Investment apartment with open ended lease and stable tenant

For sale is a commercial premises rented on an indefinite basis in a central, highly frequented location in Vienna’s 3rd municipal district. The property generates stable rental income on an indefinite basis and is therefore ideally suited to investors looking for a strong, long-term secured income property.

The property is rented to a social market – an operator with a socially established business model and typically high location loyalty, which further underlines the predictability of rental income.

Investment highlights

• Attractive net initial yield of around 4.93% p.a. at an asking price of € 520,000,–
• Indefinite tenancy – no fixed term, therefore no automatic expiry risk
• Stable, currently achieved annual net income of € 25,627.08
• Tenant from the social market segment – crisis-resistant, demand-stable business model with a social supply mandate
• Generous sales area of approx. 313 m² – flexible potential reuse for retail, local supply or similar types of business
• Central location in Vienna-Erdberg with good public transport connections and high pedestrian frequency
• Value-preserving asset class: rented commercial property with ongoing cash flow from the first day of ownership

Tenant

The premises are used as a social market. Social markets offer low-income households everyday goods at reduced prices and are characterized in practice by high location loyalty and continuous customer frequency – a factor that, from an investor’s perspective, contributes to the stability of the tenancy.

Income situation

The currently achieved annual net income amounts to € 25,627.08. At an asking price of € 520,000,– this results in a net initial yield of around 4.93% p.a. – an attractive ongoing income for a commercial property rented on an indefinite basis with a stable tenant structure.

Ideally suited for

• Private investors and family offices looking for a creditworthy income property
• Investors focusing on indefinite tenancies and ongoing cash flow
• Portfolio diversification in the retail / local supply property segment

Take the opportunity to acquire a solidly rented commercial property with an indefinite tenancy agreement and a crisis-resistant tenant.

Inquiries:

Please note that, due to our obligation to provide proof to our clients, we can only process inquiries stating your complete details (name, address, telephone no. e-mail address). We also point out that we strictly work in accordance with the FAGG guidelines applicable since June 2014.

We inform you that we perform dual-broker activity for this property. (§ 5 para. 3 MaklerG). We also point out an economic or personal close relationship with the vendor.

Additional costs:

• 3.5% real estate transfer tax
• 1.1% land register registration
• 3.0% brokerage commission plus 20% VAT.
• Contract preparation by agreement

It is pointed out that the data stated are based on information from the vendor or third parties (e.g. authorities), so no guarantee can be assumed for their correctness and completeness!

Information as required by law:

Heating demand:94.49 kWh/(m²a)
Heating demand class:C
Total energy efficiency factor:1.21
Total energy efficiency factor class:C