Rivercrown sells Maxirent holding
London-based real estate investment and advisory firm Rivercrown has sold its 99.9 per cent holding in the Portuguese fund Maxirent to a Singaporean listed fund for a price believed to be approximately EUR120 million.
The fund’s portfolio consists of a unique combination of seven core and core-plus office assets located in Lisbon, as well as one prime land development plot. The assets are spread across Lisbon’s best-performing markets and are leased to high quality tenants.
The fund’s seven office assets total 41,283 sq m. They include prime office building Rua Das Chagas 7, located in Chiado, Lisbon’s historic riverfront district. As well as additional prime properties Fontes Pereira De Melo 7 and Fontes Pereira De Melo 27, close to Lisbon’s Saldanha Square within the city’s sought-after CBD, comprising 7,696 sq m and 3,620 sq m respectively. Also included in the deal is Edifico Prime, a 7,975 sq m office property in Lisbon’s Alfragide district that is popular with multinationals and an 8-minute drive from the city centre. Cidade De Córdova and Estrada De Alfragide are two office buildings also in the Alfragide district that are part of the deal and are 7,846 sq m and 1,046 sq m in size respectively.
Rivercrown first acquired its stake in Maxirent in September 2019. Maxirent, a closed-ended real estate fund, was established in 1993 and is listed on the Euronext Exchange, Lisbon. In parallel with its acquisition of the Maxirent stake, Rivercrown acquired Refundos, the fund’s management company. Refundos is regulated by CMVM, the Portuguese Securities Markets Commission. Rivercrown will retain its ownership of Refundos which will continue to manage the Maxirent fund as well as actively seeking new management mandates of listed funds.
Stephen Benson, Managing Director of Rivercrown, says: “We acquired our holding in Maxirent as we saw opportunities to create value through a number of initiatives including leasing and planning gains which we realised through the period of our ownership. The buyer will benefit from the prime nature of the fund’s assets - stable income and further yield compression. Portugal remains firmly on our radar as an attractive place to do business. We are actively working on further value-add and opportunistic investments both directly, and particularly as in Maxirent’s case by taking control and ownership stakes in publicly-listed real estate companies, REITs and funds.”
Rivercrown says part of what makes the Portuguese market attractive is that it is not yet as well-known as markets like Frankfurt, Paris or London. That combination of less competition alongside local presence can unearth transactions with significant upside and scale.
“A lot of real estate in Portugal is privately owned by a relatively small number of local players, not international investors,” says Benson. “Transactions are often ‘off market’ too, so you need local experts who know the market inside out. It was Rivercrown’s local Lisbon-based team’s expertise that helped us to acquire the stake in Maxirent in 2019, and we are confident this expertise will drive similar deals in the future. Our unique combination of real estate and public markets experience means we are well placed to spot value and acquire stakes in small and mid-cap publicly listed real estate companies, funds and REITs.”
Established in 2004, Rivercrown’s business is organised in two divisions. Principal Investment Debt and Equity, and Financial and Capital Markets Advisory. Rivercrown has executed more than €10 billion of transactions through its Principal Investment Division including the acquisition of Maxirent in 2019.
Rivercrown was advised by Uría Menéndez and CBRE.