Our European team purchased this nightclub in 1996. The tenant benefitted from a long lease at comparatively low rental values.
How the investment gained in value:
- The Champs Elysees became the most expensive retail street in Europe and 3rd most expensive in the world behind Hong Kong’s Causeway Bay and New York’s Fifth Avenue (2013/2014) during our period of ownership.
- In 2013, we negotiated a new 9 year lease at a higher rent reflecting the changing nature of the location.
- The property valuation increased significantly and we refinanced the investment in a challenging debt refinance market.
- We concluded a transaction with a global real estate leader, achieving an IRR significantly in excess of the property index for this sector.