Rockspring Property Investment Managers LLP (“Rockspring”), on behalf of Rockspring TransEuropean Property Limited Partnership VI LLP (“TEP VI” or “the Fund”) announces that it has acquired a logistics portfolio, totalling 158,000 m².
Acquired in an off-market transaction, the portfolio consists of five assets strategically located in the outskirts of Paris, Lyon, and Orleans and will be managed by the firm's Paris based asset management team. This acquisition follows the €101m portfolio of four French high grade logistics properties acquired in April 2016 and sees TEP VI’s French logistics holdings increase to 390,000 m² across 10 assets.
Paul Hampton, Rockspring Partner and Fund Director of the TEP series said: “The successful completion of this complex transaction, sees us conclude one of our core objectives for Fund VI - which was to build an attractive income-focused portfolio of investments within supply-constrained sub-markets. Taken in combination with our earlier purchases, we now have a high quality portfolio through which we expect to enjoy a strong leveraged cashflow whilst also pursuing a range of value enhancement initiatives - including building renovations, re-tenanting and selective redevelopment."
Kevin Muscat, European Director at Rockspring commented: “This acquisition highlights Rockspring’s continued ability to source attractive, income generating investments with value growth potential in a competitive market place. Since December 2012, we have originated and closed on just under €400m of similar deals - the majority of which have been in non-compete situations."
Rockspring manages a growing portfolio of logistics properties across Europe which now totals c. €0.8 bn and is located across the principal logistics markets in France (39.1%), UK (33.7%), Germany (10.5%), Spain (9.1%), Sweden (4.9%) and The Netherlands (2.8%). This portfolio includes a land bank, with a consented development potential of 240,000 m² GLA.
TEP VI, which held a final close in July 2016 with €430m of equity as well as leverage of up to 55%, is now fully committed across twelve projects in six European countries. The diversified pan-European portfolio consists of office, retail, residential and industrial properties in large metropolitan areas of core Western Europe (including the UK). The Fund has focused on assembling 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.
Rockspring was advised by Lefèvre Société d’Avocats, Les Notaires du Quai Voltaire, Eversheds, Turnbull / Burgeap, Arsene Tax, Expansion and JLL. The portfolio has been financed by Aareal.
