• 2015
  • Milan, Italy
  • Asset management
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Zara Home
Milan, Italy

Two adjacent high street retail units located near a prime location in Milan

Strategy
  • To protect the high rental income put at risk by un-sustainability of rent for occupier (Pzero) and to create a new desirable retail unit
Implementation
  • Managed and signed leasebreak with Pzero with a material surrender premium
  • Simultaneously negotiated with Zara Home to sign a new lease agreement to lease both units and create largest global Zara store
Results
  • Managed refurbishment works of Zara Home Milan flagship store of c. 2,400sqm in less than six weeks (opened April 2015)
  • The unit is one of the top 5 Zara Home top performer globally
  • Rental income was secured in the long term through the new lease with Zara Home.

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  • 2015
  • Skellefteå, Sweden
  • Asset management
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Solbacken Retail Park
Skellefteå, Sweden

Extend and redevelop modern Swedish retail park

Strategy
  • Dominant out of town retail park in Skellefteå (Sweden) with food anchors and strong non-food retailers comprising 15 units and 23 tenants with a total area of 30,400 sq m
  • Asset offered an attractive combination of high level of income as well as both short and long term opportunities to add significant value
Implementation
  • Additional areas created (development of  2,700 sq m building rights) to the main food anchor  with a 12 year extended lease term and new toy shop (10 years lease term).
  • Completion of a new 790 sq m unit for a tenant, lease re-gears and expansion of an existing unit to bring on a new fashion retail tenant
Results
  • Project IRR 18%
  • Development of building rights:
    • Phase A - 1,850 sqm (2012):
      • EUR 3.5m value increase (project IRR 16%)
    • Phase B - 800 sqm (2015):
      • EUR 1.5m value increase (10.4% yield on cost)
  • Significant yield compression

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  • 2016
  • Milan, Italy
  • Asset management
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Piazza Affari
Milan, Italy

Historic building in Milan financial district acquired on a vacant possession for €44.2 million in Q1’15 by distressed seller with a material debt write off

Strategy
  • Refurbish and re-let the asset before disposing at a super core yield
Implementation
  • Intense refurbishment of the lobby has been completed in just three months, with a capital expenditure of EUR 850k
  • Two lease agreements have been signed with top tenants in the private equity and consulting industries
Results
  • The first tenant will enter in occupation in Q1 2016, with letting fully completed by Q4 2016
  • Unsolicited requests to acquire the property are being received
  • Expected lease of c. €3.6m rental income and sale at c. €65m in Q2 2018

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  • 2017
  • Tokyo, Japan
  • Stock selection
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Sasuzuka Building
Tokyo, Japan

Acquisition of large office property in Shibuya, Tokyo

Background
  • Located in the Shibuya ward of Tokyo, one of the busiest commercial spots in the Tokyo CBD
  • Acquired in January 2017 on behalf of the Greater Tokyo Office Fund, a closed-ended fund focusing on greater Tokyo property investments
  • Large office property (26,527 sq m)
Strategy
  • The asset was acquired via an off-market origination process
  • Asset management initiatives are focused on the maintenance of full occupancy and maximization of income via expense efficiencies and market rent reversions

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  • 2016
  • London, UK
  • Asset Management
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33 Gracechurch Street
London, UK

Tasked to improve ERV tone for property ahead of disposal in 2018

Investment rationale
  • Following surrender, refurbished both floors and subsequently let to top tenants at £55.00 per sq ft and £50.00 per sq ft on ten year leases
  • Delayed 1st floor rent review until completion of 5th and 6th floor lettings to take advantage of new rental tone
Strategy
  • Following purchase in Q1 2014 for £65.3m, negotiated with current tenants on 5th and 6th floors to surrender leases, before enhancing rental value of property by a full refurbishment of both floors
Results
  • Property is now fully let and income optimised
  • Asset is now to be sold in Q1 2016, 2.5 years ahead of schedule, with vehicle IRR target exceeded

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  • 2016
  • London, UK
  • Asset management
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1 Threadneedle Street
London, UK

