Oaktree Real Estate Opportunities Fund VII, L.P.
Purchases
Sales and Refinancing
OAKTREE REAL ESTATE OPPORTUNITIES FUND VII, L.P.
Appendix II: Evolution of Six Areas of Focus (Corporate)
1,000
($ in millions)
$1,500
500
HYPER-
LIQUIDITY
0
2006
(500)
2007
GLOBAL FINANCIAL
CRISIS
2008 2009 2010
2011
Real Estate Corporate Bonds
2012
Real Estate Corporate
Bank Debt
RECOVERY
2013
2014
Cyclical Platform
Investments
2015
+
SAMPLE DEAL: STORE (ROUND 2)
• Investment date: March 15, 2013
• ROF VI: $100 million
• Total Oaktree Investment: $580 million
INVESTMENT PROFILE
In 2011, Oaktree funds and partners established a new single-
tenant operational real estate platform with a highly
experience management team
• The platform provides financing solutions to customers
operating businesses on freestanding real estate that is integral
to the generation of the customers' P&L
• Over the last three-plus years, we have acquired $2.5 billion
in assets through the platform at an average cap rate of 8.5%
Through use of conservative leverage (<60%), portfolio has
generated returns of almost 14%
●
INVESTMENT THESIS
Nearly all of the major competitors in the middle-market sale-
leaseback business have exited the market, leaving a lending
gap for owners of operationally essential real estate
I'
High lease rates relative to financing costs may create very
attractive leveraged current cash returns
• REIT structure provides potential for multiple exit options
(1,000)
STORE
capital
As of June 30, 2015
Note: Reflects purchase and sale/refinancing activity for vehicles in the Real Estate Opportunities, Real Estate Debt and Distressed Debt strategies, as well as other certain Oaktree-managed funds and
accounts. Capital deployed includes $2.5 billion of equity for investments in Real Estate team-led transactions across all Oaktree-managed funds. Realizations include $1.8 billion of sales and an
additional $339 million of refinancing proceeds.
Confidential
●
●
Single
Tenant
Operational
Real
Estate
This investment highlight represents the most recent investment within the Corporate area of expertise across real estate funds. See "Legal Information and Marketing Disclosures" section of the
Appendix for important information regarding case studies.
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