Carisbrooke Recapitalisation, UK

UK-flag-300x175

Investment Date
Q1 2013

Exit Date
Q2 2015
(Fully Realised)

Asset type
Mixed commercial

Revcap strategy
Distressed purchase /
Portfolio build up

Revcap Fund
KHCP II / SHCP III

Investment Type
JV Equity /
Platform Investment

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 30%+ 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

SIMILAR INVESTMENTS

  • Santander Portfolio, UK
  • Thames House and Vinopolis, London, UK
  • Stella Vitalis Nursing Homes, Germany
  • Insite Poster Properties, UK