CR Investment Management, the pan-European financial advisory firm focused on the real estate, shipping and infrastructure sectors, has sold a further ten properties from the Sanchez portfolio.
The properties, located across Germany resulted in approximately €55m of sales proceeds, involved approximately 65,000 sqm of lettable space, and occurred between June and September 2014.
CR in its capacity as transaction adviser as well as asset manager was tasked with identifying buyers for these properties, many of which are located in non-prime locations and had a number of technical complexities associated with them such as fire protection issues, 100% vacancy and part-ownership structures. In identifying buyers, CR drew on the breadth and depth of its network, from local developers to large international investors.
The Sanchez portfolio originally consisted of 107 properties and was originally owned by a MSREF vehicle. The portfolio was financed through loans totalling approximately €1.1bn which consisted of a €472m securitised loan, an equivalent pari-passu senior loan (which was not securitised), and junior debt.
The MSREF vehicle effectively “handed back the keys” in June 2011 at which point CR was appointed by the lenders as Asset Manager and Transaction Adviser. Since being appointed CR has managed to reduce the portfolio to less than 20 properties, achieving sales proceeds with an average of 10% above market value.
Jenniffer Solomon of CR Investment Management commented: “The recent transactions further underline CR’s success in driving sales from the Sanchez portfolio regardless of the diversity, quality and location of the assets. We have demonstrated that with a pro-active approach and use of our pan-German infrastructure – with 5 offices across Germany – investor interest can be stimulated across the board, with the effect being that CR is able to identify the right buyer for each asset.”