A mixed-use building in the suburbs of Dusseldorf, Germany

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A mixed-use building in the suburbs of Dusseldorf, Germany

10,500,000 €
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  • Yield
    6.6%
  • Built in 
    1974
Details
Property parameters
  • Land area: 11,589 m²
  • Number of parking lots: 291
Financial performance
  • Annual income: 696,607 €
Tenants
  • Fully let
Property status
  • Most recent total renovation: 2018
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 6.5%
  • Broker: 5.0% + VAT

A multifunctional center in the suburbs of Dusseldorf.

Description

The property includes:

  • shopping center
  • media library
  • fitness center
  • underground parking (213 places)
  • ground parking (78 places)

Financial performance

The absolute annual income is 696,607 €.

The current yield of 6,6%.

The projected absolute annual income is 728,707 €.

The projected yield of 6,9%.

Tenants

The anchor tenant is the city administration (media library).

The lease agreement is valid until 30.09.2036 + extension options 2x5 years.

The 2nd tenant is a large international retail chain of fixed prices, with more than 300 stores and 11,000 employees in Germany.

The lease agreement is valid until 30.06.2027 + extension options 3x5 years.

The 3rd tenant is a German non-food retail chain. The company has more than 1,400 stores in Europe.

The lease agreement is valid until 30.11.2020 + extension options 5x3 years.

The 4th tenant is a German clothing stores chain. The company has more than 3200 stores in Europe.

The lease agreement is valid until 31.08.2026 + extension options 3x5 years.

The 5th tenant is a fitness center.

The lease agreement is valid until 30.09.2026 + extension options 4x5 years.

Transaction costs

Notary (state registration) is 1,5 – 2%.

Acquisition tax is 6,5%.

Brokerage fee is 5% + VAT 19% (tota 5,95%).

Location

The building is located in the suburbs of Dusseldorf. The population of the city is more than 35,000 people.

Düsseldorf is the administrative center of the federal state of North Rhine-Westphalia. The population of the city is more than 610,000 people. An increase in the city’s population to 645,600 is projected by 2030.

Düsseldorf is one of the most economically developed cities in the Rhine-Ruhr region due to its location in the center of the largest metropolitan area, the presence of the rd largest international airport in Germany and the exhibition center.

There are the headquarters of many large companies here, including E. ON, Henkel Group, Vodafon Germany Metro AG, Rheinmetall, Degussa, NRW. Bank, WestLB, E-Plus. In Düsseldorf Daimler manufactures Mercedes-Benz Sprinter, Volkswagen AG — VW Crafter.

  • Property on the map
    Location right down to the building, street or city

Tranio helps to manage property after purchase

Our local team at Tranio in Germany will take up property management or recommend professional German partners.

The terms and conditions of our engagement depend on the condition and location of the property and are to be discussed in each particular case.

Find out more
  • icon Property maintenance and insurance
  • icon Search for tenants, contracting, and control over rent collection
  • icon Arrangements for bookkeeping and tax advice

Сonstruction loan as an alternative to commercial property investment

Developers with a good track record that give warranties or procure a record in the land register.

There is no need to incorporate a legal entity or open an account in Germany.

No extra charges to maintain or operate the property.

Comparing a mixed-use building purchase with a construction loan

Investment vehicle
Mixed-use building
Construction loan
Yield per annum
6.6%
8—10%
Investment budget
10,500,000 €
from 300,000 €
Buying expenses
10—15%?
  • 1 – 1,5 % — lawyer
  • 2,3 – 3,2 % — notary and state registration
  • 3,5 % – 6,5 % — acquisition tax
  • 3-6% + VAT — broker's fee

Percentage of the property value

0—2%?

The expenses on an independent legal review of the project

Investment term
from 5 years
to 3 years
Risk level
Low
Moderate
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