German Retail Warehouse Portfolio

Background and Opportunity

  • Acquisition of a portfolio of single-let cash and carry retail warehousing assets for a 6.5% yield
  • A sub-portfolio of a larger investment which was non-core to the vendor
  • Business plan to unlock rent reversions through regears with the existing tenant

Transaction Progress

  • Active tenant engagement to identify solutions to improve assets through capex and to secure new rental rates and longer lease terms
  • Agreed terms to regear 100% of space in Q1 2021
  • Increased the weighted average lease term from 5 years to 12 years

Current Status

  • The investment is significantly ahead of business plan
  • Revcap is enjoying long term income of c.8% on invested equity