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TPEG sells Walgreens building in Louisiana


TPEG sold the building that was constructed for Walgreens in Ruston, Louisiana. The project was guaranteed by Walgreens, which was rated as an A+ credit risk, and TPEG also hedged the floating interest rate on the loan, eliminating a significant risk. The hedge proved expensive, reducing the TPEG equity investor IRR from 30% to 14%, but with substantial risk reduction. Including the cost of the hedging instrument, TPEG equity investors realized a 129% cash-on-cash return over the life of the investment.

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