European Real Estate

Overview

HMC entered the European real estate market in 1998 when it managed an affiliate’s participation in one of the first large real estate privatization transactions in Sweden.

To date, HMC or its affiliates have successfully completed over $2 billion of transactions in the United Kingdom, France, Germany, Spain, Ireland, Poland and Scandinavia.

HMC’s European real estate investment team seeks to identify opportunities across sectors and jurisdictions which exhibit high-quality cash flows, locations and structural integrity. Typically pursuing investments between €20 million and €100 million, the team looks for properties where value can be added by injecting both capital and development or operational expertise.

Investment Team

Raymond J. Harbert
Chairman & Chief Executive Officer

Raymond J. Harbert

Raymond J. Harbert has served as Chairman and Chief Executive Officer of Harbert Management Corporation, an alternative asset investment management firm, since it was organized in 1993.

Mr. Harbert began his career with Harbert International, Inc., a subsidiary of Harbert Corporation, in 1982 where he held various positions. Subsequently, Mr. Harbert served as Vice President of Business Development and then as President of Harbert Properties Corporation, Harbert Corporation’s real estate subsidiary. In December 1988, he was elected Vice President of Harbert Corporation, where he had overall responsibility for the firm’s investment portfolio. In July 1990, he was elected President and Chief Executive Officer of Harbert Corporation, which brought the remainder of the firm under his management.

Mr. Harbert serves on the Board of Trustees of Auburn University, where he is the President Pro Tem. Mr. Harbert also serves on the Board of Trustees for the State of Alabama Trust Fund and the Robert Meyer Foundation. He serves on the Board of Trustees and is a member of the Executive Committee of Children’s Hospital of Alabama. In addition, Mr. Harbert serves on the Board of Directors and the Executive Committee for Birmingham Business Alliance. He also serves as a member of the President’s Advisory Board of the University of Alabama at Birmingham and the Alabama Business Hall of Fame Nominating Committee. Mr. Harbert is a past member of Leadership Alabama, Young Presidents’ Organization, and a former Alabama State Chairman for YPO.

In 2006, Mr. Harbert was awarded the regional Ernst & Young’s Entrepreneur of the Year Award for Financial Services. Mr. Harbert holds a Bachelor of Science degree in business from Auburn University. He and his wife, Kathryn Dunn Harbert, have three children.

Scott D. O’Donnell
Vice President & Senior Managing Director

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Mr. O’Donnell is a Vice President and Senior Managing Director of HMC and he is the Senior Managing Director of its European Real Estate Investment team. He is also a member of the European Real Estate Investment Committee. Mr. O’Donnell is responsible for the day-to-day activities of HMC’s European real estate advisory affiliate. Prior to joining HMC, Mr. O’Donnell served as a Managing Director of Credit Suisse First Boston (“CSFB”) in London and as the European Head and Investment Committee Member (International) of DLJ Real Estate Capital Partners (“RECP”), a manager of real estate private equity funds with $2 billion of equity under management. During his tenure at CSFB, he was responsible for managing all of the activities and formulating the strategy for RECP’s European operations. Prior to his employment at CSFB, Mr. O’Donnell was a Director in the London office of Deutsche Bank’s Real Estate Opportunities Group where he was responsible for originating and executing principal investments throughout Europe. Prior to relocating to Europe with Bankers Trust/Deutsche Bank in 1997, Mr. O’Donnell worked for Kenneth Leventhal & Co., a boutique real estate consulting firm, where he specialized in debt restructurings and advising on the acquisition and disposition of portfolios of distressed debt typically secured by real estate assets throughout North America. Mr. O’Donnell has 25 years of real estate experience, and his background includes several investments in assets (both property and distressed debt) and operating businesses (e.g., hotels and real estate operating companies) on a pan-European basis. He has invested in all major real estate asset classes and has led or been actively involved in the acquisition of over $8 billion of real estate and real estate-related assets in Europe and the U.S. In addition, he has extensive experience in debt restructurings and has been a member of unsecured creditors committees. Mr. O’Donnell graduated summa cum laude from The George Washington University in 1986 with a Bachelor of Arts degree.

