28. Oktober 2013

press

Peakside Capital completes first investment for new opportunistic fund

Peakside Capital (“Peakside” / the “Company”), a specialist European real estate private equity firm, today announces the acquisition of a 75% majority stake in a 7,200 sqm office building – SQUARE 41 - in Frankfurt. The acquisition is the first investment by the Company’s new opportunistic fund, Peakside Real Estate Fund II (“PREF II”).

Prior to the transaction, the asset was jointly owned by Red Square and an American financial investor, who is exiting the market. The asset is ideally located in the heart of Frankfurt’s financial district and is extremely close to Frankfurt’s Old Opera and the renowned shopping high street of Goethestrasse.

The asset benefits from a strong base of long term tenants providing a stable income stream. Current tenants include institutions and corporates with a background in the financial industry, such as the European clearing house for SEPA and other banking transactions. Peakside and Red Square are currently planning to commence a number of asset management initiatives to fully lease up the building, including the development of a new underground car park and final fit-out of the vacant units. Since the start of the acquisition process, the partners have already been able to achieve a refinancing, which will extend until 2016, and lease up c. 10% of the vacant space, bringing the current occupancy to almost 70%.

Peakside and Red Square GmbH were advised on this transaction by Olswang, Valteq, HauckSchuchardt and Stibbe Luxembourg.

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

"We are very pleased to be able to announce the first investment by PREF II, our new pan-European opportunistic fund which, in line with PREF I, will be focused on sourcing distressed and special situations with active asset management opportunities in Germany, Poland and the Czech Republic. Peakside is now actively looking to source similar investments for PREF II, where we can use our proven asset management skills to create value from underperforming assets, stabilize them, and then make an attractive return for our investors on their disposal.”

Gerald Tschörner, Managing Director of Red Square, said:

“The partnership with Peakside introduces us to additional opportunities in the market and further expansion of our activities, especially in the downtown area. Our positive expectations were met by the improved development of the micro location.”

For further information, please contact:

Stephanie Highett/Nina Legge, 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 2013, Peakside managed investments across eight different European countries, totalling over €1.8 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;
  • Peakside Real Estate Fund II (PREF II), a pan-European opportunistic fund which is focused on active asset management opportunities across Europe with particular regional focus on Germany and Poland;
  • 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; and
  • A portfolio of European real estate investments held directly or indirectly by clients.

With offices in Germany, Switzerland, the UK, Poland, Luxembourg, and the Cayman Islands, Peakside currently has 35 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.

Red Square

Red Square, founded 13 years ago, is specialized in the development of high quality office properties in Frankfurt and the Rhine-Main. Further, Red Square develops industrial real estate jointly with partners in Vienna, Hamburg and Berlin.

Red Square plans and develops bespoke for tenants as well as investor requirements. The projects are developed in close relationship with financial partners.

The high quality result of developing individual properties or locations is ensured by a cautious planning process with creative and flexible concepts. Realization expertise and detailed market knowledge including its future development form the result of long experience in business.

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