Leasing and Disposal
An investment vehicle exclusively advised by Bruton Capital acquired a retail park near Jena in Thuringia as part of a distressed portfolio acquisition purchased out of insolvency in a process run by Hatfield Philips.
The asset, offering c.23,300 sqm of retail space across 3 buildings, was leased to Roller and Thomas Philipps on short dated leases in 2 separate buildings with 1 building on the park entirely vacant.
The asset offered significant asset management opportunity and the Bruton Capital team were able to demonstrate their strong capabilities in this regard.
The building leased to Roller was extended to a new 13 year lease, anchoring the retail park with a strong covenant on excellent terms. Following the successful conclusion of this contract, the plot leased to Thomas Philipps was also extended on the basis of a new 10 year lease and the landlord invested significant capex to refurbish the property to a high standard.
The two well-let buildings were refinanced by a German Landesbank generating very strong returns for our investors. The remaining vacant building is currently being marketed to a number of investors with a sale expected to close later in the year.