Millennium Tower in Vienna is considered a landmark in Austria. From an asset management perspective, this was a landmark that appeared to be fading into insignificance and had become outdated. This general market perception had to be changed conclusively and the property’s appeal extended to international investors.
Millennium Tower in Vienna is a landmark that needed to rediscover its true worth
Millennium Tower WienThe property
The 202-metre-high Millennium Tower in Vienna, located directly on the Danube, is an Austrian landmark. Until 2014, this was Austria's tallest office tower with 50 storeys. Together with the adjacent Millennium City shopping centre, it forms a neighbourhood of over 100,000 sqm. The property is located in Vienna's 20th District, close to all major transport routes including a dedicated railway station in front of the building.
Facts & figures
| Property name | Millennium Tower |
|---|---|
| Address | Handelskai 94-96 in 1200 Vienna |
| Submarket | 20th district |
| Asset class | Office, commercial |
| Year of construction | 1999 |
| Lettable area | 43,000 sqm |
| Landlord | Morgan Stanley |
| Tätigkeitsfeld | Repositioning, Landlord Representation |
| Mandate period | 2014-2015 |
The challenge
Millennium Tower was acquired by our client in 2014 and needed to be repositioned. The building appeared to be outdated and needed a modern look combined with architectural measures to make the building sustainably attractive for both tenants and subsequently for international buyers.
As part of our asset management mandate, we drew on an internationally renowned network of required specialists. These included architectural practices and agencies who were commissioned to investigate the architectural improvements required and to develop a new marketing strategy. We continuously managed the overall project in consultation with all parties involved.
The method
Active asset management with effective measures and tools
- Strategic realignment of the building
- Support in the selection of design architects and marketing agency
- Development of a TI & CapEx plan
- Comprehensive redesign of the lift lobbies
- Definition and creation of a lobby
- Development of a letting and pricing strategy
- Development of comprehensive marketing tools
- Development of a property-specific marketing suite
- Marketing of vacant spaceLocation-specific marketing of the property
Following a detailed potential analysis, and together with our client, we planned to reposition the building by undertaking extensive measures. For this purpose, we prepared a detailed marketing concept with the owner including a TI & CapEx plan, a letting strategy based on the possible letting options and an interesting and competitive offer package for tenants, while maximising the nominal rent. The aim was to create the most attractive property in Vienna for global companies looking for a high-rise product.
The entrance area to the tower was in the shopping centre and therefore the measures required to generate added value included the creation of a separate, high-quality appearance by redesigning a spectacular lobby.
Together with designers, architects and the client, we defined the most attractive marketing suite in the Viennese market at that time and were thereby able to credibly communicate the new vision of the building to interested parties and market participants.
New entrance area
Marketing brochure
Marketing suite
Repositioning concept
The result
Building Value: The positive results from Asset Management and Investment Advisory for Millennium Tower
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- Over 90% occupancy rate within 18 months
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- Reduction of long-standing vacancy and stabilisation within the mandate
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- Creation of a product with higher market appreciation at a rental price that exceeded expectations
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- Successful sale to an international investor within 36 months
Sometimes you have to take steps to improve the value of a building. Targeted interventions have not only brought the value of Millennium Tower to the fore, but have also improved its appeal to tenants. The vacancy was almost eliminated and the building was successfully sold to an international investor.