Godewind Immobilien AG achieves full occupancy in Herzogterrassen, Dusseldorf - entire portfolio's vacancy rate falls significantly
- Full occupancy of Herzogterrassen just four months after closing through a long-term tenancy agreement for more than 21,500 m²
- Annual net cold rent generated by the office complex rises to approximately EUR 12.6 million
- Tenancy agreement term is more than 16 years, WALT rises to 11 years
- Vacancy rate of the entire portfolio almost halved since purchase to 13.1 percent
Frankfurt am Main, 26 August 2019 - Godewind Immobilien AG (ISIN: DE000A2G8XX3, ticker symbol: GWD, Godewind), a company specialising in German office properties, has concluded a lease agreement which will completely reduce the office vacancy of Herzogterassen, only four months after the closing of the office complex, which are located in the centre of Düsseldorf.
The tenancy agreement with a leading provider of shared workspaces covers all the vacant office space as well as additional space in Herzogterrassen of totally 21,589 m². The new agreement, expertly negotiated by Godewind's asset management team, will have a very positive impact on the property's key figures. The term of the new tenancy agreement is more than 16 years and the lease period starts on 1 May 2020 at the latest. The office complex's contracted annual net cold rent will rise to around EUR 12.6 million as a result of concluding this agreement. The office vacancy rate for Herzogterrassen will fall to zero per cent, while the weighted average lease term (WALT) will now rise from 6.1 years to 11.1 years.
All in all, the key performance indicators for Herzogterrassen have changed as follows since the closing in April this year based on the contractually secured rental income:
- Annualised net rental income of around EUR 12.6 million compared to previously around EUR 6.5 million
- Office vacancy rate of 0 per cent compared to previously 40 per cent
- WALT of 11.1 years compared to previously 6.1 years
These parameters will have a very positive impact on the valuation of the Herzogterrassen property as of year end 2019 and are in line with the forecast raised on 22 July 2019.
The total new letting performance since the acquisition of all assets totalling more than 30,000 m² through the new lettings - for example in the FAC in Frankfurt, in Quartier am Zeughaus in Hamburg, in sunsquare near Munich and in Y2 in Frankfurt - already achieved and the current new letting in Herzogterrassen have significantly reduced the portfolio vacancy rate to 13.1 percent. The strategic acquired vacant scpaces continue to offer outstanding growth potential and drive Godewind to rise the net asset value (NAV) even further in the medium term. Godewind's recent leasing success is an important milestone in this respect and proves the attractiveness of the company's value add/manage-2-core strategy.
About the property
Herzogterrassen is a modern office complex in a central inner-city location in Dusseldorf with considerable upside potential. This makes the property a perfect fit for Godewind's value add/manage-2-core strategy. Herzogterrassen is situated on a large plot of land of 16,300 square metres. The office complex offers banks, auditors, accountants and various other service providers very flexible space with high-quality technical facilities. It also has 962 underground parking spaces. The net purchase price for a total lettable area of 55,717 square metres was around EUR 140 million, or an average of EUR 2,513 per square metre.
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Photo of the property
Description: Herzogterrassen, Herzogstrasse 15, 40217 Dusseldorf, Godewind Immobilien AG
About Godewind Immobilien AG
Godewind Immobilien AG, headquartered in Frankfurt am Main, is a company specialising in German office properties. The company's focus is on creating and expanding an attractive real estate portfolio in Germany's growth centres. As an active portfolio and asset manager, Godewind strives for sustainable increases in earnings and income, which are supplemented by regularly increasing upside potential. Including its latest acquisition, City Gate, Godewind has an office property portfolio totalling around EUR 950 million. In the medium term, the aim is to create a commercial real estate portfolio of around EUR 3 billion with the help of a wide-ranging network and by means of value-added acquisitions.
Based on internal portfolio and asset management, Godewind Immobilien AG will manage commercial properties cost effectively, conclude long-term tenancy agreements and thus increase the value of the company. The company has loss carryforwards for corporation and trade tax and a tax deposit account. The Godewind Immobilien AG share is traded in the Prime Standard segment of the Frankfurt Stock Exchange (RWB). For further information please visit http://www.godewind-ag.com.
Investor Relations Contact
Godewind Immobilien AG
Phone +49 69 27 13 97 32 13
Kirchhoff Consult AG
Phone +49 40 60 91 86 65
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