News

13. November 2018

press

Peakside and Madison sell Frankfurt Airport Center

The joint venture between the New York based investment company Madison International Realty (“Madison”) and the investment manager Peakside Capital AG (“Peakside”) has exchanged contracts for the sale of the shares in the office property Frankfurt Airport Center (“FAC”)

The shares are bought by a joint venture between Godewind Immobilien AG and ERWE Immobilien AG for approximately €168 million. The transaction which is structured as a share sale is expected to close by the end of this year.

The office property comprises a total rental space of around 48,000 sqm and 182 parking spaces and has a strong line up of tenants including Lufthansa, Fraport, Airport Club as well as several airlines and service providers. The asset is directly linked to terminal 1 of Frankfurt airport and located next to the ICE train station.

Peakside, which is responsible for the acquisition and the asset management, invested on behalf of the Peakside Real-Estate-Fund II (PREF II), while Madison made its investment through International Real Estate Liquidity Fund VI (MIRELF VI).

Along with the acquisition of the building from a UBS fund in September 2017 an extension of the fixed term of the leasehold with the airport operator Fraport AG for a further 30 years until 2090 was achieved. In addition, since acquisition new lease contracts for more than 10,000 sqm of office space have been concluded with new or existing tenants. As a result, the rental income for the building increased around 20% from around €8 million to around €10 million per year, while occupancy increased from 60% to 82%. Furthermore, the average lease term (WALT) has augmented to 6 years. An extensive planning and refurbishment program was launched providing redesigned new concepts for the public and rental spaces.

Boris Schran, managing partner of Peakside, commented: „Together with our local partners, my team could successfully finalize the asset management tasks shortly after the transfer of the property. This once more demonstrates the strengths in acquisition and implementation of Peakside. The asset now presents a long-term investment basis for the future owners.”

Matthias Cordier, Head of Investment Germany, Madison, added: „With our international team and our partner Peakside we could achieve the aims of our common business plan at an early stage. The positive course of this investment again underlines Madison’s strong track record in Germany.”

Company portraits

Peakside Capital (http://www.peakside.com) 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.

Madison International Realty (www.madisonint.com) is a leading liquidity provider to real estate investors worldwide. With approximately $3.8 billion AUM, Madison provides joint venture and preferred equity capital for real estate owners and investors that are looking to de-lever their properties; seek an exit strategy; or where existing sponsors seek to sell a portion of their ownership position. 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 International Realty GmbH.

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29. Oktober 2018

press

PEAKSIDE COMPLETES FRANKFURT OFFICE PORTFOLIO ACQUISITION FOR PREF III

Press Release October 2018

PEAKSIDE COMPLETES FRANKFURT OFFICE PORTFOLIO ACQUISITION FOR PREF III

Peakside Capital, the independent, owner-operated real estate investment manager with offices in Frankfurt, Munich, Warsaw, Prague, Zug (CH) and Luxembourg, announces the acquisition of an office portfolio for its recently closed Peakside Real Estate Fund III (‘PREF III’) in collaboration with real estate funds managed/advised by LGT Capital Partners companies. The portfolio was acquired from a fund managed by HVB Immobilien AG with Berlin Hyp acting as finance partner. It consists of two office buildings in Frankfurt with c. 27,000 sqm of net lettable area across the assets.

The buildings have different investment profiles and will draw on the breadth and depth of Peakside’s asset management skills. The first property is Lyoner Strasse 20 in Frankfurt Niederrad which was built in 2003 and offers modern and flexible office accommodation with c. 14,000 sqm of net lettable space and an occupancy of c. 70%. Peakside plans to implement a focused leasing and asset management strategy to stabilise the asset in the increasingly dynamic Niederrad submarket.

The second property is located at Baseler Strasse 46-48/Gutleutstrasse 80-82 in the centre of Frankfurt, close to the main train station. The asset currently offers c. 13,000 sqm of net lettable space and is need of a substantial refurbishment. Multiple asset management strategies are being considered, including a partial hotel conversion, as well as refurbishing the remaining part of the building into a modern office building. Peakside is also reviewing the possibility of a new ground-up development.

