Sale of a block with multiple fully rented PPE units
We have the advantage of offering for sale a package of 16 condominium units out of a total of 21, within a building, constituted as a PPE and erected in 2016, of superior quality and fully rented by qualitative and financially sound tenants. The elements that we put, on request and after signing a confidentiality agreement, at your disposal, to allow you to evaluate your potential interest in acquiring the aforementioned units, are the following: • Management accounts for the 16 rented units 2024-2025, including the parking spaces allocated to them; • Interior photos of apartments and offices in the attic; • Photo of the facade • Rental status for the 16 units and their annexes • Energy certificate We draw your attention to the fact that each unit gives the right to one vote. Thus, the buyer of the 16 units out of 21 has a proportional decision-making power.The average annual budget of the PPE is CHF 68'000.00, of which 907/1000 is at the expense of the owner of the 16 units, i.e. CHF 62'356.00 per year. Considering the price expected by the seller and its net rental income, the resulting gross yield is 3.9%. It is specified that it is possible to acquire the company holding the units, which represents the only assets it comprises, which will avoid the payment of transfer taxes. The takeover of the current mortgage from the pledgee at a fixed rate of 2.7%, running for 8 years, is one of the conditions imposed by the seller. < br />Considering all the above-mentioned elements, it is naturally advisable to approach this investment from the angle of net yield and not gross yield. The latter can be evaluated as follows: The net yield resulting from this objective simulation is 4.84%. At the end of the first eight years, considering an average mortgage rate of 1.5%, the net yield will be significantly increased, as shown by the following simulation: Annual net income CHF 423'515.10 (average of accounts 2024-2025, maintenance costs and operating expenses deducted - without increase for prudent consideration)./. annual condominium fees ./. mortgage from the 9th yearThe net yield resulting from this objective simulation is 7.83%. Considering the constructive quality of the building, its optimal energy efficiency (Minergie label), its exceptional location, and the objectively controllable considerations (except for the future mortgage market), the above-mentioned simulation appears to be perfectly in line with reality.
