Type:Commercial/Bulk Investments
Price:
$59,700 |
€50,000 |
£41,700 Disclaimer: Exchange rates can fluctuate. All investments sold in local currency. Area: Stuttgart Location: Ulmer Str 300, Stuttgart Baden Württemberg, Germany, 70327
An opportunity to purchase the former Head Office of a €200M turnover company in Stuttgart. It is in an excellent location, benefits from the economic strength of Stuttgart (GDP exceeding Finland), and is close to the city centre and the Mercedes Daimler headquarters.
This property was recently re-developed and now contains eleven office units and which have been let to a strong mix of service companies. There is a total of 15,200 sq ft of rental space divided between 11 units across 4 floors. Target rental yields are 6.7% with 62% financing (net of all closing costs & fees).
Haus Favorit has an exceptional location within 10 minutes drive to city centre and 5 minutes from the Mercedes-Daimler headquarters, the Mercedes Museum and Neckar soccer stadium. There is a lack of both office/commercial property and new high quality apartments in this and area and the re-development project is targeted at addressing that need.
Description :
This is a syndicated portfolio of German properties which are being sold under one structure. The minimum investment is €50,000.
These are low risk and extremely lucrative medium term investments. The best feature is that you aren´t betting on the price of the real estate to increase - it´s more a case of purchasing with a 7% yield, paying down the capital and interest on the commercial mortgage, increasing rents by 1% or so per year and selling onto another party who needs a 7 or 7.5% rental yield.
That´s enough to generate a 70% return on an equity deposit of 35-38%. The key is to invest prudently with both solid tenants & managers in place and to have a clear exit market and timeframe.
These are ideal for people who want to put aside some money now that they can access closer to retirement in 5, 10 or 15 years.
• Complete a simple registration of interest form, without commitment.
• Once preliminary legal documents have been issued, a 10% deposit is payable to our solicitors escrow account. This deposit is repayable in full if the investor withdraws in writing within 30 days.
• Remaining 90% would be due on full completion, typically 2-4 months after reservation.
• The investors will receive management updates a minimum of twice per annum
Investment Rating :
There is potential to increase rents beyond the levels projected because the marketing plan has been to offer attractive rents at the start for the first lettings following recent re-development and to then increase the rents as leases expire and as the development in the vicinity is completed. Higher rent increases will obviously enhance future exit price.
Within the next 2 years there will be a major influx of activity in the vicinity of Bau Favorit with an adjoining commercial building of 2300m2 targeted at larger businesses requiring 500m2, a new REWE supermarket directly across from Bau Favorit (tenant already secured), and 3 separate high quality apartment developments of 12 units, 22 units and 60 units plus 2 underground car parks. The smaller apartment blocks are under construction and already have a high % of presales due to the demand for this area. The larger development is expected to be completed 2012- 2013.
Further Information :
Please complete the short enquiry form below if you wish to receive further information.
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