netherlands

GELDERMALSEN, THE NETHERLANDS

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 that is the largest business estate within the city boundaries. The business estate is surrounded by residential property and farmland on all four sides.

Key Statistics

Purchase Date May 2008
Floor Area 1,635m2
No. of Tenants 4
Passing Gross Rent per Year: €92,058 (€112,962 in June 2011)
Rent per occupied m2 pa €116
Disposal Date September 2013

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 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 three 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).

Progress

  • An intensive marketing campaign targeting local healthcare professionals was 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. 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. This letting activity materially enhanced the prospects at this asset.
  • Rynda received €38,000 from Hamburg-Mannheimer for ending their lease early and for dilapidations. This money has helped to fund €120,000 of capital investment.
  • 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.
  • Value increased significantly as let-up was achieved.
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