Composition Capital Partners has recently concluded three investments for its second Europe Fund. The deals were closed in the Nordics and Germany in residential, retail and diversified sectors.
In Germany, investments have been made in both residential and retail sectors. A JV has been entered into with an initial investment in a residential portfolio of more than 2,000 individual units in Nordrhein-Westfalen. Whilst the deal was secured prior to year-end, this particular transaction closed only recently.
Upside in this particular investment is to be created through a revised strategy, abandoning an individual unit sales program and concentrating instead on a leasing program to improve occupancy and value. Composition's partner is a specialist in German residential leasing markets.
A second German JV has been entered into with a partner who specializes in asset management and capital markets arbitrage. The partnership explores opportunities available for provision of preferred equity in largely de-risked development projects. The partnership has recently completed its first deal involving a 15,000-m² city-center retail conversion and redevelopment project in the southwestern part of Germany.
An investment in the Nordics concludes the investment program for the Europe Fund. Focus for this fund is to access niches strategies coupled with intense asset management in both primary and secondary locations.
Composition Capital's Europe Fund II, now fully invested, comprises of 10 investments providing investors exposure to nine European countries and sector diversification: office, retail, residential, logistics, hotel and senior housing. Each investment has been made in partnership with small/mid-cap local parties, all specialists in their own respective market or sector, a strategy which Composition has witnessed producing better performance than investments with large cap players.
Composition's European Funds Director, Maarten Vermeulen, comments: 'We are pleased with these new partners with whom we are working and the unique opportunities they capitalize on for our investors. Their knowledge of their local markets and the strength of the partnerships we enjoy are a good basis for success.
"Our European Fund Team sees the conclusion of these deals merely as the start of long-term partnerships with these operators. Together with our other longtime relationships in Europe these new partners provide a strong base for creating Composition's Europe Fund III later in 2011.'
Source: Composition Capital Partners