Warehouse Storage Investment with Rental Return
Ref: PB282
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- Total Site 250,000 sqm (30,000sqm of warehouse space)
- Max 50% shareholding for sale (BRL 11,000,000)
- Min of 25% investment (BRL 5,500,000),
- All 30,000 sqm Undercover Space is currently rented out
- Queue of Companies waiting to rent, prime distribution area
- On-site restaurant and other services
- Based on Current Rental Income, Return on Investment (ROI) will be in year 8
- Money received by seler for stake will be used to expand current warehouse space (thus ROI could be within 5 years).
Property and Area Overview (Ref: PB282 - Industrial Estate / Storage Estate - Guaranteed Rental)
The Industrial Estate / Storage centre is 20km from
The site offers many services to the companies who lease the units such as: Optical Fiber Telecommunication systems, Private Security, Maintenance Services, and Electrical and Hydraulically Maintenance.
The site carries a prestigious address for those who know the area and is well know to contain companies who actively trade within
The site is well positioned for those companies wishing to streamline their production and distribution networks in
It is proposed (and shown in the ‘projected earnings table’ that a set amount be used from the rental for the first few years to cover the costs for the expansion to 60,000 sqm.
There is a total of 30,000sqm of ‘covered warehouse space' which is 98% let under contract. There are only 900sqm of smaller space left. Many companies have their names listed ready and waiting for the next suitable Large unit.
Return on Investment
The following gross rental figures assume an expansion plan to 60,000 sqm:
Year 1 = BRL 1,232,642 (8.14%)
Year 2 = BRL 2,063,630 (12.70%)
Year 3 = BRL 2,975,060 (17.70%)
Year 4 = BRL 3,115,280 (18.47%)
Year 5 = BRL 3,283,544 (19.39%)
Year 6 = BRL 3,451,808 (20.32%)
Year 7 = BRL 3,926,160 (21.55%)
Year 8 = BRL 4,122,468 (22.63%) - Break even point
Year 9 = BRL 4,318,776 (23.70%)
Year 10 = BRL 4,543,128 (24.93%)
Please ask for a FULL cashflow forcast on this investment
B/E
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
Total sqm rented out
28,700
42,750
57,000
57,000
57,000
57,000
57,000
57,000
Rental Price per sqm in BRL (5% Increase rate)
5.25
5.50
5.75
6.00
6.30
6.60
7.00
7.35
Gross Revenue (BRL)
1,808,100
2,821,500
3,933,000
4,104,000
4,309,200
4,514,400
4,788,000
5,027,400
Gross Rental Yield Per Annum (%)
8.14%
12.70%
17.70%
18.47%
19.39%
20.32%
21.55%
22.63%
Taxes (12%) over Invoice
216,972
338,580
471,960
492,480
517,104
541,728
574,560
603,288
Investments / Maintenance (Into Site) BRL
250,000
250,000
250,000
250,000
250,000
250,000
0
0
Admin / Running Fees (6%) based in BRL
108,486
169,290
235,980
246,240
258,552
270,864
287,280
301,644
Expenses
0
0
0
0
0
0
0
0
Net Profit Per year (BRL)
1,232,642
2,063,630
2,975,060
3,115,280
3,283,544
3,451,808
3,926,160
4,122,468
Net Rental Yield Per Annum (%)
5.5%
9.3%
13.4%
14.0%
14.8%
15.5%
17.7%
18.6%
BRL
Per SQM
Total Value of Sites based on 100%
BRL 22,220,000.00
BRL 88.88
25% Share (5,5 million BRL) - Purchase Price
BRL 5,555,000.00
B/E
Rental Income Based on 25%
308,161
515,908
743,765
778,820
820,886
862,952
981,540
1,030,617
ROI (monthly) based (%)
5.5%
9.3%
13.4%
14.0%
14.8%
15.5%
17.7%
18.6%
ROI Accumulative (%)
5.5%
14.8%
28.2%
42.2%
57.0%
72.6%
90.2%
108.8%
50% Share (11 million BRL)
BRL 11,110,000.00
Rental Income Based on 50%
616,321
1,031,815
1,487,530
1,557,640
1,641,772
1,725,904
1,963,080
2,061,234
ROI (monthly) based on 50%
5.5%
9.3%
13.4%
14.0%
14.8%
15.5%
17.7%
18.6%
ROI Accumulative
5.5%
14.8%
28.2%
42.2%
57.0%
72.6%
90.2%
108.8%
Notes / Assumptions (regarding above table)
- Seller will only sell maximum of 50% Share
- Waiting list of companies who wish to rent space
- Open air storage is charged at 1.10 BRL Per sqm and does not reflect in the above figures
- The company is in the process of starting more open air storage and this will slowly add more revenue (not stated above) to the model
- Rental increase per year is using the IGP-M Index plus normal valorization of the area so 5% increase is in all contracts.
- Rental Income Taxation Figure of 12% includes the following… PIS, ISS, COFINS, IR, Contr. Sindical, TEFF (12%)
- 20 to 25% tax on any capital gain (difference between the buy and sell price of the investment)
- Rent is due from companies on a monthly basis
- 14 Companies are renting the site (all undercover)
- It is believed that the land area sale price per sqm is under valued, we would advise buyers to make their own checks on this claim.
- Total warehouse space is 30,000 sqm, this model based on 5% less for void periods / change of tenant
Legal Service
Our standard notes below shows a standard legal service fee for a small property of £705. It would be expected that legal fees to purchase this investment would be higher and an individual quote is to be obtained from our Client Lawyers.
LocationThe Warehouse is 20km from Salvador on the Highway in an Industrial district and 20km from Salvador Airport. The local areas is well know as an industrial area and has some 250 companies such as HP, Xerox, Ford Motor Company, Pirelli Tyres, Ford Motor Cars (manufacturing the Fiesta Car), Continental Tyres, Bridgestone Tyres, Firestone Tyres, Petrobras (largest Brazil Oil Producer), Braskem, Magneti Marelli, Dow Quimical, Saargummi, Valeo, Monsanto, Dupont, ALL, Avon, AMBEV, Bosch and many more.
* All properties are sold in Brazilian Reais (symbols R$ or BRL). Currency rates will depend upon your banks conversion rate at the time of transferring the monies. The current conversion rates used on this site are €1 = R$2.25, £1 = R$2.75, $1 = R$1.78. To check the latest rate 'spot rate' click here. Prices do not include the usual purchase costs associated with a property purchase ie. Government purchase tax, legal, admin and furniture.