Hornbach Portfolio

Hornbach Portfolio

  • Core sale-leaseback strategy focused on purchasing European big-box DIY stores from owner-operator Hornbach AG and leasing them back on long-term leases with index-based rental rate escalations.
  • Taurus-sourced single asset transactions (leading to value creation through single asset aggregation) with an institutional capital partner followed by a 10-year hold with stable distributions to investors leading to a disposition.
  • Specifically-targeted, strong-credited, well-performing, stable tenant (Hornbach)
  • Eight assets purchased 2004 – 2006 in a Joint Venture Partnership with Anglo Irish Bank for a total of €172,679,000 (net of acquisition costs).
  • Following the underwritten 10-year hold, leases renegotiated and extended to 15 years, significantly increasing value and resulting in disposition
  • Transaction structure, optimal tenant selection and repositioning of the assets through a down market and impaired capital structure lead to value creation
  • Achievement of historically high exit pricing, repayment of all equity capital producing a highly attractive return on a core asset (project IRR 15.75%).
Project Details
  • Location:Germany
  • Type:Retail
  • Date:2004
  • Status:Sold
  • Size:1,660,536 SF