Diligence · 4.3

The Competing
Field

Deep capital chases core. Halcyon competes where capability, not cheque size, wins the deal.
Halcyon Real Estate Partners
LP Data Book · Strictly Private & Confidential
4Segments
~70%Off-market pipeline
€20–40MTarget asset size
The Landscape

Four ways capital meets this market

Segment 01

Pan-European mega-funds

Deep capital and brand, but too large to move for €20–40M last-mile assets. Focus sits on stabilised core, not hands-on value creation.

Segment 02

Core / core-plus buyers

Yield buyers who purchase the stabilised asset we create. They are our exit, not our competition, and they price off compressed yields.

Segment 03

Single-market developers

Strong locally and quick on the ground, but sub-scale, without fund infrastructure or a refinance discipline to return capital early.

Segment 04 · The real peer set

Value-add specialists

The genuine competition, and it is thin. Few managers can run retrofit, lease-up and refinance at asset level across borders.

Only the fourth segment competes for the same assets. Halcyon is built to win inside it.
Halcyon.02 / 06
Positioning

Reach on one axis, operational capability on the other

Single-market developers
Pan-European mega-funds
Core / core-plus buyers
Value-add specialists
Halcyon
Single-market  ⟶  Pan-European reach
Core / passive  ⟶  Value-add / operational
Halcyon

Pan-European reach and a full operational team. The only quadrant where both hold at once.

Value-add specialists

The real peer set, but most run a single strategy or a single market.

Pan-European mega-funds

Scale and reach, appetite for core. Rarely operational at €20–40M ticket.

Core / core-plus buyers

Broad reach, passive by design. Buyers of finished product, our exit.

Single-market developers

Operational but local, and without fund-level discipline.

Halcyon.03 / 06
How Halcyon Wins

Four edges the field cannot easily copy

01 · Origination

Off-market access

Three partners, 49 combined years and direct owner relationships. About 70% of pipeline is off-market, so we rarely bid against the field.

02 · Operations

Value made in-house

In-house asset management runs leasing, capex and retrofit. Passive buyers and light developers cannot create this value at asset level.

03 · Financing

Refinance discipline

Capital returned early through stabilised refinancings, lifting DPI from year 3. Single-market developers lack this fund-level rigour.

04 · ESG

Green as underwriting

Every asset underwritten to an EPC A/B exit. Green stock leases faster, finances cheaper and sells to the wider core buyer pool.

Each edge attacks a gap the field leaves open: access, execution, capital return, and exit liquidity.
Halcyon.04 / 06
Why The Field Is Thin

Capital is abundant. Capability is scarce.

The crowd

Dry powder chases core

Deep capital competes for stabilised, income-producing assets and bids yields tight. Very little of it is set up to create value rather than buy it.

The gap

Value-add is hard to staff

Running the loop needs local sourcing, an operational team and refinance execution together. Few managers hold all three across borders, so the peer set stays small.

The timing

A repriced vintage rewards operators

Prime logistics yields moved out about 150 bps from the 2022 trough. The 2027 vintage enters at a reset, and disciplined operators capture the spread.

~150 bpsYield reset since 2022
~70%Stock below EPC C
<4%Target-metro vacancy
When capital is common and capability is rare, the operator sets the price of entry.
Halcyon.05 / 06
What This Means For LPs

A scarce capability, not a crowded trade

The competition for our assets is narrow, so entry pricing stays disciplined. The competition for our exits is deep, so stabilised product sells to a wide buyer pool. Halcyon underwrites into that spread.

1.8xTarget net multiple
13%Target net IRR
Yr 3DPI begins
Buy narrow · sell broad
Halcyon.06 / 06