- Acquisition in Q2 2011 of a 14 600 sqm office building on behalf of an institutional client.
- Initial strategy :
- Securing existing rent: HSBC sole tenant had just renewed its lease in 2010 for a six year period before break option (end 2015) leaving four remaining years.
- Defining and implementing a green strategy.
Business Plan Summary
- No significant works executed since construction date (2003).
- As the sole tenant exercised its break option to vacate the entire building in December 2015, a strong asset management strategy was put in place to minimize the vacancy period and meet market standards in terms of property enhancement and rental space attractiveness:
- Significant works to renovate the building (€ 11 M budget) within three pillars:
1) Quality renovation of offices’ space, entrance lobbies, bathrooms, etc.
2)Development of the services (business center, snacking, cafeteria)
3) Enhancement of the green value in the scope of a double renovation certificate
- DTZ Investors procured and appointed a general contractor but retained the works management contract.
- Along with the works’ strategy, an active marketing strategy was put in place with a €300k budget.
Performance To Date
- Vacancy shorter than expected.
- Lease signed for the whole building before the completion of works: lease negotiation and follow up managed by DTZ Investors France with the tenant in terms of technical, legal and administrative aspects.
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.