The company will be cashflow positive from day one, with no development risk and an average length of tenant agreements of 5 years +.
Cornhill will purchase office space at an average price of ca. EUR 1750 per sqm which is far below the replacement value of ca. EUR 3500.
The low rent of ca. EUR 8.50 per sqm has upside potential to increase the rental yield from today’s 6%.
Building the portfolio today, gives the opportunity to choose tenants that are less affected by Covid-19.
Protected from higher interest rates by locking in senior loans for 10 years at below 2% p.a. interest.
Safe haven, Germany is acknowledged to be Europe’s strongest economy with real estate being its safest sector.
Secondary locations offer better yields, less competition in the future thanks to the higher replacement value and lower vacancies than the A cities and therefore offer a better risk return profile leading to more security.