CASE STUDY 3

Recapitalisation

In 2017, one of our clients approached us about a trophy asset that they had been managing a major German city centre. Their JV partner was looking to exit after a 10 year hold and our client was considering the sale of the property, which would have resulted in losing a prime retail asset producing steady income.

  • STEP 1

    We advised the manager on a possible recapitalisation of the vehicle owning the asset. We ran a very targeted process on the back of which we selected two large European institutional investors to structure a club deal.

  • STEP 2

    In the new set up, offering substantial tax savings for the new investors, the manager retained a 5% equity stake in the vehicle, while the two institutions committed to 47.5% of the equity each.

  • OUTCOME

    Our client was able to retain management of a Core-plus asset for the new investors for an additional 10 years, and the newly formed club has the potential pursue further investments into follow-on high-profile opportunities with the manager. Our client was able to add a new line of business for Core-plus institutional investors and source capital from high-profile institutions, without having to exit an asset and lose its management.

  • Case Study 2

Real Asset Partners London LLP is a London-based firm, authorised and regulated in the UK by the Financial Conduct Authority (FCA authorization number 612230). Transactions with US Institutional Investors and US Major Institutional Investors, as these terms defined by the SEC Rule 15a-6, are chaperoned by GAS LLC (“GAS”), SEC-registered broker-dealer and FINRA member in accordance with the agreement between Real Asset Partners London LLP and GAS.