The property fund company DEGI Deutsche Gesellschaft für Immobilienfonds mbH has gained the French Health Ministry as a tenant for DEGI INTERNATIONAL in Paris.
As from May 1, 2007, the 'Ministère de la Santé et des Solidarités' will be renting 3,500 m² of office space in the Tour Mirabeau property at the Quai André Citroën. Thus a reliable and extremely creditworthy tenant has been acquired four weeks after the spaces became vacant. Moreover, an increase in the rental and more clearly defined responsibilities in the tenancy agreement have produced a significant improvement in rental income. The agreement has a fixed term of 9 years.
Letting turnover of 33,300 m² in Q1 2007
For its open-ended property funds, DEGI had already let areas totalling around 33,300 m² in the first quarter of 2007. Of 82 new and follow-up tenancies, about 25,500 m² are accounted for by seven large tenancies involving rented spaces of between 1,000 and 6,800 m². In Frankfurt, for example, corresponding tenancy agreements have been concluded with the city council and the German railways, Deutsche Bahn AG. In the city of Frankfurt alone, DEGI has successfully marketed no less than 17,726 m² of office space. Rental income from the transactions totals around €7 million a year. "This result builds seamlessly on last year's good letting performance," says Bärbel Schomberg, Speaker of DEGI's Management Board.
Source: Allianz Global Investors