Rockspring Property Investment Managers LLP, acting on behalf of its Europe-wide value-add investment programme, TransEuropean Property Limited Partnership V (“TEP V”), has contracted eight divestments for a total of circa €400m. Just under 85% of the Fund has now been liquidated with gross headline performance currently trending at under 23.5% pa (1.8x equity multiple), against 12% pa (1.5x equity multiple) initial target. Leverage in the Fund has averaged 47% since operations commenced in 2012.
The properties – which span the retail, residential and urban logistics sectors in Germany, Sweden, Spain and the UK - were acquired between 2012 and 2016 based on active, ‘manage to core’ or ‘develop to core’ strategies, underpinned by the Fund’s main focus on urbanisation and technological change.
Paul Hampton, Rockspring Partner and Fund Director of the TransEuropean series said: “We are obviously delighted to have closed out these transactions and indeed to have locked-in such attractive performance for our clients. It is especially pleasing that these results validate the strategy which we have been following as a House since the GFC and indeed the hard work that our local deal origination and asset management teams have brought to bear over that period.”
Among the disposals was a 132,000 m² portfolio of five grocery-anchored retail centres across Germany. Originated by Rockspring's Berlin team, the properties were all asset managed in-house with virtual full occupancy being maintained during the period of ownership and the WAULT being increased significantly to just under 10 years.
The urban logistics assets were sold from the Fund's UK portfolio, having been speculatively developed together with local development partner Peel Logistics, as part of a wider strategy underpinned by the increasing trends towards urbanisation and the growth of e-commerce.
Finally, two mixed-use retail and residential properties, in Stockholm, Sweden and Madrid, Spain have been sold to separate purchasers for a combined price of €120m.