News

23. Mai 2018

press

German only - Peakside Capital verkauft das 35.000m² große Forum Landsberger Allee in Berlin

Peakside Capital, ein unabhängiger, eigentümergeführter Real Estate Investment Manager mit Büros in Frankfurt, München, Warschau, Prag, Zug (CH) und Luxemburg, gab heute den Verkauf des Objekts „Forum Landsberger Allee“ in Berlin an die PATRIZIA Immobilien AG bekannt.

Die gemischt genutzte Immobilie verfügt über 35.000 m² Mietfläche, davon 14.000 m² Bürofläche, 3.400 m² Handelsflächen und weitere 14.300 m², die von einem Hostel mit 870 Betten und einem Hotel mit 152 Zimmern genutzt werden. Das Areal verfügt zudem über ein öffentliches Parkhaus mit 400 Stellplätzen.

Peakside hat den Gebäudekomplex 2015 von einem Insolvenzverwalter erworben und ein Restrukturierungsprogramm durchgeführt, sowie umfangreich in das Objekt investiert. Diese Maßnahmen haben zu einer deutlichen Steigerung der Mieteinnahmen und der Flächenbelegung geführt. Ebenso wurde die Qualität der Mieterschaft verbessert und die durchschnittliche Restmietlaufzeit von 5 auf 10 Jahre verdoppelt. Peakside realisierte ein neues Einzelhandelskonzept mit bonitätsstarken Mietern wie REWE und dm und eine Neuverpachtung des Hotels. Die Büroflächen wurden ebenfalls umfangreich neu- und nachvermietet und in diesem Zusammenhang aufgewertet.

Der Verkauf erfolgte für den Value-Add Fonds PREF II von Peakside, der Immobilien erwirbt, bei denen durch intensives Asset Management und Vermietungsaktivitäten das Potenzial für erhebliche Wertsteigerungen besteht.

Peakside Capital hatte erst vor wenigen Tagen bekannt gegeben, dass der Nachfolgefonds des PREF II, der Peakside Real Estate Fund III (PREF III) ein Bürogebäude mit untergeordneter Wohnnutzung in Frankfurt’s City West erworben hat. Das Fundraising für PREF III wird mit einem weiteren Closing in den nächsten Wochen abgeschlossen. Es wird erwartet, dass PREF III seine Value Add Strategie dann mit Investitionen von €500-€600 Millionen in deutsche Immobilien umsetzen kann.

Boris Schran, Gründungspartner von Peakside Capital, äußerte sich dazu wie folgt:

“Das“Forum Landsberger Allee” ist ein hervorragendes Beispiel für die Fähigkeit von Peakside eine anspruchsvolle Immobilie mit zahlreichen komplizierten Aufgabenstellungen durch fokussierte Asset Management Maßnahmen, langjährige Erfahrung und Marktkenntnis zu einer Core-Immobilie zu entwickeln, die den hohen Anforderungen großer institutioneller Anleger entspricht“.

For further Information:

Dido Laurimore / Tom Gough

FTI Consulting

+44 (0) 20 3727 1000

Note to Editors

Peakside Capital ist ein eigentümergeführter, auf Immobilien spezialisierter Europäischer Investment Manager mit einem Portfolio von über 1 Milliarde Euro und einem Investitionsfokus in Deutschland und Zentral-/Osteuropa (CEE). Peakside Capital ist mit ca. 40 Mitarbeitern an den Standorten Frankfurt, München, Zug (CH), Warschau, Prag und Luxemburg mit eigenen Büros vertren.

Peakside Capital erbringt Fondmanagement- und Investmentmanagement Leistungen für seine aktiv gemanagten Immobilienportfolien, darunter 4 eigene Fonds als auch zahlreiche Individualmandate mit unterschiedlichen Investmentstrategien von Core bis Opportunistic mit Schwerpunkt auf Value-add Strategien in den Anlageklassen Büroimmobilien, Wohnimmobilien, Hotels und Einzelhandel.

