Restaurant and wine boutique commercial space in Kadriorg

 Buy to Let
Tallinn, Estonia
Status
Funding
252 491 € (69.48%)
363 400 €
Term: 60 months
Interest payment schedule: Monthly
6.8%
Annual yield
-
LTV
I want to invest
To receive
First
Mortgage rank
No
EVOEstate skin in the game

EVOEstate comment:
 

Restaurant commercial property isn't that liquid compared to residential or broad use commercial property. The current contract is for 5 years with the tennants which generates solid 6.81% annual returns. Reinvest states that the capital growth is 4.70%, we don't know on what kind of methodology/data this was concluded, but always remember while there isn't any future buyout agreements, you can never be sure about capital appreciation/depreciation.  The main key driver to this assumption is that they've acquired the porperty 10% below market value. If the tenant decides to change the location after 5 years, Tanel believes it will be higher capital growth, because the tenant has invested significantly to renovation. The rent contract is 5+5years. However, if restaurant would like to cancel the rent contract it would only have to pay 3 month cancellation fee.

Reinvest24 ceo also stated that the restaurant is very popular, as the head chef has won the Silver Spoon award. 

Reinvest24 charges 2% investment deposit fee.

Object overview

Key facts:

  • Luxurious commercial space for a restaurant on the ground floor in the heart of Tallinn
  • Property purchase price -10% under market value
  • Long-term rental contract 5 + 5 years
  • Monthly payouts for our investors

Overview:

Terase 16 is a modern residential building located in one of the most prestigious areas in Tallinn – Kadriorg. This building is a 6 floor new development, and the construction works finished in 2015. The investment property is a commercial business space with big beautiful windows and a spacious summer terrace located on the ground floor of the prestigious building. The total rental area is 155 m2 rented out to an established restaurant and wine boutique under a long-term rental contract of 5 + 5 years.

The luxurious architectural design of the Terase building is very unique, both welcoming and noticeable, which is very beneficial for the businesses located in the building, securing a healthy return visitor rate. The interior is professionally designed to suit the most demanding customers, offering a true fine dining environment. This commercial space has high-quality decor and interior design, combining hardwood floors, soft and ambient lightning, excellent interior planning and plenty of windows to sit by and enjoy either the calm garden views or the busy city life with passing pedestrians and cars.

In addition to interior design, the property has had a few fundamental upgrades in order to suit the most demanding tenants and customers, including an exhaust system upgrade, integration of professional kitchen equipment and suitable ventilation for the restaurant. The owners of Radio restaurant have many years of experience in successfully managing several well-known restaurants in Tallinn’s Old Town and the city centre for more than 10 years, and they have been awarded a prestigious Silver Spoon award for the superiority of their chefs and cuisine.

The Hilton Park Hotel Tallinn is located within 300 meters from this area. Our Avangard short-term rental apartment is also located within a 500-meter radius. The Tallinn Old Town is a 10-minute walk away, and a 5-minute walk in the other direction will take you to the majestic Kadriorg Park built by Peter the Great for his lovely wife, which is now one of the most affluent neighbourhoods in Estonia, with a population over 5 thousand people. Located next to a very well-maintained park and swan pond, you will find the impressive Kadriorg Palace as well as Estonia’s Presidential Palace.

Project provided by:

Reinvest24: The investment property is a 155 m2 commercial space with the address Terase 16, Tallinn. Our property is located on the ground floor and has great views to every side of the building, as well as a separate entrance. We’ve also secured the investment with a long-term rental agreement with a well-established and popular restaurant/wine boutique. The property is located on the edge of Tallinn’s city centre – in the prestigious residential area of Kadriorg, one of greenest areas in Tallinn, sheltered from the city noise. Kadriorg is a dream location for both residential and commercial spaces. Due to high demand and low offering in the area, the real estate prices have been increasing year after year, and market corrections don’t really have a big effect on the area. There are over 5 thousand people living in this historic neighbourhood, which is considered to be one of the richest areas in Estonia. Over the last 5 years there has been over 100 million EUR worth of investments made into new developments and improvements in this upmarket area. The average square meter price in the area (based on statistical transactions) has been above 2600 EUR in the past year. The average price per m2 in new buildings was over 3000 EUR. We’ve managed to secure a bargain price for this property, which is -10% below market value. The property already has all the required equipment and interior design, ready to be used as a fine dining restaurant, and which is currently operating on the premises. No additional investments into interior design or equipment are required. Our investors will receive monthly payouts from attractive rental yield.

Status
Funding
252 491 € (69.48%)
363 400 €
Term: 60 months
Interest payment schedule: Monthly
6.8%
Annual yield
-
LTV
I want to invest
To receive
First
Mortgage rank
No
EVOEstate skin in the game