Coca-Cola Logisitcs

This 8'000 SM Property was purchased vacant, demised for multi-tenant use, leased, and finally sold to a listed real estate fund within three years substantially outperforming underwriting and providing 20+% IRRS

Prior to acquisition, this logistics building in Lausanne, was used by Coca-Cola for storage and distribution purposes. Westcore's business plan was to add value by finding a long-term logistics tenant for the upper floor, as well as demising and leasing the lower floor. We underwrote the deal with the most conservative assumptions for all variables but ended up leasing the entire upper floor to DHL for a 10 year period, and the lower floor to several tenants including a large section to the Swiss Lottery. Not only did Westcore achieve attractive rental income, but the speed of absorption was also significantly better than had been expected.

The success of Westcore’s various initiatives allowed the refinancing in July 2007 with the Bank Cantonal of Vaud for CHF 6’000’000, allowing Westcore to release all but CHF 900’000 of equity. The cash-on-cash yield from Property operations exceeded 10% annually for all but one year and the IRR’s after tax were far greater than originally projected (the building was sold in 2008).