CMC purchases Dresden property for €12m

PROPERTY investment vehicle CMC Capital has purchased a commercial park in Dresden, Germany for just over €12 million.

The Bannewitz commercial park will have an initial rental yield of 7.2%, according to Cork-based CMC, which said it has structured the deal in a manner specifically suited to Irish pension investors.

Bannewitz is anchored by an OBI DIY store on a long lease, while a McDonald’s outlet features among the other long-term tenants.

CMC said it has put this deal in place ahead of the approaching tax return deadline, and added that the investment will be of particular interest to the self-employed and company directors who are looking to reduce their tax bill and provide a solid investment for their retirement.

Director of CMC Capital Richard Kingston said the benefit of this investment is that the investor is building up a nest egg that will provide an income during retirement.

“The initial investment qualifies for tax relief at the investors’ marginal rate of tax, providing excellent tax relief opportunities. On top of that the growth in the fund is not taxed, allowing the investment to grow in value on a gross roll-up basis.

“As the recent volatility on the stock markets shows, it is important to diversify risk through investing in a mix of assets, including equities and commercial property.”

Meanwhile, Eddie Hobbs said his property investment vehicle Brendan Investments is attracting a high level of interest.

He was unable to provide figures on how much has been invested so far in the initial round of fundraising.

He did however say that the average investment is somewhere between €20,000 and €30,000.