Pan-European investment manager Peakside Capital Advisors has raised €160 mln in equity at the first close of the Peakside Real Estate Fund IV (PREF IV), equal to about 80% of the equity base of the predecessor fund.
The capital stems from institutional investors and family offices across Europe.
Overall, Peakside plans to raise around €350 mln of equity for a total investment volume including debt of up to €900 mln for PREF IV.
The focus of the fund lies on German real estate investments impacted by pricing dislocations and opportunities with value-add potential within a price range of between €30 mln and €150 mln per investment.
Stefan Aumann, managing partner at Peakside, said: 'We are especially proud that almost all investors of the predecessor fund PREF III have also committed to the first close of the fourth iteration.
'Returns in both funds II and III are significantly above expectations, affirming the trust the investors put in our products.'
Frank Schäfer, managing director and head of business development, added: 'With PREF IV, we will continue our successful active value-add strategies. As the first in the series, the fund meets the German 'real estate quota' criteria.'
In January alone, Peakside announced the sale of a commercial building in Berlin’s Steglitz district, the last property from the so-called Theodor portfolio, from PREF III. Since then, another asset in Frankfurt has been divested, marking the fourth successful sale of the total of six investments in PREF III.
For PREF IV, one asset is already under exclusivity and further acquisitions are in the pipeline. Peakside expects more investment opportunities from the current crisis to surface in the second half of 2021.
Boris Schran, managing partner at Peakside, said: 'In the current environment, we are of course specifically looking at investments in the logistics and residential sectors.
'At the same time, we are expecting several opportunities coming out of market distortions in the wake of the Covid-19 pandemic, particularly in the retail and hotel sectors, and specifically for assets which lend themselves to conversion into office or residential use.
'Failed auctions or project developments with additional (re-)financing needs also offer attractive opportunities. Despite the increase of people working from home, we still believe in office as an asset class. Our pipeline is broad and filled accordingly.'
