S IMMO achieves successes in letting in Berlin
Germany is and will continue to be one of the most important markets for the listed real estate investment company S IMMO AG. This is demonstrated by purchases in rapidly growing cities such as Leipzig and Erfurt as well as successes in letting out portfolio properties. The local experts at S IMMO Germany follow a proven recipe for success: Attractive properties in prime locations are renovated, repositioned and let out to emerging, dynamic companies.
The latest example of this strategy is the Leuchtenfabrik building in the Schöneweide neighbourhood of Berlin. Three years after the building was purchased, the 16,000 m² of lettable space are nearly fully let out. When the company acquired the property on the Spree in June 2015, most of the office space was vacant. Since then, the former Spreehöfe have been renovated and divided into smaller units, and the tenant structure has been completely transformed thanks to the repositioning. A diverse mix of tenants has moved into the 100 to 3,000 m² rental units, which offer adaptable floor plans and individualised expansion possibilities. One of the main tenants is the co-working provider Regus.
Robert Neumüller, managing director of S IMMO Germany, described the approach as follows: “We recognised early on that a paradigm shift is taking place in the working world. Today, many companies have completely different requirements when it comes to their workspace and are not looking for sterile new buildings but rather for locations with a character.” The industrial heritage site in Berlin was renovated and the outdoor spaces were redesigned with a focus on potential tenants coming from creative industries. As part of this process, the loft spaces were stripped down to the structural shell. Due to the significant demand, S IMMO will convert the rooftop level into office spaces as well.
Ernst Vejdovszky, CEO of S IMMO AG, is also thrilled: “Berlin is a tremendously exciting market with wholly unique requirements. Our local team enables us to react to these trends quickly and thus keep writing new success stories.”