26. September 2012

press

Peakside sells Opernpassagen commercial building in Cologne

Peakside Capital (“Peakside” / the “Company”), a specialist European real estate private equity firm, announces that it has successfully completed the disposal of the Opernpassagen building, a 21,000 sqm retail, office and storage facility in Cologne, on behalf of its client, the Gustav Group, to a private investor who will hold the asset long term.

Located in the city centre of Cologne, between the pedestrianised Breite Strasse and the Cologne Opera House, the property was originally acquired in 2007. Since then, the asset has been redeveloped into a commercial building, comprising a mixture of retail, office and storage space, as well as more than 550 parking spaces. Peakside advised Gustav on strategy for the building and subsequently implemented, alongside the centre manager, ECE, a number of active asset management initiatives to reposition the property and dramatically improve its performance. As a result, revenues have increased by 16% from acquisition until August 2012.

The decision to partly close the shopping arcade and restructure its retail units led to the major achievement of adding ProMarkt’s approx. 3,500 sqm flagship store to the property. Prior to the disposal, a number of new high quality tenants were signed to further improve the asset’s tenant mix, in addition to the renewal of important leases with existing tenants, further increasing the attractiveness of the asset.

Peakside was advised by Olswang on this transaction with BNP & CBRE acting as brokers.

Boris Schran, founding partner of Peakside, commented: “This transaction in many ways typifies the Peakside approach, through an active asset management strategy we successfully repositioned a challenged asset and transformed it into a thriving part of the Cologne City centre.

“We have consistently improved the asset since 2006, securing premium tenants and enhancing the tenant mix. In addition, Peakside has managed to grow rental income on the property by 16% and achieved an attractive exit price for the benefit of our client.”

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 30 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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