Energy-efficient building renovations play a key role in Germany’s climate protection efforts. The building sector accounts for approximately 35% of the total final energy consumption in Germany. Therefore, it is crucial to reduce energy consumption through effective renovation measures. According to the Climate Protection Act, Germany aims to achieve greenhouse gas neutrality by 2045 at the latest. To accomplish this goal, the building sector must also become fully climate-neutral by 2045. To achieve this, the annual renovation rate would need to increase from the current rate of about 0.7% to 1.7-2%.

Energy-efficient renovations can significantly reduce CO₂ emissions – the building sector has already achieved a reduction of about 43% since 1990 – and also reduce energy costs for residents and businesses alike. Modern insulation, efficient heating systems, and the use of renewable energy, as planned in this project, contribute to a sustainable and future-proof building stock.

The loan is intended to partially finance the energy-efficient renovation of two properties in Treuen and Lengenfeld as part of the “Living & Business Vogtland” project. Additionally, the electrical infrastructure for solar panels and the installation of wall boxes (charging stations for electric vehicles) will be prepared and later implemented using internal funds. Both properties are fully leased and generate consistent revenue.

Given the growing importance of energy-efficient construction projects in Germany, this initiative contributes to the sustainable development of the real estate market and promotes future-proof residential and commercial spaces.

The “Living & Business Vogtland” project goes beyond mere renovation: by preparing for solar panels and charging stations for electric vehicles, an infrastructure is being created that not only improves the buildings’ energy balance but also promotes the use of renewable energy. This is a crucial step towards advancing the mobility transition in Germany and further reducing CO₂ emissions. Tenants will benefit in two ways: firstly, through an attractive tenant electricity offer, and secondly, through reduced service charges due to increased energy efficiency.

Hörning’s business model actively contributes to 4 of the United Nations’ Sustainable Development Goals (SDGs):

The energy-efficient renovation of the properties and the preparation for the installation of solar panels improve energy efficiency, increase decentralized independent power supply through a high share of self-generated electricity, and promote the use of renewable energy. This leads to reduced energy consumption and a decreased reliance on fossil fuels, making the energy supply more sustainable and cost-efficient (Goal 7.3). Additionally, CO₂ emissions are reduced (Goal 13), contributing to the fight against climate change.

The energy renovation not only enhances energy efficiency but also improves indoor air quality, leading to healthier living conditions. Better insulation and modern heating systems reduce moisture and mold growth, positively impacting residents’ health (Goal 3.9).

Moreover, the renovation of the buildings improves the ecological footprint of the cities of Treuen and Lengenfeld. The implementation of energy-efficient measures supports the development of environmentally friendly and future-proof urban infrastructures, which enhances the quality of life for residents and contributes to sustainable urban development (Goals 11.1 and 11.6).

CO2 Savings for the Property in Treuen

A photovoltaic system is being installed on the building at Hauptstraße 35 in Treuen, generating an annual income of €5,184. The electricity produced will be offered under the tenant electricity model at a price at least 10% below the local average. The system will generate 14,811 kWh of electricity annually. Since each kilowatt-hour produced by the PV system saves 434 grams of CO2, the annual CO2 savings amount to 6.4 tons.

Additionally, energy efficiency measures to reduce heating energy consumption are being implemented. The heated area of the building is 638 square meters, which, based on a standard consumption of 80 kWh/m² for buildings constructed in 2015, results in an annual heating energy consumption of 51,040 kWh. This consumption generates 22 tons of CO2 emissions per year. The implemented measures are expected to reduce heating energy consumption by 10%, resulting in an additional annual CO2 saving of 2 tons.

In total, the combination of the photovoltaic system and energy efficiency measures leads to an annual CO2 saving of 8.4 tons.

CO2 Savings for the Property in Lengenfeld

At the building located at Am Markt 5 in Lengenfeld, a photovoltaic system will also be installed, generating an annual income of €4,725. The electricity will be offered under the tenant electricity model at a price at least 10% below the local average, producing 13,500 kWh of electricity annually. This electricity production results in an annual CO2 saving of 5.8 tons, as each kilowatt-hour generated by the PV system saves 434 grams of CO2.

