De Panoven, Geldermalsen
Location
- This asset is located in Geldermalsen, a small town in the centre of the Netherlands, with a population of approximately 27,000 people. Geldermalsen is approximately 70km south-east of Amsterdam.
- The subject property is located in the north western most corner of the “Panoven/Chamotte” business estate. This estate is located on the south-east side of Geldermalsen and is the largest business estate within the city boundaries. The business estate is surrounded by residential property and farmland on all four sides.
Asset Overview
- A flexible office building with identifiable wings with separate entrances, offering multiple options for leasing.
- Each wing is rectangular in shape providing good levels of natural light with the capability of allowing open plan or cellular office arrangements.
Key Management Issues at Purchase
- The building was set to see the departure of the two key tenants at lease expiry, leaving a significant vacancy of 80%. Whilst Hamburg-Mannheimer were yet to formally serve notice, they had discussed downsizing their accommodation which they occupied on 3 separate leases and had stated that they would vacate at lease expiry. Heinz only occupied their kitchen facility; the remainder of their accommodation was vacant.
- The building was not air conditioned and a recent letting in the property had required the installation of air conditioning at the landlord’s cost (€35,000).
Key Statistics as at Disposable Date on 18th May 2010
Progress Since Purchase
- An intensive marketing campaign targeting local healthcare professionals is being implemented to rebrand the property within the local letting market.
- In January 2011 Rynda signed a two year lease with a doctor for 190m² of accommodation at this property. The lease will start on 1 June 2011 at a rent of €110/m² (€20,904 pa). No rent free period or tenant incentive was given. This signing is a direct result of the intensive marketing campaign mentioned above.
- In June 2010 Rynda signed three new tenants, a midwife, a dentist and a lawyer. The midwife has taken 115m² of office accommodation on a new 3-year lease with 3 months’ rent- free for a rent of €115/m² (€13,200). The Dentist and Lawyer have taken a total of 361m² on a 10 year lease at a rent of €114/m² (€41,154). The landlord has contributed a total investment of €120,000 to the improvement of this space. This letting activity materially enhanced the prospects at this asset when there was a danger of it becoming fully vacant.
- Rynda received €38,000 from Hamburg Mannheimer for ending their lease early and for dilapidations. This money has helped to fund the €120,000 investment discussed above.
- Rynda created 13 additional parking spaces to satisfy the new tenants requirements by better utilisation of the existing car park and open spaces.
- Rynda negotiated and have now received a €25,000 dilapidations settlement from Heinz. Heinz vacated their accommodation on lease expiry in October 2009.