Le Picasso, Nanterre, France

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