SOLD OUT JUNE 06 - Hotel Leaseback 7.1 return Investment Only D551
Location in France
  • Ref: 551
  • Type:
  • Price: €64,204
  • City: Quimperle
  • Bedrooms:
  • Bathrooms:
  • Surface ms: 17m²

Pictures available:

Location in France Regional Location Local Location Route Planner Overall Leaseback Plan
Hotel Leaseback Room Plan

Condition: Good
Full Description: NOW ALL SOLD OUT - JUNE 06

How about investing in the purchase of a hotel room on a leaseback basis? Benefit from the French government's leaseback incentive of the 19.6% VAT rebate and an extremely high annual guaranteed yield.

Note that this is a straightforward investment-only leaseback and that there is no owner use.

The returns are high and the management group is a franchise holder from a well established hotel chain. Hence, as with all investments, the high return goes with a slight increase in risk in the capability of the Franchisee to maintain the level of the returns.

There are 30 units (rooms) available and the price per unit works as follows:

50 120 Euros excluding VAT and legal costs
9 824 Euros VAT
59 924 Euros including VAT
4 260 Euros Legal fees including mortgage charge

64 204 Euros Total Value

The return is 5.8% for the first 3 years (2 905 Euros net of VAT)
...................6.2% for the next 3 years (3 105 Euros net)
....................7.1% for the 7th year onwards (3 548 Euros net) + annual % changes in the INSEE new construction index capped at 3% max annual change.

The rental returns are net and paid every three months on the 10th of the month following any one three month period.

The VAT recuperation is at the usual 19.6%, with VAT to be paid at the time of purchase and claimed back later (usually within 6 months of delivery).

Delivery is 30 January 2006.

There is a nice protective clause in the lease, whereby the management firm (the hotel group) can pass the lease on to a third party after notifying the owners in the due legal fashion, but if so they remain the guarantors of the obligations in the lease such as payments etc.

The developers work with a society called GEFI to help purchasers with the recuperation of the VAT and ongoing French annual accounting. The prices are minimal and the paperwork is in both French and English. The price for this service is included in the legal fees sum (above).

Fill in the form below and I will send you more details, floor plans, etc.

Short Description: ALL SOLD OUT JUNE 06

Listed by Jane Hughes


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Re. SOLD OUT JUNE 06 - Hotel Leaseback 7.1 return Investment Only D551, Ref 551




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