13. November 2012

press

Peakside Capital and Gross & Partner acquire Frankfurt offices for redevelopment

Peakside Capital (“Peakside” / the “Company”), a specialist European real estate private equity firm, and Gross & Partner, one of the leading German development companies, announce the acquisition, in a 50/50 joint venture, of two vacant offices for redevelopment in Frankfurt’s central business district. The buildings were acquired from BHF Bank, the former owner occupier and a subsidiary of Deutsche Bank. The terms of the transaction are confidential.

Peakside, alongside Gross & Partner, will fully redevelop the two sites, with a land plot totalling 2,581 sqm, located at 74 and 80 Neue Mainzer Strasse into approximately 12,000 sqm GLA of prime office and retail space. The completed development will add much needed retail space of c.2,900 sqm GLA into the premium retail area surrounding Goethestrasse as well as a further c. 9,100 sqm GLA of prime office space in the heart of Frankfurt’s business district.

Peakside and Gross & Partner were advised in this transaction by Olswang and Steinhaus-Prof. Dr. Griesar.

Boris Schran, founding partner and Head of Origination and Acquisition of Peakside Capital, said:

“The acquired assets have unique potential and this transaction has given us the rare chance to secure one of the last prime development sites in Frankfurt, one of the strongest markets in Germany. The sites have been acquired from BHF Bank which has recently vacated the properties in a move to wind down its real estate portfolio. The sites offer a number of options for potential uses and configurations and our current redevelopment plans for these assets seek to deliver high-class, prime office space and much in demand retail venues into the supply-constrained market of Frankfurt’s business district. Alongside our joint venture partner, we will provide the capital and expertise required to transform these assets into first class space which will be attractive to premium office and retail tenants.”

Jürgen Gross and Nikolas Bieber, Managing Partners at Gross & Partner, said:

“The building’s unrivalled location enables us to develop an unique asset for even the most demanding of occupiers. The combination of high class retail space, which is in scarce supply in this area, with quality office space is unbeatable and the redevelopment will improve both the current office and retail offer in the city of Frankfurt. We are looking forward to working together with Peakside Capital on this exciting project.”

For further information, please contact:

Stephanie Highett /Daniel O’Donnell /Faye Walters, FTI Consulting

Tel: +44 (0)20 7831 3113

Notes to editors:

Peakside Capital (Peakside) is a specialist European real estate private equity firm. Peakside is owned by its employees and was established following a spin out of the European Real Estate Principal Investments (EMEA REPI) division of Bank of America Merrill Lynch (BofAML) in September 2010. As of Q3 2012, Peakside managed 43 investments across 9 different European countries, totalling over €2.0 billion in gross asset value.

Peakside provides fund management and investment advisory services for managed portfolios which include its four real estate funds and a significant number of separate investments:

  • Peakside Real Estate Fund I (PREF I), a pan-European opportunistic fund with EUR 261 million of capital commitments, is focused on active asset management opportunities across Europe;
  • Polonia Property Fund I and Polonia Property Fund II, core funds with c. EUR 160 million of capital commitments, managed by Peakside Polonia Management (PPM), Peakside’s recently acquired Polish subsidiary, which are focused on core and core plus opportunities across Central and Eastern Europe;
  • Bosphorus Real Estate Fund I (BREF I), an opportunistic fund with EUR 204 million of capital commitments, which is focused on Turkey; and
  • A portfolio of European real estate investments held directly or indirectly by clients.

With offices in Switzerland, the UK, Poland, Luxembourg and the Cayman Islands, Peakside currently has 28 professionals. Peakside’s team has worked successfully together for a number of years, investing across a range of transactions, investing across asset classes ranging from direct single assets and portfolios to distressed debt and private equity investments in real estate operating companies. The firm’s management has a strong track record of delivering outstanding results across the sector.

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