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Crescendo

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.

36. Accuride - La Chapelle Saint Luc - A

STRATEGY

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.

INVESTMENT CRITERIA

GEOGRAPHY

Western & Northern Europe and the United Kingdom

TRANSACTION SIZE

€5.0 million - €100.0 million

ASSET TYPE

Commercial real estate: primarily industrial, logistics and office assets

LEASE TYPE

Double or triple-net

inflation linked

LEASE LENGTH

10

10 years minimum

TENANT

Credit worthy

(does not need to be rated)

OUR LOCATIONS

INVESTMENTS

FUNDS

LUXEMBOURG

CAYMAN ISLANDS

BRITISH VIRGIN ISLANDS

OFFICES

LONDON

GUERNSEY

LUXEMBOURG

NEW YORK

EXAMPLES OF PAST 

& CURRENT TRANSACTIONS

SHILOH INDUSTRIES 

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.

 
 
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IMA HQ

Bologna, Italy

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.

AVECO

Frankfurt, Germany

 

Sale & Leaseback of Wisag HQ (18,800 sqm office building)

Tenant is No 3 largest facility management service provider in Germany. This asset was bought for €36.5m in April 2015 and sold for €47m in June 2017.

 
 
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UPONOR

Hassfurt, Germany

Build-to-suit warehouse (16,500 sqm), completed in September 2014

Tenant is No 3 globally in plumbing solutions.

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K-FLEX 1 + 2

Lodz, Poland

Build-to-suit manufacturing and distribution center, acquired in March 2014 (34,200 sqm).

Tenant is No 3 globally in insulation and tubing.

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DPD

Gliwice, Poland

Build-to-suit distribution center (8,000 sqm), developed in March 2014.

Tenant is global group and also No 2 in Polish logistics sector.

 
 

METRO

Northern Italy

Sale & leaseback of a portfolio of 20 Cash & Carry assets (220,000 sqm) in December 2011.

Tenant is 4th largest retailer based on revenues globally.

 
 
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