Logistics and Art

Nineteen Motley Real Estate Ideas in Times of COVID-19 – Part III – Special Purpose Properties

By Helmut Seitz and Nadja Holzer, HSP Rechtsanwälte GmbH

The possibility of vaccination gives hope. Let us hope that reality will put an end to political failure and economic decline. But what to do about the real estate sector? Special times, special real estate!

1. Logistics

Yeah, sure. Everyone knows that Amazon and Co. are booming. What else does a logistics hub need besides a large, high, easily deliverable space? Parking spaces. Parking spaces for hundreds of vans. In the DACH region, a parking space for the most demanded size “Sprinter” costs EUR 150 per month. The requirements are low, as the parking space does not even have to be easily accessible to the public, but merely as close to the Internet dispatch hub as possible; the drivers are in fact typically collected by large buses and brought directly to the parking space. Yields for such spaces are well beyond 10%.

2. Logistics and Art

In addition to the many “old masters” that museums and wealthy private collectors must store in an appropriate manner, contemporary artists produce vast quantities of art even in a year of pandemic. After wine and old automobiles, art is the most popular and successful investment for the truly wealthy of our planet. Professional storage facilities that are secure in every respect, and perhaps in somewhat more prestigious locations, are certainly worthwhile investments for people involved in real estate. There is a vacancy risk regarding conventional storage facilities. However, this is reduced to almost zero with storage properties for art. The effort to make the rooms fire and waterproof and protect them from burglars and the curious may require some additional technical and administrative work, but apart from safe occupancy, it should also deliver very impressive, particularly sustainable returns.

3. Money Storage

Completely out-of-the-box: the good old money store (remember Scrooge and the like). Especially in the Eurozone, where deposits with banks yield only negative interest, and banks may also have to pay negative interest to the European Central Bank, one could switch back to physically storing money like in the good old days. This would already bring a 1% interest rate on the value that is stored, without charging a separate rent. At least in the DACH region, large value containers secured against theft and fire could be very interesting for banks – and not their customers, as in the typical safe business – at least for the next few years.

In our next post, we will look at properties used for medical and educational ends. We are looking forward to receiving your motley ideas.


Helmut Seitz

Helmut Seitz

GGI member firm
HSP Rechtsanwälte GmbH
Law Firm Services
Vienna, Austria
T: +43 1 533 0533
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W: hsp.law
Nadja Holzer

Nadja Holzer

GGI member firm
HSP Rechtsanwälte GmbH
Law Firm Services
Vienna, Austria
T: +43 1 533 0533
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: hsp.law


Published: GGI Insider, No. 112, March 2021 l Photo: auremar - stock.adobe.com

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