1. Share in Germanys No.1Residential Property Portfolio 2012

2. WHY PUT ALL YOUR MONEY INTO ONE PROPERTYwhen you can join together with like minded investorsand purchase the whole building at a lower pricewith higher returns. 3. Agenda Introduction German Property Market Properties acquired 2011 Portfolio description Investment features Investment model ROI Projections Propfunds role EURIX Group Getting startedShare in Germanys No.1 Residential Property Portfolio2012 4. The idea is very simple Where an individual investor could purchase one apartment in Germany for 140,000 with a rental yield of 5.5% and with a 60% mortgage, Propfund Germany would bring all these investors together to purchase the entire building resulting in the same apartment being purchased for 100,000 with a rental yield of 8% with an 80% mortgage. With this model Propfund investors make a lot more money with little or no involvement compared to investing privately themselves.Share in Germanys No.1 Residential Property Portfolio 2012 5. ReturnsForecasted dividend of 7-10% per year. 170% return in 10 years timeInvest 50K in Germany and Make 170% ROI Your Exit Amount: 135,000Share in Germanys No.1 Residential Property Portfolio 2012 6. German property market 7. Germany The Worlds most stable property economy German Real estate market is very active with institutional investorsEconomic growth in 2011 3% GDPUnemployment levels are fallingInvestor confidence very strongHigh rental occupancy levels in major cities84% rental occupancy in BerlinProperty Prices and Rents continue to riseNo.1 residential property investment market in the worldShare in Germanys No.1 Residential Property Portfolio2012 8. What the media says in 2012German residential sector is regarded as a secure investment CBREApartment costs up by around 8% in 2011 GSW Immobilien The most dynamic rent market is in Berlin, where prices rose by 9%Jones Lang LaSalleHousing prices rose by 5.5% last year more than twice as muchas in 2010.TD InternationalAnalysts expect prices for German real estate company shares to rise by 5-15% over the next twelve monthsDr. ZitelmannShare in Germanys No.1 Residential Property Portfolio 2012 9. Housing price development is healthy DB Research expects a further rise in the price of housing in Germany. Prices for houses should rise by 3% annually until 2015, condominiums by even more. No talk of a bubble: Historically and in terms of disposable income, housing remains attractively valued and thus, even with price increases of 5% per year through 2015, there is no threat of overheating. Over the long term, prices are not likely to go through the roof because of both the regulatory environment, which has a moderating effect on rent, and the demographic trend, which, in less than ten years, will have a negative influence on prices.Share in Germanys No.1 Residential Property Portfolio 2012 10. Berlin housing market Properties are valued as a multiple of the rental income Property Prices and Rents are low in Berlin and rising Berlin is a population of tenants 84% of Berliners rent Germanys capital city has huge potential for growth!Share in Germanys No.1 Residential Property Portfolio 2012 11. Properties acquired 2011 12. Propfund Germany 1- Subscribed in 2011With the combined equity of 80 investors in 2011, Propfund 1acquired 6 portfolios totalling 240 units, bringing the totalacquisitions to 12,602,500 with an exciting rental yield of 9,4% 240 properties & 27 car spaces Portfolios purchased for 12,602,500 Current portfolio value (12.5) 14,800,000 Acquired 20% below current market value External bank financing 85% LTV Average apartment price 53,072 (744/sqm) Rental income 1,187,233 Rental yield 9.4% Rental Occupancy 98% Cash surplus pa 287,670 Profit 7.4% pa equity invested Dont miss your chance in 2012!Share in Germanys No.1 Residential Property Portfolio2012 13. PROPFUND GERMANY 2Open for investments, April 2012 14. Portfolio Description Residential apartment blocks Over 500 units worth over 30,mil 8% average rental yields Low purchase prices 12.5 times the annual rent No renovation required All buildings tenanted Immediate income generating portfoliosShare in Germanys No.1 Residential Property Portfolio2012 15. Investment Features Invest via a SIPP or as a Private investor Invest from 30,000 German Federal Financial Authority approved Low purchase prices 12.5 times the annual rent 10,mil in Private Equity and 20,mil in bank financing Returns paid