Halog Modulhallen
Dingolfing
Germany
12,445132 | 12,445132
The investment proposition is based on a participation in a limited partnership (LP – Dutch CV). This LP will provide a mezzanine loan to a German project company for the leasing and operation of modular industrial buildings.
The market developments for modular halls are favorable whereby the concept is also sector & location independent. This concept responds perfectly to the need for flexibility in the production chain, especially for the automotive industry with regards to product recalls, after-service, short-term storage, storage of semi-finished products and spare parts, etc.
The modular hall is constructed from a steel or aluminum construction with above-average insulated sandwich panels for cladding and roof. This structure provides a rapid assembly and disassembly (to be paid by the tenant) as well as an alternative use in flexible size and at different locations. The halls have a modular standardized technical equipment that can be tailored to individual customer requirements and generally have a life of 20 years.
Key data
Project name:
Halog Modulhallen (FULLY FUNDED)
Location:
26.600 m² modular hall on a production site of a BMW factory in Dingolfing (state of Bavaria)
Initiator LP:
REALIANCE Europe B.V.
Asset class:
Financing of flexible modular halls for BMW AG
Projected investment term:
60 months
Exit strategy:
Repayment mezzanine loan by Halog
Participation:
From € 100,000
Structure:
Halog Modulhallen LP provides a mezzanine loan
Financing set-up:
LP investors: maximum € 1,700,000 (22%)
German local partner/ management: minimum € 650,000 (8%)
Bank loan:
€ 5,500,000 (70%)
Total:
€ 7,850,000 (100%)
Number of participations:
17
Projected net capital growth:
68.5% over five years; distribution per quarter
Projected net return:
12.9% IRR (per year)
Unique selling points
High fixed income investment (10% per year; distribution 4 times per year).
Local partner guarantee partner for participation amount, dividend payments and exit bonus.
Preferred position of mezzanine capital (participation amount), interest and exit bonus.
BMW AG as a solvent tenant (almost all operating costs as well as the (dis)assembly costs are paid by the tenant).
Interest and repayment obligations towards bank & mezzanine capital are covered by the lease and guarantees.
Initial yield of 19% for the German project company (net rental income € 1.5 million vs. investment volume € 7.85 million).
€ 300,000 is set aside annually for obligations to the LP.
Location
For more information you can reach REALIANCE at +31 (0) 20 21 03 180 or invest@realiance.nl
