Croatia, 18 June 2018 - M7 Real Estate (“M7”), the pan European investor and asset manager, announces that it has agreed six new lettings across circa 5,000 sq m of space at Mani Business Centre in Zagreb, Croatia. As a result of M7’s turnaround strategy for the property, the number of tenants has increased from 12 to 19, significantly improving the occupancy to 91% from 54% on acquisition. New tenants include a wide range of businesses including a facilities management service provider to construction and IT industry operators.
In addition, M7 has successfully negotiated six lease renewals totalling €410,000 p.a., improving the tenant retention rate over the past six months to 100% and increasing the Weighted Average Lease Term from 1.4 years to 3.4 years.
M7 acquired Mani Business Centre, a 13,915 sq m multi-tenanted office building, in December 2016 on behalf of M7 CEREF I. Following the purchase, M7 has focused on improving the appeal of Mani Business Centre through responsive and proactive tenant and leasing management, re-engaging with the existing tenants to improve relationships and communications and has undertaken some selective capital expenditure.
Mirta Ceranac Poljak, Managing Director of M7 Real Estate in Croatia, commented: "Our successful asset management strategy for Mani Business Centre emphasises our ability to apply our local market expertise to oversee a turnaround of underperforming assets. Additionally, it proves the importance and the positive difference that can be made through proper asset management and tenant care. It is our goal to replicate this activity to further improve and implement high quality standards across other assets in the Croatian market."