22. August 2011
Peakside Capital secures sale of prime mixed-use Kurfürstendamm asset in Berlin
Peakside Capital (“Peakside” / the “Company”), a specialist European real estate private equity firm, announces that, on behalf of Peakside Real Estate Fund I (“PREF I” or the “Fund”), it has successfully concluded the sale of a prime mixed use asset in Berlin to a private investor for in excess of €12 million. With a price 15% above the property’s latest valuation, the transaction reflects a net initial yield below 5%.
Located on Kurfürstendamm, in one of Berlin’s prime retail and office areas, the asset comprises over 4,000 sqm of retail, office and residential space. The sale of the asset follows an extensive asset management plan undertaken by the Company, which included securing a number of new tenants and resulted in the full letting of the building.
Stefan Aumann, Partner of Peakside Capital and head of asset management, commented:
“This transaction follows the completion of our bespoke asset management programme for this asset, which has included the implementation of a number of value enhancement initiatives, including the restructuring of existing leases on attractive terms and the letting of vacant space. We have turned an opportunistic acquisition into a core asset, delivering a substantial price increase compared to the 2008 acquisition price.
“The current focus by investors in the German market on narrowly defined core product, creates an outstanding market opportunity for us to exit stabilised assets at or above target prices. The sale will enable us to re-investing the proceeds in more attractively priced product both within Germany and elsewhere Europe.”
The disposal was made on behalf of PREF I, a pan-European opportunistic fund with a total of €261 million of capital commitments, and follows its recent purchase of an office redevelopment in Hammersmith, London. The Fund’s strategy is to acquire assets where it can deliver active asset management programmes to rectify flaws in fundamentally institutional quality assets, as evidenced by this disposal.
For further information, please contact:
Stephanie Highett / Olivia Goodall / Laurence Jones, Financial Dynamics
Tel: +44 (0)20 7831 3113
Notes to editors:
Peakside Capital (Peakside) is a specialist European real estate private equity firm. Peakside 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. Owned by its employees, as of year end 2010 Peakside managed 34 investments across 7 different European countries, totalling approximately €2 billion in gross asset value.
Peakside provides fund management and investment advisory services for managed portfolios which include its two 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;
- 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, Luxembourg and the Cayman Islands, Peakside currently has 21 employees. Peakside’s team has worked successfully together for a number of years, investing across a range of transactions, from direct single assets to private equity investments in operating companies. The firm’s management has a strong track record of delivering outstanding results across the sector.