Peakside Capital, a specialist European real estate private equity firm, announces that, on behalf of Peakside Real Estate Fund I, 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 m² 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 program 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 stabilized 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 programs to rectify flaws in fundamentally institutional quality assets, as evidenced by this disposal.