BOND 8 (E2025)

Comparison of Bonds: BOND 6 (E2025) and BOND 8 (E2025)

Both bond issues, Bond 6 and Bond 8, are offered by the same issuer, VMT Bond GmbH, and have the same business model based on investments in German real estate, as well as an identical maturity date — December 31, 2030.

However, they differ significantly in terms of yield and entry conditions, making them suitable for different investment strategies.

Key Differences

Which investor is each product suitable for?

• BOND 6 (E2025) is the optimal choice for investors who want to start investing with a more affordable amount. With a minimum investment of 5,000 EUR/CHF, you receive a stable income of 6% per annum with regular quarterly payments.
• BOND 8 (E2025) is an offer for larger investors willing to invest from 100,000 EUR/CHF. In exchange for a higher entry threshold, this product offers significantly higher returns – 8% per annum, which provides a more substantial passive income from your investments with the same business model and maturity date.

Conclusion: The main difference lies in the “risk-return-entry threshold” ratio. Bond 8 offers premium returns for investors with larger capital, while Bond 6 makes participation in VMT Bond GmbH projects more accessible to a wider range of investors.

About the Issuing Company and Its Activities

VMT Bond GmbH is an Austrian company based in Vienna, specializing in financing development projects in the German real estate sector. The company’s business model is based on raising capital through the issuance of targeted bonds with subsequent investment in carefully selected properties with high value growth potential.

The funds raised from the issuance of BOND 6 E2025 bonds are directed toward the implementation of a specific, clearly defined project.

Target Project: Resort Complex on Rügen Island

The project includes the acquisition and renovation of a resort property on Rügen Island—a popular Baltic resort in Germany.

• About the property: The building was constructed in 2005. The land plot area is 770 m², the rental area of the premises is 482 m².
• Address: Strandstraße 15, Göhren, Germany.

Project Strategy is designed for 36-48 months and includes:

1. Division of the existing complex into separate apartments for subsequent retail sale.
2. Obtaining rental income from leasing the property during the project implementation, which will provide additional cash flow.

Financing Mechanism: VMT Bond GmbH (the issuer) provides the raised funds as a loan to a specially created German project company, which will directly manage the property. To secure this loan, a land pledge (Grundschuld) on the acquired real estate is registered in favor of VMT Bond GmbH.

Thus, this bond gives investors the opportunity to receive fixed income from participating in the financing of a transparent and tangible development project in one of the most stable real estate markets in Europe.

Details about the Property and Project (Rügen Island)

1. Physical characteristics of the property:

• Exact address: Strandstraße 15, Göhren, Rügen Island, Germany. https://maps.app.goo.gl/6ryrvKnJ9vQaUnPy8
• Year of construction: 2005.
• Land plot area: 770 m².
• Rental area of premises: 482 m².

2. Financial parameters of the project:

• Acquisition cost: 2.2 million euros.
• Purchase financing structure: According to the prospectus, the purchase and renovation of the property will be financed from three sources:
  • Phased payments from end buyers of apartments.
  • Bank loans.
  • Funds from the issuance of these bonds.

3. Structure and security of the transaction:

• Project company: The property will be acquired and managed by a specially created project company (classic project financing model).
• Financing mechanism: VMT Bond GmbH (the bond issuer) provides the raised funds to the project company in the form of a subordinated profit-participating loan.
• Security in favor of the Issuer: To guarantee the repayment of the loan, a land pledge (Grundschuld) on the acquired real estate is registered in favor of VMT Bond GmbH. This mechanism secures the issuer’s claims to the project company.

4. Strategy and Implementation Timeline:

• Project implementation period: The project is planned to be completed and sold within 36-48 months.
• Issuer’s profit mechanism: Upon completion of the project, the project company repays the loan to VMT Bond GmbH with interest. Additionally, the issuer receives 85% of the profit generated by the project company. These funds are used for coupon payments and bond principal redemption to holders.