Colonia wins workout mandate for Level One portfolio

A subsidiary of German real estate group Colonia has been awarded the contract to manage the commercial property portfolio amassed by the insolvent firm Level One.

CRE Resolution was appointed by the administrator Rattunde, with the backing of the lender Royal Bank of Scotland, to asset management the portfolio of 13 commercial properties with a total space of 74,000 m². The vacancy rate for all properties together is around 33%. The aim of the insolvency administrator and the bank is to stabilise and optimize the properties.

The office and retail properties are located primarily in North Rhine-Westphalia, Berlin and Karlsruhe. 'Reducing the vacancy rate and securing the cash flow are among the top priorities,' said Christoph Wittkop of CRE Resolution. 'The bank is providing the necessary resources so that the eventual sale at reasonable prices should be possible.'

According to Wittkop, this mandate is also a success for the German Workout Platform, an alliance of multiple partners offering modular services in the workout sector. The German Workout Platform will be presented to the industry at the upcoming industry trade show Expo Real in Munich next month.