Rockspring invests €272 mln in three properties on behalf of TransEuropean VI
Rockspring Property Investment Managers LLP (“Rockspring”) announced that it has invested €272 million in three separate transactions on behalf of TransEuropean VI LP (“TEP VI” or the “Fund”) since its first close in October 2015. The properties comprise L’Atelier, an office development site in Geneva for €80 million; the Metro building in Hammersmith, a multi-tenanted, west London office asset for €91 million; and a logistics portfolio across France, for €101 million. These combined transactions represent 25% of the Funds total expected firepower of €1 billion.
Geneva, Switzerland: L’Atelier is a ground-up development in Geneva which was purchased from a local private investor in an off-market transaction. It is located in the Plan-les-Ouates region, south west of the city centre and, once completed, will be a state-of-the-art, hi-tech business campus comprising over 45,000 sqm of accommodation. This is the third in a series of successful development projects funded and run by Rockspring in Plan-les-Ouates which include Project Bluebox, a 12,940 sqm office building developed, leased and sold in 2013, and Project Skylab which at 19,100 sqm, is now 90% leased within 3 months of practical completion. L’Atelier is already 5% pre-let.
Hammersmith, London: Rockspring has acquired Metro Building in Hammersmith, a key office sub-market in west London, which provides 10,111 sqm of office space over nine floors and is fully let to a number of international companies including Weber, Agoda International, Capcom, Virgin Hotels and IATA. Leased at an average rent of close to £35 / sqft, the building offers an attractive future rent growth opportunity as well as a number of value enhancement initiatives which will be implemented by Rockspring’s in-house asset management team.
France: TEP VI has also agreed to purchase a portfolio of four high grade logistics assets totalling 214,000 sqm located along the north / south logistics corridor in France. Although the portfolio is substantially let to international tenants including DHL, Amazon Honeywell, it also offers considerable opportunities for asset management through both development and tenant negotiation. Through a specialist OPCI structure, Rockspring’s Paris team now manages a logistics portfolio currently valued in excess of €300 million.
Paul Hampton, Rockspring Partner and Fund Director of the TransEuropean series said:
“Our ability to successfully coordinate the execution of deals in cities such as Geneva and London within only 3 months of the Fund’s first closing is testament to the strength of our in-house deal origination team and the momentum we have been able to build off the back of Trans European V. With further transactions totalling just under €200 million also under offer in similarly dominant urban locations, we are working closely with investors and hope to achieve an accelerated second closing in coming weeks.”
Rockspring announced a first close for TEP VI in October 2015 with €217.5 million from five international investors and a second close is imminent. Fundraising will continue through Q2 2016 or until a hard cap of €500m is reached. TEP VI combines a blend of high income and capital intensive asset management strategies and primarily invests into office, retail and industrial properties across continental Europe and the UK with a value add risk profile. The fund will be geared to a level of 55%, delivering a spending power of c. €1 billion.
Rockspring’s TransEuropean series of funds was first launched in 1992 and has invested close to €2 billion in 14 European countries, achieving an IRR of over 12% since inception.