Hornbach Portfolio, Germany
Dates: Acquired in 2004; exited in 2017
Size: 1,660,536 SF
Total Project Value: 218 Million Euros
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.
Transaction structure, optimal tenant selection and repositioning of the assets through a down market and impaired capital structure led to value creation.
Achievement of historically high exit pricing, repayment of all equity capital producing a highly attractive return on a core asset.