Peakside Berlin Sale of Generator & Park Plaza Berlin

Date: May 2018

Location: The Forum Landsberger Allee, Berlin, Germany

Name: The Generator Hostel and the Park Plaza hotel and…..

No. of Keys: 870 bed Generator Hostel and a 155 room Park Plaza hotel.

Generator Berlin

Park Plaza Copyright 2012 Matthew Shaw. 

Seller: Peakside Capital, who refurbished the property, increasing average lease terms to 10 years. The mixed use property provides over 35,000 sq m of space, with circa 13,900 sq m devoted to office space, 6,300 devoted to convenience retail space and 14,300 sq m devoted to the hostel and hotel space.

Originally acquired in 2015, Peakside has undertaken a successful asset management and capex programme, which has seen it substantially increase the NRI and occupancy, improve the tenant base and extend the WALT from 5.5 to circa 10 years.

Activities have involved replacing retail and hotel tenants to improve strength and quality of the income and regearing leases on the office space.

The sale has been undertaken on behalf of PREF II, which is currently in realisation phase and is expected to deliver a return exceeding underwriting with a gross IRR in excess of 25 per cent and an MoC of 1.9-2.1x.

The news follows the recent purchase by Peakside Real Estate Fund III (PREF III/ the “Fund”) of a commercial and residential building in Frankfurt’s City West. This Fund is on target to achieve EUR500-EUR600 million of total investment firepower following its recent equity raising.

Boris Schran, founding partner of Peakside Capital, says: “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.”

Buyer: Patrizia Immobilien….Daniel Dreyer, Head of Acquisitions Commercial at Patrizia, says: “We have been able to identify and acquire this core property in the growing and globally sought-after metropolis. The asset, with its diverse user mix of offices, practices, hotels, hostels and retail, is a very attractive proposition for private investors looking to invest in one of Germany’s most liquid cities.”

Price: €100m

THPT Comment: Just a property deal, I guess

First Seen: Property Funds World