13 Nov 2019

M7 fully lets office in Bad-Homburg, Germany

M7 Real Estate (“M7”) the pan-European investor and asset manager has fully let a 9,592 sq m office at Norsk-Data-Straße 3, in Bad-Homburgs Industrial Estate “Süd-Campus”. As a result, the rental income has increased by almost 140% and the WALT has increased to 5.32 years (previously 2.55 years).

The asset, located just outside Frankfurt city centre was acquired by M7 on behalf of M7 Islay in 2016. The previous landlord had neglected the property resulting in a vacancy rate of nearly 57 % (c. 5,500 sqm). The challenge was to reposition the property in the market, remove the negative image associated with it and thereby generate the interest of potential tenants.

M7 undertook a number of asset management initiatives including developing a professional website and brochure, renaming the property Office Mall because of its attractive glass atrium and marketing it through the appropriate channels, including M7’s Monthly Broker Update to increase its awareness. The vacant space was divided into a combination of open plan and more regular sized units to allow flexibility for incoming tenants and the vacant canteen space was let to a professional service provider to offer high quality catering to existing and new tenants.

Philipp Jakubowicz, Head of Asset Management M7 Germany commented: “The asset management initiatives undertaken by M7 demonstrate our local in depth knowledge and therefore enabled us to reposition the asset and provide the type and quality of space demanded by the market. The result is that we have let approximately 5,500 sq m of office space compared to the average take up in Bad-Homburg of about 800 sq m a year.”