RE: Nurburgring under threat - again
Discussion
jetpilot said:
Any figures for the cost of the lease to them yearly?
I've read a fair few stories and not found anything with that information on. Normally on a commercial asset with a long lease, you would expect to achieve upwards of 5% yield based on value of the asset but its very much dependent on risk. So if you have an office building with a 15 year lease and a nice strong covenant (that isn't likely to go out of business soon) in a prime real estate area, worth £100m with returning a 5.5% yield it would be £5.5m rent. The higher the risk, the higher the returns expected. With a higher risk you might expect 7 - 9%.
Given its a government funded operation perhaps they may have lower expectations than private investor/landlord in terms of a yield as its also about generating jobs in the area, or at least it was.
Is €330,000,000 the value of the asset or just the money invested does anyone know? I assume €330m was invested in the new construction of Nurodisyney and there is a value to the exsisting infrastructure and the tracks.
If it was based on the above figure alone, at 5% for example, you would be looking at a rent roll of €16.5m pa at 9% €29.7m.
Edited by handbraketurn on Wednesday 8th February 07:34
Edited by handbraketurn on Wednesday 8th February 07:37
951TSE said:
Pistonheads GmbH - The Ring Matters.
Go on, you know you want to. £100 a share, dividend paid in laps.
Back to the old school way of running it. With manufacturers testing, racing on the F1 circuit, ring taxi and the tourist laps how can it fail to make a profit.
surely not so stupid, up the share cost to around >£1000, there must be enough people or companies to either buy it or part fund it especially over the duration of the court battle, the Germans can always do a share buy back at a later date.Go on, you know you want to. £100 a share, dividend paid in laps.
Back to the old school way of running it. With manufacturers testing, racing on the F1 circuit, ring taxi and the tourist laps how can it fail to make a profit.
charltjr said:
TTMBTT said:
going forward!!!!!!!!!!!!
Seriously, don't make me hurt you. You mean "in future", or "from now on". "Going forward" is a phrase which exists only in godforsaken hellholes such as those inhabited by the management team at NAG. 
king hate the stupid buzzword! Tops the list!mickymellon1 said:
951TSE said:
Pistonheads GmbH - The Ring Matters.
Go on, you know you want to. £100 a share, dividend paid in laps.
Back to the old school way of running it. With manufacturers testing, racing on the F1 circuit, ring taxi and the tourist laps how can it fail to make a profit.
surely not so stupid, up the share cost to around >£1000, there must be enough people or companies to either buy it or part fund it especially over the duration of the court battle, the Germans can always do a share buy back at a later date.Go on, you know you want to. £100 a share, dividend paid in laps.
Back to the old school way of running it. With manufacturers testing, racing on the F1 circuit, ring taxi and the tourist laps how can it fail to make a profit.
gtdc said:
Munich said:
gtdc said:
This may be a little simplistic but, if they don't pay the rent they don't get the circuit surely?
If the law is the same as when renting out a property, then I'm afraid not. If you rent out a property and the tenant decides not to pay the monthly rent, then as the landload there is very like you can do until the court process has ran its course, which can take up to 2 years. That means 2 years of no rental income while the tenant still lives in the property!Edited by Munich on Tuesday 7th February 14:52
In this case, were it the UK, the landlord could just 'change the locks' and be done.
Someone there needs to bring home the core fact they need more visitors and facilities are out dated already brimming on seasonal operating days and find something better to make use of the colossal site during less than optimal weather.
The only way out seems to charge onsite manufactures testing facilities more much more because years testing so much cheaper creating more publicity and marketing hype than running TV ads for same duration. Like Silverstone they need to expand onsite businesses and better opportunities for other companies to move onto their huge site. Frankly as multiple decade ring veteran have watched it rise and fall no doubt will rise up again because marketing mystic of the place is now so powerful worldwide.
The only way out seems to charge onsite manufactures testing facilities more much more because years testing so much cheaper creating more publicity and marketing hype than running TV ads for same duration. Like Silverstone they need to expand onsite businesses and better opportunities for other companies to move onto their huge site. Frankly as multiple decade ring veteran have watched it rise and fall no doubt will rise up again because marketing mystic of the place is now so powerful worldwide.
skwdenyer said:
gtdc said:
Munich said:
gtdc said:
This may be a little simplistic but, if they don't pay the rent they don't get the circuit surely?
If the law is the same as when renting out a property, then I'm afraid not. If you rent out a property and the tenant decides not to pay the monthly rent, then as the landload there is very like you can do until the court process has ran its course, which can take up to 2 years. That means 2 years of no rental income while the tenant still lives in the property!Edited by Munich on Tuesday 7th February 14:52
In this case, were it the UK, the landlord could just 'change the locks' and be done.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff