INVESTMENT

PARAMETERS

A family unit sized 63m2 became of interest because of its potential to be transformed from an uninhabitable dwelling to a cozy family home.

The first challenge was funding during the prevailing economic environment : COVID-19.

The second challenge was to manage investor capital intelligently so that no money was wasted on the renovation.

Walker Capital solved both these issues by sourcing low cost debt from major institutions, then working with contracts to secure the best deals. The result was an epic property that sky rocketed in price during the time of sale.

2000 (COVID-19)

Year of Entry

3.5 YEARS

Investment Horizon

20% / 80%

(Investor Equity / Mortgage Debt)

Capital Stack

5x

Leverage

INVESTOR

RETURNS

3.08x

Equity Multiple

12.1%

Unlevered IRR

38,700 €

Equity Invested

119,322 €

Net Exit Proceeds

In September 2020, the property was purchased at 171,000 € and the cost of renovations came out to 19,012 €.

The value-add improvements to this property were resurfacing the beautiful parquet floors, installing a brand new kitchen with modern appliances, overhauling the bathroom configuration entirely (including demolishing a wall), leveling the floors in two rooms, converting a window to a door, and installing a rooftop terrace.

The project benefited from local tax-law benefits prevailing at the time due to COVID: No purchase tax, and no sales tax. Over the holding period of 3.5 years, we forced appreciation worth 42% of the property value.

At the time of sale in September 2023, the property was sold within two months for 295,000 €. Our investors were paid back all their original capital, worth 38,700 € and the investment turned 119,322 € in profit. It was all reinvested into the next Walker Capital project.

PHOTO GALLERY

AFTER

Extensive renovation work was done on the property including demolishion of walls, relocation of doors, and rerouting of electric wires.

The rooms benefitted from improved layouts, releveld floors, new furnishings, and beautiful design.

Livability was improved by transplanting the kitchen into the open living space, converting a window to a double-swing door leading to a brand new roof terrace worth 20m2.

These upgrades are a form of forced appreciation which helped bring up the initial purchase price of 170,000 € to the successful sale price of 295,000 €.

PHOTO GALLERY

BEFORE

The property needed lots of work. The bathroom wall was moved in order to open up space for the new laundry unit. A wall inbetween the toilet and the bath had to come down to accomodate a brand new walk in shower.

Electric wires had to be transplanted as a result. In order to modernize the flat, the kitchen was moved to the main room and therefore water pipes had to be relocated.

The flat was purchased for its immense redevelopment potential.

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