Cash Faktor GMBH

Company information:

Company incorporation date: October 2009
Investment term: Projected Return of 90% of investment capital after 7 years and remaining 10% held indefinitely, paying a dividend.

Minimum Investment: €100,000 (Closed for Investment)
Investment rationale: Income generation

Cash Faktor GmbH (“the Company”) has been established and structured to provide tax-efficient returns to investors on a quarterly basis.

Investors are projected to receive returns in three phases:
Phase 1: 6% of the shareholder’s loan per annum, paid for 7 years tax-neutrally, immediately followed by:
Phase 2: The entire value of the shareholder’s loan returned, in turn followed by:
Phase 3: An annual dividend thereafter, funded by 80% of the Company’s free cashflow and paid out pro-rata on the remaining equity in the Company.

It is intended that investor returns will be funded by long-term contracted income streams from the German state and/or other similarly low default risk corporate entities in Germany.

Investments will be combined with bank finance (intended to be fixed or capped at 2009’s unprecedented low levels) to acquire assets – at historically-high rental yields – that are contractually leased by carefully-selected covenants of high credit standing. Investments will be classified for tax advantage as a combination of straight equity and shareholder’s loan in the ratio 10:90.

DIY Store, 33154 Am Hohen Weg 1, Salzkotten, Paderborn

Cash Faktor purchased in August 2010 a €6.4 million DIY store in the Salkotten suburb in the city of Paderborn.  Built in 2008, this 6400m² store with garden centre is one of the 1000 Hagebau-branded stores in Germany.  The solid covenant lease runs to 2023.  The asset was acquired at a gross initial yield of 9%, generating a positive cashflow from which to comfortably manage the projected returns of 5.4% per annum to Cash Faktor investors.

In April 2011 Augusta purchase a second supermarket in Bad Driburg, Germany which was purchased with spare funds in the Cash Faktor Syndicate.  This supermarket, located near Paderborn, is 1015m² and has a lease of 15 years.

Great Paderborn is an affluent area with an (uncharacteristically for Germany) young demographic profile.  Good demographics, strong purchasing power and a healthy balance between urban and rural zones around the store make it an ideal catchment for a DIY business.  The micro-location is excellent, on the busy B1 road and adjacent to several other key retailers for the area.