European investment manager Peakside Capital Advisors has raised €415m for its latest value-add German real estate fund.
The manager said the amount raised for Peakside Real Estate Fund IV (PREF IV) exceeded the fund’s initial hard cap of €350m. The predecessor fund raised €200m in September 2018.
PREF IV, which closed earlier than planned, was significantly oversubscribed after only eleven months of fundraising, the manager said.
The capital mainly stems from institutional investors, sovereign wealth funds and family offices from Europe and the Middle East.
With a target debt ratio of around 60% PREF IV will invest in real estate worth over €1.2bn.
Peakside said PREF IV will focus on German properties which are affected by pricing dislocations, “stranded” in sales processes, have additional (re-)financing needs and on assets with value-add or conversion potential.
Boris Schran, a managing partner of Peakside, said the deal pipeline is well filled, and the fund already has several assets under exclusivity.
We are close to the market and occupiers and thus especially looking at investment opportunities in logistics and residential. But we are also seeing several inroads into retail and hotel opportunities we can recommend to the fund, with a particular interest in assets that can be converted into office or residential use. We are confident that the fund will be closing further transactions within the first half of 2022.”
Stefan Aumann, a managing partner at Peakside, said after the first closing in February last year, PREF IV was fully placed with investors within only eleven months – and that despite the COVID-19 pandemic.
”The speed with which that happened was indeed faster than we anticipated. Interest was enormous.”
Frank Schäfer, managing director and head of business development at Peakside, said: “Apart from the commitments of almost all our existing clients, we are proud to have attracted a large number of new investors for the fund.
”This is a testament to the excellent performance of the predecessor funds as well as the market penetration we have reached as Peakside at this stage.”
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