Tor V. Tveitane
Managing Director

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Mr. Tveitane is a Managing Director of HMC Europe and he is also a member of the European Real Estate Investment Committee. Mr. Tveitane joined HMC’s European Real Estate Investment team in November 2008 as a Principal. Since relocating to London in 1997, Mr. Tveitane has been active in pan European real estate investment and fund management, and has been involved in transactions across office, retail, industrial and residential asset classes, managing core, core-plus, value-add and opportunistic capital across all of Europe. Prior to joining HMC, Mr. Tveitane served as Executive Director of Curzon Global Partners / AEW Europe in London. In this capacity, he was responsible for transaction sourcing, the underwriting and structuring, credit committee presentation and execution. The role also involved running the internal and external resources such as tax, legal, debt and technical & environmental due diligence as well as active management of the Curzon Investment Team. At Curzon, Mr. Tveitane was the lead investor on numerous transactions, ranging from single asset transactions to complex multi sector and/or multi jurisdiction portfolio transactions across Europe. Mr. Tveitane also identified, negotiated and tailored strategies with Joint Venture and Operating Partners in various countries. Prior to joining Curzon, Mr. Tveitane worked at Knight Frank as a Partner in the European Investment Team. In this role, Mr. Tveitane acted as a strategic advisor to a number of retained and non retained pan European investment funds, ranging from strategic review of their investment portfolios to implementation of their investment strategy, including execution of transactions. Mr. Tveitane has 18 years of real estate experience and he has transactional experience from most European countries, ranging from the UK, France, Germany, the Netherlands and the Nordic countries to Central Europe, Greece, Spain and Portugal. Mr. Tveitane has also been involved in capital raising and the shaping of various investment strategies. Mr. Tveitane began his career in 1992 in Norway as a real estate and development consultant. He holds a Master of Science degree in Real Estate Finance from the University of Reading (UK) and an Honours Degree in Real Estate from the Norwegian School of Management. He is also a member of the RICS.

Roque I. Rotaeche
Principal (Madrid)

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Mr. Rotaeche is responsible for HMC’s activities in Spain and Portugal. He has experience in sourcing, closing, financing properties and setting up joint ventures throughout the region. Mr. Rotaeche has been active in Spanish real estate investment since 2000 involving office, retail, logistics, hotel and residential asset classes. Prior to joining HMC, Mr. Rotaeche worked at CB Richard Ellis where he held the position of Institutional Investment Director for Spain and set up and managed Spain’s leading real estate investments group with specialist teams devoted to office, logistics, residential and hotels. During his tenure he led or sourced several deals including the design and structuring of most of the large corporate sale and leaseback transactions which took place in the period 2005 to 2007. He also provided strategic investment advice to several core and private equity funds ranging from acquisition advice to active asset management of their Spanish holdings. Mr. Rotaeche holds a Master of Business Administration degree from Instituto de Empresa and a Bachelor’s degree in Business Studies from London Metropolitan University. He is fluent in both Spanish and English.

Eric R. Desautel
Principal (Paris)

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Mr. Desautel joined the HMC European Real Estate Investment team in November 2007. Previously, he held the position of Senior Asset Manager with the French affiliate of Westbrook Partners. He has twelve years of experience in commercial and residential real estate acquisitions throughout France. Before that, he spent three years with Stern Stewart & Co, a New York-based management consultancy, both in their Paris and New York offices. Prior to joining Stern Stewart, he spent a year and a half based in Paris with Archon Group, a Goldman Sachs company, as a real estate acquisition analyst. Eric received an MBA in Finance from Columbia Business School and an M.S. from ESCP in Paris. He is fluent in both French and English.

Subbash C. Thammanna
Finance Director

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Mr. Thammanna joined HMC’s European Real Estate Investment team in July 2012.  Prior to joining HMC, he was Director of Operations & Finance at AEW Europe, with responsibility over all financial, operational, and tax matters for its real estate private equity funds with c.€3bn of assets under management across Europe.  He also held the position of Director of Tax Structuring, transacting on over €4bn of European real estate investments and dispositions. Prior to joining AEW Europe, Mr. Thammanna worked in the finance teams of the Structured Capital Markets division and Private Equity division of Barclays Capital.  Prior to this, he managed the tax and advisory requirements at PricewaterhouseCoopers for the Investment Management & Real Estate Advisory team transacting over €2bn.

Mr. Thammanna qualified as a Chartered Accountant in 2002 and is a Fellow of the Institute of Chartered Accountants in England & Wales.  He holds a Masters of Engineering degree from University of Manchester Institute of Science and Technology (UMIST).

 

G. Huw Davies
Vice President and Head of Asset Management

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Mr. Davies joined the HMC European Real Estate Investment team in September 2006 from Hatfield Philips International where he managed a number of the UK and mainland European assets and loans of the Principal Transaction Group of Lehman Brothers. He qualified as a Chartered Surveyor in 1986. Prior to working at HPI, Huw spent over 20 years in private real estate practice becoming an equity director in the Investment Department of Gooch Webster. In his private real estate practice he mainly concentrated on the acquisition, disposal and valuation of investment properties for property companies, institutions and banks. He graduated in Economics from Cardiff University and in Land Economy from Cambridge University.

