You will invest in 18 hotel rooms, located on the second and third floors, and the solar panel-equipped roof floor of a multi-tenant complex in Amsterdam. The intended term of this proposition is 36 months and the fixed interest rate is 7% per annum. As an investor, you will receive as security a first right of mortgage and pledge of the rental income. The loan-to-value of the underlying property is 69.7%.
The property in question is in a strategic location near Westerpark. The budget-friendly hotel is leased until 2042 and is sublet by the hotel operator to COA, an independent administrative body of the Dutch government. The temporary rental to COA provides additional security and stable income which contributes to the financial stability of the project. In addition, the roof deck with solar panels provides a sustainable additional income stream.
The loan is provided to the project owner to repay the current bank loan and partially release the surplus value. Both properties have 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.
Key features of this proposition:
- Fixed interest rate of 7% per annum;
- Intended term of 36 months;
- First right of mortgage;
- Pledge of rental income;
- Loan-to-value of 69.7%;
- Occupancy rate of 100%;
- Spread across 18 hotel rooms and a rooftop floor;
- Stable rental income;
- Excellent state of repair;
- Experienced project owner;
- Monthly payout;
- Immediate interest-bearing from deposit;
- One-off brokerage fee of 0.45%.
Willem de Zwijgerlaan
First mortgage right with a loan-to-value of 69.7%
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, with a deposit of €5,000, a total of €1,050 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. You will then receive the fixed interest amount monthly in arrears. At the end of the target term, you will be repaid by refinancing or selling the property. 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 considering the first right of mortgage with sufficient excess value and the long-term lease, 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.
| Mortgage right | Crowdrealestate investors will get the first right of mortgage. | 5 points |
|---|---|---|
| Loan-to-value | The loan-to-value based on the appraised market value in the current state is 69.7%. | 2 points |
| Match location with sector | The strategic location of the property aligns well with tenant needs, contributing to stable demand. | 3 points |
| Occupation | Full occupancy with long-term leases ensures a consistent revenue stream. | 3 points |
| Project phase | The project involves existing construction, which carries less risk compared to projects in the development phase. | 3 points |
| Track record | 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 | |
Funding structure
The loan is provided to the project owner to repay the current bank loan and partially release the surplus value. The threshold amount of this proposition is €2,335,000 and the target amount is set at €4,750,000. As an investor, you will receive as security a first right of mortgage and a pledge of rental income.
Besides hotel rooms, the second and third floors of the multi-tenant complex contain spacious corridors and various storage rooms. Also located on these floors are office spaces and related facilities. The underlying value of this proposition relates to 18 hotel rooms. In addition, the roof floor is also part of the proposition, which is equipped with solar panels.
The underlying value was appraised in November 2023 at a total market value in current condition of approximately €6,815,000. The excess value based on the maximum principal amount of the loan through Crowdrealestate and the above market value is approximately €2,065,000. The loan-to-value is thus 69.7%. The underlying value of the mortgage subscription is therefore sufficiently covering.
Collateral for the benefit of investors will be 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 | €4,750,000 | First mortgage right |
|---|---|---|
| Surplus value | €2,065,000 | |
| Total scale | €6,815,000 | |
Project description
The underlying value of this investment concerns various components within a multi-tenant complex near the Westerpark in Amsterdam. The complex houses several hotels and offices, with this proposition specifically targeting 18 hotel rooms (900 sqm) on the second and third floor, including associated hotel facilities, as well as the rooftop floor (2,000 sqm) equipped with solar panels.
The hotel's strategic location close to major tourist attractions and business facilities, such as Westerpark and Amsterdam's business districts, enhances its appeal to tourists and business travellers alike. This central location offers guests easy access to the city's main attractions and businesses, making the hotel an ideal choice for different types of visitors. The location is also excellent for the current temporary rental to COA, ensuring stable income and contributing to society's need for suitable accommodation for asylum seekers.
The roof floor with solar panels is also part of the proposition with a total surface area. A separate rental contract has been concluded for this with an affiliate of the initiator, generating an additional income stream through the sale of generated electricity.
Market description
In Amsterdam, policies have been implemented to restrict the establishment of new hotels, mainly to manage the flow of tourists and maintain liveability for residents. These restrictive measures have the effect of slowing down hotel development within Amsterdam, which concentrates existing demand on available accommodation. These policies not only help regulate tourist flows, but also ensure that hotel prices and values in the city remain potentially higher due to limited supply. This makes the city attractive to existing hotels due to high occupancy rates and strong operational performance.
Europe is currently facing a refugee problem. Hundreds of thousands of refugees from countries such as Syria, Iraq, Ukraine and Afghanistan are seeking a better life in Europe, including the Netherlands. In the municipality of Amsterdam, too, there is a great need for sufficient and suitable reception places. Due to the dispersal law, Amsterdam has to accommodate a large number of asylum seekers. Temporary letting to COA is an excellent response.
End user
The hotel property, located on Willem de Zwijgerlaan in Amsterdam, is operated by G-Experience, which has been operating at this location since 2021. The operator has secured a long-term lease that runs until April 2042. In consultation with the municipality of Amsterdam, the hotel operator has sublet all hotel rooms to COA since March 2024. This contract is currently still in force and will be extended by three months each time. Talks are currently taking place for a long-term extension of the agreement.
The long-term lease with the operator and the possible long-term extension of the sublease to COA provide financial stability, enabling the hotel to maintain a high occupancy rate and constant income.
Rental income from the 18 hotel rooms of this proposition amounts to around €350,000 per year. In addition, the roof floor, which is operated sustainably through a large area of solar panels, generates annual rental income of €75,000.
Underlying organisation
The loan is provided to project owner Van Honthorst 350 B.V. to refinance the property. This current bank loan for the property - the underlying value of the proposition - will be repaid. In addition, the surplus value will be released, which will be used by the initiator for new real estate projects at home and abroad.
The initiator has owned the property in question for some time and has proven to be successful in managing and operating a diversified property portfolio in the Amsterdam region. The extensive property portfolio that has been carefully built up over the past decades consists of both residential and commercial properties. This ensures a solid and diversified base of assets.
The total excess value on the promoter's total portfolio is substantial, underlining the financial stability of the organisation. To date, the financing of this portfolio has mainly been through bank loans. Through this strategy, a robust financial structure has been built with a proven track record in property operation and management.
Supplementary files
You can open the supplementary files below
| Filename | |
|---|---|
| Blad met Essentiële Beleggersinformatie (EBi) | Download |
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