Carisbrooke Recapitalisation, UK

Background and Opportunity

• Carisbrooke’s management had a short window to acquire an overleveraged loan secured on Carisbrooke’s property portfolio for over £70m from its distressed lender
• A 26 property portfolio was predominantly made up of industrial and office assets acquired at an initial yield of 12%+
• Revcap was able to bring together all the capital required to purchase the loan without the need to obtain third party debt

Transaction Progress

• 4 further assets were added to the portfolio after the purchase of the loan position
• After some asset management initiatives, most of assets were sold in a portfolio sale to an institutional investor in 2014
• Several assets were also sold individually

Current Status

• Transaction fully exited generating an IRR of 35%+ and a substantial promote paid to management
• Members of the management team have created Castlebrooke Investments as a successor business to focus on UK urban regeneration
• Revcap owns a minority stake in Castlebrooke Investments