M7 Real Estate (“M7”), the pan-European investor and asset manager specialising in multi-tenanted real estate, has let c. 34,000 sq m of logistics vacancy in Leinefelde-Worbis, in the federal state of Thuringia to POCO Einrichtungsmärkte GmbH (“POCO”), the German furniture brand.
The property located at Boschstrasse 11-19, comprises a total lettable area of c.87,000 sq m and is part of a joint venture mandate for which M7 acts as investment and asset manager. The JV’s portfolio comprises 11 industrial properties (eight in Germany and three in the UK) which were acquired in June 2020 and 11 industrial and land properties recently acquired in Poland and Hungary.
The letting has increased the occupancy at Boschstrasse 11-19 by 39% and continues the strong demand being witnessed within the German market following the 12,000 sq m letting at Erfurt, a production and logistics property in the portfolio, in September 2020. As a result of these lettings the headline rent has increased 35% across the German assets in the joint venture.
Alyssa Huse, Managing Director of M7 Real Estate Germany, commented: “This is the second major letting we have completed in this portfolio in the past month. The letting to POCO, an excellent covenant, increases the occupancy rate of the property by 39%. As asset manager, we have demonstrated our ability to generate a stable cash flow for our investors, exactly as envisaged in the business plan.”
Jürgen Hildebrandt, of POCO Einrichtungsmärkte GmbH, added: “Our steadily increasing order book is making it important for us to expand our warehousing facilities. We have worked successfully with M7 in the past and so we are particularly pleased to be able to realise this project together.”
Christian Beran, Director of Realogis Immobilien Deutschland GmbH, said: “The strategic location of this property and the speed at which M7 acted as asset manager enabled this letting to be achieved in rapid time. We continue to see healthy demand for logistics space in the area and are confident that there will be strong interest in the remaining vacant units at this asset.”
Realogis Immobilien Deutschland GmbH acted in an advisory capacity.