I recently attended an inspection trip to Berlin, courtesy of Dolphin Trust, to view some of their prestigious projects and learn about their plans for the near future. It was extremely reassuring to see that investors’ money is being spent in the right way with the most successful developer in Germany. Dolphin Trust’s expertise is evident in the projects they choose, working closely with their partners Epsco GmBH who specialise in sourcing ‘listed’ properties in and around the cities of Germany.
The meaning of ‘listed’ in Germany is that the government ‘lists’ a building they believe should be restored to its original state and offer a tax incentive to the purchaser by way of reclaiming some or all of the renovation costs back through their tax return over a 12 year period. This tax incentive has also been applied to ‘new builds’ recently and Dolphin Trust are taking full advantage of it by incorporating new build projects in their portfolio.
Dolphin have very close ties to the Federal Institute of Real Estate, the German government agency overseeing the tax incentive, as Dolphin Trust are their preferred developer. There have been concerns from investors about potential changes to the policy if a different party were to take over government, however I am reassured that all politicians, regardless of party preference, have similar policies on tax incentives for restoration of abandoned/neglected buildings, so no party is likely to withdraw the incentive.
There is a severe housing shortage in Berlin and 350,000 homes are needed with only 100,000 expected to be built by the end of 2017. Home ownership is on the rise and the government supports those buying to rent.
Dolphin Trust have good relationships with the banks and will ensure lending is secured to an end buyer before purchasing a project. The banks now refer higher rate taxpayers to Dolphin to purchase their properties and they have a waiting list. This means the bond money will always be returned via the banks’ lending to the end buyer.
I saw three projects on my trip:
Steglitz, South West Berlin – Former film studio which is listed and will be restored and an electric power station which will be demolished to make way for new build. Click here to download project information.
Wilhelminenhofstrabe 6, Treptow-Kopenick – 15 apartments currently under construction. This listed apartment building dates back to 1897. This is a beautiful and sought after location. Click here to download project information.
Berliner Burger Brau, Kopenik – A former brewery located on the shores of Lake Muggelsee, the largest lake in the Berlin area, the location is stunning. Dolphin Trust have plans for 159 apartments plus underground parking. Dolphin secured this site for 14mil euros and have already been offered 17mil euros for it without laying a brick. Click here to download project information.
Hot Off the Press: Dolphin have taken over an AIM listed company which will allow investors to buy shares valued on the Dolphin projects or convert their existing loan note into shares to give them more liquidity and control. Watch this space for more details.
Please contact me for more details on the Dolphin Trust 2 year and 5 year fixed yield investment opportunities.