Key Statistics

Initial investment

December 2005

Exit Date

August 2007

Revcap Equity Invested

€0.6 million

Case Study: JV Equity – Megaron, Mannheim, Germany

Business Plan (at inception)

Acquisition in partnership with Kenmore and HBoS of an 8,700m² office property for €13.5m (inc. costs). The property was introduced to the joint venture by Revcap. The property was completed by the vendor in 2004 and was 76% leased upon acquisition (giving a net yield of 6.6% initial growing to 8.1% upon lease up). The business plan was to lease vacant space and sell in an orderly manner into the institutional market at a net yield of 7.25%.

Business Plan Outturn

The office lease up progressed very quickly and the property was sold following an international marketing process to a UK institutional fund for a net yield of under 6%.

Revcap Commentary

Excellent performance compared to underwriting. The benefits of having an institutional quality asset led to an excellent price being achieved with the consortium enjoying yield compression that was not underwritten.