Das Investitionsspektrum umfasst Einzelimmobilien ebenso wie größere Portfolien und Projektentwicklungen, Immobilien besicherte Kreditportfolien und den Erwerb von Beteiligungen an Immobilienunternehmen.

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14. Mai 2018

press

Peakside Capital closes third transaction for it's new value add fund “PREF III"

Peakside Capital, the independent, owner-operated real estate investment manager with offices in Frankfurt, Munich, Warsaw, Prague, Zug (CH) and Luxembourg, has completed its third transaction for Peakside Real Estate Fund III (PREF III/ the “Fund”) with an acquisition in Frankfurt’s ”City West. It is the second acquisition by Peakside in the area and demonstrates its positive assessment of the “City West” as an attractive investment location. The most recent purchase takes the equity invested by PREF III to date to over 50 million.

The 9,270 sqm commercial and residential building has been undermanaged in recent years and the purchase price is below replacement cost. The asset is currently sitting with a substantial 50% vacancy on the commercial space which Peakside will look to reduce on completion of a light refurbishment. The asset is located in a sub market which is currently benefitting from strong occupational demand.

The purchase has helped Peakside get off to a good start in 2018, following a busy 2017 which saw the business undertake over €760 million of transactions (more than double the 2016 transaction volume) of which €510 million was in Germany and the remainder in CEE. As in previous years, Peakside showed strong leasing activity with more than 80,000 sqm let across its portfolio in 2017.

Fundraising activity has continued to gain momentum. Based on another recent close for PREF III and several additional planned commitments by investors, the €150 million total equity raising target is expected to be substantially exceeded. That provides PREF III with €500-€600 million of total investment firepower. In addition, PREF III will invest in selected co-investments that it manages.

PREF III will continue the proven and successful strategy of its predecessor funds, targetting value-add investments in strong locations across Germany’s top seven cities and regional hubs. PREF III has attracted capital commitments from institutional investors and family offices from across Europe, many of which invested in the predecessor fund, PREF II, which, following several recent and successful asset disposals, is expected to realise a return exceeding underwriting with a gross IRR in excess of 25% and an MoC of 1.9-2.1x.

Boris Schran, founding partner of Peakside Capital, said:

“Our most recent Frankfurt transaction fits firmly within our strategy of acquiring distressed or poorly managed assets in good or evolving micro locations at attractive entry points. With our strong track record of leasing and a thriving Frankfurt occupier market, we are confident that we can quickly improve on the operational performance of this property.”

Stefan Aumann, founding partner of Peakside Capital, said:

“We continue to demonstrate that even in a competitive market environment, we are able to source attractive value-add opportunities for our investors. Peakside’s strong acquisition and asset management capabilities are supporting our fund raising effort which is exemplified by the latest close.”

For further Information:

Dido Laurimore / Tom Gough

FTI Consulting

+44 (0) 20 3727 1000

Note to Editors

Peakside Capital is a specialist European Investment Manager, owned by its management. It manages real estate assets currently totalling over EUR 1 billion in gross asset value with a focus on CEE and Germany. The company has offices in Frankfurt, Munich, Zug (CH), Warsaw, Prague and Luxembourg.

Peakside Capital provides fund management and investment advisory services for managed portfolios that include its four real estate funds and a significant number of separate account investments.

The investment strategies it pursues serve the individual requirements of its investors, and range from core to opportunistic across the office, residential, hotel and retail sectors. The investment spectrum comprises investments in single assets and portfolios through to distressed debt and investments in real estate operating companies.

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23. April 2018

press

Peakside and KD launch Slovenia’s first regulated Alternative Investment Fund

Peakside Capital, an international real estate investor, and KD
Funds, one of the oldest asset managers in South East Europe
(SEE), have made the maiden acquisition for Slovenia’s first
regulated real estate Alternative Investment Fund.

