European real estate private equity firm Peakside Capital has raised €110 mln of equity for its third fund, Peakside Real Estate Fund III (PREF III).
The capital, raised five months after the initial closing of PREF III, represents almost 75% of the €150 mln equity being targeted. That will provide over €500 mln of investment firepower plus co-investment, according to Peakside, to be focused on opportunistic, value-add investments in strong locations across Germany’s top seven cities and regional hubs.
'Germany continues to be very attractive to investors so long as they have access to local knowledge and a proven track record of delivery, all of which are served by the team at Peakside Capital,' commented Boris Schran (pictured), founding partner of Peakside Capital.
'The country’s key urban centres offer rich potential for investment, backed by key commercial, social and demographic qualities.'
PREF III has attracted capital commitments from German and international institutional investors and family offices, many of which invested in predecessor fund, PREF II.
It will acquire distressed or poorly managed assets in good or evolving micro locations at attractive entry points. Peakside plans to subsequently transform the properties by redeveloping, revitalising and repositioning them into core assets before disposal, taking advantage of pricing gaps between core and non-core real estate.
A nationwide office portfolio comprising 14 assets has already been acquired for PREF III.
Funds from PREF II have already been fully deployed. According to Peakside, they were committed within 18 months and invested in a total aggregated project volume of more than €600 mln, including co-investment, such as the recent acquisition of 'Frankfurt Airport Center I' with Madison Realty.
