- General - M7 secures 10,000 sq m of lettings to take French portfolio to 86% occupied
Date: 04 Aug 2016
M7 Real Estate has secured over 10,000 sq m of new lettings and lease renewals across the 27 asset 163,000 sq m French portfolio of MStar Europe, its joint venture with Starwood Capital, to tenants including SITA, Riello and Lagardere Travel Retail.
MStar Europe acquired the portfolio of French logistics assets in August 2014, and since then has undertaken a series of asset management initiatives including the refurbishment of vacant units and a proactive marketing campaign which has led to eight new lettings totalling almost 5,800 sq m, together with four lease renewals on a further 4,700 sq m.
The largest of these recent lettings saw environmental management group SITA agree a five year lease on 2,151 sq m of warehouse and office space at MStar's asset at Sucy-en-Brie, located to the south east of Paris. Following this letting, occupation at this property is now 100%. In addition to this, a national telecoms and internet provider agreed a six year lease for 1,272 sq m of warehouse space in Argenteuil, to the west of Paris, and fire safety specialists DEF took 665 sq m of mixed office and light industrial space in Nanterre, located on the A86 orbital motorway near Paris. These lettings took both assets to 100% occupancy.
M7 has also agreed a lease renewal with UPS manufacturer Riello, which has signed a new six year firm lease on an 1,755 sq m office and light industrial building in Lisses, located to the south of Paris, where the tenant has been in occupation since 2010. At Le Blanc Mesnil, a northern Paris suburb, retail specialist Lagardere Travel Retail renewed its lease on a six year firm basis on 1,423 sq m to maintain 100% occupancy at this asset.
Chris Pope, Managing Director, M7 France said, "Since acquiring the assets in August 2014, we have employed an active asset management strategy to increase the value of this portfolio and produce further income for our investors. The subsequent increase in occupancy across these assets is a strong endorsement of this strategy, and coupled with the backdrop of growth in French occupational markets, we hope to announce further lettings for the remaining vacant space in the near term."
Advenis represented MStar in the letting to SITE at Sucy-en-Brie, and Nexity Conseil advised MStar on the letting at Nanterre.