KD Adriatic Value Fund has commitments from regional institutional investors
and has a current buying power of more than €50 mln. The fund has acquired
its first asset, the Tivoli Center in the Slovenian capital Ljubljana.

Tivoli Center
The Tivoli Center was purchased for €13 mln, reflecting a net initial yield well
in excess of 8%. Located in downtown Ljubljana, the Class A property
provides 8,000 m2 GLA across two connected buildings. Some 97% of the
space is occupied by long-term tenants with strong covenants. Current
tenants include international law firms, as well as a diversity of various
successful SME companies.

Stefan Aumann, managing partner and founder of Peakside Capital: 'The
acquisition of Tivoli Center is an excellent start for the Adriatic Value Fund. We
are very happy to have acquired a prominent building that is in demand from
occupiers and is located in a prime location within the growing Ljubljana office
market. This is a stepping stone in establishing a larger portfolio in the region
that will offer attractive returns to the fund's investors.'

Luka Podlogar, the president of the management board of KD Funds, said the
fund and its first deal staked a claim by KD and Peakside to be 'pioneers of
development in the real estate fund sector in Slovenia. 'By way of this venture,
we are fulfilling the KD Funds' strategy in practice, namely to expand our
product range of successfully managed funds for retail investors, by adding
alternative investment funds for institutions,' he said.

The fund
KD Adriatic Value Fund, Special Investment Fund, is a seven-year alternative
investment fund managed by KD Funds, with Peakside Capital acting as
investment advisor. Its investment objective is to generate returns for
investors from rental income and capital growth through investments in real
estate in Slovenia, Croatia and Serbia, with a special focus on office and retail
properties.

The three target countries represent a region with a relatively undeveloped
real estate sector and attractive returns, whilst the long-term success of the
fund is further supported by strong economic growth, according to
Peakside and KD.

Peakside and KD plan to grow the fund to €50 mln within the next 3-4 months
as there are two more properties in the immediate pipeline. This will give
institutional investors a proof of concept and will form the basis for a second
marketing push. The focus will be on local institutional investors; their
counterparts in Germany and family offices.

KD Adriatic Value Fund will seek to acquire single assets or small portfolios
over an 18 month to two-year investment period. The fund may
invest selectively and opportunistically in logistics to benefit from Slovenia's
location on the east-west and north-south distribution corridor. Croatia also
lies close to the important transportation route. Podlogar said the fund may
also invest opportunistically in the hospitality sector, something that could
enhance the fund's returns.

'The sweet spot for individual investments will be in the €15-25 mln range,
with a total of about 10 assets offering good diversification,' added Aumann.

Underdeveloped market
Based in Slovenia, KD Funds is one of the largest and largest asset managers
in the SEE region. The firm manages about €800 mln, predominantly in equity
fixed income and money market instruments.

'As the yields on fixed-income instruments were dropping continuously, we
decided in 2015 to first start looking at real estate as something that can be
investible for our clients,' Podlogar said.

Real estate as an asset class didn’t really exist in this region, he said. 'Some
institutions tried investing into real estate, but it was all very direct and from
their own balance sheets and always with a lot of problems. There wasn't any
professional real estate asset management available here. In addition, there
was also no investment vehicle suitable for pension funds and insurance
companies seeking access to the real estate asset class.'

Peakside's attraction included that it was 'not a multi-billion dollar manager',
rather a 'highly successful niche asset manager with experience in eastern
Europe and based in Germany. 'The core CEE markets have gone through a
real estate development cycle and have grown to a more professional level.
This has not happened in SEE yet,' Podlogar said.

Yield gap
Aumann noted that SEE real estate offered a significant yield gap compared
to the CEE markets and Western Europe. The few deals in the SEE region in
the last two years have been mainly carried out by South African investors
at relatively high yields. 'This creates an unique opportunity because on the
one hand we had an underdeveloped market and local institutions who are
hungry for real estate. On the other, property in the region can offer a yield
gap of about 200 basis points, he said.

