Peakside Capital has made its first acquisition on behalf of its third real estate fund.
Peakside said it has acquired a portfolio of 14 mainly office assets in Germany from two institutional investors.
The portfolio comprises city-centre properties with 37,000sqm of lettable space, located in Berlin, Stuttgart, Düsseldorf and Hannover including cities such as Munster and Erlangen.
The acquisition follows Peakside Capital’s recent €110m capital raising for Peakside Real Estate Fund (PREF III).
This was achieved just five months after the initial closing of PREF III and represents almost 75% of the €150m total equity raising target which will provide over €500m of investment firepower, the company said.
It has attracted capital commitments from German and international institutional investors and family offices, many of which invested in predecessor fund, PREF II.
Boris Schran, founding partner of Peakside Capital, said: “We were able to secure a portfolio of good and fundamentally institutional assets in need of focused asset management and lease-up activities for an attractive entry price well below replacement costs.
“Our strategy is to sell individual assets or sub-portfolios given the attractiveness of the assets. They are the right size and, once stabilised and leased up, will fit the core profile of long-term and distribution-income investors, who are not competing for nationwide portfolios but are looking for more regional opportunities for direct investment.”
Stefan Aumann, founding partner of Peakside Capital, said: “We expect more acquisitions on behalf of PREF III by the end of the year, building an attractive seed portfolio prior the final close of PREF III.”