Asset Management

Cromwell operates a 'Tenant is King' philosophy when it comes to asset management, because we believe that good relationships are the foundation of a strong and sustainable business.

The primary goal of our German asset management team is to build long term, mutually beneficial relationships with our tenant customers.  This enables Cromwell to understand our tenants’ needs and flexibly meet their requirements. With approximately 60 assets in Germany, we are able to accommodate tenants in many different parts of the country.

Our asset managers also set bespoke annual business plans for all assets and continuously review progress of every asset, in line with our investment strategy. Budgets, forecasts, plans and performance reports are prepared in a transparent and consistent manner to ensure all assets are managed efficiently and that we effectively maximise investment performance through:

  • Rent and service charge collection;
  • Report on rent arrears, bailiff cases, rent indexation;
  • Maintenance programmes and budgets;
  • Lease compliance;
  • Handover of units at lease start and finish;
  • Information reporting to Asset Management; and
  • Insurance.

Bottcherhof 1, Hamburg-Billbrook

Bottcherhof 1 is a 34,000 sq m light industrial estate, located in a prime industrial location, close to the main port of Billbrook in Hamburg.

When the German team assumed management responsibility for the asset, it had a low income profile with high non-recoverables and insolvencies due to some poor tenant profiles.

An improved marketing and letting strategy resulted in substantial reletting of vacant areas and non-recoverables decreased through a tender on property and facility management. The result was an increase in the weighted average lease expiry through lease extensions and renewals and an increase in the net operating income of more than 12%.

With increased levels of satisfaction amongst tenants and 100% occupancy, the asset was then appealing to institutional grade investors and was sold in 2016.

Thiemannstraße 1-11, Berlin Neukölln

Thiemannstraße 1-11, is a complex of 15 buildings, comprising 53,000 sq m of office, manufacturing, retail, leisure and storage space, located in a developing urban quarter, 6km south-east of Berlin city centre.

The asset had two strong anchor tenants, both with leases expiring, reflecting 78% of the total income. The German asset management team negotiated 10 year extensions to these leases, securing €30 million of income.

A significant amount of asset management activities were completed, to create an institutional product, with 95% occupancy and an increase in the weighted average lease expiry from 1.5 to 8.7 years.

The asset was then sold significantly above its valuation and fund target sale price.

Funkwerk.berlin, Colditzstraße 34-36, Berlin Tempelhof

Colditzstraße 34-36 is an historical industrial complex comprising over 6,000 sq m of office, manufacturing, retail and storage space, located in an established industrial area south of Berlin city centre.

As a result of the anchor tenant terminating their lease, the asset was only 25% occupied and had a weighted average lease expiry of only 1.4 years.

The German asset management team undertook a strategy of focused marketing activities, capital expenditure and rebranding the asset to funkwerk.berlin. Within in a short timeframe, this activity resulted in an increase in the overall occupancy rate to 60% and the weighted average lease expiry to 4.9 years.

The asset was then marketed for sale and was sold at 43% ahead of business plan.

Hafenpforte, Reisholzer Werftstraße 38-40, Dusseldorf

Hafenpforte is a 15,000 sq m asset comprising office and light-industrial space, located in the commercial area of district Holthausen, in the south of Dusseldorf, very close to Reisholzer Hafen.

After the anchor tenant vacated, the asset had an 80% void of the predominantly office space, in an area with limited demand from occupiers for this type of space.

The repositioning process undertaken by the local team included the creation of extremely flexible floor layouts which can be adapted to a variety of uses to attract new tenants and the implementation of a focused marketing strategy with a new brand name and website.

Over a period of 3.5 years, five new leases were signed, transforming the asset from single let to multi-let, with 100% occupancy.

The asset was disposed as part of a portfolio of 11 German properties, achieving a sales price in excess of 52% ahead of business plan.