Park Street seeks to identify real estate related investment opportunities across Europe, which is undergoing a significant restructuring of financial markets and wider economies, resulting in dislocation between fundamental value of assets and current economic value.
Park Street in particular seeks to identify and create value in assets displaying the following characteristics:
Disenfranchised current equity, with limited capital, incentives or expertise to work out the challenges.
Multiple stakeholders with potentially divergent objectives.
Excessive leverage from the past debt cycle.
Inefficient financial and operating structures, leading to significant gross to net income leakages and blocking the restructuring of otherwise viable assets.
Scope for short / medium term asset management to stabilise assets, and allowing to tap long term equity and debt capital as an exit.
Opportunities that Park Street pursues are across wide ranging formats and transactions including, but not limited to:
Equity and Debt investments across commercial, corporate and multi-family real estate assets where Park Street can create value through new capital and / or restructuring.
Defaulted and stressed loans backed by cash generating real estate assets.
Securitised asset backed opportunities with significant value arbitrage.
Control investments in real estate related financial or operating companies.
Other real estate and real estate related assets.
Returns and Investment Criteria:
Funds advised by Park Street target income generating assets with an 8% stabilised cash yield.
Overall leverage on assets is limited to 70% post restructuring.
Control oriented investments of predominantly cash generating assets.
Asset management and restructuring duration is between 18 to 36 months focused on stabilisation of assets and fixing gross to net inefficiencies.
Target size of investments EUR 20m to EUR 100m.
Park Street's origination of investment opportunities is characterised by proactive engagement with various stakeholders to identify current challenges and potential solutions with the injection of new capital. Park Street expects significant and long term structural asset migration from the legacy sponsor base and bank balance sheets, to new activist capital with intensive asset management expertise; and seeks to capitalise on the gap of expertise in European markets for sourcing bilateral investment opportunities to deploy solution oriented capital.