Peakside Capital today announced that it has successfully completed the disposal of a 23,959 m² residential building in Dresden Klotzsche, Eastern Germany to the insurance company Swiss Life Deutschland for in excess of €25 million. Peakside acquired the asset in 2007, on behalf of Peakside Real Estate Fund I (“PREF I”), in an off-market deal from a distressed seller, as part of a 139,700 m² German portfolio consisting of office and residential. This transaction represents PREF I’s 64th successful disposal.
The property, located in Dresden Klotzsche in Eastern Germany, is a 285 unit apartment complex which, in line with PREF I‘s strategy of active asset management and refurbishment, has successfully achieved a low 1.8% vacancy rate and seen an increase in passing rents to 6.3€/m² since acquisition.
Boris Schran, Founding Partner and Head of Acquisitions at the firm, commented: “To have acquired the asset in an off-market transaction from a distressed seller typifies our approach and ability to source assets which offer attractive returns to our shareholders. The success of this disposal is illustrative of our local expertise and our ability to successfully execute our asset management initiatives in the German property market where we continue to see attractive investment opportunities.”
Source: FTI Consulting