About this video
A broker's brochure prices a Tokyo retail building at ¥13.5bn. Ellie reads the Japanese data room behind it and works out what Fund VI should really pay.
Full description
Carradale Asia Partners' Fund VI is screening Project Heliotrope, the Jingumae 4-21 Building in Tokyo, offered at ¥13.5bn. Ellie reads the broker's data room, most of it in Japanese, against the fund's own mandate and business plan. The memorandum leads with ¥444.5m of NOI anchored by a flagship tenant, but the flagship has already served notice, and the property manager's schedule shows no replacement. Drawing the lender's capex facility takes borrowings above the LPA's 65% limit in 2028, which the business plan never tested. The lease audit finds break rights the schedules leave out and signage income no licence supports; the technical review prices repairs the plan omits and finds no earthquake cover; the debt review shows the lender sized the loan without reviewing the rent roll. Ellie recommends no more than ¥12.75bn with less debt, and drafts the cited IC memo on the house template.
Key points
- Reads a Japanese data room against an English memorandum and the fund's mandate
- Finds the flagship tenant's notice the memorandum leaves out
- Tests leverage quarter by quarter against the LPA, not just at completion
- Lease, technical and debt reviews each checked against the documents
- A cited IC memo on the house template, with a recommended price
Video details
- Roles
- Portfolio Manager, Investor / LP, Lender
- Processes
- Acquisitions, Due Diligence, Valuation
- Geographies
- APAC
- Markets
- Japan
- Tags
- apac-pe, acquisition screen, IC memo, Japan, carradale