Tristan Capital Partners’ Episo opportunistic fund has agreed to acquire a 69-property strong commercial property portfolio in Germany from Summit Real Estate Holdings as well as a 77% interest in the listed GxP German Properties platform, in a deal valued at €1 bn.
The large, diversified portfolio is comprised of a total of 630,812 m2, around 60% of which is knowledge office space, 30% is warehouse/industrial space and the remainder is made up of necessity-led retail parks and mixed-use assets. The assets are strategically located in and around Germany’s ‘Top 7’ cities and strong B locations.
The assets have a diversified occupational profile, with over 300 tenants, many within knowledge industries and resilient sectors. The portfolio offers significant value creation opportunities, including the potential for development across residential, office and industrial sectors, in markets where Tristan has a strong track record, including Berlin, Heidelberg and Cologne. The portfolio will be co-managed by local operating partners, including DWRE, Rockspire and Sonar.
Following the acquisition of the Summit assets, Episo 5 is considering making a voluntary public offer to acquire all the remaining shares outstanding in GxP German Properties at a cash consideration of €5 per share to provide the existing shareholders with liquidity before a potential de-listing. A final decision on whether to launch a voluntary public offer, the offer price and the potential de-listing has not been made yet.
Constantin Plenge, managing director at Tristan Capital Partners, said: ‘This was a rare opportunity to acquire a diverse mix of attractive assets across strategic locations in Germany. Robust economic performance throughout the crisis continues to underpin resilient occupational markets in Germany, making it a frontrunner in the European economic recovery story. This portfolio offers a breadth of value creation opportunities, which we can work with our partners to advance into a strengthening market.’
Episo 5 was advised by Clifford Chance, Colliers, BNP, PwC, Rothschild & Co, CBRE Valteq and Eastdil Secured.
