Medical Center in Bavaria.
Description
The building with a total area of 4,200 m² is situated on a plot of 25, 000 m².
Clinic capacity: 74 rooms.
In 2018, the medical center was completely renovated (the cost of repairs was about 1 million €):
- renovation of rooms (104 single rooms were converted into 74 double rooms)
- new canteens
- modernization of treatment rooms
- replacement of wiring
- restroom repair
Deal structure: Asset Deal.
The annual income is 390,000 €.
The yield is 5.2%.
The property is fully let. The tenant is a German chain of clinics with experience of about 30 years, with more than 10 medical centers throughout Germany. The clinic has been in the building for 15 years.
According to the contract, the tenant is responsible for all expenses, including insurance and land tax.
The lease agreement is valid until 2043.
The professional equipment used in the clinic belongs to the owner of the building and is transferred to the tenant for management: the tenant controls the condition of the inventory and timely repairs/ replaces it.
Notary (state registration) is 1.5 – 2%.
Acquisition tax is 3.5%.
Brokerage fee is 4% + VAT 19% (total 4.76%).
The clinic is located in Bavaria.
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.
