INCOME-PRODUCING COMMERCIAL PREMISES

Description

Income-producing commercial premises at Calle Serrano 203 in Madrid, with 186.26 m² on a single floor and a 20-metre frontage. 100% occupied, leased since January 2016 to PJ España Pizzerías, S.L.U. (Papa John's). The current 10-year lease ends in January 2026 and its renewal for a further ten years has already been agreed, with a rent of €8,250 per month (plus VAT) and CPI indexation from the second year, a 3-month notice period after the mandatory term and a waiver of the right of first refusal. Property tax (IBI) amounts to €2,242 per year and the community charge of €55.48 per month is borne by the owner. The investment starts with a net yield of close to 4.60%, rising to approximately 5.5% in the final years of the lease through CPI indexation. The cumulative net income over ten years exceeds one million euros, without taking into account any potential appreciation of the asset.