Case Studies

Office building restructuring and renewing leases

Investment Type

Direct

Sector

Office

Acquisition Date

June 2011

Acquisition Value

€165m

Acquisition Summary

  • Acquisition in Q2 2011 (€ 165M) of a 22 000 sq m office building on behalf of two institutional clients (50%-50%).
  • Initial strategy:

  - Securing existing rent

  - Executing a heavy restructuring plan of the common areas in occupied site

  - Defining and implementing a green strategy

 

Business Plan Summary

  • No significant works were executed since construction date (2001). In order to renew the main leases (2 929 and 11 668 sqm), DTZ investors launched and managed in 2015 the common areas restructuring works. The objective was to meet market standards in terms of layout, services and internet/digital connectivity.
  • The quality of works realised was essential as for the renewal of both leases (2016) with even an extension of 2 900 sq m on the major one.
  • A “Green” strategy was also implemented in 2013 for 2 certifications:

  - Certificate 1 & 2: very good

  - Axe 1 & 2: excellent

 

Performance To Date

  • The two major tenants renewed (with area extension) their leases on a six years firm periods.
  • The building is fully let.
  • Valuation increased by more than 11% since acquisition.
  • In 2016, “Green ratings” were renewed at the same level.

Past Performance is not a guide to the future. The value of an investment may go down as well as up and future returns are not guaranteed.