TG Brentwood A/S
25 PROPERTIES – 10 INVESTORS
THYLANDER 3 was established in 2012. The fund purchased 26 properties with a total floor area of approx. 110,000 m2 for DKK. 1,275m.
The portfolio consists of well-situated properties with a large development potential located in Copenhagen and larger Danish provincial towns. Many of the residences can profitably be divested as owner-occupied flats with continuous exit. In addition, there is a potential within the portfolio for a significant rent increase. This is exploited through active management, including ongoing renovation of the flats, increasing the quality and rent levels.
EXAMPLE – SKOVVEJEN 17, ST., 8000 AARHUS C
The operation is gradually streamlined through optimisation of the management, service agreements, letting and the day-to-day running of the properties. Facility service has been in focus in connection with the acquisition of the properties, and efficient optimisation and negotiation of this post contributes significantly to the operating profits.
The retail area comprises 737 m2 and was purchased at a price of DKK 12m. The area is presently being sold off for DKK 16m.
EXAMPLE – FLAT ON MØLLEPARKVEJ, ESBJERG (110 M2)
Previous rent: DKK 4,033 monthly
Modernisation costs: DKK 265,000
New rent: DKK 6,700 monthly
Return on investment: 12.1 %
The rent increase to market level increases the return on several of the properties in the portfolio. The fund is continuously analysing opportunities for successive sell-off of the entire property or parts hereof as owner-occupied flats.
Several of the properties are characterised by a maintenance backlog, which is actively improved through renovation. The invested capital is increased through significantly increased rent levels.
Value creation is secured through continuous adjustment of the business plan underlying the investment. The fund is based on significant mortgage-credit financing at a fixed rate with a possible capital gain through increasing interest rates. The first accounts present attractive operating profits and return on investment.