Germany's TAG Immobilien has acquired a residential complex consisting of 612 residential units in Berlin from a company majority-owned by the Peakside Real Estate Fund I, managed by European real estate private equity firm Peakside Capital. The parties have agreed to keep the purchase price confidential.
Germany's TAG Immobilien has acquired a residential complex consisting of 612 residential units in Berlin from a company majority-owned by the Peakside Real Estate Fund I, managed by European real estate private equity firm Peakside Capital. The parties have agreed to keep the purchase price confidential.
The Berlin asset was originally acquired by the Peakside team in 2007 from a German mortgage bank as a non-performing loan. Since then, Peakside has worked alongside its operating partner, Wertgrund Immobilien, on a number of active management initiatives to improve the performance of the properties. Over a period of three years, the vacancy rate across the asset reduced from 13% to below 3%, with rents increasing from an average of EUR 4.00 per m2 to EUR 4.37 per m2. The residential complex offers total floor space of around 43,600 m2.
The proceeds will be used to invest in new opportunities across the European real estate market with a particular focus on Germany and CEE.
'This a another step on our path to growth, which involves investing at existing TAG locations. This purchase expands TAG's Berlin portfolio by about 30%, and its integration can be achieved at very low marginal costs. The capital increase gives us the necessary basis for increasing our competitiveness in the German real-estate market by continuing to grow profitably and on our own steam,' said Rolf Elgeti, CEO of TAG.
