Author Archives: Matilda Williams

Benson Elliot completes early exit in Madrid

Benson Elliot, the UK-based private equity real estate fund manager, on behalf of its pan- European fund Benson Elliot Real Estate Partners III L.P. (“BEREP III” or the “Fund”), has completed the sale of a c. 6,000 sqm office asset in Madrid to a Spanish family office, achieving a c. 25% IRR.

The grade A, modern office building, which is located on Calle Valle de la Fuenfria in the Mirasierra area of northern Madrid, was acquired by Benson Elliot in 2015. At the time, the property was 77% let to two tenants. Benson Elliot subsequently implemented a capex programme to improve the building’s occupier appeal and, ultimately, its income profile.

Benson Elliot completed a lease with an international school operator, and extended leases with two existing tenants, increasing the in-place NOI by c. 20% and the building’s WAULT to 4.7 years. The disposal was completed 12 months ahead of plan, crystallising the value created and capitalising on a strong Spanish investment market.

Trish Barrigan, Benson Elliot Managing Partner, said: “This sale is a strong example of our ability to source high quality but undermanaged properties, and conceive and deliver value-add programmes in a cost efficient and timely manner. Benson Elliot was an early entrant into the Spanish market, and this exit enables us to crystallise significant value for our investors.”

ENDS

For further information:

Benson Elliot
Trish Barrigan, Managing Partner
Matilda Williams
+44 (0) 20 7808 8900
Matilda.Williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com Claire.turvey@fticonsulting.com

Benson Elliot extends Polish activities with €100 million investment in prime regional offices

Benson Elliot, the UK-based private equity real estate fund manager, on behalf of its pan- European fund, Benson Elliot Real Estate Partners IV L.P. (“BEREP IV” or the “Fund”) has acquired four grade A office buildings in key Polish regional markets. The properties, secured in separate off-market transactions with four different vendors, follow the Fund’s acquisition of the 350-room Warsaw Sheraton Hotel in October 2015.

The properties have all been recently delivered or refurbished to a high specification, and are situated in central locations in their respective markets. The buildings acquired are:

Opera (Gdańsk): An award-winning, grade A office building completed in 2012 and located in Gdańsk, Poland’s principal seaport. The 8,290 sqm building is arranged over ground and five upper floors. Let to eight tenants, including Raiffeisen Polbank, KPMG, Lloyd’s Register and Metsa Group Services.

Vinci (Kraków): High quality, grade A office building completed in 2010. The 20,400 sqm building is arranged over 13 floors. Let to international corporates including Akamai, Heineken, Genpact and Rolls-Royce.

Forum 76 (Łódź): Another award-winning, grade A office building, located on a prominent plot in the centre of Łódź, Poland’s second largest city. The 7,910 sqm building was completed in 2009 and is arranged over ground and six upper floors. The property is let to BNP Paribas, Bank Zachodni WBK, Airbus, Philips Lighting, Magellan and Deloitte Polska, amongst others.

Okraglak and Kwadraciak (Poznań): Two landmark, architecturally significant office buildings located in the city centre of Poznań. The buildings, totalling 7,900 sqm, are arranged over ground and nine (Okraglak) and five (Kwadraciak) upper floors. Originally completed in 1955 as the Central Department Store (designed by renowned Polish architect Marek Leykam), the buildings were later converted to office use in 2012. The buildings are let to GFT Group, PKO Bank and Bank Zachodni WBK, amongst others.

Joseph DeLeo, Benson Elliot Senior Partner, said: “Poland remains one of Europe’s strongest economies, with GDP growth averaging more than 3% over the past decade. With 75% of trade geared into the EU, the country is a principal beneficiary of Europe’s broader recovery, and continues to be a favoured destination for global outsourcing and shared services. With these four acquisitions we feel we’ve established a solid position for Benson Elliot in strong regional markets, with prime properties offering real value growth potential.”

Benson Elliot were advised by Greenberg Traurig / Hogan Lovells and JLL. Financing was provided by Bank Zachodni WBK and mBank Hipoteczny. Sharow Capital has been appointed as asset manager by Benson Elliot.

ENDS

For further information:

Benson Elliot
Joseph DeLeo, Senior Partner Matilda Williams
+44 (0) 20 7808 8900
Matilda.Williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com Claire.turvey@fticonsulting.com

Benson Elliot and KauriCAB Exit Landmark Berlin Residential Development

A joint venture between London-based Benson Elliot Capital Management LLP (“Benson Elliot”), acting on behalf of Benson Elliot Real Estate Partners IV, and KauriCAB Development Berlin GmbH (“KauriCAB”), has entered into a share sale agreement with a subsidiary of Frankfurt Stock Exchange-listed ADLER Real Estate AG, relating to Wasserstadt Mitte, the joint venture’s 700-unit, residential-led mixed use project fronting the Spandauer Schifffahrtskanal (Spree Canal) in central Berlin.

