Peakside closes value-add CEE venture

Peakside Capital Advisors has completed the disposal of the 240,000 sqm portfolio of a CEE value-add real estate investment venture. Sales proceeds totalled over €160 million, generating an IRR of 20 percent and an equity multiple of over 1.7x for Peakside investors.

At the beginning of 2022, Peakside completed the last sale, the Kraków Plaza project, from its CEE investment vehicle, established by Peakside for a separate account client.

Composed of several retail and two office properties located in the Czech Republic as well as the above-mentioned Polish retail project, the properties were actively managed by the local Polish and Czech Peakside teams, with a number of value-add initiatives boosting the assets’ values over the holding period.

The Cube office in Prague is an example of such an investment, where Peakside not only improved the building occupancy and rental income but also unlocked the development potential of the property by preparing a detailed architectural concept and obtaining initial approvals from the local authorities.

Currently, Peakside focuses on the logistics and industrial sector, actively looking for new opportunities in acquiring existing assets as well as developments. In February, Peakside entered the Polish logistics market with the acquisition of three assets: City Point Targówek, Logistics Point Raszyn and Logistics Point Piaseczno totalling ca. 147,000 sqm of GLA.

Michał Nawrot, Principal at Peakside’s Warsaw office, commented: “We are happy with the great performance of our CEE investment venture and how we matched the high expectations of the investors. Our goal is to repeat that success story as we shift the investment focus to the industrial sector, where we see a number of interesting opportunities”.