8 Feb 2016
M7 completes turnaround at Halfweg
London, 8 February, 2016 – M7 acquired this 26,623 sq m light industrial and office estate, on behalf of MStar Europe in July 2014 for €8.7 million. It is a well-located asset to the west of Amsterdam in close proximity to Schiphol airport and comprises primarily warehouse accommodation with supplementary office space.
The vacancy rate at the time of purchase was over 42% (10,227 sq m), following the bankruptcy of the (former) main tenant, and the asset was producing a rental income of €854,387 p.a., with a total ERV of €1,208,887 p.a..
Furthermore, the space formerly occupied by the bankrupt company was in need of significant refurbishment to enable re-letting. Once the acquisition was complete, M7 immediately initiated a large works programme to both modernise and subdivide the vacant units in order to attract new tenants.
Before the initial phase of these works was complete, M7 had identified and secured two new tenants, with the new lease contracts generating an additional €175,000 p.a. of rental income.
By October 2015, M7 had undertaken re-gears and expansions with several existing tenants and let additional vacant space which resulted in a 55% reduction in the void.
The refurbishment works are now complete and, to date, M7’s asset management initiatives have reduced the void rate to 17% and led to a 43% increase in annual rental income to €1,217,433 p.a. Discussions are ongoing with a number of possible occupiers for the remaining space.