Tristan fund reveals hat trick of German buys worth €250m

Tristan Capital Partners’ latest opportunity fund Episo 5 revealed three German commercial property acquisitions, totalling just over €250 mln, at the Expo Real real estate trade fair in Munich on Tuesday.

The most recent deals take the combined value of the pan-European real estate investment manager’s 11 acquisitions and sales in Germany to date in 2019 to around €900 mln and with a further €200 mln of transactions in the pipeline, Tristan is set to exceed the €1 bn milestone by year-end.

The three new deals that the Tristan-managed Episo 5 opportunistic / value-added fund has recently closed on include a €63 mln portfolio of five good quality office buildings located in established office sub-markets of prime German cities, including two in Munich, and one each in Frankfurt, Dusseldorf and Hildesheim; a €91 mln under-rented and well-located office building and land plot with an expected 10,880 m2 buildable area in the North Munich microlocation of Milbertshofen and a development site with the potential for 30,000 m2 of office and commercial space in Berlin’s up-and-coming Neukölln district, including two office towers and a flexible light production space, for a total investment of €99 mln, including €15 mln for the land plot.

Ali Otmar, senior partner and deputy head of Investments at Tristan, said: 'Tristan has been investing in Germany since 2002 and over the past couple of years it’s become even more of a strategic priority for us. Over the past year, we have been focussing on well-located assets in the more supply-constrained sub or secondary markets around Munich, Frankfurt and Dusseldorf, completing around €900 mln of acquisitions so far in 2019. Including the most recent deals completed for Episo 5 and those in the pipeline, our total AUM in Germany across all funds now stands at around €2 bn.'

Commenting from Expo on the outlook for German real estate, Ali Otmar added: 'There’s a lot of noise this year around the outlook for the German economy. While we may well be witnessing a mid-cycle economic slowdown, growth is only one side of the equation in real estate markets. The office market in Germany continues to be chronically undersupplied, putting limited downward pressure on rents and creating a great opportunity for us to ‘manufacture’ core assets.'

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