Real Estate Funds
Crescendo Real Estate advises the Crescendo Preservation & Income Fund I & II whose single strategy is focused on investments in operationally mission critical corporate real estate across certain industry sectors and commercial property types.
In a sense, the Funds provide an "intermediation platform" between corporate customers seeking to release capital tied up in real estate assets and investors seeking transparent growing income from a diversified set of high-quality corporate credits.
As corporate boards focus more closely on optimizing the efficiency of capital, sale leaseback financing provides an alternative source of long-term credit to traditional secured, unsecured and equity-focused financing.
This monetization of on-balance sheet real estate provides corporations with continued operational control, enhanced financial metrics and potential tax benefits.
Investors seeking an alternative to their fixed income portfolios will appreciate the credit-oriented nature of corporate net lease investing.
The Funds provide rising income, either through stated or CPI-indexed increases payable quarterly.
Sale & leaseback and build-to-suit financing:
The principals of Crescendo Real Estate have considerable experience in providing long-term sale leaseback and build-to-suit financing for companies.
The Funds provide access to capital tied up in real estate by acquiring the asset at market value and then leasing the asset back under a long-term triple-net lease.
In addition, the Funds provide developers with 100% construction or take-out financing on new build-to-suit mission-critical assets leased to corporations, governments and universities.
These counterparties can convert an otherwise depreciating or under-utilized asset into working capital to pay down debt, re-invest in higher growth parts of their business, return capital to shareholders while maintaining long term operational control of their real estate.
The Funds seek to provide investors safety from owning strategic corporate assets, transparency generated by high quality tenants on long-term leases and rising income tied to stated rental increases.
Western & Northern Europe and the United Kingdom
€5.0 million - €100.0 million
Commercial real estate: primarily industrial, logistics and office assets
Double or triple-net
10 years minimum
(does not need to be rated)
EXAMPLES OF PAST
& CURRENT TRANSACTIONS
Oss, the Netherlands
Sale & Leaseback of its main European production facility (20,535 sqm of net lettable area)
Tenant is a leading global supplier of lightweighting, noise and vibration solutions to the automotive industry.
Off-market Sale & Leaseback of world-leading machine production company (26,982 sqm of lettable area)
Parent company is a world leader in the design and manufacture of packaging machines for a number of industries and was established in 1961.