What is the pace of the house

Fund check: learning in the Tempo house

Tempo house

MPC fund finances school in Nuremberg

Empty city coffers make it possible. The municipalities are renting offices and other rooms more and more often, saving themselves the investment of buying or building real estate. Investors in the “MPC Deutschland 5” fund can benefit from this fact. You are participating in a building in Nuremberg that the city mainly uses as a school and administration building.

Object: The people of Nuremberg know the building as the “Tempo House”. The tissue manufacturer had its headquarters here for many years. MPC has now completely renovated the property at a factor of 13.6 annual rent and paid 19.1 million euros. Investors get 13,120 square meters of space and 183 parking spaces.

Location and location: Nuremberg is not exactly one of the figureheads of the German commercial real estate markets. But the properties are cheaper here than in the service metropolises. The Tempo-Haus is in the north of the city center towards the airport and the A3 motorway. Two underground stations are just 200 meters away. A large shopping center is within walking distance.

Tenants: The number one selling point of this fund. The city of Nuremberg provides almost 90 percent of the rental income. She uses the rooms as a school and education center. The contract runs until July 2024. The agreement with the AWO even runs ten years longer. The Arbeiterwohlfahrt rents almost 1,200 square meters and pays around 6.5 percent of the income - about as much as the third party, CS Beteiligungs GmbH, a consulting and project development company for the real estate industry.

Income: Nuremberg pays around 9.30 euros per square meter, the AWO 6.50 euros and CS 7.30 euros. By the time the property is planned to be sold after ten years, rents linked to the inflation rate are expected to rise by almost 19 percent - a realistic estimate.

Calculation: Private investors raise a total of almost 60 percent of the total investment. After deducting all costs and interest, MPC pays 4.64 percent for ten years, and you receive distributions of six percent throughout. When selling, the initiator expects a multiplier of 13.4 annual rents and thus comes to a return flow of 171 percent before taxes or 150.5 percent after taxes.

Soft costs: fees and commissions account for around 16.7 percent of the total investment. That is almost nine percent of the equity including premium. Completely normal.

Provider: The listed issuing house MPC recently reorganized its finances. Alexander Betz, previously chairman of the trading platform efonds 24, is new to the board.

Taxes: Investors earn income from renting and leasing which they have to pay tax at their personal rate.

In my opinion ... A city as a tenant hits the nerve of real estate investors. They assume that the public sector will meet its obligations on a permanent basis. So nothing should burn with the distributions. It gets exciting when the fund wants to sell the property after ten years. Then he has to find a buyer who pays roughly as much in terms of revenue for a contract with a term of around four years as MPC now pays for a building with 15-year revenue security.