13. November 2018
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.”
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.