Aroundtown, one of Europe's largest real estate companies, has achieved full occupancy at its Große Steinstraße 82 / Brüderstraße 2 office building in Halle (Saale) following a long-term contract extension with a health insurance company and a new 534m² lease to TimeLEAN.
The milestone reflects a broader trend of healthcare organisations prioritising premium city centre locations over suburban alternatives, particularly as hybrid working models drive demand for high-quality, accessible office space. The health insurance company's decision to extend its lease whilst expanding into an additional 534 m² at the Brüderstraße section demonstrates confidence in both Halle's market fundamentals and the building's competitive positioning.
What makes this particularly significant for institutional investors is the tenant mix quality and lease duration profile. Healthcare sector tenants typically offer superior covenant strength compared to traditional office occupiers, providing more predictable income streams during economic uncertainty. The property's immediate proximity to Halle's market square positions it within the city's prime office micro-market, where supply constraints continue to support rental growth.
Helmar Lösche, Letting Manager at Aroundtown, emphasised the location advantage: "Both our new tenant and the service centre continue to enjoy the advantageous location of our property in the middle of the city centre." The property benefits from direct public transport connections and walking distance to retail, dining and essential services, factors increasingly crucial for attracting quality tenants in secondary German markets.
The leasing success highlights Aroundtown's differentiated approach to tenant retention through its comprehensive service programme, including on-site personnel and 24/7 support coverage. This operational excellence, combined with the company's focus on ESG credentials, positions Aroundtown properties to command premium rents as occupiers increasingly factor service quality and sustainability into location decisions.
Aroundtown's achievement of 100% occupancy in a secondary market location demonstrates the company's asset management expertise across its €25bn portfolio. With major institutional backers including BlackRock, Norges, Vanguard, and ECB bond holdings, the company continues leveraging its scale advantages to optimise returns in Germany's resilient office market.
People mentioned:
- Helmar Lösche, Letting Manager, Aroundtown
- Yakir Gabay, Controller of Avisco (15% shareholder)
Companies mentioned:
- Aroundtown - European real estate company, property owner
- TimeLEAN GmbH - new tenant (534 m² lease)
- Avisco - 15% shareholder controlled by Yakir Gabay
- JP Morgan Chase - 10% shareholder
- BlackRock, Norges, Vanguard, Allianz, BNP Paribas - institutional shareholders
- ECB, GIC, Union Investment - major bond investors
Image: Bildunterschrift: Das Bürogebäude in der Große Steinstraße 82 in Halle (Saale); Credit: Aroundtown
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