With your investment, you participate in real estate projects in Rwanda & Tanzania.
Warning notice pursuant to Sec. 12 para. 2 sentence 1 of the German Investment Act (VermAnlG)
The acquisition of this participation involves considerable risks and can lead to the complete loss of the assets invested.
- Market growth highly above average
- Investment ratio: 90.1 %
- Semi-annual payouts
- First capital repayments starting in 2026
- High earnings potential
- Politically and economically stable markets
- Equity ratio: 100 %
- Diversification into various real estate projects
- No additional capital contributions
The Investment objective is to achieve an above-average return by an operative engagement in real estate project developments in Rwanda & Tanzania. Simultaneously, a high level of security shall be achieved. The cash flow shall be used for semi-annual distributions.
Prospective Asset Allocation
The Rwandan & Tanzanian real estate markets hold several opportunities to achieve above-average returns. Our overall strategy is to provide real estate that is in demand with the people, which implies that we develop real estate with a view on lower costs.
With regard to investment locations, we are focusing on Kigali, Rwanda, and Dar es Salaam, Tanzania. These metropolises are growing very fast and there is a strong middle and upper class with significant higher income than, in particular, in rural areas. The hospitality sector provides opportunities across these cities and potentially in leisure hot spots such as Zanzibar or Arusha (gateway to northern circuit parks).
Rwanda has seen less real estate investments than Tanzania and enjoys greater margins across various asset classes. However, Rwanda is only a small country and, therefore, we will concentrate the bulk of investments in Tanzania, with the balance of exposure in Rwanda.
The portfolio shall comprise several real estate sectors with differing priorities:
- First, we hold investments in the retail sector as attractive, because we have identified an increasing demand in more sophisticated shopping opportunities. This also leads international retail firms to enter Rwanda & Tanzania and demand retail spaces.
- Second, Tanzania’s hospitality sector is very attractive. With the Serengeti, the Kilimanjaro and its eastern coast, including Zanzibar, the country has natural treasures that are in high demand with tourists. The touristic landscape still leaves plenty of room for further development.
- Third, the residential sector is promising above-average returns in certain areas due to the fast growing population and its increasing affluence. Our focus will include some exposure to the student housing sector.
- Fourth, the office sector currently does not show a shortage in supply. However, we have an opportunistic strategy. We have an eye on attractive entry opportunities and are also open to develop customised office space on behalf of companies.
- Fifth, the health sector is still not yet far developed. We are aiming at partnering with international or leading local operators from the health sector and public authorities to provide needs-orientated real estate.
- Sixth, the demand in the education sector is growing. Although we do not expect above-average returns, we intend to realise 1-2 projects in this sector to make a contribution to the common good, as far as at least a positive return can reasonably be expected.
We are aiming to develop new properties and to further develop already existing properties. Developing new properties brings the opportunity to pointedly meet demand at specific locations. We have also identified existing properties that show an attractive upside potential and will generate a cash flow from the beginning.
Finally, we work with 100 % equity capital. This does not only optimise the risk structure, as there is no debt capital (leverage) risk. We also have a competitive advantage as other market actors, who work with debt capital, must either bear high local interest rates (the average rate is around 15 % p. a.) or a foreign currency risk, if the loan is taken out in a foreign currency.
The Issuer provides equity capital to the property companies and builds up a liquidity reserve. Investments will be made with 100 % equity capital. Thus, no debt capital risks arise.
The property companies invest their capital in real estate projects in Rwanda & Tanzania. They acquire rights in land and develop properties.
Current income is distributed to investors on a semi-annual basis. The first property sales and capital repayments to investors are planned from 2026 onwards.
In the development of real estate projects we work together with well-known and established local and international companies in order to meet the highest quality standards.
External Monitoring of the Use of Funds
Trust is good, monitoring is better. In order to meet the highest quality standards, we have concluded an ambitious agreement with Rödl AIF Verwahrstelle GmbH Steuerberatungsgesellschaft on the external Monitoring of the use of funds. On the basis of this agreement, we are voluntarily subject to the kind of monitoring that is legally binding for AIF. The agreement runs for the entire term of the investment. An annual report on the proper use of funds must be published on our website and at the partners’ meetings.
Key Data on the Participation
|Issuer||MLC Properties East Africa GmbH & Co. KG, Gartenstr. 27, 61352 Bad Homburg v. d. Höhe, Germany|
|Legal form||German limited liability partnership within the meaning of Sec. 161 para. 1 of the German Commercial Code (HGB)|
|Type of participation||Equity participation in the form of a limited partnership interest|
|Name of participation||MLC Properties East Africa|
|Investment objectives||The investment objective of the Issuer is to achieve an above-average return through limited partnership participations in the property companies, which, in turn, operate in the field of real estate project development in Rwanda & Tanzania. At the same time, a high level of security shall be achieved.|
After the end of the subscription phase, semi-annual distributions shall be made to investors from the Issuer’s cash flow. Gradual repayments of the capital stock due to property sales are planned from 2026 onwards.
|Ways of participation||Indirect participation via the Trustee (recommended) or direct participation|
|Trustee||MLC Properties Treuhand GmbH, Gartenstr. 27, 61352 Bad Homburg v. d. Höhe, Germany|
|General Partner||MLC Properties East Africa Management GmbH, Gartenstr. 27, 61352 Bad Homburg v. d. Höhe, Germany|
|Minimum contribution||10,000 €; higher amounts must be divisible by 1,000 without remainder|
|Current fees and up-front profit||Management fee for the General Partner:|
until 2026: 1.6 % of the average net asset value p. a. (incl. VAT)
from 2027: 1.3 % of the average net asset value p. a. (incl. VAT)
Performance-related up-front profit for the General Partner:
20 % of the excess return. Surplus yield is the yield by which the actual yield of the Issuer exceeds an annual yield of 6 % of the unit value. See the sales prospectus for further details.
Fiduciary fee for the Trustee:
0.1 % of the average net asset value p. a. (incl. VAT)
|No additional contributions||There is no obligation to make additional contributions.|
|Total amount of the offered investment||€ 74,200,000|
|Duration||31 December 2030, with the first gradual repayments of the capital stock due to property sales planned from 2026|
|Profit participation||Investors participate in the Issuer’s commercial and tax results.|
|Distributions||Semi-annual distributions after the end of the subscription phase on the 15th of June and December.|