K3 Theaterforum, Heilbronn, Germany
Background and Opportunity
- Built in 2000, Revcap provided preferred equity and JV equity to acquire a 24,400m² mixed use, city centre property in Heilbronn, that was 94% let upon acquisition
- 47% occupied by the City Council for municipal uses (library and theatre) with the balance of the income from retail, office, leisure and car parking
- The property was acquired from a work out department who had been managing the asset for a number of years
- Business plan was to carry out a light refurbishment, to re-gear leases and to lease up the vacant space to create an institutional product
Transaction Progress
- City Council’s lease re-geared until 2040
- Offices re-let on a long term basis
- Retail re-positioning completed post sale to institutional investors
Current Status
- Property sold to an institutional investor in Q1 2017 generating post tax equity multiple of 3.0x
- JV has been retained by the buyer to realise further asset management initiatives at the property in return for additional consideration; new Decathlon, Netto and Rossman units added to the tenant mix since sale
