Project London

Background

JLL initially introduced and advised Iberian Ventures (Ares/Redevco) in the acquisition of a portfolio of retail parks owned by Bogaris. The portfolio comprised seven retail parks located throughout Extemadura and Andalucia with a total GLA of 84,570 sq m. The transaction completed at the end of Q1 2016 for a total of €94M reflecting an NIY of 7.45%. JLL was involved throughout the growth and consolidation of the Iberian Ventures vehicle, and was ultimately instructed to sell the platform in early 2017.

Strategy

Following a detailed analysis of the assets and holding companies, JLL advised that a portfolio sale would yield both the highest asset level pricing and maximise net receipts via a share deal structure. JLL planned a structured two phase sales process to a targeted investor list of both national and international investors. Prior to full launch, initial conversations were held with what was assessed to be the most likely buyers for the platform. Castellana SOCIMI, controlled by the South African REIT Vulike, was identified as an excellent candidate and were invited to make an NBO.

Results

The sale of the 11 holding companies owning the 10 assets was completed in a record period of 12 weeks from being called to pitch to completion, with the DD process and SPA negotiations completed within 8 weeks. JLL’s positioning of the portfolio as a readymade retail warehouse platform meant the portfolio obtained a premium price 29% above the aggregate of the individual sale estimates. The final net price of €193M, reflected an NIY of 6.2%.