Production facility with long-term lease and reliable tenant.
Description
The production facility occupies a plot of 34,000 m². The total area of the premises is 18,500 m² that includes:
- warehouse 17,850 m²
- office space 650 m²
The current annual income is 853,000€.
The current yield is 5.3%.
An indexation of a rental rate every 3 years by 3%.
The increase in income is expected due to the expansion of leased area (construction of an additional office building for the tenant).
The property is fully let. The tenant is a company that manufactures a wide range of products for sun protection, patio roofing and outdoor living. The tenant occupies the territory of the complex for almost 30 years.
The lease agreement is valid until 2031 with extension options of 3x5 years.
Lease type: Triple Net Lease.
Notary (state registration) is 1.5 – 2%.
Acquisition tax is 3.5%.
Brokerage fee is 3% + VAT 19% (total 3.57%).
Production facility is located in a small town in Bavaria. The distance to Augsburg is about 30 km.
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.
