Activum completes first investment for second fund

Firm headed by ex-Cerberus executive Saul Goldstein has purchased the AOC building in Frankfurt, the first deal for its €238 million distressed property fund.

Activum SG Capital Management, the Germany-focused real estate fund management firm headed by ex-Cerberus executive Saul Goldstein, has completed the first purchase of its second distressed real estate fund.

The firm, which closed its Activum SG Fund II on €238 million last month, said today it has acquired the AOC building in Frankfurt, for an undisclosed sum from Harpen Immobilien, the Dortmund-based asset manager.

The property is located in the Ostend district near the European Central Bank. It comprises 25,307 square metres of office and retail space which was developed in 2004.

The investment is part of a strategy by Activum to invest in distressed real estate assets and ‘special situations’ across Germany. According to the firm, its strategy proved so popular with its investors that the fund was oversubscribed by two times with equity commitments from US and European investors including institutional investors, endowments, foundations, and family offices.

Goldstein said of the investment: “This investment fits our strategy of rehabilitating and revitalising notable buildings which have the potential for significant operational improvements. We anticipate growing demand for high quality space in this location, and tenants will benefit from our ability to upgrade the fabric and facilities of this building as a whole.The German market continues to provide strong macro conditions as well as numerous opportunities, as we scope further investments for our second fund.”

Activum’s first fund, which now contains nearly 1 million square feet of real estate was launched in early 2009 and closed on €56 million.