M7 completes multiple Danske Bank lease re-gears
M7 Real Estate (M7) agrees 26 lease re-gears with Danske Bank throughout Denmark.
Danske Bank has agreed to lease each unit, which together comprise a total of c37,000 sq m, on a 5.75 year term, whilst also extending a further seven leases on a rolling basis, totalling an additional c 3,100 sq m. Across the MBAY DK Fund, over two thirds of the total annual rent has been prolonged as a result of these re-gears.
The Fund originally comprised a 67 assets portfolio located in key regional towns and cities in Denmark acquired from Danske Bank in November 2016. To date, 39 properties have been sold, with the remaining assets majority occupied by Danske Bank and a subsidiary of Home A/S, a nationwide Danish estate agency.
As asset manager for the portfolio, M7 has implemented a comprehensive programme, refurbishing vacant space and successfully negotiating lease re-gears enhancing the value of the real estate.
Mette Seifert, Head of the Nordic Region at M7, says: “The conclusion of these lease re-gears with Danske Bank is a significant asset management achievement, with a number of long leases now in place in a market where rolling leases are the norm. Danske Bank offers a strong covenant, underpinning the quality of income generated from this portfolio. The volume of agreements involved represented a huge undertaking, but it is testament to the capability of our team that this project has been completed with an optimal outcome.”
M7, on behalf of the Fund, were advised by Law Firm Kromann Reumert.