Prior to an acquisition our Investment Committee ensures a rigorous analysis which is then approved by the relevant fund’s board of directors.
The emphasis of our current acquisition program is to acquire European office, retail and mixed-use properties which are mid-risk or “core-plus” in their return profile and which present measurable value-add potential via active asset management.
As we act on both a discretionary and non-discretionary basis for private and institutional clients, we have a somewhat flexible and broad set of investment criteria. However for general guidance, we look for properties which display “core-plus” characteristics and which meet the following criteria.
|Geographies||Central Europe: Czech Republic, Slovakia, Poland.
Western Europe: Switzerland.
|Macro-Location||Primary / Secondary cities.|
|Asset Class||Offices, Retail and Mixed-use.|
|Risk/Return Profile||Core / Core + / Core ++|
|IRR Target||12.00% – 16.00% p.a. (Leveraged).|
|Micro-Location||Offices: CBD locations or established urban and sub-market locations with solid demand and constrained supply fundamentals. Secondary cities will be considered.
Retail: Regional centres, local neighbourhood centres and retail parks.
|Grade||A, A- and B++. For lower grade assets to be considered, they should display differentiating characteristics such as quality of location, imminent civil upgrade works of the surrounding area, change of use conversion potential, site consolidation etc.|
|Price Range||€15 – 90m (GAV) per property. Properties of less then €15m will only be considered on a portfolio basis or if historic or landmark.|
|Size Range||Typically 5,000 – 20,000 sqm (NLA) per property. Preference will be given to ‘complex‘ style configurations providing leasing flexibility and long-term subdivision potential.|
|Lease Expiry /Occupancy||Min 3.00 years WALE / Min 70%.|
|Acquisition Yield||Minimum (asset-level) acquisition yield of 6.50%+. In under-rented situations where rental reversion exists, the initial acquisition yield may be lower.|
|Tenancy||Preference for multi-tenanted properties with good credit rated public or stable private tenants with an operating history.|
|Purchase Structure||Both asset and share transactions will be considered.|
|Rents||Properties with rents in the lower tier for their grade and which present measurable rental reversionary opportunities at expiry will be given preference. All leases must be subject to annual CPI.|
|Portfolio Transactions||Portfolios of €50 –€250m (GAV) will be considered. Assets may be located across multiple geographies.|
|Properties under Construction||Properties under construction will only be considered on a turn-key, forward commitment basis. However, income producing properties which have adjoining development potential will be considered.|
|Structured Transactions||In certain cases, master lease and seller earn-out structures will be considered as will purchase of distressed debt situations.|
|Joint Ventures / Co-Ownership||Joint ownership may be considered on a case-by-case basis but typically only with reputable institutional partners.|