Capabilities

Management Replacement

M&A Manager replacement

In the aftermath of the global financial crisis Principal Real Estate Europe developed a strong reputation for portfolio takeovers. Success came from seeking to understand the objectives of all stakeholders, developing creative, credible solutions, effective on-boarding, proactive debt negotiation, hands-on asset management, rigorous cost control and thoughtful disposals.

At the time of the crisis, there were many vehicles in need of fresh management with ideas and experience gained from decades operating through numerous property investment cycles.

In a downturn, portfolio takeovers are often tricky for a variety of reasons: investors might have lost money; banks might be in control; cash is tight for asset management; properties are illiquid and the incumbent manager, for a variety of reasons, might by lacking the motivation and incentive to put things right. In such circumstances, the new manager must work hard to restore trust and buy time in order to work out and execute the best possible strategy to achieve the most positive outcome for investors and other stakeholders.

Halverton platform

In 2009, INTERNOS (now Principal Real Estate Europe) acquired Halverton from GPT.

Following the global financial crisis and a period of rapid expansion during the mid-naughties, Halverton had become vulnerable to a market downturn, having deployed capital swiftly with debt from a group of expansionary UK lenders.

INTERNOS spotted an opportunity to take control of the platform, in so doing providing new leadership to refocus the platform on its investors and return it to profitability.

By focusing on asset management and financial control, aligning investors with their lenders, being transparent and honest, INTERNOS was able to secure the best possible outcomes for all stakeholders and build a bright future for the platform and its staff.

Commerz Real Spezialfonds

In 2011, INTERNOS established a KVG (Kapitalverwaltungsgesellschaft), a German regulated capital management company which allows overseas companies to raise money from German institutional investors, and used it to structure its first new fund (Hotel Fund I).

With the KVG in place, INTERNOS was in a strong position to build its business and investor relationships in Germany. The opportunity to acquire the Commerz Real Spezialfonds (CRS) business in 2013 overnight provided INTERNOS with a working relationship with 40 institutional clients of Commerz Bank invested in seven Spezialfonds.

Local Shopping REIT

In 2013, INTERNOS was appointed investment manager of Local Shopping REIT. At the time LSR owned 640 high street retail and residential assets totalling €175 million across the UK. INTERNOS had been appointed with a remit to sell down the entire portfolio to maximise returns for investors. This necessitated a restructuring of the LSR team, re-negotiation of the debt facilities and the ordered sale of assets via portfolio sales, and on a piecemeal basis.

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