Multifunctional building, Saxony, Germany

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Multifunctional building, Saxony, Germany

10,502,000 €
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  • Yield
    5.7%
  • Rental rate (m²/month)
    8 €
Details
Property parameters
  • Leasable area: 6,500 m²
Financial performance
  • Annual income: 600,000 €
Tenants
  • Fully let
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 3.5%
  • Broker: 4.0% + VAT

Multifunctional building in Saxony.

Description

Multifunctional building with a total leasable area of more than 6,500 m²:

  • chain supermarket
  • chain furniture store
  • chain store of cosmetics and healthcare items
  • chain fitness club
  • hotel
  • bakery
  • etc.

Reconstruction is planned for 2021, as well as an increase in the leasable area of the building.

Financial performance

The annual income is 600,000 €.

The yield is 5,7%.

Tenants

The building is fully let.

  • The anchor tenant is a German grocery supermarket chain with more than 3,000 stores in Germany. The lease was concluded until 2036;
  • Furniture chain store with nearly 3,000 stores in more than 50 countries. The lease was concluded until 2031;
  • Large chain of cosmetics, health and home goods stores with more than 3,500 branches in Europe. The lease was concluded until 2032;
  • Well-known fitness club chain with 500 branches. The lease was concluded until 2035;
  • Hotel. The lease was concluded until 2035;
  • Bakery. The lease was concluded until 2035;
  • Flower shop. An open-ended lease.

Transaction costs

Notary (state registration) is 1.5 – 2%.

Acquisition tax is 3.5%.

Brokerage fee is 4% + VAT 19% (total 4,76%).

Location and nearby infrastructure

The property is located in the federal state of Saxony, in a town with a population of about 30,000 inhabitants. Distance to Zwickau is 15 km.

Saxony is a federal land in the FRG, located in the east of the country. The capital city is Dresden. The population of the region is more than 4 million people.

The most important branch of industry is automobile with a share of 27% of all sales. It is followed by the metallurgical sector with a share of 13%, machine construction with a share of 12%, as well as electrical engineering/ microelectronics with a share of 11.6% of Saxony's industrial turnover.

Saxony is known in the world for its higher education institutions with long traditions and high status: Leipzig University, Dresden Technical University, Freiberg Mining Academy.

Saxony attracts numerous tourists with the presence of many world-class culture monuments, delightful natural landscapes, and a well-developed tourist infrastructure.

More properties

If this ad doesn't suit you, have a look at the other shopping centers for sale in 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
5.7%
8—10%
Investment budget
10,502,000 €
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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