KD and Peakside
Founded in 1994, KD Funds is one of the largest and oldest asset managers
in South East Europe. It manages around €800 mln in 34 funds and 13
investment mandates together with its subsidiaries) across the SEE region,
including the oldest mutual funds in Slovenia and Croatia.

Peakside Capital was founded in 2010 as a spin-off from the Merrill Lynch
investment bank and currently employs about 30 people. It is mainly active in
Germany and Eastern European countries, managing funds and
asset management mandates. It currently has more than €1 bn of gross
assets under management.

Press release

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21. November 2017

press

Peakside Capital Acquires 14-strong german office portfolio for PREF III opportunity fund

Peakside Capital, the independent, owner-operated real estate investment manager with offices in Frankfurt, Munich, Warsaw, Prague, Zug (CH) and Luxembourg, announces the first acquisition on behalf of its third fund, PREF III.

Peakside Capital has acquired a portfolio of 14 mainly office assets in Germany from two institutional sellers. The portfolio comprises city centre properties with 37,000 sqm of lettable space, located in Berlin, Stuttgart, Düsseldorf and Hannover as well as strong secondary cities such as Munster and Erlangen.

The acquisition follows Peakside Capital’s recent c. €110 million capital raising for PREF III. This was achieved just five months after the initial closing of PREF III and represents almost 75% of the €150 million total equity raising target which will provide over €500 million of investment firepower. Peakside Capital has attracted capital commitments from German and international institutional investors and family offices, many of which invested in predecessor fund, PREF II.

The newly acquired office portfolio investment is fully in line with PREF III´s value-add strategy, including reducing capex back-logs as well as enhancing occupancy and lease terms by leasing-up vacant space and re-gearing expiring leases. Peakside Capital will draw on its track record in transforming properties by redeveloping, revitalising and repositioning them into core assets before disposal. Peakside Capital has set up an experienced and dedicated asset management team together with Munich-based asset manager, Marienburg Real Estate, to focus on the execution of the business plan.

Boris Schran, founding partner of Peakside Capital, commented:

“We were able to secure a portfolio of good and fundamentally institutional assets in need of focussed 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 nation-wide portfolios but are looking for more regional opportunities for direct investment.”

Stefan Aumann, founding partner of Peakside Capital, added:

“We are experiencing great momentum having acquired this attractive seed portfolio shortly after the initial closing of PREF III. 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. The success of our predecessor fund, PREF II, continues to benefit our fund-raising efforts for PREF III. Investors have become increasingly open to value-add strategies and we have earned a reputation and track record in this space.”

The sellers were advised by PWC and Arnecke Sibeth while Peakside Capital was advised by Greenberg Traurig, HauckSchuchardt and Drees & Sommer.

For further Information:

Dido Laurimore / Tom Gough

FTI Consulting

+44 (0) 20 3727 1000

Note to Editors

Peakside Capital is a specialist European Investment Manager, owned by its management. It manages real estate assets currently totalling over EUR 1 billion in gross asset value with a focus on CEE and Germany. The company has offices in Frankfurt, Munich, Zug (CH), Warsaw, Prague and Luxembourg.

Peakside Capital provides fund management and investment advisory services for managed portfolios that include its four real estate funds and a significant number of separate account investments.

The investment strategies it pursues serve the individual requirements of its investors, and range from core to opportunistic across the office, residential, hotel and retail sectors. The investment spectrum comprises investments in single assets and portfolios through to distressed debt and investments in real estate operating companies.

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6. September 2017

press

Peakside Capital and Madison International Realty complete aquisition of Frankfurt Airport Center 1

The joint venture of Peakside Capital, the independent, owner-operated real estate investment manager with offices in Frankfurt, Warsaw, Prague, Zug (CH) and Luxembourg, and Madison International Realty (Madison) have completed the acquisition of a leasehold interest in Frankfurt Airport Center I (“FAC I”). The seller was UBS Real Estate GmbH on behalf of Publikums-AIF UBS (D) Euroinvest Immobilien.

