Rockspring Property Investment Managers LLP (“Rockspring”), on behalf of TransEuropean Property Limited Partnership VI (“TEP VI” or the “Fund”), announces that it has forward-purchased two Grade A office buildings in Lisbon’s Santos Design District, a vibrant and transforming waterside district of the Portuguese capital, for an aggregate price of €53 million, bringing the total amount invested on behalf of the Fund to date to €481 million across six transactions.
The transactions reflect Rockspring’s ongoing strategic focus on investing in Europe’s most economically vibrant areas and those that are benefitting from positive urbanisation trends. In particular, Santos presents exceptionally compelling sub-market characteristics, especially in relation to occupational demand, being a popular location for studios, galleries, media companies and leisure and lifestyle brands in particular.
Both of the buildings acquired by Rockspring occupy first class positions, one on Avenida 24 de Julho and the second on Rua Dom Luís I, and in total they will provide circa 22,000 m² of office space with views over the Tagus River. In partnership with local developer, The Edge Group (www.theedgegroup.com) and with plans drawn up by the renowned architectural practices Ana Costa Arquitectos and Fragmentos Arquitectos, work is already well underway on the renovation of the two properties, in-keeping with the exciting and rapidly changing surrounds of the Lisbon district. The 24 de Julho building has been pre-leased in its entirety to WPP plc, the world’s largest advertising and PR company, while pre-letting is also underway at the Dom Luís I building, which will also have a roof top bar.
Originated off-market, the buildings will be managed by Rockspring Iberia, the Madrid-based asset management team.
Paul Hampton, Rockspring Partner and Fund Director of the TransEuropean series said: "Our focus here was on the future trajectory of the occupier market in this area of Lisbon and, to that end, we were excited about the prospects of owning two stand-out buildings in arguably one of the most popular and thriving parts of the city, where rents should be capable of material appreciation over the near term. We feel these are excellent additions to the portfolio and we are looking forward to bringing the projects to fruition and to maximising their value for our investors.”
The two acquisitions complement earlier commitments to projects in Geneva, London, Birmingham and across France and follow the announcement of the Fund’s final close which took place [ahead of target] at €430 million in mid-July. Together with expected leverage of up to 55%, the Fund’s total firepower is expected to be just under €1.0 billion.
TEP VI is a diversified, leveraged pan-European investment programme with a focus on office, retail, residential and industrial properties in large metropolitan areas of core Western Europe (including the UK). Launched in 2016, the strategy is to assemble a cash-flow generative portfolio that can be aggressively ‘managed to core’, utilising the firm’s Europe-wide platform and, more specifically, its hands-on asset management or operator-style approach. The programme can be classified as ‘value-add’ in terms of risk, albeit income is expected to be a key driver of the 15% pa target return.
