Peakside to buy AIB's Polish property fund business

European real estate private equity firm Peakside Capital has entered into agreements to acquire Allied Irish Bank's Polish property fund management subsidiary and its interests in two Polonia Property Funds.

This is Peakside's first direct investment into Poland through its Peakside Real Estate Fund I (PREF).

Peakside is acquiring AIB's Polish property fund management subsidiary, AIB PPM. In addition, separate agreements have also been signed by PREF and Partners Group to acquire AIB's 9.87% interest in Polonia Property Fund LP and 7.5% interest in Polonia Property Fund II Limited on a 50:50 basis. This is Peakside’s first joint investment with Partners Group, a global private markets asset manager.

The transaction adds over EUR 600 mln of gross assets under management to Peakside's business, bringing its total assets under management to over EUR 2 bn. In addition, it will substantially increase its headcount and add an office in Warsaw to its network, alongside its existing offices in Switzerland, the UK, and Luxembourg.

Completion of the transaction is conditional upon obtaining certain regulatory approvals and other consents.

Peakside said it has been evaluating the opportunity to expand its activities in Poland for some time, owing to the ongoing attractive fundamentals of the market and its growing interest to international investors. 'Poland is a core market for Peakside, alongside Germany and the other leading markets of the CEE,' the company said. The acquisition allows Peakside to add an on-the-ground presence in this market.