European institutions, including German pension schemes, have backed Peakside Capital’s latest German focussed value-add strategy to reach its €200m hard cap fundraising target.
In August last year, IPE Real Assets reported that Peakside had begun fundraising for Peakside Real Estate Fund III (PREF III) after deploying the second fund.
The manager said the amount raised by PREF III provides the fund with a total investment capacity of around €650m. In addition, Peakside has secured co-investment commitments which will provide additional firepower for the fund, it said.
Peakside said PREF III was supported by a number of European institutions, the majority of which have supported Peakside’s previous funds, as well as new institutional investors from Europe, including domestic German pension schemes and a large savings bank.
As with its predecessor funds, PREF III will acquire assets in good or developing micro-locations at an attractive entry price.
During the fund-raise period, Peakside deployed around a quarter of its initial capital commitments and has acquired 17 assets since the second quarter of 2017, it said.
The investments total more than €150m and include office buildings in major German cities such as Berlin, Frankfurt, Stuttgart, Düsseldorf, as the well as the regional hubs of Hannover, Munster and Erlangen.
Boris Schran, a founding partner of Peakside Capital, said: ”Peakside’s deep market knowledge continues to deliver good value-add opportunities and is a clear competitive advantage for us and our investors.
“We have a strong ongoing pipeline of investment opportunities and are looking forward to dialling up our activity as we deploy the proceeds from this successful raise.”
Stefan Aumann, a founding partner of Peakside Capital, said: “This most recent fundraising with support from both existing and new investors is a clear endorsement of our track record and the success of our German focused strategy.”