A hotel under construction with a street retail in Pforzheim.
The area of the hotel is 3,800 m², the area of the store — 205 m².
Deal type: Forward deal.
The absolute annual income is 744,480 €.
The current yield is 4,5%.
The tenant is one of the largest hotel chains with several hundreds hotels worldwide.
The lease agreement is valid for 20 years + extension options 2х5 years.
Notary (state registration) is 1,5 – 2%.
Acquisition tax is 5,0%.
Brokerage fee is 5% + VAT 19% (total 5,95%).
The hotel is located in the city of Pforzheim (the federal state of Baden-Württemberg).
The city's population is more than 120,000 people. In Pforzheim/ Karlsruhe agglomeration live about 650 thousand people.
Pforzheim is located between 2 major cities — Karlsruhe and Stuttgart.
Pforzheim is well known for its jewelery and watches workshops. Other developed industries: precious metals processing, engineering, information and educational services.
Key companies: Aktivbank AG, Allgame Gold-und Silberscheideanstalt AG, Binder FBM, DODUCO, Heimerle + Meule, Karl Lupus, Klingel Versand, Mona Versand.
There are also numerous small and medium-sized businesses in the surroundings of Pforzheim.
- unemployment rate is 5.5% (as of June 2018)
- purchasing power — 22,059 euros per person
- average selling price in new buildings — 3,500 euro/m²
- average selling price after the overhaul — 3,000 euro/m²
- average selling price of resale housing — 2,100 euro/m²
- average rental rate per month — 8 euro/m²