Key Statistics

Initial investment

December 2004

Exit Date

July 2006

Revcap Equity Invested

€16.9 million

Case Study: JV Equity – Industrial Securities France Portfolio

Business Plan (at inception)

Provision of mezzanine debt and joint venture equity in partnership with Industrial Securities to aggregate a portfolio of high yielding properties across France with the opportunity to add value through active asset management. Possibility of a portfolio exit was recognised but not underwritten.

Business Plan Outturn

A portfolio of €160 million was assembled in 14 separate transactions comprising 37 different assets with an average net yield of over 8%. The assets were industrial and office properties located across France and Belgium in a 325,000m² portfolio. Revcap also introduced the French management team to Industrial Securities. The client provided Revcap with an opportunity for an early exit when new equity partners were introduced. Revcap decided to retain some exposure to the portfolio with a 2% stake in the restructured vehicle.

Revcap Commentary

Revcap was able to release the vast majority of its profit at an early stage in the business plan and at a substantially enhanced IRR. Part of the profit was reinvested through the retained 2% stake and now has exposure to a portfolio of over €800 million.