Investing in Berlin: IdealWert AG, a real estate company with over 20 years of experience on the Berlin market, is offering foreign investors a "risk-sharing partnership" as a means of investing in residential or mixed residential-commercial property portfolios there.
In this kind of investment, the foreign investor contributes the main share of the total investment while the partner - in this case IdealWert - contributes a significant amount of money as well as the know-how and manpower to finance and execute the project.
At the beginning the intended minimum return on investment, usually between five and six per cent, is defined by both partners. Until this threshold is reached, the investor exclusively profits from any earnings while the partner (IdealWert) shoulders the entire risk and does not participate in the profits.
Only when the threshold is crossed (when the investor has already achieved their minimum objective) IdealWert receives a disproportionately high share of the profits.
The advantage of this kind of partnership for investors, according to IdealWert, is that the investor's own risk is significantly reduced because the partner shoulders most of the risk. Second, it says, the investor can be sure that the project is promising enough for a local company to participate in.
As a co-investor rather than a consultant, IdealWert "shares the investor's interests as an owner of the property involved. This guarantees that both act in concert and the investor knows that their partner is as interested in the project's success as they are", according to a spokesman.
In this way, IdealWert AG's concept makes it easier for potential foreign investors to enter the Berlin and German real estate markets.
IdealWert AG is a Berlin-based real estate service company that deals with property owned by its shareholders.
The company's services range from market research to inquiries into potential transactions, the preparation of contracts, financing, management, renting, planning and co-ordination of construction to the preparation of a sale using their own manpower.
While it is based in Berlin, its portfolio, includes properties in many German cities .
