Diligence · 4.2

Origination
Engine

A wide funnel, a narrow gate.
Halcyon Real Estate Partners
LP Data Book · Strictly Private & Confidential
~1 in 20Screened acquired
€3.2bnMarket tracked
The Funnel

From a €3.2bn market to €184M we would buy

Tracked marketEverything we watch
€3.2bn
Actively underwrittenIn detailed appraisal
€900M
Live pipeline5 identified assets
€184M
To deployOver the investment period
€300M

The funnel is deliberately wide at the top. We track roughly €3.2bn of stock across the target metros, underwrite about €900M of it in detail, and carry only what clears the gate into a live pipeline of €184M.

~1 in 20Screened acquired
5Live assets

The €300M we deploy is drawn from a pipeline many times its size, so we are always choosing, never reaching.

Halcyon.02 / 06
Sourcing Channels

Five ways in, most of them off-market

01

Direct owner & occupier

Relationships built over 49 combined partner years put us across assets before they are ever marketed.

02

Developer forward-purchase

Forward-purchase and forward-funding of new stock with developers we have delivered alongside before.

03

Corporate sale-and-leaseback

Owner-occupiers release capital from their real estate and stay in place as a covenanted tenant.

04

Lender-led & receivership

Situations where a lender or administrator needs a credible, fast buyer for an over-levered asset.

05

Off-market broker relationships

Trusted brokers bring us bilateral looks first, ahead of any wider process, because we transact.

~70%

Off-market or bilateral

The share of pipeline sourced without a competitive auction, where relationships beat cheque size.

Halcyon.03 / 06
The Live Pipeline

Five identified assets, €184M gross

Rotterdam
Hamburg
Stockholm
Antwerp
Munich
AssetLocationTypeSizePriceYoC targetStatus
Rotterdam Last-Mile HubRotterdam, NLLast-mile22,000 sqm€38M6.2%Off-market, exclusivity
Hamburg Industrial EstateHamburg, DELight industrial34,500 sqm€45M6.0%Value-add lease-up
Stockholm Urban LogisticsStockholm, SEUrban logistics16,200 sqm€28M5.8%ESG retrofit
Antwerp Cross-DockAntwerp, BECross-dock19,800 sqm€33M6.1%Bilateral
Munich InfillMunich, DEInfill / redevelopment12,500 sqm€40M5.9%Under negotiation
Halcyon.04 / 06
Underwriting Discipline

Four red lines every asset must clear

Price

Below replacement cost

We buy at a discount to what the building would cost to construct new today. That basis is the downside buffer.

Covenant

Tenant strength

Income underwritten to the quality of the tenant. Weak or short covenants are priced for, or passed.

ESG

EPC A/B pathway

Every asset must have a credible route to EPC A or B. Green stock leases faster and finances cheaper.

Exit

Exit liquidity

A clear buyer pool at stabilisation, whether a refinance or a sale to core, before we ever commit.

Roughly one in twenty assets we screen clears all four gates and is bought. The rest we walk away from.
Halcyon.05 / 06
Rotterdam Last-Mile Hub
Worked Example

How Rotterdam came to us

A 22,000 sqm last-mile hub in Rotterdam, sourced bilaterally through a long-standing owner relationship rather than an open process. We are in exclusivity at €38M, a clear discount to replacement cost, with a 6.2% yield-on-cost target once the plan is delivered.

Angle

Owner relationship and a below-replacement-cost basis, secured off-market before the asset reached the wider market.

Plan

Retrofit to EPC A/B, upgrade the yard and units, and lease the vacant space to modern last-mile occupiers.

Refi

Refinance at stabilised value to return a large share of capital to LPs early, then hold for cash yield.

Buy below replacement cost, fix the building, refinance the value. The funnel exists to find deals exactly like this one.
Halcyon.06 / 06