Origination

• Acquisition from a distressed investor exiting the market, in default of its loan obligation. Owner had no available capital to maintain the asset (including overdue capex) and is in the process of disposing of its non-core portfolio.

Ownership

• Equity provided by Fund 1

Role

• Revetas was responsible for origination, restructuring of debt financing and will be responsible for value creation and active asset management during the holding period.

Value Creation

• Opportunity for Revetas to take control of a strategic asset in Poland's second largest city for minimal equity, and benefit from active management with considerable upside potential.
• Strong cash-flow generated by the property, which can be further enhanced by extending the lease terms.
• Commit €2.5 million of equity for building and tenant improvements to improve the building and increase of rental values.
• De-level the bank debt to sustainable level over the mid to long-term, which together with an improvement of liquidity in the market could provide considerable upside potential.
• Control operating costs with maximum recovery from the tenants.

Property Type

• 28,000m² office building

See property website for further details: www.bumasquare.com