DGAP-News: Godewind Immobilien AG / Key word(s): Contract/Real Estate
27.05.2019 / 07:35
Godewind Immobilien AG leases around 3,000 m² of office space in the sunsquare office complex in Kirchheim near Munich
Frankfurt am Main, 27 May 2019 – Godewind Immobilien AG (ISIN: DE000A2G8XX3, trading symbol: GWD, Godewind), a company specializing in German office real estate, announces another milestone in the reduction of vacancies in its office real estate portfolio shortly after the first significant letting success.
Just a few months after the acquisition of the sunsquare office complex in Kirchheim near Munich, Godewind concluded a ten-year rental agreement for 3,042 m² of office space and 116 m² of storage space at attractive market rents with a medium-sized company providing solutions for the logistic industry. The rental period begins on the first of December this year. Due to the excellent negotiations of the Godewind asset management team, the key property figures will improve considerably as a result of this new contract. The contracted annual net cold rent for the property will increase by around 60 percent to EUR 1.3 million through this agreement. Sunsquare’s vacancy rate will decline from around 64 percent at the beginning of the year to approximately 48 percent. The average remaining term of the tenancy (WALT) increases to now 5.8 years after 3.4 years previously. These parameters will have a positive impact on the valuation of sunsquare and thus the overall portfolio as of 30 June 2019.
Through continued active asset management, Godewind aims to achieve further short-term successes in reducing the strategically purchased vacancy rate of the entire portfolio of initial 28 percent. This vacancy was recently reduced to around 26 percent by the letting in the Frankfurt Airport Center. As a result of the new lettings in sunsquare, this will now be reduced to around 25 percent. Including the latest acquisition, City Gate Tower in Frankfurt, the vacancy rate in the portfolio is currently still around 24 percent. This remaining vacancy offers further growth potential, which is expected to increase Godewind’s net asset value (NAV) significant in the medium term. The current letting successes are a further milestone in the implementation of Godewind’s value-add/manage-2-core-strategy. The deals demonstrate the company’s ability to rapidly leverage the growth potential of its office real estate portfolio.
“After taking over the sunsquare at the end of 2018, we are delighted to have found a creditworthy and long-term tenant for this office complex in such a short time,” explains Stavros Efremidis, CEO of Godewind. “Again, we achieved a significant reduction in vacancies right from the start. With our inhouse active asset management team, we have successfully repositioned the property. This enables us to benefit from the ongoing high demand for office space at our premises even further in the future.”
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About Godewind Immobilien AG
Based on its internal portfolio and asset management, Godewind Immobilien AG will manage commercial properties cost-effectively, enter into long-term tenancy agreements and thus increase its enterprise value. The company has tax loss carry-forwards for corporation and trade tax, as well as a tax-free capital reserve. Godewind Immobilien AG shares are traded in the Prime Standard segment of the Frankfurt Stock Exchange (FWB). For further information please visit https://www.covivio-office-ag.com.
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|Company:||Godewind Immobilien AG|
|60329 Frankfurt am Main|
|Phone:||+49 (0) 69 2713973213|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||815905|
|End of News||DGAP News Service|