Rostock, 6 Apartments, 11.1% Net Yield,

Features of this property

• 300 sqm block - 161,000 EUR
• 2 commercial units - 4 residential
• Commercial 1 (cold rent) 283,80 EUR 45,25 sqm
• Commercial 2 150 EUR 35,85 sqm
• Flat 1 205 EUR 41,3 sqm
• Flat 2 192,05 EUR 60,1 sqm
• Flat 3 288,61 EUR 42,45 sqm
• Flat 4 375 EUR 75,1 sqm
• 17,933.52 EUR per year cold rent
• Renovated 1994

Property Description

This small block is in the Kröpeliner-Tor-Vorstadt quarter of Rostock referred to as the KTV. You will find many references to property to rent or to by with the expression "in der KTV". It is a very popular part of Rostock. Here you can find the multicultural heart of the city. This is the student quarter, known for its small bars, cafés, restaurants and lovely little shops. On warm and sunny days there are chairs and tables on the pavement in front of nearly all the cafés and is a really pleasant area to relax in.

This block is fully tenanted. There were originally 5 residential apartments but 2 have been knocked into 1 (unit 4). The rent for all units is below the official mietspiegel for the location and significantly so for some units. Block will be auctioned at the end of March 2008. We expect a selling price of approx 161,000 EUR (based on surveyor's auction valuation).

Rostock has undoubtedly suffered since the wall came down. The population has decreased progressively from a height of 250,000 (pre wall) to a low point of 198,000 in 2001 and has been increasing slowly since to approx 200,000. The size of the Bad Doberan’s population, the district immediately adjacent to Rostock, continues to grow (2004: almost 120,000 inhabitants); this is evidence of the high city to outskirts migration and the overall growth of the city region of Rostock. Many of its citizens moved West when the opportunity arose. Its local economy suffered and many people who invested in the city in the 90s lost a lot of money and in many cases went bankrupt. But the tide has turned. It's economy is mainly maritime in nature (the largest deep sea port in North Germany) and its largest employer is Rostock university. Unemployment is still high but has decresed from a height of approx 20% to 15%. It is Germany's most important ferry port. The spending power of its citizens is almost double the average for the area of Mecklenburg-Western Pomerania (where it is) but it is a little less than the national average. Tourism has become a growing business. In 1990 (1st official stats available)less than 50,000 passengers were registered at Rostock port, in 2006 it was 2.3 million.

But shipping and its related industries are no longer the dominant industries. The shipbuilding and the port industries act as a magnet and attract numerous small to medium-sized service organisations. New opportunities have been created, for instance, in mechanical and marine engineering, food processing, electrical engineering, electronics and advanced technologies (e.g. biotechnologies, biomaterials). Rostock’s alma mater, a university combining academic excellence with a long tradition, is improving its links to the local economy. With eight faculties, the range of subjects it offers is wider than at most German universities and it is therefore an ideal place for interdisciplinary research. The effort to include technology-oriented industries in the town’s economic development is shown through the existence of two technology centres (RIGZ, TZW). Both of them are already home to over thirty young firms dedicated to innovation. Thus, the first steps have also been taken to transform a seaside resort like Warnemünde (a few minutes from Rostock) into an important high-tech location in North-Eastern Germany. The realisation of various infrastructure projects (e.g. privately financed Warnow tunnel, West feeder to autobahn A20) will ease the strain on traffic in the city. The new Mecklenburg-Western Pomeranien goods handling centre is taking shape just outside the port. It will serve as a distribution and logistics centre where forwarding agencies (transport/ logistics businesses), service providers and production companies operate under one roof. Proximity to the sea and an unspoilt countryside are always attractions, and Rostock combines both with the amenities of a major city.

The KTV area itself has been mostly restored (post wall) and a recent project to install underground bins, landscape and improve the roads in the KFW has resulted in a significant increase in the number of small business locating here.