Medical Center in Bavaria, Germany

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Medical Center in Bavaria, Germany

7,500,000 €
1,785 € /m²
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  • Total area
    4,200 m²
  • Yield
    5.2%
Details
Property parameters
  • Land area: 25,000 m²
  • Total premises: 74
Financial performance
  • Annual income: 390,000 €
Tenants
  • Fully let
  • End of lease: 2043
Property status
  • Most recent total renovation: 2018
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 3.5%
  • Broker: 4.0% + VAT

Medical Center in Bavaria.

Description

The building with a total area of 4,200 m² is situated on a plot of 25, 000 m².

Clinic capacity: 74 rooms.

In 2018, the medical center was completely renovated (the cost of repairs was about 1 million €):

  • renovation of rooms (104 single rooms were converted into 74 double rooms)
  • new canteens
  • modernization of treatment rooms
  • replacement of wiring
  • restroom repair

Deal structure: Asset Deal.

Financial performance

The annual income is 390,000 €.

The yield is 5.2%.

Tenants

The property is fully let. The tenant is a German chain of clinics with experience of about 30 years, with more than 10 medical centers throughout Germany. The clinic has been in the building for 15 years.

According to the contract, the tenant is responsible for all expenses, including insurance and land tax.

The lease agreement is valid until 2043.

The professional equipment used in the clinic belongs to the owner of the building and is transferred to the tenant for management: the tenant controls the condition of the inventory and timely repairs/ replaces it.

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 clinic is located in Bavaria.

Bavaria is a federal state in the south-east of Germany. With an area of 70,550 km² Bavaria is the largest German state by land area. With 13 million inhabitants it is Germany's second-most-populous state after North Rhine-Westphalia.

Bavaria has the largest economic and scientific potential in Germany. It is in the lead in terms of economic growth. Machine building plays the most important role in the economy of Bavaria. Well-developed industries also include electrical engineering, precision mechanics, optics, the production of medical equipment and the chemical industry.

More properties

If this ad doesn't suit you, have a look at the other healthcare real estate for sale in Bavaria.

All ads in the country: healthcare real estate 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.

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  • 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 healthcare real estate purchase with a construction loan

Investment vehicle
Healthcare Real Estate
Construction loan
Yield per annum
5.2%
8—10%
Investment budget
7,500,000 €
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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