Listed German property investor Patrizia Immobilien has purchased a mixed-use asset in Berlin from independent investor Peakside Capital for €100 mln.
The 35,000 m2 asset, The Forum Landsberger Allee, comprises of 13,900 m2 of offices, 6,300 m2 of convenience retail space and 14,300 m2 devoted to hostel and hotel space.
The hospitality tenants comprise the 870-bed Generator Hostel and a 155-room Park Plaza hotel.
'This is an excellent illustration of Peakside's ability to take a tricky asset with many complicated aspects and through focussed asset management activity and our market know how, transform it into a high quality core institutional assets,' said Boris Schran, founding partner of Peakside Capital.
After acquiring the asset in 2015, Peakside improved the asset's occupancy and extended the weighted average lease term from 5.5 to 10 years.
The sale has been undertaken on behalf of Peakside Real Estate Fund II (PREF II), which is currently in realisation phase and is expected to deliver a gross internal rate of return in excess of 25%.
The news follows the purchase by PREF III of a commercial and residential building in Frankfurt’s City West. According to Peakside, this third fund is on target to achieve €500-€600 mln of total investment firepower following its recent equity raising. It started investing last November.