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PANTIN, FRANCE

Background and asset description

  • Acquired in December 2006 for €4.87m, fully let
  • Light industrial property with ancillary offices (37%) constructed in 1983
  • Located just outside central Paris (North East) in a rapidly gentrifying area. The asset fronts the Canal St Martin

Issues inherited at takeover

  • Dated light industrial property with high office ratio in an area with limited demand for office space

Value added by Rynda

  • Identified assets potential for residential conversion and the value it would add;
    • Private residential sales prices of €4,800/m2 compared with 2012 value of c. €720/m2
  • Actively managed the asset towards vacant possession over 2 years
  • Achieved short term leases to maintain occupancy during the transitional phase
  • Targeted a range of developers and found a developer with whom it will possible to achieve an exit
  • Multiple offers received varying from c. €8m – €15m with differentiating terms and conditions
  • Worked together with the selected developer and liaised with the town council to help mitigate risk
  • Secured offer in Q1 2015 at €10m (2.5 x valuation) prior to vacant possession and without formal planning consent
  • Exchanged in April 2015 with completion achieved in September 2015
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