Owner-operated real estate investment manager Peakside Capital has announced the first acquisition on behalf of its third fund, PREF III.
Peakside Capital has acquired a portfolio of 14 mainly office assets in Germany from two unnamed institutional sellers. Financial details were not disclosed.
The portfolio comprises city centre properties with 37,000 m2 of lettable space, located in Berlin, Stuttgart, Düsseldorf and Hannover as well as strong secondary cities such as Munster and Erlangen.
The acquisition follows Peakside Capital’s recent €110 mln capital raising for PREF III. This was achieved just five months after the initial closing of PREF III and represents almost 75% of the €150 mln total equity raising target which will provide over €500 mln of investment firepower.
Peakside Capital has attracted capital commitments from German and international institutional investors and family offices, many of which invested in predecessor fund, PREF II.
Peakside said that the new deal is 'fully in line with PREF III's value-add strategy, including reducing capex back-logs as well as enhancing occupancy and lease terms by leasing-up vacant space and re-gearing expiring leases'. Peakside Capital plans to tranform the properties by redeveloping, revitalising and repositioning them into core assets before disposal.
Boris Schran, founding partner of Peakside Capital (pictured), which manages €1 bn of assets with a focus on CEE and Germany, commented: 'We were able to secure a portfolio of good and fundamentally institutional assets in need of focussed asset management and lease-up activities for an attractive entry price well below replacement costs. Our strategy is to sell individual assets or sub portfolios given the attractiveness of the assets. They are the right size and, once stabilised and leased up, will fit the core profile of long-term and distribution income investors, who are not competing for nation-wide portfolios but are looking for more regional opportunities for direct investment.'
Stefan Aumann, founding partner of Peakside Capital, added that the company expects 'more acquisitions on behalf of PREF III by the end of the year'.
The sellers were advised by PWC and Arnecke Sibeth while Peakside Capital was advised by Greenberg Traurig, HauckSchuchardt and Drees & Sommer.
