Peakside Capital Advisors has so far raised €160m for its latest value-add German real estate fund.
The manager said, the Peakside Real Estate Fund IV’s (PREF IV) first close was backed by institutional investors and family offices across Europe.
PREF IV’s investors also include about 80% of the equity base of the predecessor fund which raised €200m in September 2018.
Peakside Capital said the latest fund plans to raise around €350m of equity for a total investment volume including debt of up to €900m.
PREF IV targets a 15% internal rate of return per annum and will invest in assets worth between €30m and €150m each.
The manager said the PREF IV fund is is already in exclusivity talks to buy one assets and has further acquisitions in the pipeline, adding that it expects more investment opportunities from the current crisis to surface in the second half of 2021.
Stefan Aumann, managing partner at Peakside Capital Advisors, said: “We are especially proud that almost all investors of the predecessor fund PREF III have also committed to the first close of the fourth iteration. Returns in both funds II and III are significantly above expectations, affirming the trust the investors put in our products.”
Frank Schäfer, managing director and head of business development at Peakside Capital Advisors, said: “With PREF IV, we will continue our successful active value-add strategies.
”As the first in the series, the fund meets the German ‘real estate quota’ criteria. Together with the advancement of our sustainability strategy, we are thus systematically expanding our investor base.”
Boris Schran, managing partner at Peakside Capital Advisors, said: “In the current environment, we are of course specifically looking at investments in the logistics and residential sectors. At the same time, we are expecting several opportunities coming out of market distortions in the wake of the COVID-19 pandemic, particularly in the retail and hotel sectors, and specifically for assets which lend themselves to conversion into office or residential use.
”Failed auctions or project developments with additional (re-)financing needs also offer attractive opportunities. Despite the increase of people working from home, we still believe in office as an asset class. Our pipeline is broad and filled accordingly.”
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