M7 Real Estate lets 12,000 sq m production and logistics property in Erfurt, Germany, to Halung AG
M7 Real Estate (M7), an investor and asset manager specialising in multi-let properties, has let a 12,000 sq m production and logistics property in Erfurt, in the federal state of Thuringia, Germany, to Halung AG, a manufacturer of electrical equipment and appliances headquartered in Döllstädt, in the Gotha district.
Halung AG has agreed to a five year lease for the property, which is situated at Bernauer Strasse 69.
The letting has been completed on behalf of Azure, a separate account mandate targeting investments in Germany and the UK, for which M7 acts as investment and asset manager. The portfolio currently comprises 11 industrial properties (eight in Germany and three in the UK) with a total lettable area of circa 270,000 sq m.
Alyssa Huse, Managing Director of M7 Real Estate Germany, says: "Ahead of the purchase of this asset, we had already devised a strategy for marketing the vacant property. Thanks to our strong market network, we were able to let the property to a regional SME tenant of good covenant only four weeks after completion of the acquisition. Through our asset management expertise we have generated a stable cash flow for the investors in the shortest possible time, exactly as envisaged in the Fund's business plan.”
Michael Halung, CEO of Halung AG, adds: "Our steadily increasing order book is making it important for us to expand our production and storage facilities in the long term. The property procured through M7 not only complies with our requirements in terms of fit-out criteria but, in its location in central Germany, it also enjoys good transport connections.”