Background and Opportunity
- Acquisition from a motivated institutional seller of a 40,000m² office property in Nanterre, an established office location next to La Défense in Paris
- 74% single let property acquired at a yield of 11% with a business plan to re-gear the existing lease; to renovate the property and to lease up the vacancy
- Working with a long term Revcap partner
Transaction Progress
- Extensive renovation of public areas, car parks and vacant space completed
- Re-gear of 74% of space entered into shortly after acquisition
- Tenant ended up taking 100% of the space following two further re-gears
Current Status
- Asset sold to institutional investor in 2018 to generate a post tax IRR to KHCP IV of 57% and a 2.4x equity multiple
