Ekistics Real Estate Partners I (“Ekistics”), a real estate private equity fund focused on direct equity value-add investments in Western Europe is pleased to announce Ekistics’ ninth investment realization: the successful divestment of its circa 22,000 sqm multi-let office building located at Feringastrasse 10-12 in Unterföhring-Süd, one of Munich’s established B+ office sub-markets, to Europa Capital acting, ultimately, for Mitsubishi Estate London.
The property, constructed in 2003, was acquired by Ekistics in an off-market transaction in October 2015. At the time of the acquisition, the asset had an overall occupancy of 79% and was let to a diverse tenant base at rents below market level. Following the acquisition, due to the successful leasing track record and market expertise Elystan Capital Partners (“Elystan”) was retained as a local operating partner to continue the lease-up strategy for the Asset.
Following the successful implementation of Ekistics’ business plan, which in collaboration with Elystan led to an increase in the overall occupancy from 79% at acquisition to 88% at the time of sale and an increase in annual net cold rent by 10% from circa EUR 2.5million to circa EUR 2.8million. Ekistics completed the sale of the property to Europa Capital on 1 June 2017. Europa Capital acted on behalf of Mitsubishi Estate London, an affiliate of its principal shareholder, Mitsubishi Estate.
John J.H. Pedersen, Managing Partner of Ekistics Property Advisors LLP, comments: The sale of the property in Unterföhring-Süd follows the successful execution of Ekistics’ value-add asset management strategy which, in partnership with Elystan, delivered substantial occupancy and rent increases across the asset over the period of Ekistics’ investment.
Ekistics Property Advisors LLP is the sole advisor to the General Partner of Ekistics and its partnership vehicles. Ekistics has invested approximately EUR 325million of gross asset value across the United Kingdom, Germany and Spain, in, inter alia, value-add, direct real estate private equity investments. Ekistics targets investments which benefit from a combination of long-term capital preservation, income generation and the prospect of near-to medium-term capital value creation.
Ekistics Property Advisors LLP has 13 employees across two offices, one in London and one in Vilnius, Lithuania. It is authorised and regulated by the Financial Conduct Authority with authorisation number 502532.
Elystan Capital Partners GmbH is an owner-managed real estate company based in MunichUnterföhring. Since its foundation in 2010, the focus is on acquiring offices and commercial real estate with value add potential for various clients. The goal is the repositioning of buildings by refurbishing and developing new and sustainable usage concepts. Elystan as Co-Investor and local partner stands for a hands on asset management approach with expertise, passion, and creativity.
Europa Capital is an established real estate fund management group operating across Europe adding value through risk-based acquisition strategies and active asset management on behalf of its investors. Since 1995, Europa Capital has collectively raised 9 real estate funds and committed to over 105 transactions totaling more than €9.5 billion across 19 European countries. Europa Capital Partners LLP and Europa Capital LLP are authorised and regulated by the Financial Conduct Authority.
Mitsubishi Estate is Japan’s leading real estate developer and one of the world’s largest comprehensive real estate companies. Its total assets are around GBP 33biliion (as at 31st March 2016) and it currently operates in the US, China, Singapore and the UK. Since its first acquisition in London in 1985, Mitsubishi Estate London has been developing top-quality buildings including Paternoster Square, Bow Bells House, Central St Giles and 8 Finsbury Circus. Its portfolio exceeds one million sq ft; in 2014 it expanded its operation into continental Europe with the acquisition of a Paris office building.