Rockspring Property Investment Managers, a Patrizia company, has carried out eight divestments totalling €400 mln so far this year on behalf of its Europe-wide value-add investment programme, TransEuropean Property Limited Partnership V.
Just under 85% of the fund has now been liquidated with headline performance currently trending at just under 23.5% (1) per annum / 1.8x (2), against a 12% (1) / 1.5x (2) 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 metrics which have resulted in strong returns 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 is a 132,000 m2 portfolio of five retail assets in Germany. The portfolio was assembled by Rockspring from four assets that were held in TEP V, together with a fifth from its predecessor, TransEuropean Property Limited Partnership IV (TEP IV).
The five properties were acquired by Rockspring between 2010 and 2015 and have individually been subject to asset management plans, including some re-tenanting and modest capex, that have collectively resulted in a significantly increased portfolio WAULT of just under 10 years.
Two UK urban logistics assets have been sold, both were speculatively developed by Rockspring, together with local development partner Peel Logistics, as part of a wider strategy focusing on the sustainable development of urban / city fringe logistics facilities in the UK and continental Europe, underpinned by 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 €120 mln.
1 performance stated after leverage and property level costs but before SPV fees and income taxes
2 equity multiple
Photo: Paul Hampton, Rockspring partner and fund director of the TransEuropean series