Additionally, energy-saving measures will be implemented to reduce heating energy consumption. The heated area of this building is 570 square meters. With a standard consumption of 80 kWh/m² for buildings built in 2015, the annual heating energy consumption amounts to 45,600 kWh, which corresponds to 19.8 tons of CO2 emissions per year. The renovation measures will reduce heating energy consumption by 10%, resulting in an additional annual CO2 saving of approximately 2 tons.

Overall, the building at Am Markt 5 in Lengenfeld will achieve an annual CO2 saving of 7.8 tons.

Total CO2 Savings

Through the energy-efficient renovation and installation of photovoltaic systems in the properties in Treuen and Lengenfeld, a total of 16.2 tons of CO2 will be saved annually. Over a period of 5 years, this amounts to a total CO2 saving of 81 tons. These savings contribute significantly to reducing greenhouse gas emissions and promoting climate protection.

The investment risks associated with the subordinated loan are described in detail in Section 5 of the VIB (Investment Information Sheet) and in the risk disclosures. The measures taken to mitigate these risks are explained in this section:

For this funding, a special-purpose vehicle (SPV) was not utilized, as the borrower is an established company with significant assets and a high equity ratio.

The rental income from 18 properties in the portfolio of Markus Hörning GmbH is available for repayment to the crowd investors. Additionally, the loan is a qualified subordinated loan, and due to legal regulations, it is not permissible to provide direct securities in favor of the investors for this type of loan.

This financing plan includes the projected cash flows for Hörning GmbH, covering the receipt, initial use, and repayment of the loans.

Investment Requirements

The loan amounting to €516,350 is intended to finance the energy-efficient renovation of two properties in Treuen and Lengenfeld. The loan has a term of 5 years and offers an annual interest rate of up to 8.0% for crowd investors. Investors who invest in the project within the first two weeks will receive an additional early bird bonus of 0.5% per annum (for a total of up to 8.5% per annum). The funding threshold for this project is set at €50,000. If the funding target is not reached but at least the funding threshold is met, the project owner will still invest the investor funds in the energy-efficient renovation of the properties.

Repayment

The repayment of the loan will be made from the rental income of the residential and commercial units, as well as additional rental income from the property portfolio and the equity of Markus Hörning GmbH.

Interview with Markus Hörning, Managing Director of MH GmbH

bettervest: Hello, Mr. Hörning, it’s great to have you back! How have you experienced the last seven years?

Markus Hörning: Thank you! It has been a turbulent time, especially in the real estate sector. We saw a boom, followed by a downturn, particularly in metropolitan areas. However, we have developed steadily—our property portfolio and revenues have continuously increased. Through long-term planning, stable partnerships, and the establishment of our own team, we have managed to overcome challenges such as rising material costs.

bettervest: Do you remember our first joint project?

Markus Hörning: Of course! It was the energy-efficient modernization of two residential buildings with a funding amount of €147,450. For us, it was our first crowdfunding experience, and it went smoothly— including early repayment and a successful sale.

bettervest: What is your current perspective on crowdfunding?

Markus Hörning: Crowdinvesting is an essential part of our financing. It allows many people to benefit from our projects and serves as a democratic vote on our success. This form of financing remains very relevant for us.

bettervest: Why choose crowdfunding when you could also finance through your bank?

Markus Hörning: The bank is always involved, but the mezzanine capital from crowdfunding strengthens our liquidity and enables us to pay directly—this secures lower prices. The higher capital costs thus pay off in the long run.

bettervest: What is special about your two current residential properties?

Markus Hörning: Both buildings are historic structures from the Gründerzeit era that have stood in Vogtland since the industrial revolution. Their condition is good, and they are already rented out. We focus on energy-efficient renovations, electrical systems, insulation, and self-generated electricity. The goal is to make the buildings fit and modern for the long term.

bettervest: How sustainable is your company?

Markus Hörning: We pay attention to durable construction and sustainable materials. In 2023 and 2024, we received the EcoZert for compliance with ESG criteria, and the German Institute for Innovation has recognized us as an “Employer of the Future.” We are also active socially, with a special focus on children and youth—our future.

bettervest: Thank you for the interview, Mr. Hörning!

Markus Hörning: Thank you! We look forward to the next funding round and are excited to see how our seventh year unfolds!