David King
Vice President

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Mr. King joined the Harbert European Real Estate team in November 2007 as an analyst . Prior to joining HMC he worked in London for the real estate finance team at Ernst & Young and the real estate investment banking team at JPMorgan Cazenove. He graduated in 2004 from the London School of Economics and holds a Bachelor of Science degree in Geography and Economics.

Christopher Terestchenko
Associate

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Mr. Terestchenko joined the HMC European Real Estate Investment team in February 2013. Previously, he held the position of Transaction Manager with the French affiliate of Invesco Real Estate. He has six years of experience in commercial real estate investments throughout France. Before that, he spent two years with the Retail Consulting Group as a junior valuator. Christopher received a M.S. degree in Finance from the French university of Paris Dauphine. He is fluent in both French and English.

Kim Myers
Analyst

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Mr. Myers joined the Harbert European Real Estate team in January 2011 as an analyst. Previously, he worked at the private real estate group Mountgrange Investment Management LLP in London as an analyst specializing in real estate investment throughout the UK.

He graduated in 2006 from the University of Bristol with a Bachelor of Arts degree in Sociology. He also holds a Master of Science degree in Real Estate Investment from Cass Business School where he graduated in 2011 prior to joining HMC.

Tara Xuereb
Finance Manager

Ms. Xuereb joined HMC’s European Real Estate Investment team in September 2013. Prior to joining HMC, Ms. Xuereb worked at CBRE Global Investors where she most recently was an associate fund controller responsible for overseeing all fund accounting and financial information for two closed ended pooled UK property funds with a total initial capital contribution of £650 million. Prior to her role as fund controller, she was a fund accountant at CBRE Global Investors where she was responsible for the financial reporting to 13 institutional pension fund investors (including FTSE 100 companies) within the managed accounts business unit which had £4.5 billion of assets under management. Prior to joining CBRE Global Investors, she worked as a financial accountant and assistant fund accountant at Catalyst Capital LLP, a private real estate investment and asset management firm.

Ms. Xuereb qualified as a Chartered Certified Accountant in 2012 and is a member of the Association of Chartered Certified Accountants (ACCA).  She graduated from Chapman University in California with a Bachelors of Science degree in Business Management with an emphasis in Management.

David McMorrine
Financial Accountant

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Mr. McMorrine joined the HMC European Real Estate team in December 2012. Previously, he worked at KPMG for the property & infrastructure audit team in London. He graduated in 2010 from King’s College London with a Bachelor of Laws (Hons) degree in Law.

Investment Criteria

HMC’s European real estate investment team seeks to diversify across asset classes, markets and investment risks. We endeavor to focus upon real estate fundamentals and to add value and minimize risk through structuring and by employing our understanding of the development, operation and management of real estate. Our team attempts to understand the key risks of each transaction and to transform those risks into opportunities to unlock value. Throughout Europe we continue to invest with an emphasis on office, light industrial and warehouse, retail/mixed use and residential. We typically seek:

  • Transaction size: between €20 million to €100 million typical
  • Markets: demonstrating solid infrastructure, economic diversity, and the prospect for growth
  • Local operating or development partners: with solid experience and track record in the local market and in the specific sector targeted
  • Infill locations: demonstrating high barriers to entry
  • Value-add opportunities: including repositioning of existing assets or new development
  • Pricing inefficiencies: financially distressed assets or assets in out-of-favor sectors and markets
Portfolio

Harbert European Real Estate Fund III, LP

 

UK PORTFOLIO – JANUARY 2014

Mixed-use portfolio of fifteen assets located predominately in the South East of the UK comprising a total floor area of 984,943 square-feet.

DIAMOND – DECEMBER 2013

Portfolio of six dominant retail warehouse parks located across the UK comprising a total floor area of 424,426 square-feet.

 

 

Doumer1
DOUMER – JULY 2013

Two adjacent properties with ground floor retail and upper residential floors, located within an upscale area of the west end of the city center of Paris, France.

RICHELIEU – MARCH 2013

Headquarter office building totaling around 31,000 square-feet and located in the financial area of the central business district of Paris, France.

 

 

 

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UNITED – JUNE 2012

Four established multi-let industrial parks located centrally in the UK comprising approximately 4.5 million square-feet and an additional 61 acres of development land.

FARNBOROUGH BUSINESS PARK – APRIL 2012

Grade-A business park located in the M3 corridor, an established office location within the UK.