These investments for PREF III follow the Fund’s recently announced closing, having reached the hard cap of €200m and providing a total investment capacity of around €650m. PREF III is Peakside’s latest German focussed fund, targeting value-add investments in strong locations across the country’s top seven cities and regional hubs.

Boris Schran, founding partner of Peakside Capital, said:

”This acquisition is right in our investment sweet spot as we are able to apply local knowledge together with our deep-rooted asset management skills. It follows on the heels of our successful final close of PREF III and shows to everyone that we continue to be able to source deals with an acute focus on delivering value to our clients.”

Note to Editors

Peakside Capital

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.

LGT Capital Partners

LGT Capital Partners is a leading alternative investment specialist with over USD 60 billion in assets under management and more than 500 institutional clients in 37 countries. An international team of over 450 professionals is responsible for managing a wide range of investment programs focusing on private markets, liquid alternatives and multi-asset class solutions. Headquartered in Pfaeffikon (SZ), Switzerland, the firm has offices in New York, Dublin, London, Paris, Vaduz, Dubai, Beijing, Hong Kong, Tokyo and

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25. September 2018

press

PEAKSIDE REACHES €200M HARD CAP WITH PREF III TO CAPTURE GERMAN VALUE-ADD OPPORTUNITIES

• €650m investment firepower for new Peakside Value Add Fund - PREF III

• Domestic and European investors attracted to German focus

Peakside Capital, the independent, owner-operated real estate private equity manager with offices in Frankfurt, Munich, Warsaw, Prague, Zug (CH) and Luxembourg, has successfully closed Peakside Real Estate Fund III (‘PREF III’ or the ‘Fund’), reaching the hard cap of €200m, and providing PREF III with a total investment capacity of around €650m. In addition, Peakside has secured co-investment commitments which will provide additional firepower for the Fund.

PREF III is Peakside’s latest German focussed fund targeting value-add investments in strong locations across the country’s top seven cities and regional hubs. As with its predecessor funds, it will acquire assets in good or developing micro locations at an attractive entry price.

The successful fund-raise of PREF III was supported by a number of European institutions, the majority of which have supported Peakside’s previous funds, as well as new institutional investors from Europe, including domestic German pension schemes and a large savings bank.

During the fund-raise period, Peakside deployed around a quarter of its initial capital commitments and has acquired 17 assets since Q2 2017. The investments total more than €150m and include office buildings in major German cities such as Berlin, Frankfurt, Stuttgart, Düsseldorf, as the well as the regional hubs of Hannover, Munster and Erlangen. Following the swift delivery of letting and asset management activities, a number of assets have already been sold at prices significantly exceeding underwriting expectations, with some individual IRRs in excess of 50%.

The initial investments demonstrate the ongoing strength of Peakside Capital’s team on the ground and its ability to source attractive investments in a very competitive environment. Peakside has acquired and managed over €3 billion of gross assets since the company’s formation in 2010 with a transaction volume of more than €590 Million on average per year during the last three years. As with previous funds, PREF III will transform properties that no longer meet current market demand or require substantial asset management and leasing activities to revitalise and reposition them to core assets. Value creation mainly stems from this hands-on asset management approach and the fact that Peakside has let more than 90,000m² on average per annum over the last few years. The Peakside team comprises 35 highly qualified and experienced professionals embedded in target markets in Germany and Central Eastern Europe (CEE) with complementary skill-sets, local market knowledge and many years of experience.

Boris Schran, founding partner of Peakside Capital, comments on the success:

”Peakside’s deep market knowledge continues to deliver good value-add opportunities and is a clear competitive advantage for us and our investors. We have a strong ongoing pipeline of investment opportunities and are looking forward to dialling up our activity as we deploy the proceeds from this successful raise.”

Stefan Aumann, founding partner of Peakside Capital, added:

“This most recent fundraising with support from both existing and new investors is a clear endorsement of our track record and the success of our German focussed strategy.”

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. 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.

Press release as PDF

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