Independent real estate private equity manager Peakside Capital has closed Peakside Real Estate Fund III (PREF III), reaching the hard cap of €200 mln, and generating a total investment capacity of around €650 mln.
The volume exceeds the group's initial total equity raising target set at €150 mln. In addition, Peakside has secured co-investment commitments which will provide additional firepower for the fund.
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. As with its predecessor funds, it will acquire assets in good or developing micro locations at an attractive entry price.
The fundraise for PREF III was supported by a number of European institutions, the majority of which have supported Peakside’s previous funds, as well as new institutional investors from Europe, including domestic German pension schemes and a large savings bank.
Peakside has already deployed around a quarter of the fund's initial capital commitments acquiring 17 assets since the second quarter of 2017. The investments total more than €150 mln and include office buildings in major German cities such as Berlin, Frankfurt, Stuttgart, Düsseldorf, as well as the regional hubs of Hannover, Munster and Erlangen.
As with previous funds, PREF III will transform properties that no longer meet current market demand or require substantial asset management and leasing activities to revitalise and reposition them to core assets.
'We have a strong ongoing pipeline of investment opportunities and are looking forward to dialling up our activity as we deploy the proceeds from this successful raise,' said Boris Schran, founding partner of Peakside Capital (pictured).
Peakside has acquired and managed over €3 bn of gross assets since the company’s formation in 2010.
