Independent owner-operated real estate investment manager Peakside Capital has acquired an office portfolio in Frankfurt, Germany from a fund managed by HVB Immobilien.
Financial details were not disclosed.
The deal was executed for its recently closed Peakside Real Estate Fund III (PREF III) in collaboration with real estate funds managed/advised by LGT Capital Partners companies.
'This acquisition is right in our investment sweet spot as we are able to apply local knowledge together with our deep-rooted asset management skills. It follows on the heels of our successful final close of PREF III and shows to everyone that we continue to be able to source deals with an acute focus on delivering value to our clients,' said Boris Schran, founding partner of Peakside Capital.
The portfolio comprises two office buildings with c. 27,000 m2 net lettable area. The first property is Lyoner Strasse 20 in Frankfurt Niederrad which was built in 2003 and includes 14,000 m2 of net lettable space. It is currently 70% occupied.
The second property is located at Baseler Strasse 46-48/Gutleutstrasse 80-82 in the centre of Frankfurt, close to the main train station. The asset currently comprises 13,000 m2 of net lettable space and is need of a substantial refurbishment, according to the investor.
Multiple asset management strategies are being considered, including a partial hotel conversion, as well as refurbishing the remaining part of the building into a modern office building. Peakside said it was also reviewing the possibility of a new ground-up development.
These investments for PREF III follow the fund’s recently announced closing, having reached the hard cap of €200 mln and providing a total investment capacity of around €650 mln. PREF III is Peakside’s latest German focussed fund, targeting value-add investments in strong locations across the country’s top seven cities and regional hubs.
