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AUGUST 2018  |   UFG WEALTH MANAGEMENT

UFG WM Real Estate S.à r.l. has sold West Side Village (phase II)

West Side Village (phase II) is a 12,075 sq. m property based in Capellen near Luxembourg City and leased to multiple blue chip tenants.

The property had been initially acquired with borrowed capital in late April 2016 by the fund under management of UFG WM Real Estate S.à r.l. When deciding on the acquisition, UFG WM Real Estate S.à r.l. was attracted by both the uniqueness and the quality of the property, as well as its location and tenant mix. For these reasons the company recognized and appreciated the vast potential of this location for further market development, and thus, for substantial property value growth. After successful negotiations, the property was acquired at a favorable price.

During the two years that the company held the asset, UFG WM Real Estate S.à r.l. managed to improve all key performance indicators of the property, such as the occupancy rate, annual passing rent, current operating income, as well as estimated property value. As a result of this very successful asset management and transaction, after the asset was sold the equity that had been contributed by the investors of the fund more than doubled.

Flower Street Capital S.A. acted as an adviser and broker during the transaction. Wildgen were the legal advisors to the seller and Clément Konrad & Partners were the legal advisors to the buyer.

Mikhail Devyatov, Managing Director, Head of Real Estate at UFG Wealth Management group:

«Taking into consideration that properties of comparable quality are not readily available in the Luxembourg market, the asset qualifies as highly liquid and thus received special attention from investors. Given those favorable circumstances, UFG WM Real Estate S.à r.l. considered the asset purchase offer from MiDEAL fund, and after successful negotiations the transaction was closed».

Artyom Korsovskiy, Director for Real Estate Investments at UFG Wealth Management group:

«At each stage of the project — property selection, acquisition, holding and sale — UFG WM Real Estate S.à r.l. had added value that finally contributed towards an outstanding result: the capital of the fund and its investors doubled within just two years of asset holding. By leaving the project, we locked in the profit at an extremely high level, with an opportunity to reinvest in new commercial property projects both in the local Luxembourg market and in other European locations«.

Raviv Koren, Managing Partner of MiDEAL Management Limited Partnership:

«This acquisition fits to MiDEAL Fund's strategy to purchase in West Europe income producing properties in good locations with strong tenants. Such acquisition enables MiDEAL Fund to distribute an attractive annual fixed income cash flow to its investors. We see great potential in Luxemburg in general as well as in the property's location and the tenants mix».



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