German Retail Warehouse Portfolio, Germany

Background and Opportunity

  • Acquisition of a portfolio of single-let cash and carry retail warehousing assets for a 6.5% yield with 50% leverage
  • A sub-portfolio of a larger investment that was non-core to the vendor
  • Business plan to unlock rent reversions through regears with the existing tenant

Transaction Progress

  • Active tenant engagement identified 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

  • Revcap enjoyed an income of c. 8% on invested equity and exited at a net yield of 5%
  • The investment was exited significantly ahead of business plan in Q4 2021