European private equity firm Peakside has acquired a landmark building in Hamburg from the closed real estate fund Deutschland 01, originally established by Wölbern Invest.
The sale of Fernsprechamt Schlüterstraße follows the takeover of the distressed Wölbern fund by Richard Neff in October 2013 and the delegation of its administration to Nordcapital. Nordcapital successfully removed the asset’s maintenance backlog and increased its value to investors by leasing 5,000 m2, or 10% of its total space.
The purchase price was not disclosed.
'For the investors in the former Wölbern funds, the result represents a successful sale and a good result overcoming all the initial difficulties from 2003,' said Neff.
The 50,000 m2 listed building was built in 1907 for Deutsche Telekom and is the largest single standing asset in Hamburg's Rotherbaum district. It is currently used as office space by Deutsche Telekom, Deutsche Post and the University of Hamburg.
Peakside aims to enhance the property by capitalising on its location near the University of Hamburg-Rotherbaum and its distinctive design. USP Projekte, located in Munich and a long-time development and cooperation partner of Peakside, will act as project manager.
Boris Schran, managing partner of Peakside Capital, said: 'The current use of the building has changed in the recent past as technological advances have altered the use of it by Deutsche Telekom. Today tenants require more contemporary space suitable for today’s requirements, a strategy we intend to pursue.'
Heinrich Maria Schulte, the former boss of Wölbern Invest, was sentenced to eight-and-a-half years in jail by a German court in April 2015 for embezzling over €147 mln in funds which the company managed on behalf of more than 30,000 investors.
