Tristan's EPISO 3 shops in Cologne and Birmingham

European Property Investors Special Opportunities 3 (EPISO 3), a fund advised by pan-European real estate investment manager Tristan Capital Partners, has acquired a residential tower together with adjacent hypermarket and drugstore properties in Cologne, Germany.

The transaction price comes to €27.5 mln, representing an initial yield of 8.5%.

The 30,500 m2 complex comprises four buildings in Ehrenfeld and includes 10,200 m2 of retail space on the ground floor anchored by a Rewe supermarket. The upper floors include 20,300 m2 of space across 407 apartments.

EPISO 3 partnered with Pamera Asset Management, which is acting as co-investor and will be responsible for asset management.

EPISO 3 was advised by Berwin Leighton Paisnerand HauckSchuchardt.

Tristan Capital capped the final equity raise for EPISO 3 at €950 mln in January, after surpassing its original fundraising target by 25% and being oversubscribed by €500 mln. Some 36 investors have backed the fund, which seeks value-add investments and distressed opportunities in Europe.

Earlier this week, EPISO 3 also bought the landmark mixed-use Fort Dunlop building near Birmingham from Urban Splash and The Pears Group in an off-market transaction. Financial details were not disclosed.

The 375,000 sq ft building provides 300,000 sq ft of office accommodation, 40,000 sq ft of retail and leisure space, a 100 bedroom hotel plus 1,100 car parking spaces. The property is currently leased to 48 tenants including Inspired Thinking Group, Capita, Midland Newspapers and Regus.