Location: Established Office Location in Mainz (Frankfurt), Germany
Status: Acquisition completed, enhancement in progress
Boxberg Capital advised on the acquisition of this ca. 45,000 sqm office campus and successfully led the transaction until closing. Boxberg Capital led the acquisition and raised acquisition financing. During the due diligence process a range of challenging technical due diligence issues were resolved. The business plan involves a comprehensive capex and modernisation program as well as a restructuring of the lease profile. Boxberg Capital acts as operating partner and asset manager to the purchasers, which includes an affiliate of Boxberg Capital.
Type: Core Plus – Distressed Seller
Location: Business Park Location in Hamburg, Germany
Boxberg, through a joint venture, advised an international fund on the acquisition of a portfolio of single tenant HQ buildings in Hamburg. The seller was a distressed entity that had not been successful in its previous attempts to sell the portfolio. During the due diligence and negotiation process major technical due diligence issues which had blocked previous transactions were resolved, so that the acquisition could go ahead. Boxberg’s JV acted as operating partner. Following the execution of comprehensive fire protection and capex upgrades in one of the buildings and the re-gearing of a key lease, the portfolio was successfully sold to an international core fund.
Type: Core – Lease Re-gearing
Location: Prime Office Location in Duesseldorf Germany
This prime office asset was acquired and financed in 2007 by management of Boxberg Capital while working for another fund. The existing seller, who had developed the asset, wanted to liquidate the structure. The asset was fully let and rented well below the achievable market rent. Key leases were successfully re-geared during the ownership period, despite a challenging economic environment during the financial crisis. Whilst the asset consequently had to be sold due to issues in the holding entity (being a non-core bank holding), the transaction nonetheless proved profitable despite buying at the peak of the market and having to sell in 2012, when prices were low.
Type: Value Add – Platform strategy
Location: Locations throughout Czech Republic
Management of Boxberg Capital, when working for another fund, created a joint venture structure with a local Czech real estate company to acquire opportunities in the Czech regions. In a series of transactions, the JV acquired a site for residential and hotel development as well as income producing assets. The hotel development was pre-sold to an Austrian fund and later developed by the JV whilst locking in the target profit. The remainder of the portfolio, following the execution of a range of initiatives, was later profitably sold to the Czech joint venture partner.
Sale and Leaseback
Location: Locations throughout Germany
Management of Boxberg Capital, when working for another entity acquired a portfolio of office buildings comprising ca. 200,000 sqm in a sale and lease back transaction. The seller was a highly leveraged yet operationally solid telecoms company which needed to reduce its balance sheet following the bursting of the tech bubble in 2002. The leaseback was long term and allowed a variety of hold and harvesting strategies. Financing was raised alongside the transaction, despite a particularly challenging environment at the time. The portfolio was later successfully sold in two tranches to the private wealth management unit of an international bank.
Location: Locations throughout Portugal
Management of Boxberg Capital, while working for another fund, acquired some 1,500 non-performing loans backed by residential real estate throughout Portugal. The seller was a Portuguese bank, which was under pressure to clean up its balance sheet and the portfolio was acquired at a significant discount to face value. The loans were at various stages of foreclosure and the transaction required the creation of a new servicing platform. After several years of harvesting, the residual portfolio was successfully sold to another financial institution looking to expand its non-performing loan portfolio in Portugal.
Type: Value Add – non-core sale by financial institution
Location: Locations throughout Germany
The 140,000 sqm portfolio was acquired by management of Boxberg Capital when working for another investment entity. The seller was a bank entity who had taken possession of a portfolio of German office properties and now wanted to clean up its balance sheet. Following the acquisition and financing of the portfolio, the equity was syndicated to high net worth investors via one of the first structured value-add placements in Germany. The portfolio was managed intensively by the team and later sold in several transactions.
A member of Boxberg Capital, when investing for a Sharia compliant separate account, acquired and financed a number of core plus properties in Hamburg. The buildings required lease up and lease re-gearing as well as minor capex and modernisation upgrades. Our asset management implementation proved extremely successful and the innovative lease up program we created ended up dominating the submarket. The portfolio was refinanced during the credit crisis and later successfully sold to core investors.
Type: Value Add
Location: Various locations throughout Italy
The 50,000 sqm office portfolio was acquired, by a director of Boxberg Capital when working for a fund entity and in joint venture with a local operating partner. The seller was an Italian pension fund which had changed strategy from direct holdings to indirect investment. The portfolio was of mixed quality and use and posed a range of challenges. Following an intensive asset management program, the portfolio was later successfully sold, two years ahead of business plan.
Location: Hamburg, Germany
The 80,000 sqm logistics portfolio in Hamburg harbour was acquired in joint venture with a local partner by a director of Boxberg Capital when working for a financial institution. The portfolio required a proactive asset management and lease up strategy as well as close oversight, given the intense operational nature of the asset and local operations as well as some of the conflicts of interest within the structure. The portfolio was later sold to the local partner following the execution of key asset management initiatives.