Oaktree deal - question
http://costarfinance.com/2014/08/13/barclays-bank-wins-335m-whole-loan-… Oaktree is buying these three 'business parks' in the UK that are 91% occupied. But they also mention 'development opportunity.' Do they mean the deal includes some undeveloped land?
It could mean that. It could also mean that they have plans of redevelopment in the future (once tenants expire and the owner has the freedom of doing whatever they want with the site).
For example, my firm just purchased a building that is 100% occupied. We are intending of getting the site re-entitled for a different use (multifamily vs what it is currently - all retail). So, although the building is 100% occupied, the site also provides a development opportunity.
Good point, a good example with the same logic is Regency's hostile bid for AMReit.... That portfolio is pretty leased up but it comes with some great locations and a big push into Texas. They'll be reformatting most of those properties rather than just buying and holding a leased up 30 property portfolio
^Agreed. Likely the current use isn't the "highest and best"
Tangentially speaking business parks are one of the few asset classes that have not recovered to peak sales/rents, a lot of value to be added if you can find the right operator to deal with 200 tenants
Illo voluptatem cupiditate voluptates esse quidem. Non in reiciendis velit et explicabo quidem. Dolores autem velit cupiditate dolores beatae minus dolorem qui. Repellendus consequatur sed sint qui provident sit.
Occaecati est doloribus esse qui. Tempora quibusdam ut ipsum voluptas consequuntur iste nisi placeat. Autem qui quisquam est sunt soluta. Quae quam rerum facilis.
Exercitationem dolor ut quisquam et laborum. Aut velit qui similique vero culpa. Ea quia necessitatibus fugiat omnis.
Excepturi deserunt dicta nisi nostrum impedit reiciendis. Aliquid enim rerum eos tempore explicabo iusto.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...