to investors yearly forecast 7%-10% per annum Investors can expect to earn 170% ROI over 10 years Safe and secure investmentShare in Germanys No.1 Residential Property Portfolio 2012 16. Investment model & ROI projections 17. Investment Model Stage SIMPLE STAGES3 1: Purchase the property Apartment block for sale 1,000,000 (10 apartments at 100,000/apt) If purchased individually 140,000/aptPurchase Annual rental income: 80,000 (Purchase factor is 12.5 times annual rental income) Investment based on a purchase price of 1,000,000 plus 10% closing costs. Factor 12.5 80% bank financing + 20% private equity Stage 2: Manage the portfolio each year Collect the annual rent: 80,000 (increase by approx 2%-3% per annum - 100,000 after 10 years) 7% ROI Manage all the annual costs: 59,000 per annum Generate the annual cash surplus: 21,000 (grows as rent increases per annum)Each year Shareholder payout each year = minimum forecast 21,000= 7% of the 300,000 private equity Stage 3: Resell the property after 10 years 2%-3% increase in rent pa = 20%-30% increase in Property value over 10 years 100% ROI Mortgage balance reduced by approx. 20% over 10 years Property resale value: 1,300,000 (strategy is to resale the portfolio for a price 13 times annual rent)in 10 yrs. Profit from sale of the portfolio: 300,000 after all closing costs (210,000 over 10 years = 70% ROI) + (300,000 = 100% ROI) = (510,000 = 170% ROI)Share in Germanys No.1 Residential Property Portfolio2012 18. Creating wealth for investors Invest 50,000 Earn an average dividend of 3,500 per year for 10 years. (7%pa) PLUS 50,000 lump sum after 10 years PLUS your initial investment back Thats a total of 135,000!Share in Germanys No.1 Residential Property Portfolio 2012 19. Investment examplesShare in Germanys No.1 Residential Property Portfolio 2012 20. Role of Propfund To set up the legal construction to enable multipleinvestors in to invest together To obtain approval from the German regulator tooffer the fund To raise the private equity from multiple privateinvestors and SIPPs To source, negotiate, and purchase the properties To complete all the due diligence and organise thebank financing To manage all the properties and collect the renteach month To co-ordinate any maintenance or refurbishmentrequired To perform annual tenant reviews and increase theincome from the portfolio each year. To sell all the properties on completion of the fund To pay annual dividends to investors and profits fromthe sale of the portfolio after 10 yearsShare in Germanys No.1 Residential Property Portfolio2012 21. The EURIX Group 22. EURIX GroupPropfund Germany is part of the EURIX Group Real estate Investment since 1996 Founded by Marco Knoblauch and Detlef Martin approx 20 staff Head office Berlin. Offices in London, Dublin & Zurich Expertise in Property Acquisition, Investment and Asset Management 3 Syndicated Property Funds under management Over 1000 properties under management in Berlin. (300 units Group owned) Real Estate partner of Germanys largest network of Financial Advisors Member of the German Real Estate AssociationShare in Germanys No.1 Residential Property Portfolio 2012 23. EURIX GroupShare in Germanys No.1 Residential Property Portfolio 2012 24. SummaryBy investing in Propfund Germany 2, you benefit from: Lower Purchase Prices Better finance conditions Higher rental yields Lower risk No hassle, Fully Managed investment Multiple Investment options Excellent Returns!Forecasted dividend of 7-10% per year.170% return in 10 years timeInvest 50K in Germany and Make 170% ROIYour Exit Amount: 135,000Share in Germanys No.1 Residential Property Portfolio 2012 25. Joining the Fund 26. Getting Started Read a copy of the investment prospectus. Decide the amount youwould like to invest. Complete the Investment Instruction and return this to your advisor. The Trustee signs the necessary documents and returns copies ofthese to the investor. Once you have received the documents you need to transfer the fundsto the Propfund bank account. Receipt of funds is first confirmed by email. Once the 14 days coolingoff period has expired, confirmation of funds along with a sharecertificate is sent to you by post, this completes the investment process.Share in Germanys No.1 Residential Property Portfolio 2012 27. Thank YouPropfund Germany 2 GmbH & Co. KG Friedrichstrae 82, 10117 Berlin-MitteT: +49 30 499 05 09 50 E: info@propfund.comShare in Germanys No.1 Residential Property Portfolio 2012