€6.4 million purchase for Cash Faktor!
Cash Faktor has just purchased for its investors a €6.4 million DIY store in the Salkotten suburb of the city of Paderborn. Built in 2008, this 6400m² store with garden centre is one of the 1000 Hagebau-branded stores in Germany. The solid covenant lease runs to 2023.
The asset was acquired at a gross initial yield of 9%, generating a positive cashflow from which to comfortably manage the projected returns of 5.4% per annum to Cash Faktor investors.
Greater Paderborn is an affluent area with good demographics, strong purchasing power and a healthy balance between urban and rural zones. This makes it an ideal catchment for a DIY business. The micro-location is excellent, on the busy B1 road, adjacent to other key retailers for the area.
Cash Faktor’s investment objectives are deliverable over three phases:
- 5.4% p.a. of the investment, paid for 7 yrs tax-neutrally, followed by:
- 90% of the investment returned, followed by:
- An annual dividend thereafter to all investors.
The asset lends itself excellently to deliver these objectives for Cash Faktor participants and we are delighted with the addition to the Augusta portfolio.