S IMMO Germany: Successful rental agreements in 2012
45,000 m² let in 2012
The extensive revitalisation programme implemented by the listed company S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) in its German portfolio in recent years is enjoying success right from the start. Over the course of this year, numerous rental agreements have been completed with new tenants and over 45,000 m² of usable space have been let out in total.
A total of EUR 1.6m were invested in the renovation of the Babelsberger Strasse residential and commercial property in Berlin. The high-quality flats in the historical building offering spaces of up to 340 m² are a rare commodity and are generating rental income that significantly exceeds the expectations. For the commercial spaces, a rental agreement for nearly 500 m² was signed with Bio Company – an organic supermarket that enhances the value of the residential property and makes it attractive for potential tenants. In the Lützow Center – which also houses the offices of S IMMO Germany – the Konrad-Adenauer-Stiftung and an engineering firm signed on as new tenants, leasing roughly 500 m² each. These rental agreements and others were concluded in 2012 in cooperation with Kiene Property Consult GmbH, which serves as a strategic partner for S IMMO AG in the area of commercial leasing and broker coordination in Berlin, Leipzig and Bremen. S IMMO AG also leased more than 1,000 m² to a service bureau in Munich.
According to Daniel Kaboth, managing director of S IMMO Germany, “We are very happy to see that our revitalisation programme is bearing fruit. This allows us to lease high-quality properties at good prices and further increase the value of our portfolio. The Berlin market in particular still offers a great deal of potential for this.”