Acacia Point Capital buys, re-gears and sells at 52% premium
On behalf of its US private equity partner, Acacia Point Capital has crystallized a 52% uplift in the value of three German logistics assets over a 14-month period.
The properties are located in North Rhine-Westphalia and Baden-Württemberg and were acquired in January 2015. At the time of purchase, the properties were subject to short term leases with German-headquartered logistics operator, Trans-o-Flex. Shortly after purchase, Acacia Point Capital renegotiated the lease contracts and secured longer term commitments from Trans-o-Flex. The properties were then marketed for sale and attracted considerable interest from German private investors. In March 2016 all properties were sold, realizing a 52% increase in value relative to acquisition.
Matthew Walker, Managing Director of Acacia Point Capital said “We identified a clear opportunity to acquire these short-let logistics assets, which at the time had limited investor appeal due to their short lease profile. Acacia’s German asset management team were able to create value by undertaking minor capex works to secure longer term leases with the existing occupier, Trans-o-Flex. This had a material impact on the risk profile of the properties and vastly increased the pool of prospective buyers. The competitive tension created during the marketing program enabled us to achieve an exit price that delivered an extraordinary return for our capital partner”.