4 Jan 2016
M7 converts thin demand into two significant lettings and almost doubles occupancy at Gargenville
London, 4 January, 2016 – Following an intense marketing campaign, M7 has secured two new lettings for a logistics warehouse comprising 24,600 sq m located off the A13 in Gargenville, 44 km west of Paris. Purchased in August 2014, historically, the asset had a low level of occupancy with only 47% of the available space occupied, all of which was let to a single tenant, Norbert Dentressangle.
The asset had fluctuated around this level of vacancy for nearly two years and, shortly after acquiring the asset, M7 initiated an intense marketing campaign for the vacant space and worked closely with the leasing agents, as well as directly with local businesses to ensure that any potential occupier was fully aware of the opportunity, comprising a Class A building but in an off-pitch location just outside of Paris. The strategy has been successful, with 12,390 sq m leased to two new tenants in August and September 2015.
The largest of the two new lettings is to Spir Communications, a Paris-listed French publishing group, which took 8,495 sqm on a six year lease.
The other new tenant is Fieldflex, a global merchandising solutions business, sourced directly by M7 with no agents involved, which has taken 3,895 sq m on a nine year lease.
In addition, the lease with Norbert Dentressangle has been extended by nine years, for a slightly reduced space.
Occupancy at the warehouse now stands at 82%, with a weighted average unexpired lease term of 4.15 years. There is also a good level of interest in the remaining space, which is currently occupied on a short-term basis by Fieldflex.