Branicks Group AG: Lease renewals and new lease signings for a total of 36,700 sqm of office and logistics space in managed fund properties

Press release
 

Branicks Group AG: Lease renewals and new lease signings for a total of 36,700 sqm of office and logistics space in managed fund properties

• Securing long-term earnings for the funds
• Letting result stable on a high level
• Appreciation of the Office Balance fund portfolio through active asset management and focus on ESG aspects

Frankfurt am Main, 6 November 2023. Branicks Group AG (“Branicks”), ISIN: DE000A1X3XX4, one of Germany’s leading listed real estate companies, successfully signed new lease agreements and renewed existing ones in the Institutional Business segment. This success represents further progress as part of the “Performance 2024” action plan, which aims, among other things, to strengthen Branicks’ operating business through high letting performance. Branicks’ letting teams were able to let a total of around 36,700 sqm in the office properties managed in Hanover and Düsseldorf. The existing lease agreement in Hanover was extended by around 18,100 sqm. In the logistics property in Ginsheim-Gustavsburg, Hesse, the lease agreement was extended for around 16,000 sqm and an additional 2,600 sqm was let to a logistics operator. This means that the fund properties will remain fully occupied in the future.

“With our know-how gained over long years in the asset management business, we steadily increase the profitability of our real estate platform. The premature lease renewal in Hanover is an excellent case in point. The capital expenditures to upgrade the technical infrastructure of this office property work to the advantage of both tenant and landlord: While the tenant benefits from lower service charges and advanced engineering during active operation, the landlord benefits from an ESG-optimised performance and the long-term lease extension,” said Christian Fritzsche, Chief Operating Officer (COO) at Branicks.

Details on the various lettings

At the “Vahrenwalder Welle” office scheme in Hanover, Branicks renewed the lease with the incumbent tenant for around 11,400 sqm of office space. The tenant committed itself to this location at Vahrenwalder Strasse 315 for another five years. The office building is held in the portfolio of an Office Balance investment fund, and underwent a comprehensive energy-refurbishment. Here, Branicks transitioned from a gas-fired to a district heating system in conjunction with an innovative modernisation concept. The tenant moreover equipped the premises with LED lighting.

At the “Wacker Hof” office complex on Erkrather Str. 377-389 in Düsseldorf-Lierenfeld, which Branicks manages on behalf of a Public Infrastructure Fund, Branicks prematurely renewed the existing lease for around 6,700 sqm with the Institute for Federal Real Estate (BImA) for another four years.

The logistics unit in the Hessian town of Ginsheim-Gustavsburg, which is a property held in the “RLI Logistics Fund – Germany II,” was let via a follow-on lease with ID Logistics, a company that had previously occupied the premises as subtenant. Two years ago, this listed international contract logistics operator had signed a lease for 16,000 sqm to set up a highly productive e-commerce location in the Rhine-Main metro region. In response to the successful performance of the sorting and distribution centre for the online retail business, ID Logistics Germany is expanding its spaces by a further 2,600 sqm to a total of about 18,600 sqm, and signed a four-year lease for the property, which is therefore fully occupied because the company is its sole tenant.

About Branicks Group AG

Branicks Group AG (formerly DIC Asset AG) is Germany’s leading listed specialist for office and logistics real estate with 25 years of experience on the real estate market and with access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with nine offices on the ground in all major German markets (with VIB Vermögen AG included). We currently manage a total of 358 assets with a combined market value of EUR 14.2 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment comprises real estate held for our own account. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.

In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment products that return attractive dividend yields.

For more details, go to branicks.com.

IR/PR Contact Branicks Group AG:
Peer Schlinkmann
Head of Investment Relations & Corporate Communications
Neue Mainzer Strasse 32-36
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
ir@branicks.com
pr@branicks.com