approximately €2,685,000, and the loan-to-value is 65%. The underlying value of the mortgage registration is therefore more than sufficient.

The securities on behalf of investors are registered in the name of Crowdrealestate's independent foundation. The foundation initially obtains a second mortgage right, which will become a first mortgage right after the planned repayment and discharge. In addition to the mortgage right, there are additional securities, such as a rent pledge, and a DSCR and LTV covenant. The full overview of all applicable covenants and securities is listed in the parallel loan agreement.

Crowdrealestate investors	€5,000,000	First mortgage right
Surplus value	€2,685,000
Total scale	€7,685,000

Project description

The property concerns the ground floor of a hotel building in Amstelveen, in a strategic location close to both the center of Amsterdam and Schiphol Airport. This location makes the hotel attractive to both tourists and business travelers. The location is easily accessible via the A9 and A10 highways, as well as by public transport.

The ground floor of the hotel, the underlying asset of this proposition, consists of 11 hotel rooms, a central reception area, a lobby, a restaurant, and office space. The entire hotel complex includes 151 (hotel) apartments and studios, which are operated by a renowned hotel operator.

The hotel also offers extensive facilities, such as a fitness room and a dry cleaning service for guests. The reception is open 24 hours a day, and there is an on-site parking garage that is easily accessible for hotel guests. The total plot size of the hotel, including the adjacent parking facilities, is 6,143 m².

The central location in Amstelveen, near Schiphol and Amsterdam, makes the hotel an attractive destination for international guests and business travelers looking for comfortable accommodation close to major traffic routes and urban centers.

Market description

The hotel market in Amstelveen benefits greatly from its proximity to Amsterdam and Schiphol Airport. Due to the limited availability of new hotel developments in Amsterdam, investors and operators are shifting their focus to surrounding cities such as Amstelveen, where there is more room for growth. This strategic location makes Amstelveen attractive to both business travelers and tourists, contributing to a high occupancy rate.

In 2023 and 2024, the hotel market in the Netherlands further recovered from the impact of the pandemic, with occupancy rates approaching pre-pandemic levels once again. In the Amsterdam region, which includes Amstelveen, occupancy rates have risen significantly, and high demand for hotel rooms is expected, particularly due to the increased tourist flow and the recovery of business travel.

Occupancy rates in hotels in and around Amsterdam, including Amstelveen, are now at or above pre-2020 levels. This is partly driven by the limited expansion of hotels in Amsterdam itself, which is attracting investors to nearby cities like Amstelveen. As a result, the demand for accommodations in this region remains high, contributing to stable rental income and an attractive investment climate for hotel projects.

End user

The hotel property has been operated by Adagio, part of the Borealis Hotel Group, since 2018. Adagio has a long-term lease contract that runs until 2043, ensuring stable and predictable income. Adagio specializes in offering "extended stay" hotels, which are popular among both business travelers and tourists seeking flexibility and comfort.

The Borealis Hotel Group is a rapidly growing European hotel chain that develops, owns, operates, and manages various types of hotels. Its portfolio includes focus-serviced, full-service hotels, and extended stay hotels such as Adagio. The group was founded in 1997 and has since built a strong position in the hospitality sector.

With its headquarters in Amsterdam and the support of institutional investors, Borealis operates throughout Europe. Their focus on strategic locations and efficient operations ensures stable occupancy rates and growth in various markets.

Underlying organisation

The loan is provided to the project owner, De Hooch 5 B.V., for the refinancing of the properties. This loan will be used to repay the current bank loan and partially release the equity on the underlying assets. The equity will be utilized by the initiator to expand the real estate portfolio.

The initiator has owned these properties for a considerable time and has proven to be successful in managing and operating a diversified real estate portfolio in the Amsterdam region. The extensive portfolio, which has been carefully built up over the past decades, consists of both residential and commercial real estate, providing a solid and diversified asset base.

The total equity across the initiator's entire portfolio is substantial, highlighting the financial stability of the organization. To date, the financing of this portfolio has primarily been through bank loans. This strategy has built a robust financial structure with a proven track record in real estate operations and management.

Supplementary files

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