Value Add

Type: Value Add – Liquidating Fund

Location: Established Office Location in Mainz (Frankfurt), Germany

Status: Realised

Boxberg Capital (together with a JV partner) acquired this ca. 45,000 sqm office campus and led the transaction until closing.
The business plan involved transforming a tired suburban office complex from the late 80s into a modern and resource-efficient ‘core-plus’ office campus with a stable lease profile. During ownership, Boxberg Capital planned and implemented a targeted capex and modernisation program, investing ca. Euro 18 million from operating cash flow into a large number of initiatives. As a result of the various initiatives, the Property was awarded a DGNB Gold certificate, and a WiredScore Gold certificate. In this period, Boxberg managed to renew or newly lease over 40,000 sqm to a wide range of high quality institutional and public tenants in over 50 different lease transactions. Moreover, Boxberg Capital increased rental income by almost 50%, occupancy to over 90%+, and WAULT to 5 years+, whilst decreasing fit-out costs during the hold period and increasing retention rates.

During ownership Boxberg Capital refinanced the Property twice, yielding distribution multiples on invested equity of 0.7x and a 1.12x respectively.

Boxberg Capital managed to achieve a successful sale and highly positive investment performance, in what was otherwise a very challenging macro environment.