DGAP-News: Godewind Immobilien AG / Key word(s): Real Estate
06.05.2019 / 07:35
Godewind Immobilien AG leases around 5,000 m² of office space in the Frankfurt Airport Center
Frankfurt am Main, 6 May 2019 – Godewind Immobilien AG (ISIN: DE000A2G8XX3, trading symbol: GWD, Godewind), a company specializing in German office real estate, has just four months after the aquistion of the Frankfurt Airport Center (FAC), which is directly connected to Terminal 1 of Frankfurt Airport, reported its first significant letting success in this property.
Godewind concluded a tenancy agreement with a MDAX company for 5,044 m² of office space in the FAC at attractive market rents. The rental period begins on 1 October of this year. The tenancy agreement has an initial term of five years. Due to the very good negotiations of the Godewind asset management team, the key property figures will change very positively as a result of this new contract. The contracting annual net cold rent of the property is increased by more than 13% to around EUR 11.5 million through this agreement. The vacancy rate of the FAC falls from around 20% at the beginning of the year to only around 8.2%. The average remaining term of the tenancy agreements (WALT) is now 5.8 years. These parameters will have a positive impact on the valuation of the Frankfurt Airport Center as of 30 June 2019.
At the time of the acquisition of the FAC by Godewind in December 2018, the vacancy rate was still nearly 20%. This will now be reduced by around 60%, since even before the most recent completion, some smaller spaces totalling around 550 m² could be re-let or the existing leases for these areas could be extended. Due to further successful asset management, full occupancy is to be almost achieved in 2019.
In addition, further short-term successes are being sought in reducing the strategically purchased vacancy rate of the entire portfolio of initial 28%. Here, the company is already at an advanced stage of negotiations. This vacancy, which has already fallen to around 26% due to the new lettings in the FAC, offers outstanding growth potential, which is expected to increase Godewind’s net asset value (NAV) significant in the medium term. The current letting successes are a first milestone and prove the attractiveness of the value-add/manage-2-Core-strategy.
“After taking over the FAC at the end of 2018, we are delighted to have found a creditworthy and long-term tenant in such a short time,” explains Stavros Efremidis, CEO of Godewind. “The resulting significant reduction in vacancies shows that we have successfully positioned the property in asset management. This allows us to continue to benefit significantly from the sustained high demand for office space in Frankfurt and at our other A-locations”.
About the property
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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.godewind-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:||807169|
|End of News||DGAP News Service|