Commercial center, Lower Saxony, Germany

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Commercial center, Lower Saxony, Germany

5,750,000 €
1,446 € /m²
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  • Total area
    3,974 m²
  • Yield
    7.1%
  • Built in 
    2005
Details
Property parameters
  • Land area: 9,215 m²
  • Number of parking lots: 118
Financial performance
  • Annual income: 405,158 €
Tenants
  • Fully let
  • End of lease: 2029
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 5.0%
  • Broker: 6.0% + VAT

The building with retail and office units and an apartment.

Description

The property was built in 2005.

There is a parking for 118 cars in the territory of the commercial center.

Financial performance

Absolute annual income is 405,158 €.

The current yield of 7.1%.

Tenants

An anchor tenant is a large supermarket chain with more than 4,000 stores in Germany. The annual turnover of the company exceeds 12 billion euros.

The lease agreement is valid through 8.11.2029.

The other tenants are:

  • a bank, the lease agreement is valid through 15.11.2018,
  • a shoes shop, the lease agreement is valid through 9.10.2026,
  • a jeans shop, the lease agreement is valid through 31.12.2019,
  • a hotel with 10 rooms, the lease agreement is valid through 31.10.2018,
  • a zoo shop, the lease agreement is valid through 10.05.2026,
  • a restaurant, the lease agreement is valid through 31.10.2019,
  • a dance school, the lease agreement is valid through 29.10.2021.

Transaction costs

Notary (state registration) is 1.5–2%.

Acquisition tax is 5.0%.

Brokerage fee is 7.14%.

Location and nearby infrastructure

The property is located in a port city with a population of more than 50 thousand people in the federal state of Lower Saxony, in the north-west of Germany.

More properties

If this ad doesn't suit you, have a look at the other shopping centers for sale in Lower Saxony.

All ads in the country: shopping centers for sale in Germany.

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
7.1%
8—10%
Investment budget
5,750,000 €
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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