Since the acquisition of the riverfront site in August 2016, Benson Elliot and KauriCAB have worked to secure the necessary consents, designs and a fixed price construction contract to deliver a significant, high quality scheme focused on multifamily rental accommodation. On completion of the c. 50,000 square metre project, expected by year-end 2019, Wasserstadt Mitte will provide over 700 apartments, accompanied by a high quality retail offering. It will become home to over 1,400 residents, helping to meet the growing demand for residential accommodation in one of Europe’s most dynamically evolving cities. The project is expected to have a market value upon completion and lease-up of c. €385 million.

Joseph DeLeo, Benson Elliot Senior Partner, said: “Benson Elliot began investing in Berlin residential in 2010, seeing early the opportunity in a city that has since enjoyed consistently strong economic, population and rental growth. Wasserstadt Mitte was Benson Elliot’s most ambitious Berlin residential project, but one we felt confident taking forward given the unique waterfront location and the secure outlook for rental housing in the city. Having taken the project through the planning and pre-development phases, it was an opportune moment to identify a long-term owner. We look forward to working with both KauriCAB and Adler to deliver this landmark contribution to Europacity’s renewal and Berlin’s continuing growth.”

Hagen Kahmann, Managing Partner KauriCAB Development, said: “This is one of the most significant residential developments in Berlin and we are pleased to have been involved in shaping a regeneration project that will have an influence on the city for years to come, both in terms of meeting its growing housing needs and in delivering a new quarter with high quality architectural design to further enrich the capital’s international appeal.”

The Europacity project has transformed c. 40 hectares to the north of Berlin’s main railway station – an area which lay derelict for decades – into a new, mixed-use city quarter. The area is located a short walk from the Bundestag, various federal ministries, the Charité (Europe’s biggest university hospital) and Humboldt University.

Europacity has become a magnet for large office users, hotels, retailers and cultural facilities (including the iconic Hamburger Bahnhof – Museum für Gegenwart). With over two hectares devoted to parks and a kilometre of waterfront along the Spandauer Schifffahrtskanal, Europacity is also seeing the development of some of Berlin’s most desirable housing.

Benson Elliot were advised by Greenberg Traurig.

ENDS

For further information:

Benson Elliot
Joseph DeLeo, Senior Partner
Matilda Williams
+44 (0) 20 7808 8900
Matilda.williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

KAURI CAB Development Berlin GmbH
Hagen Kahmann, Managing Partner
Alexander Lohausen, Managing Partner
+49 (0) 30 8049 8495 0
Nora.jacobsen@kauricab.com

Benson Elliot, Walton Street and Algonquin Group partnership dispose of Italian hotels

A joint venture between UK-based Benson Elliot and US-based Walton Street Capital, L.L.C. (“Walton Street”), in partnership with Algonquin SA (the “JV”), has sold the Westin Europa & Regina hotel in Venice and the Westin Palace in Milan.

The sale of the Venice and Milan hotels marks the penultimate exit from the Prime Europe Hotels portfolio of eight European gateway city properties, acquired by the JV in October 2015 for c. €420 million. The sale follows on quickly from the July 2017 disposal of the Sheraton Hotel in Rome to a specialist hotel investor.

After acquiring the Venice and Milan hotels, the JV developed and successfully implemented bespoke asset management plans, including renegotiating management contracts to align the incentives of the operator, as well optimising revenue management and the operations of both assets. Finally, the JV has prepared the Westin Venice and Westin Milan for major refurbishments that will be completed by the new owner and Algonquin Management Partners (as Asset Manager).

Benson Elliot acquired its interest in the PEH portfolio on behalf of BEREP IV (the “Fund”), its latest pan-European private equity real estate fund. The Fund was oversubscribed in 2016, with approximately €700 million of capital at its disposal. In selling the assets Benson Elliot has sought to capitalise on recent and forecast strong operational performance.

Trish Barrigan, Benson Elliot Senior Partner, said:
“We’ve been pleased with the early performance improvements and consequent quick realisations and strong returns achieved on the Prime Europe Hotels portfolio. The Venice and Milan properties are two desirable hotels, located in cities which attract a high and growing volume of visitor demand. The JV has added significant value to these properties, and set out a plan for further value enhancement, making them highly attractive investment propositions.”

ENDS

For further information:

Benson Elliot
Trish Barrigan, Senior Partner
Matilda Williams
+44 (0) 20 7808 8900
Matilda.williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com