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

Find out how we can work together

If you are an institution or investor interested seeking investment opportunities in real estate across Western Europe – please contact us.