Leasing and Disposal
An investment vehicle exclusively advised by Bruton Capital acquired a retail park near Jena in Thuringia in 2016 as part of a distressed portfolio acquisition purchased out of insolvency.
The asset, offering c.23,300 sq.m. of retail space across three buildings, was leased to Roller and Thomas Philipps on short dated leases in two separate buildings, with one building in the park entirely vacant.
The asset presented significant asset management opportunities and Bruton Capital’s team demonstrated their strong capabilities in this regard. The existing lease with Roller was extended with a new 13-year contract, anchoring the retail park with a strong covenant on excellent terms. Following the successful conclusion of this contract, the Küchenchef tenant was replaced, and the lease with Thomas Philipps was also extended with the conclusion of a new 10-year contract. 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 was sold to a local investor for a significant profit over acquisition cost, realizing attractive returns.