Refurbishment of well located building in need of full refurbishment

Strategy
  • Threadneedle Street is located in the City of London, the heart of the UK capital and the centre of the financial industry
  • Building was purchased at a favourable price of €42m owing to a soon to expire lease and relatively poor condition of building
Implementation
  • Building was completely renovated to be repositioned as a Grade A building with a “very good” BREEAM certificate for sustainability
  • As part of the works, the facade – a typical example of London architecture – was sympathetically restored, the windows and all technical installations were renewed and the layout was modified to make more efficient use of the space.
Results
  • Fully let to renowned tenant on 20 year lease
  • Sold significantly above market value
  • Exit of €67.3m set new benchmark level in City of London

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  • 2016
  • Köping, Sweden
  • Asset management
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Big Inn Retail Park
Köping, Sweden

Improve performance of Swedish shopping centre through redevelopment and renegotiation of leases

Strategy
  • Well located shopping centre on the outskirts of Köping, well linked to the motorway E18. A viable alternative to the town centre.
  • Inefficient layout (impacting customer circulation at rear of building) led to decision to redevelop  shopping centre and improve tenant mix.
  • Opportunity to capture  passing trade from the motorway through better tenant mix
Implementation
  • Entire shopping centre redeveloped, with increased Net Lettable Area and a new, larger, unit created for main food anchor (ICA) with a 12 year lease term
  • Improved tenant mix and renegotiated all lease agreements on better terms with improved  on-site signage and visibility. Led to passing rent increasing by 40% from 2010-2011
Results
  • Asset was successfully sold in September 2015, with an IRR of 15% over 8 years
  • Overall WALT 8 years
  • Significant yield compression

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  • 2016
  • Chinatown, Singapore
  • Asset Management
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Chinatown Point
Chinatown, Singapore

Reposition a dilapidated mall through effective Asset Enhancement Initiatives (AEI)

Strategy
  • To acquire a well-located asset within the Chinatown heritage precinct, a tourist catchment area with good accessibility
  • To reposition the mall with diversified tenant mix and strong anchor tenant
  • To create value through improved connectivity with subway station and increased NLA
Implementation
  • After 9 months of intensive study on the plans, the mall was closed for 18 months from May 2011 and reopened to public in Nov 2012
  • Carpark at basement levels were relocated to upper floors to release space for direct connection to the subway station and create new retail space
Results
  • Increased overall NLA by 17% and a refreshed retail façade
  • Doubled in-place rents post-refurbishment
  • Attracting shopper traffic of 2 million visitors per month since opening which has increased year-on-year by 10%

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  • 2016
  • San Francisco, USA
  • Asset management/JV
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Bush Street
San Francisco, USA

Acquisition of a multi-tenant building in a prime location

Background
  • The property was acquired with expiring leases in 2005
  • The office building is centrally located in the heart of the Financial District in San Francisco, California
Strategy
  • Restored splendid art deco facade, and modernised the building throughout including lobby and internal fitout
  • To fully let the property, the office building was contributed to a real estate company and 30 per cent of the shares were sold to a local joint venture partner
  • The interest in the property was an incentive for this partner to push ahead with letting the property until it was fully let
Results
  • Following these measures, several long term improved leases were signed with multiple tenants

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  • 2016
  • Nordics
  • Debt financing
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Multi Currency Debt Financing
Nordics

Revitalisation of a dated building through pro-active asset management

Background
  • To finance a EUR 300m 10 asset logistics portfolio in Sweden, Denmark, Finland and Norway.
Challenges
  • 4 currencies in 4 countries under a German KVG fund.
  • The deal was for the German fund to buy the existing local propcos – this created big restrictions on the security package that could be given to the bank.
Strategy
  • Approach a mixture of German and Nordic relationship banks capable of doing the size and complexity of deal.
  • Use advice from German lawyers and service providers in order to structure a deal that works under German law whilst giving the bank an acceptable security package.
  • Use FX derivatives to hedge currency exposures for the EUR denominated investors.
Results
  • Facilitated a very important deal for the Group and drove the returns needed to attract the investor base.

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