Patron Capital Partners is listing its E483m French property portfolio “Vectrane” as a French REIT (an SIIC) on Euronext in the first quarter of 2006. The SIIC will be used a tax-efficient vehicle to accumulate long term, stable assets in the French market.
Patron acquired the portfolio last June. It comprises eight sites: four office buildings in Paris and Lille - amounting to 133,000m2 of space - and four holiday sites including two Center Parcs in Normandy.
The portfolio is said to enjoy 100% occupancy and generates an annual rental income of E33.4m. Tenants are generally on fully-repairing, long-term leases with 82% secured until 2012.
Patron Capital’s managing director Keith Breslauer said: “We see this as stage one in building one of France’s leading property companies and a reference point in the market. The portfolio of large, secure assets we acquired earlier in the year will act as a strong base for the development and growth of Vectrane.”
Patron Capital was founded by Mr Breslauer in 1999 to invest in western and eastern Europe. It now has around E750m under management across several funds.
Patron specialises in opportunity-rich areas, especially in assets blighted by complex problems.
This risk and reward strategy has led to annual returns well above market benchmarks. Late last year the company made a bid for Initial Style, a UK hotel conference business owned by Rentokill - the attraction being that Initial Style owns the hotel properties where the conferences are held. But on this occasion Patron was not successful.
On 19 November Patron acquired a seven-storey office building (plus ground floor retail) in Berlin for an undisclosed sum. Located on Kurfürstendamm, the property is situated between Adenauerplatz and Olivaerplatz in the Charlottenburg district. Total rentable area is 4,500m2a.
Once home to a textile production facility, Patron will refurbish the building in collaboration with local partner Suprema Vermögensverwaltung prior to re-letting.