 

 

 

EDEN – DECEMBER 2011

Six distribution assets located in the Midlands region of England comprising a total floor area of 654,219 square-feet.

 

CHISWICK TOWER – NOVEMBER 2010

Multi-tenanted 143,000 square-foot, 18-storey office building in West London.  Sold in March 2013.

Harbert European Real Estate Fund II, LP

CRICK – JULY 2010

Prime UK distribution warehouse adjacent to the M1 motorway and close to Daventry International Rail Freight Terminal.  Sold in September 2013.

 

LEOPARD – AUGUST 2009

Four multi-let industrial estates comprising 2.1 million square-feet of lettable floorspace and 150,000 square-feet of expansion rights located in the Southeast of England, within close proximity of London.  Grand Union asset sold in February 2013 and Poyle asset sold in August 2013.

GREEN BOX – JUNE 2009

Five state of the art, high-bay warehouses providing 857,819 square-feet of warehousing/distribution space in established UK locations, adjacent to the M25 and the M1 motorways.  Sold in November 2010.

 

PARC MAIL (LYON) – MAY 2009

Eleven modern, institutional quality, office buildings comprising 236,655 square-feet of Grade-A space within the larger Parc Technologique in South East Lyon, France.

 

PROMOCIONA (ALPHA) – JANUARY 2008

Joint venture with an experienced local warehouse/logistics developer to develop, lease and sell warehouse/logistics facilities primarily in the Madrid region of Spain.  Sold in August 2011.

 

BERGEN – AUGUST 2007

Preferred equity investment in a 160 unit residential development located on an island archipelago on the west coast of Norway, 20 miles south of Bergen.

 

ESSLINGEN (GENESIS) – JULY 2007

Development of 405,000 square-feet of industrial warehouse and office space, located eight miles from Stuttgart, Germany.  Sold in December 2013.

 

OSTFILDERN (FLEET) – APRIL 2007

A 175,000 square-foot industrial warehouse development, let to DHL, 4.5 kilometers from Stuttgart airport.  Sold in December 2012.

 

RONDA – DECEMBER 2007

Two tracts of land totaling 497 hectares in Andalucia, Spain, acquired to meet demand among Europeans for quality residences in well developed, low density, golf course communities.

Harbert European Real Estate Fund BV

EUROPEAN WAREHOUSES

Four warehouse developments pre-let to a NYSE listed company who is a world leader in its industry, combining 282,000 square-feet located in Paris, France; Leeds, England; Dublin, Ireland; and Munich Germany. Paris asset sold in November 2009 and Leeds asset sold in December 2009.  Paris and Leeds assets sold in November 2009, Dublin asset sold in June 2012 and Munich asset sold in August 2012.

CADOGAN HOTEL

A landmark 65-room Grade II listed hotel, centrally located in an affluent residential and business area within the west end of London.  Sold in March 2011.

 

GEORGES CLEMENCEAU

A 70,955 square-foot office building with 124 parking spaces, located in the Nanterre submarket of Paris, to the West of La Défense.  Sold in January 2011.

 

LOS ARCOS

Joint venture for the purpose of acquiring and developing large parcels of rustic land well suited to second-home communities in Western Andalucia, Spain. Sold in August 2007.

 

 LEADENHALL/MITRE STREET

Refurbishment of two office buildings with a combined 38,200 square-feet located in EC3, the insurance submarket of the City of London, England. Sold in May 2006.

 

MONTECARMELO

Joint venture with a highly experienced local developer to develop a 136,560 square-foot grocery store anchored retail center in a new master planned community in Madrid, Spain. Sold in July 2005.

 

JEAN JAURES

A 43,739 square-foot office building located in a desirable part of Paris’ Golden Crescent in France. Sold in November 2004.

 

LIBERTY CORNER

An 87,156 square-foot class A office building development in Warsaw, Poland. Sold in October 2004.

 

SIRIUS

A 71,737 square-foot class B+ office building located in Paris, France. Sold in September 2004.

 

GAUGUIN

A 52,724 square-foot class B+ office building located in a well established business park, adjacent to Charles de Gaulle airport in Paris, France. Sold in September 2004.

Contact
HARBERT EUROPEAN REAL ESTATE
LONDON OFFICE

Brookfield House, 5th Floor
44 Davies Street
London, UK W1K 5JA

Contact:
David King
dking@harbert.net
+44 (207) 408 4120

MADRID OFFICE

Pinar, 5
Madrid 28006 Spain
+34 (91) 745 6859

PARIS OFFICE

29 rue de Bassano
75008 Paris France
+33 (17) 225 6527