Rasmala to recap £400m long income portfolio

 

25 Jun 2024 16:15 BST | by Chris Borland

Vehicles managed by Middle Eastern group have assets in UK, Europe and US

  • What Rasmala is exploring recap options for a £400m long income portfolio
  • Why Firm is returning capital to some early investors, with fund also exiting indirect real estate positions
  • What next Stabilised platform should appeal to institutional capital with long-term time horizons

Investment manager Rasmala Investment Bank is seeking new investors to partially recapitalise its £400m long income vehicles, Green Street News can reveal.
The Rasmala Long Income Fund, together with its sister European and North American funds, owns a portfolio with a gross asset value of around £400m across the UK, US and Europe.
The Middle Eastern asset manager has initiated a three-stage process, aimed at recapitalising the fund and returning some capital to the fund’s original loan providers while positioning the platform for the next stage of growth.

“The recapitalisation and rationalisation of the portfolio will position our long income fund for the next phase of growth”

The fund primarily focuses on single-tenant net lease assets, including commercial long lease properties and social and economic infrastructure. Around 80% of the funds’ assets are based in Europe, with 20%
in the US.
Rasmala’s primary goal is to recap its direct investment holdings, worth around £250m, with fresh capital from institutional investors, large family offices and private equity firms. It is in discussions over an adviser, although no formal appointment has yet been made.
The new investors would gain access to an institutional-grade portfolio that is invested in life sciences, supermarkets, retail parks, hotels and logistics. There is flexibility around the recap element that could lead to sub-fund structures being set up for the European or US properties.

One of the standout UK properties is a Tesco superstore in Hattersley, near Manchester, which Rasmala bought from CBRE GI for £28.6m. It is let to Tesco until 2037. The UK portfolio also includes Aldi, Asda and B&M.
In Almelo – near Rotterdam, in the Netherlands – Rasmala is delivering a second modern logistics unit leased to Timberland Europe, to complement an adjacent unit acquired in 2019 and leased to the same tenant for a total investment of €90m. The property is currently built to suit the tenant’s specifications and has been leased for 15 years.

Rationalisation of platform

As part of the recap process, Rasmala plans to exit indirect investments in thirdparty funds and co-investment to focus on direct investments. This will allow the asset manager to manage redemption requests.
The recap plan also involves the repayment of asset-level debt, which is no longer accretive.
The Rasmala Long Income Fund, which was set up in 2018, is managed by Ruggiero Lomonaco. The fund initially raised $250m in 2019, and in the process seeded two regionally-focused single-tenant net lease vehicles: the Rasmala European Real Estate Income Fund, and the North American Real Estate Income Fund.

Ruggiero Lomonaco, fund manager of the Long Income Fund at Rasmala, said:

“The recapitalisation and rationalisation of the portfolio will position our Long Income Fund for the next phase of growth. We continue to believe in the attractiveness of single-tenant net lease assets as a source of alternative income, which can grow in line with inflation.”

 

https://greenstreetnews.com/article/rasmala-to-recap-400m-long-income-portfolio/

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