Peakside Capital has taken just 18 months of the planned 30-month investment period to fully commmit its German real estate PREF II fund with a project volume of more than €600 mln.
PREF II invests in value-add and opportunistic real estate in Germany and Peakside said the fund's returns are projected to substantially exceed its target of 20%.
Boris Schran, managing partner of Peakside Capital, commented: 'It is a testament to the whole Peakside Capital team that we have been able to execute transactions in excess of €600 mln of project volume for our second value-add/opportunistic fund in such a short timeframe and a rather challenging market environment. This milestone highlights our ability to secure smart and attractive investments, particularly in Germany, where we see continued prospects for value-add and opportunistic strategies.'
Schran added that Peakside would continue to apply this strategy for the successor fund, PREF III, for which the firm started equity raising a few weeks ago.
Frankfurt
In the past four months, Peakside Capital has signed or closed its final three transactions for PREF II, including the most recent acquisition of Theodor Heuss Allee 108 in Frankfurt, which it acquired from a closed-ended fund formerly managed by AXA Merkens.
Theodor Heuss Allee 108 (pictured) is located in an office area of Frankfurt´s City West. The property comprises 11,000 m2 of flexible office space over seven floors and more than 160 parking spaces.
Between signing and closing of the transaction, Peakside Capital increased the original occupancy level from 60% to over 80% by signing a long-term lease with an international provider of employment and recruitment services. The seller was advised by CBRE on this transaction. Peakside Capital was advised by HauckSchuchardt on legal and tax.
Early sales
PREF II has made seven investments, two of which, with a combined asset value exceeding €100 mln, have already been sold.
The fund now comprises five sizeable office and mixed-use schemes in Frankfurt, Hamburg and Berlin. Notable investments include the landmark acquisition of Hamburg's historic telecommunication hub as well as the acquisition of the Frankfurt Airport Center I (FAC I) in a joint venture with an international real estate private equity firm.
FAC I comprises more than 48,000 m2 of flexible office and conference space with direct access to Terminal 1 of the Frankfurt International Airport and offers significant repositioning opportunities. CBRE advised on the acquisition.
Peakside Capital is a specialist European Investment Manager, owned by its management. It manages real estate assets currently totalling over €1 bn in gross asset value with a focus on CEE and Germany. The company has offices in Frankfurt, Munich, Zug (CH), Warsaw, Prague and Luxembourg.
