Retirement home in Bavaria

Package of apartments in the boarding house for the elderly with specialized care and a long-term lease agreement in the Bavarian Alps.

Description

The construction of the boarding house is scheduled for the end of 2020.

The project provides two types of accomodation:

• 91 apartments with specialized care and living space of up to 26 m² (purchase of a package of 10 apartments);
• 25 flats with assistance and living space of up to 76 m² (purchase of a package of 5 apartments)

Deal type: Forward Deal.

The lease agreement with a specialized operator managing facilities in different regions of Germany is valid for 25 years with the extension option for 5 years.

The operator will acquire the property at the end of 2020.

The expected annual income is 60,000 €.

The expected yield is 4%.

Notary (state registration) is 1.5 – 2%.

Acquisition tax is 3,5%.

The brokerage fee is 3% + 19% VAT (in total 3.57%).

Lower limit of the buyer's own funds:

• from 500,000 € in case of purchase with own funds without financing

• from 750,000 € in case of purchase with financing

The property is located in a small town in the south of Bavaria.

The property is located on a large plot in a region with a developed tourist infrastructure and convenient transport accessibility.

Bavaria is the largest in terms of area among the 16 federal states of Germany, it has the largest economic and scientific potential and it is in the lead in terms of economic growth. The population of Bavaria is more than 12 million people. The capital city is Munich.

Machine building is played the most important role in the economy of Bavaria, in particular, the automobile industry and the aerospace industry. Electrical engineering, precision mechanics, optics, the production of medical equipment, and the chemical industry are also developed.

Tourism is one of the main sources of income for Bavaria. The annual number of tourists in Bavaria exceeds 34 million people. The most popular places are the Bavarian lakes, the Alps, as well as the cities of Munich, Augsburg, Regensburg with their historical sights, museums, beer gardens, fairs and the famous Oktoberfest.