Full Description

Location Information On Schloßstrasse

Schloßstrasse is Berlin’s most sought after high street retailing area in Berlin-Steglitz. It boast the following attributes:

• Several large shopping malls including the “;Forum Steglitz”;, “;Das Schloß”;, “;Schloß-Strassen-Center”;“;Saturn Center”; and “;Galleria”; operate successfully on the Schloßstrasse with an additional mall “;Boulevard Berlin”; to be opened until 2011 (detailed information on the malls and individual shops
• Total rent at the subject property of €;393,925 pa, with 75% of it (€;302,380) from 2 prime retail units (occupied by Foot Locker and E-Plus) on the ground floor, 7% (€;26,400) from a recently prolonged existing office lease and 17% (€;65,145) from state-of.the art. high-demand prime residential on the upper floors.
• The retail units are ideally sized at 170 m² (Foot Locker) and 68 m² (E-Plus)
• Significant rental upside of an estimated €;120,000 pa (on the rental basis of €;100/sqm/month) upside potential through addition of c. 100 sqm to extend the retail unit occupied by E-Plus. Authorities have given in principle approval, subject to usual definitive permissions.
• Additional rental upside through indexation of several residential leases (that was due in Nov 2007 but is not yet factored into the rent roll)
• The office tenant prolonged for five years in 2007 and has been located at the property since 1992

Opportunity

• Acquisition of a 1,485 sqm mixed used trophy property located on the most sought after prime retail street in Berlin, the Schloßstrasse in Berlin-Steglitz
• The Schloßstrasse, a 1.4 km prime high street retail strip in Berlin-Steglitz South-West Berlin, is considered to be the most sought after retail area with only 6.2% average vacancy and retail rents amounting to €;100/sqm/month
• There are 16 residential units (that are of very high demand due to location and quality of which one is currently being renovated (with addition of private garden) prior to re-letting (the vendor has already received several unsolicited offers by potential tenants)

Investment

Asking price of €;7,200,000, translating into a gross yield of 5.5% on the basis of current rental income and into a gross yield of 7.1% (!) on the basis of realizedupside (ie extended retail unit).

Split of existing rental income & surface according to use

Surface (sqm)

Rent (€; pa)

Commercial

238,00

302.380,20

Office

164,19

26.400,00

Residential

1.083,43

65.144,76

Total

1.485,62

393.925

Additional rent from extension 120.000 pa

Total rent

existing rent 393.925

additional rent from extension 120.000

Total 513.925

Yield

gross 7,14% based on rent and net pruchase price

Tenants and detailed terms of lease contracts

Rent roll summary

• Rent roll with detailed lease terms available upon asking
• Split of rental income according to tenants:
• Upside potential through extension of E-Plus unit

Surface

• currently 68 sqm
• extension 100 sqm

Total 168 sqm

Rent

Per sqm and month 100 sqm/month

Preliminary financials

− Existing rental income: €;393,925

− Rental upside potential: €;120,000

− Potential rental income: €;513,925 (after extension of retail unit by 100 sqm)

− Asking price: €;7,200,000

− Gross yield on existing income: 5.5%

− Gross yield on potential income: 7.1%

(gross rental income over net purchase price).