30 Aug 2016

M7 Real Estate lets 4,000 sq m of warehouse and office space for MStar Europe

London, 30 August 2016 – M7 Real Estate, the pan-European real estate investor and asset manager, acting on behalf of its joint venture MStar Europe, announces that it has secured the letting of 4,000 sq m of warehouse and office space in assets across Germany, to tenants including Soletek GmbH, Vago GmbH and AnyFitTech GmbH.

MStar Europe has been active in Germany since August 2014. Since building up a portfolio of commercial real estate assets in this market it has undertaken a series of asset management initiatives including the refurbishment of vacant units and the launch of a new proactive and targeted marketing campaign which has led to the successful completion of these four latest lettings.

The largest of these recent lettings saw Turkish tyre manufacturer and distributor, GTK Gummiteile Kanik agree a five and a half year lease for over 1,300 sq m of warehouse and office space in a commercial park at Donatusstrasse 127-129 in Pulheim. Following this letting, all 8,370 sq m of warehouse space at this facility is now fully occupied, while 1,555 sq m of office space remains available to let. In addition, electronic products retailer Soletek GmbH has agreed to lease 1,260 sq m of warehouse and office space in Erkrath at MStar’s Feldheider Strasse asset, located in the Mettman district near Düsseldorf, bringing occupancy at this property to 85% with a WAULT of over six years.

M7 has also secured two lettings at a 30,000 sq m commercial park at Adam-Opel-Strasse in Frankfurt, with Vago GmbH, the construction material supplier, taking over 600 sq m of warehouse and office space, and AnyFitTech GmbH agreeing to occupy 900 sq m from September 2016. These lettings bring occupancy at the asset to over 80% with a WAULT of circa three years.

Jack Thoms, Head of European Asset Management, commented: “We acquired these assets having identified the potential to produce meaningful income for our partner by undertaking a number of proactive asset management initiatives to drive the value of the overall portfolio. The subsequent increase in occupancy across the portfolio is a strong endorsement of our pursued strategy, and we hope to announce further lettings for the remaining vacant space in the near term.”

M7 was advised by German Invest on the letting to GTK Gummiteile Kanik, by NAI Apollo on the letting to Vago GmbH, and by JLL on the letting to AnyFitTech GmbH.