Case Studies

Debt restructuring
and repositioning of
a light industrial portfolio

Portfolio of 23 light industrial properties totaling 80,273 m2 and leased to a single tenant.
The portfolio income was secured for a relatively short period with 30% of annual income expiring within 7 months after closing of the transaction.
The portfolio was financed by a defaulted senior loan with a 100%+ LTV.

➞ In a consensual transaction with the owner and the lenders, members of the Celes team took over the equity and management of the portfolio.

➞ Within 2.5 years, 15 non-core assets were sold and the senior loan LTV was reduced to 53%.

➞ New long term leases were negotiated with the tenant before the execution of a capex program and a sale of the core portfolio.

Acquisition of a 33,800 m2 office property with an 80% occupancy rate and no leasing activity in the two-year period prior to acquisition.
The property is located in a submarket North of Paris which had a 20% vacancy rate at acquisition.

➞ A capex program focused on new tenant amenities – including a new co-working and catered lounge area – was implemented.

➞ Within 13 months, new leases (for a total of 6,300 m2) were negotiated at a higher economic rent than previously achieved on existing leases.

➞ The property was fully let and its WALB extended before it was sold to an institutional investor.

Acquisition of a 8,142 m2 office and light industrial property with a 57% occupancy rate.
The property is located in a submarket North West of Paris going through significant gentrification with the extension of the Paris Metro line 14.

➞ Celes identified the opportunity to significantly improve the specifications of the property while offering competitive rent levels.

➞ Celes prepared refurbishment plans and leasing strategy while completing its due diligence of the property.

➞ After getting an unsolicited approach, the sale of the property to an owner-occupier was negotiated.