Aparthotel Amstelveen (seventh floor) II

First mortgage right with a loan-to-value of 60%

With this proposition, you invest in the seventh floor and basement of a long-leased hotel building in Amstelveen. The first phase of the proposition has already been successfully placed and is in operation. The intended term of this proposition is 36 months and the fixed interest rate is 7% per year. As investor, you will receive as security a first right of mortgage and pledge of the rental income. The loan-to-value of the underlying is 60%.

The hotel building is located north of Amstelveen, 8 kilometres from the centre of Amsterdam. The property has been leased to a renowned hotel operator for a period of 18 years. In total, the building has 151 flats and studios. The object of this proposition concerns the seventh floor and the basement.

The loan is provided to the project owner to repay the current bank loan and partially release the surplus value. The collateral has long been owned by an affiliate of the promoter and successfully operated. Over the past decades, the initiator has carefully built up a diversified property portfolio in Amsterdam and the surrounding area.


- Fixed interest rate of 7% per annum;
- Intended term of 36 months;
- First right of mortgage;
- Pledge of rental income;
- Loan-to-value of 60%;
- Long-term leased (occupancy rate of 100%);
- Renowned hotel operator;
- Stable rental income;
- Good state of maintenance;
- Experienced project owner;
- Monthly payout;
- Instantly interest-bearing from deposit;
- One-off brokerage fee of 0.45%.

Projected return

The chart below shows the cumulative yield over the term at the fixed interest rate of 7% per annum. In the example below, at the minimum deposit of €5,000, a total of €1,050.00 in interest is paid throughout the term of the proposition. The initial and accrued interest will be paid in the next month after closing the proposition. Thereafter, you will receive the fixed interest amount monthly in arrears. At the end of the target term, you will be repaid by refinancing or selling the properties. The return forecast presented 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 7,0%
Estimated duration 36 months
Total return €1,050.00

Crowdrealestate valuation

Crowdrealestate has assigned a risk rating of A (Defensive) to this investment. Also given the first right of mortgage with ample surplus value and the long-term lease with a reputable hotel operator, this is a stable and solid investment. Although this investment is considered defensive, investing via crowdfunding always carries risks, including the risk that you may lose your entire deposit. Please refer to the Key Investment Information Sheet (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 Crowdrealestate's investors will get the first right of mortgage on the property. 5 points
Loan-to-value The loan-to-value based on the appraised market value in the current state is 60%. 2 points
Match locatie with industry The strategic location of the property aligns well with tenant needs, contributing to stable demand. 3 points
Occupancy rate Full occupancy with an 18-year lease. 3 points
Project stage The project involves existing construction, which carries less risk compared to projects in the development phase. 3 points
Trackrecord The initiator has had a sizeable property portfolio for some time. This includes the present property. 3 points
Duration The target term is 36 months. 2 points
Additional security Pledge of rental income. 1 points
Total 22 points

How does Crowdrealestate valuation work?

Please note: Crowdrealestate valuation is intended to provide you, as an investor, insight into the key characteristics of this project and is not an internal screening model of Crowdrealestate. This project was extensively screened by Crowdrealestate prior to placement.

Funding structure

The loan is provided to the project owner to repay the current bank loan and partially release the excess value. The threshold amount of this proposition is €2,000,000 and the target amount is set at €5,000,000. As an investor, you will receive as security a first right of mortgage and a pledge of rental income.

The basement and seventh floor of the hotel property were appraised in November 2023 at a market value in its current state totalling around €8,310,000. The excess value based on the maximum principal amount of the loan through Crowdrealestate and the above market value is approximately €3,310,000. The loan-to-value is thus 60%. The underlying value of the mortgage subscription is therefore amply covered.

The securities for the benefit of the investors are registered in the name of Crowdrealestate's independent foundation. The foundation will initially acquire a second right of mortgage, which will become a first right of mortgage after the scheduled redemption and cancellation. In addition to the mortgage right, additional collateral is applicable, such as a lease pledge, and a DSCR and LTV covenant. The full list of all applicable covenants and collateral is set out in the parallel debt agreement.

Investors Crowdrealestate €5,000,000 First mortgage right
Surplus value €3,310,000
Total scale €8,310,000

Project description

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

The underlying value of this project consists of a basement of 1,060 m² and the seventh floor with 18 spacious hotel rooms, with an area of 947 m². The entire hotel complex comprises 151 flats and studios, which are operated by a renowned hotel operator.

The hotel also offers extensive facilities, such as a gym and a dry cleaning service for guests. The reception is open 24 hours a day and there is a car park on site, which is easily accessible for hotel guests. The total plot area of the hotel, including the adjacent parking facilities, is 6,143 m².

Its central location in Amstelveen, close to Schiphol Airport and Amsterdam, makes the hotel an attractive destination for international guests and business travellers, who are looking for comfortable accommodation options close to major transport arteries and urban centres.

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 high occupancy rates.

In 2023 and 2024, the hotel market in the Netherlands has further recovered from the impact of the pandemic, with occupancy rates once again approaching pre-pandemic levels. 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 flow of tourists and the recovery of business travel.

Hotel occupancy rates in and around Amsterdam, including Amstelveen, are now back to or above pre-2020 levels. This is partly driven by the limited expansion of hotels in Amsterdam itself, which attracts investors to nearby cities such as Amstelveen. As a result, the demand for accommodations in this region remains high, contributing to stable rental income and creating 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 holds a long-term lease agreement 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-service hotels, full-service hotels, and extended stay hotels like Adagio. Established in 1997, the group has built a strong position in the hospitality sector.

With its headquarters in Amsterdam and backing from institutional investors, Borealis operates throughout Europe. Their emphasis 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, Haanen 5 B.V., for the refinancing of the properties. This loan will be used to repay the existing bank loan and partially release the equity. The initiator plans to use this equity to expand the real estate portfolio.

The initiator has owned these properties for a significant period and has demonstrated success in managing and operating a diversified real estate portfolio in the Amsterdam region. The extensive portfolio, carefully built over the past decades, consists of both residential and commercial properties, providing a solid and diversified asset base.

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

Supplementary files

You can open the supplementary files below

Filename
Blad met Essentiële Beleggersinformatie (EBi) Download