German investment firm Patrizia Immobilien has purchased a portfolio of more than 800 residential assets spread across Germany from European real estate private equity firm Peakside Capital for around €90 mln.
The portfolio comprises assets located in 14 locations in Germany with a focus on the south and the city of Berlin. The total rental area is around 60,000 m2, and also includes 33 commercial units, plus 369 parking spaces. Most of the assets were built in the 1950s and 1960s.
'Now was the right time to put this stable residential portfolio in the market and gain from the positive market sentiment for residential properties,' commented Boris Schran, one of Peakside's founding partners.
Over the last two years, Peakside said it had executed comprehensive asset management initiatives to enhance the capital value, raising rents.
'We aim to continue the seller’s successful modernisation strategy and achieve sustainable value increases for our clients as part of a buy and hold strategy,' said Patrizia's head of residential acquisitions, Christoph Langmack.
'The apartments formed part of a portfolio that was originally acquired in 2008. With the sale of these remaining assets, the Value-Add-Fonds PREF I has been fully realised within the original timeframe,' said Stefan Aumann, founding partner of Peakside Capital.
'Although many of the fund's assets had been acquired before the financial crisis, Peakside didn't suffer a single loss-making deal and has successfully returned 1.7x the equity to investors,' he concluded.
BNP Paribas Real Estate GmbH advised on the transaction process.
Peakside Capital was advised by CMS Hasche Sigle in Cologne on legal matters.
