December German Property Update

The object property is a modern and completely renovated apartment building across four full floors, with renovated basement and converted attic. The heating is individual gas boilers. The building was, in 2005, extensively internally and externally renovated and modernized. The interior is of a modern standard, with the two commercial units being accounting firms with long-term leases.

This is a purely residential offer in an early 20th century period property, around 4km south west of Leipzig city centre. Situated in the popular district of Kleinzschocher, the property appeals to residents who appreciate the sort commute by road or tram to the city, whilst being in close proximity to the parklands and lakes to the south of Leipzig. The area has developed much over recent years, with most property in the area being refurbished to a good standard as this property is. The property has accommodation set over 5 levels with three apartments on each level and is presented in a fully let condition

Located in the highly popular area of Sudvorstadt, here we have a pleasant rear building to an elegant period property. The apartment house has 8 residential units, 2 to each floor, which are finished to a very good standard for lettings. To the rear of the property is an open view with green areas and playground to the side, highly attractive for this densely populated part of the city.
The ground floor units both enjoy a terrace area which leads on from the kitchen area, and all apartments have laminate flooring and good quality bathrooms. In the attic, the space remains unconverted which is perhaps unusual for this area, where development space is at a premium. An architect could be employed to determine the ease of creating an additional 2 residential units to this level. At present the property is let at reasonable rates, with room for some improvement perhaps by around 5-10% across the board in the first year of ownership. There is one apartment vacant, but this can be included in the purchase contract to ensure the property is delivered in a fully tenanted condition on delivery. Finding a new tenant is routine in this location and within this quiet property.

Here we have presented a large apartment house situated in the area of Volkmarsdorf, around 3km from Leipzig city centre. The building enjoys a corner position, currently set out as 3 commercial units on the ground floor and commercial space on the 1st floor with 12 residential apartments above. The property was fully renovated in 1997 to a good standard, with central gas boiler, new electrics, new plumbing, windows and the internal fixtures to the units. The property has a lift serving all levels. In terms of current condition and potential, the property would benefit first from the fitment of laminate flooring to some of the empty residential units. This is all that is required to present to the tenant market, and could be negotiated as part of the deal. This work would cost around 10.000 Euro. On from this, it is considered that the commercial space on the 1st floor is converted to residential use in the same configuration as above levels with 4 new apartments. This work would cost around 50.000 Eur to complete to a high standard. All apartments are of a very good size for lettings and have a favourable configuration. In terms of letting potential, the area supports tenancies in the range of 4,22 Eur per sqm to perhaps 4,5 Eur per sqm for the newly refurbished units on the 1st floor. Overall, this property at the purchase price offers an investor a respectable immediate yield with clear possibilities to extend this yield further with the work outlined above.

This is a package of two multifamily houses located in Böhlitz Ehrenberg and Alt Lindenau, two very different microlocations, but all conveniently located close to public transport and a range of shops and a range of amenities. The majority of the apartments are sized between 40 – 65 sqm, a good size to help ensure quick letting in the case of vacancy, although all units across the portfolio are currently let, albeit at levels which present fantastic opportunities for rental income development.
The exterior of the buildings are in good condition, but the interiors could benefit from some redecoration, perhaps as part of an implemented rent review programme. Both properties are entirely constituted of residential units. At an extremely competitive price of 420 EUR psm, this is an attractive package to investors seeking the highest of yields in the city.

This is a recently-constructed building in an area around 10km north of Leipzig centre, nearby the expanding airport, the autobahn and numerous employers including the Porsche plant. The package consists of 44residential units, 10 commercial units and 30 secure parking places.

Leipzig-Plagwitz – The Elster Park. Direct Bank Sale Only 513 Eur psm. With 24% of the building to let – there scope to achieve 11% yield.