M7 Real Estate (“M7”), the pan European investor and asset manager announces that it has agreed 26 lease re-gears with Danske Bank throughout Denmark.
Danske Bank has agreed to lease each unit, which together comprise a total of c.37,000 sq m, on a 5.75 year term, whilst also extending a further seven leases on a rolling basis, totalling an additional c. 3,100 sq m. Across the MBAY DK Fund (the “Fund”), over two thirds of the total annual rent has been prolonged as a result of these re-gears.
The Fund originally comprised a 67 assets portfolio located in key regional towns and cities in Denmark acquired from Danske Bank in November 2016. To date, 39 properties have been sold, with the remaining assets majority occupied by Danske Bank and a subsidiary of Home A/S, a nationwide Danish estate agency.
Mette Seifert, Head of the Nordic Region at M7, commented: “The conclusion of these lease re-gears with Danske Bank is a significant asset management achievement, with a number of long leases now in place in a market where rolling leases are the norm. Danske Bank offers a strong covenant, underpinning the quality of income generated from this portfolio. The volume of agreements involved represented a huge undertaking, but it is testament to the capability of our team that this project has been completed with an optimal outcome.”
Source : Company