Valad, the European multi-let real estate investment manager, has let 4,551 m² of predominantly warehouse space at Harkortstrasse 12-32, Ratingen, Düsseldorf to the Australian retail company, Cotton On, on behalf of the European High Income Fund (EHI).
Cotton On has agreed a three-year lease on the space where it will establish its main distribution center, as it prepares to expand into the German customer market and open its first German store.
Harkortstrasse 12-32 is a 12,846-m² estate comprising 11 units spread across two warehouse buildings. Located in the industrial district of Ratingen, the estate offers fast access to the A52 and A44 motorways, providing excellent links with the rest of Germany, and Düsseldorf's airport.
Cotton On will join existing tenants at the estate including Creativ Messebau, NGK Spark Plug Europe and NSK Deutschland. Following this latest letting the estate is almost fully let with only 572 m² of office space remaining available.
Klaus Kortebein, Valad's Head of Germany, commented: "It is a great result to have signed another tenant in the Rhine Ruhr area of Germany, particularly one with Cotton On's global reputation and it is exciting to welcome them to Harkortstrasse 12-32 as they enter the German market."
He continued: "Through our intensive asset management approach, we have added considerable value to the estate since acquiring it in 2006 when over half of it was vacant. Within six months of the acquisition it was almost fully occupied, predominantly on five year leases. As the lease expiries approached, we were able to increase income by both renewing leases with existing tenants and securing new, stronger tenants.
"The estate is now 95% let which is testament to the flexibility and therefore tenant attraction to the asset and its convenient location. We are confident that this asset will continue to provide long-term value for the investors in EHI."
Valad was advised on the new letting by Realogis, Düsseldorf.
Source: Tavistock Communications