FAC I comprises more than 48,000 sqm of flexible office and conference space with direct access to Terminal 1 of the Frankfurt International Airport. The asset is located in a superior, irreplaceable and highly visible location with unrivalled transport connections as well as 182 parking spaces. It is located next to the ICE train station with regional and high speed long distance trains. The A3 motorway (Autobahn) which crosses from East to West Germany passes the building while the A5 which runs North to South is less than 3 kilometres away. Frankfurt’s CBD can be reached by car or train within 15 minutes.

Ahead of the completed transaction, the parties successfully extended the fixed term of the leasehold from 2060 until 2090. With 40% vacancy, there is significant scope to refurbish and improve the letting profile of the building which currently includes Lufthansa, FRAPORT AG and the Airport Club as tenants along with 70 others.

Peakside Capital’s investment was through Peakside Real Estate Fund II (PREF II), the Germany-focused value-add and opportunistic fund which is now fully committed. Following the successful deployment of PREF II, Peakside Capital is currently fund raising for PREF III, which will adopt the same investment strategy.

The transaction will add another valuable asset to Madison’s portfolio, illustrating its strength in acquiring partial ownership and joint venture interests in existing grade A properties in prime markets in U.S., U.K. and Western Europe.

Peakside is responsible for the operational management of FAC I. To support the repositioning of the building, Peakside has employed Frankfurt-based ERWE Real Estate GmbH as project manager to control and coordinate different specialist contractors with regards to the refurbishment of the building. Fantastic Fox Capital Advisors GmbH has been employed to manage the letting of the office and retail space.

The buyer has been advised by CBRE, Clifford Chance and by Hauck Schuchardt Senior debt financing is provided by HSH Nordbank

Boris Schran, managing partner of Peakside Capital, commented:

“Having secured this landmark site and successfully extended the leasehold, now the work begins to significantly enhance the asset. This irreplaceable asset is in one of the best connected locations in Germany and has the potential for us to apply our proven asset management capabilities in the dynamic and thriving Frankfurt office market. ”

Matthias Cordier, Head of Investment Germany, Madison, added: "This is a significant transaction for Madison as it has allowed us to acquire partial ownership of a property in an irreplaceable prime location in one of our target markets. We are excited to enter into a new partnership with such a reputable firm and look forward to create further value in repositioning the property."

For further Information:

Dido Laurimore / Tom Gough

FTI Consulting

+44 (0) 20 3727 1000

Note to Editors

Peakside Capital is a specialist European Investment Manager, owned by its management. It manages real estate assets currently totalling over EUR 1 billion in gross asset value with a focus on CEE and Germany. The company has offices in Frankfurt, Munich, Zug (CH), Warsaw, Prague and Luxembourg.

Peakside Capital provides fund management and investment advisory services for managed portfolios that include its four real estate funds and a significant number of separate account investments.

The investment strategies it pursues serve the individual requirements of its investors, and range from core to opportunistic across the office, residential, hotel and retail sectors. The investment spectrum comprises investments in single assets and portfolios through to distressed debt and investments in real estate operating companies.

About Madison International Realty

Madison International Realty (www.madisonint.com) is a leading liquidity provider to real estate investors worldwide. Madison provides joint venture and preferred equity capital for real estate owners and investors seeking to create an exit strategy; or where existing sponsors seek to sell a portion of their ownership position and take on a partner. The firm provides equity for recapitalizations, partner buyouts and capital infusions; and acquires joint venture, limited partner and co-investment interests as principals. Madison invests only in secondary transactions and focuses solely on existing properties and portfolios in the U.S., U.K., and Western Europe. Madison has offices in New York, London and Frankfurt, Germany, where the firm operates under the name of Madison Real Estate Beteiligungsgesellschaft mbH.

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