Description
A hotel project in Germany with a yield above 11% per annum. This is a stable Germany, where everything is calculated and thought out.
to the smallest detail. With a maximum of guarantees. Possible purchase of 90% of the complex x at 10% percent interest. You can buy a share of 10%. In this case, the investor will not need to pay 6.5% of the tax.
Construction and control up to the complete commissioning of the object is the seller’s responsibility. The investor will receive a completely finished facility with full internal equipment and a 20-year agreed management contract with a qualified international operator.
About the project
• Location - Recklinghausen, North Rhine-Westphalia, Germany.
• Construction of a new hotel building with 102 rooms, category 3 ***.
• Reconstruction of the existing hotel with 37 rooms, category 4 ****, the area of the existing hotel 2.792 m².
• The total area of the complex is increasing to 6308 m².
• The planned launch date for the entire complex is September 1, 2020.
• The hotel complex is rented by a well-known European operator, which owns more than 4,000 rooms in 35 cities of Germany, Austria and the Netherlands.
• The lease agreement with the operator was concluded until 2040.
• Share-deal: purchase of GmbH, the holder of rights to a land plot of 6.781 m² and an existing hotel, a lease agreement was signed before March 2020, annual income is 120,000 euros.
• There is no tax on land acquisition in the amount of 6.5%.
• Current status of the project: permission for construction and reconstruction was obtained, the beginning of work - March 2019.
• Financing approved.
• All construction work and the launch of the complex into operation are carried out by the seller.
Key project parameters
Land area: 6.781 m²
area of the hotel is 6308 m²
number of rooms 139
restaurant 125 seats
conference room modern facilities
own parking 92 cars
annual income of 700.560 euros
total project cost 13.2 million euros *
equity € 4.6 million
credit funds 8.6 million euros
project payback 8 years
profitability 11.23%
* The project cost is indicated for March 2019, the cost may increase as the construction of the complex is completed
Project financing
Credit Institute of Sparkassa.
Credit resources 8.6 million euros.
The interest rate is 2.14% per annum.
The amount of interest is 184,000 euros per year.
The loan agreement is signed. A lender is a legal entity acquired as part of an investment project for a share-deal.
Sparkassa provides loan resources based on project financing. An advantage of a loan agreement is the right of an investor to choose one of the options after completion of construction:
a) extension of the loan agreement
b) full or partial repayment of the contract.
The city is located in the north of the Ruhr region, northwest of the federal state of North Rhine-Westphalia. Many enterprises are concentrated in this region, there are large airports, strategic cars and railways, and many exhibition and entertainment complexes are located. The hotel is located in the central part of the city, with convenient transport interchanges, 100 meters from the central station, next to the famous entertainment complex.
ref. BM1