PortfolioFund IVProject Horizon
Underwriting Phase
Project Horizon • Frankfurt Logistics Core Hub
8.42%
Underwritten IRRLeveraged modeling based on BASE case
Acquisition of a strategic logistics hub spanning 112,000 m² in Frankfurt’s main industrial belt. Secured long-term triple-net leases with tier-1 e-commerce tenants, modeling resilient downside yields with high structural indexing.
Deal Memo Excerpt
1. Executive Allocation Thesis
The investment represents a defensive entry point into Germany’s core industrial network at a conservative entry cap rate of 4.85%. Underwritten cash flows are fully secured against inflation via structural indexing keys tied directly to the Harmonised Index of Consumer Prices (HICP).
Asset Render / Location Frankfurt IIProposed €112.4M Equity Commitment
Equity Required€112.40M
Target Holding Period7 Years
LTV Target55.0% Max
Underwriting Models
Capital Stack Sensitivity Analysis
Scenario:
| Tranche / Parameter | Allocation | Interest Rate | LTV Contribution | Debt Service Yield |
|---|---|---|---|---|
| Senior Secured Debt | €132,000,000 | 3.85% | 45.0% | 1.82x DSCR |
| Mezzanine Debt | €29,600,000 | 6.50% | 10.0% | 1.45x DSCR |
| Co-Investment Equity | €78,400,000 | - | 35.0% | 8.42% IRR |
| Total Capital Stack | €240,000,000 | 4.35% Blended | 100.0% | - |
Sponsor Sign-off
Approval Workflow State
Committee Progress3 / 4 Gates Met
KYC / AML ReviewVerified via Axiom Compliance Hub Jan 14.
LBO Model AuditAudited by third-party risk assessors.
ESG Level 2 AssessmentFrankfurt Logistics park scores Grade-A.
Requires Managing Partner electronic authorization.
Deal Ready for Sign-Off
All structural underwriting and capital stack gating items have been signed off.
Yield Projections
10-Year Projected Cash Flow
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Base Yield: €4.1MYear 10 Exit: €142.0M
The exit valuation assumes a terminal cap rate expansion of 50 basis points over the exit window to protect LP principal equity against structural volatility.