Key Statistics

Initial investment

January 2005

Exit Date

July 2007

Revcap Equity Invested

€4.1 million

Case Study: JV Equity – Kufürstendamm, 26a, Berlin

Business Plan (at inception)

Purchase of a distressed 6,200m² mixed use property on a prestigious corner location in central Berlin in partnership with Freo. The property was acquired in 2005 for €29 million. The business plan was to renovate the upper parts and lease as offices; re-tenant much of the ground floor retail and sell after 5 years at a net yield of 6%.

Business Plan Outturn

Office leasing progressed well as the Berlin office letting market picked up. The decision was taken to bring the roof space into use and to lease it out as additional offices. New retail tenants attracted including Starbucks, Loewe, Camper and More & More. Timberland and Aveda were retained and re-geared. The stabilised property was sold at a net yield of sub 5% to a Middle Eastern client of a major bank.

Revcap Commentary

Excellent performance achieved ahead of underwritten timetable. Despite deciding to increase costs in order to improve specification and bring the roof space into use (which added value overall), the investment performed extremely well. The performance was particularly good due to complications caused by the seller being declared bankrupt between notarisation and completion.