Industrial premises for sale, currently let, in Chemnitz, Germany

Industrial Investment Facility with Tenants in Chemnitz, Germany

Located in the Saxony region of Germany, at Thalheimer Strasse 9–11, Chemnitz / Altchemnitz, this industrial investment property sits on a 29,153 m² plot and features approximately 5,700 m² of enclosed floor space.

Currently let to two logistics companies, the property generates a monthly rental income of €19,250, amounting to €231,000 annually.

Based on a sale price of €2,200,000, the current gross rental yield is approximately 10.5 per cent, whilst the cap rate stands at approximately 9.5 years.

The investment value of the portfolio stems not only from the current tenants but also from additional income potentials such as the extensive land reserve, concrete open space, an additional building that could be developed through renovation, and energy storage and solar energy.

Income-Generating Industrial Property on a 29,153 m² Plot

The facility is situated on a total plot of 29,153 m².

The existing structure has a gross floor area of approximately 5,700 m² and is used as a single-storey industrial hall.

This building coverage ratio means that, at present, approximately 20 per cent of the plot is utilised as enclosed space.

According to the industrial zoning and 80 per cent building coverage information provided by the owner, subject to official confirmation, there is a significant reserve for additional development on the site.

Leased to Two Logistics Companies

Approximately 5,500 m² of the enclosed area is currently leased to two separate logistics and haulage firms.

Tenant breakdown:

• Tenant A: 4,000 m²
• Tenant B: 1,500 m²
• Total leased area: 5,500 m²

Both tenants are currently paying a rent of 3.50 €/m²/month.

Total monthly net rent:

19,250 €

Total annual rent:

€231,000

Rent invoices and bank payment records confirming that the rent is paid regularly are included in the documentation package.

10.5% Current Gross Rental Yield

Based on a sale price of €2,200,000, the current annual rental income corresponds to a gross yield of approximately 10.5 per cent.

Based on the current rental structure, the gross rental multiple is approximately 9.5 years.

Even after deducting known regular property tax and rainwater drainage costs, the income yield relative to the sale price remains at approximately 9 per cent.

Rent Increase Potential

The current rent is 3.50 €/m²/month.

It is stated that the property owner plans to increase the rent to 4.00 €/m²/month in the short term.

Should this adjustment take place, the total monthly rent could reach approximately 22,000 €.

The tenancy agreements are automatically renewable and contain clauses for rent adjustments linked to index changes.

Potential for Additional Income from the Open Area

There is a large open area with a concrete floor at the front of the premises.

This area;

• Open-air storage
• Container area
• Trailer park
• HGV and vehicle park
• Transhipment area
• Logistics use
• Separate site hire

and can be utilised for various purposes such as these.

By optimising the use of open space, it is possible to increase the total monthly revenue potential.

Battery Energy Storage Potential

A rental offer of €40,000 per annum has been received for the lease of a suitable section of the site for a battery energy storage system (BESS).

The relevant company is currently investigating the regulatory approval processes.

This revenue does not yet constitute a confirmed lease and is subject to the necessary technical and administrative approvals.

Roof-Top Solar Power Plant Potential

The facility’s extensive roof surfaces can be assessed for solar energy applications.

The dossier specifically highlights the installation of thin-film strip-type solar panels as a potential additional source of income.

It may be possible to lease these areas to energy companies or for the investor to develop them.

Approximately 17,600 m² Theoretical Expansion Reserve

Taking into account the 80 per cent building coverage ratio provided by the property owner, there is a theoretical potential for development of up to approximately 23,300 m² of floor area on the 29,153 m² plot.

Subtracting the existing enclosed area of approximately 5,700 m² results in a theoretical additional floor area reserve of approximately 17,600 m².

This calculation is for illustrative purposes only. The final development capacity must be verified by means of an official planning document, municipal confirmation and a technical and legal review.

Facility Suitable for Logistics and Manufacturing

The existing structure is a single-storey industrial hall.

Technically:

• Approximately 5,700 m² of enclosed space
• Single-storey hall
• Steel roof trusses
• Direct ground-level access for lorries
• Loading ramp
• Loading area with overhang
• High ceiling
• Structure suitable for palletised storage
• Wide spans
• Glazed façade providing natural light
• Approximately 1,000 kVA electrical infrastructure
• Spacious concrete manoeuvring area

is available.

The facility is currently used for logistics and storage, but could also be considered for production activities.

Industrial location within Chemnitz

The facility is situated approximately 4 km from Chemnitz city centre and close to the Südring axis.

Chemnitz is one of Saxony’s long-established manufacturing centres, home to machinery manufacturing, the automotive supply industry, technology and industrial SMEs.

The city is connected to the regional transport network via the A4 and A72 motorways.

The fact that the property is situated within the city limits offers a significant advantage in terms of employee commuting, logistical access and long-term land value.

Key Features of the Investment

• Germany / Saxony / Chemnitz
• 29,153 m² site
• Approximately 5,700 m² of floor space
• Leased to 2 logistics companies
• Current monthly rent: €19,250
• €231,000 current annual rent
• €2,200,000 sale price
• Approximately 10.5 per cent current gross yield
• Approximately 9.5-year rental multiplier
• Regular income in euros
• Potential for rent increases
• Spacious concrete open-plan area
• HGV access
• Approximately 1,000 kVA electrical infrastructure
• Rental offer received for battery storage
• Potential for a rooftop solar power plant
• Additional building suitable for renovation
• Approximately 17,600 m² of theoretical expansion reserve
• Approximately 4 km from Chemnitz city centre

Potential Revenue Scenario

Current monthly rent stands at €19,250.

According to the scenarios assessed in the file;

• Approximately €22,000 following a rent adjustment
• Approximately €25,000 with open-space optimisation
• Approximately €28,300 from battery storage revenue
• Approximately €30,000 with rooftop solar and other additional revenue streams

in total monthly gross revenue potential is projected.

These figures represent potential scenarios in addition to the current rent and must be confirmed separately within the framework of lease agreements, technical suitability, official permits and commercial terms.

Documentation Package and Due Diligence

A comprehensive documentation package is available for sharing with serious investors, comprising tenancy agreements, rent invoices, bank payment records, property tax returns, the Grundbuch entry and the property owner’s response file.

It is recommended that legal, technical, environmental and tax due diligence be carried out prior to purchase in collaboration with authorised experts in Germany.

Purchase Price

€2,200,000

Purchase-related costs are borne by the buyer.

Please contact Otto34 Real Estate for a site visit, the documentation package, lease agreements, details of the financial structure and the purchase process.