Peakside Capital Advisors (Peakside) has raised over €120 mln of additional equity commitments at the second closing of its Peakside Real Estate Fund IV (PREF IV). This now brings the placement rate to over 80% of the fund’s target size within less than four months of launch.
The fresh capital commitments are primarily from a sovereign wealth fund and Europe-based institutional investors and family offices, including existing investor relationships as well as clients new to Peakside.
The second closing brings the PREF IV fund’s equity commitments already to more than €280 mln out of a planned target size of €350 mln.
The focus of the fund, which strives for a target annual IRR of 15%, is on German real estate investments impacted by pricing dislocations and opportunities with value-add potential within a price range between €30 mln and €150 mln per investment.
The fund actively pursues a variety of asset classes, including logistics and light industrial as well as office and residential. In addition, Peakside sees particular opportunity right now in property conversions, especially in the sectors hardest hit by the Covid-19 crisis, such as from hotel to residential or office, from retail to office, or even conversions to “last mile” logistics.
Since the fund’s inception, the deal pipeline has been expanded and exclusivity now agreed on a second property.
‘The first transaction closings are planned for the second half of 2021, and the project pipeline continues to grow,’ said Boris Schran, managing partner at Peakside, ‘We assume that managers like us who are close to both the market and property users, who can make quick decisions and react flexibly and purposefully to rapidly changing requirements, and who are able to create value through active asset management will, as in previous market cycles, be among the major beneficiaries.’
