- Pressemitteilung BoxID 158041
KWG Kommunale Wohnen AG: KWG enhances value of its properties in Celle and Gelsenkirchen through modernisation
- Additional rental income of more than 500,000 euros a year from 2011 thanks to the modernisation work
- Financing of 6.7 million euros already secured
- Improved insulation and upgrade of the buildings
- Return on investment over 15%
KWG Kommunale Wohnen AG will be enhancing the value of its properties in Celle and Gelsenkirchen through an extensive modernisation project. A total of 6.7 million euros will be invested in the 315 apartments - in insulation, new heating, interior redecoration and other measures. KWG expects these measures to yield a positive effect on the net cash flow, which should already be in excess of 1.1 million euros in 2011: the modernisation work will increase this figure by almost 500,000 euros.
The positive effect on rental income will result from the increased attractiveness of the properties, which should, among other things, enable a significant reduction in vacancy rates. At present, over 50% of the 172 apartments in Celle are standing empty, while vacancies amount to some 20% of the 143 units in Gelsenkirchen; these figures are in line with plan. KWG aims to reduce vacancies to a normal market level by means of the work. The tenants will be able to cut their energy costs by up to half as a result of the modernisation.
The planned measures will be financed by a mix of own capital and borrowed funds. KWG has managed to obtain fixed interest for 10 years at an average of 2.58% for the money borrowed from the KfW bank. The measures overall yield a return on equity (ROE) of some 15%.
After a successful 2009, for which provisional figures show an increase in net profit from 0.8 to 3.3 million euros, the company expects the positive earnings trend to continue in 2010, the investment programme notwithstanding.
Diese Pressemitteilungen könnten Sie auch interessieren
Die Offenbacher Alfred Clouth Lackfabrik GmbH & Co. KG – kurz CLOU – und die Henkel AG & Co. KGaA geben das einvernehmliche Ende ihrer langjährigen...
Laut Prognosen gibt es in diesem Jahr bestes sommerliches Wetter. Das wird viele Deutsche freuen, können sie doch die warmen Temperaturen dazu...
Seit Februar 2017 bereichert der Polster Aktuell-Store in der Marktstraße das Einzelhandelsangebot in der Marktstadt Mayen. Einer der Marktführer...