Tristan Capital Partners, the London-based pan-European private equity real estate firm, will make five investments in Germany for more than €450 million.
Tristan’s opportunity fund, European Property Investors Special Opportunities (EPISO) 3, which hit its €950 million hard-cap back in January last year, will have €327 million of its capital put to work in Germany. The acquisitions include one of the largest retail properties in central Munich, a portfolio of mixed-use properties located mainly in Berlin and Frankfurt and a logistics park in Bielefeld, North Rhine-Westphalia.
Separately, Tristan has acquired the Neukölln Arcaden shopping centre in the Neukölln district in Berlin for €65.6 million from AXA Immosolutions, a German open-ended fund that is in liquidation. That deal, however, was completed for Curzon Capital Partners III, a core plus-style fund which it also manages. Neukölln Arcaden has 46 shop units, a nine-screen cinema, a public library, post office and parking on its upper floors with space for some 650 vehicles. PAMERA Cornerstone REA is advising on overall asset management of the center and will take a co-investment stake in the transaction.
For the core-plus vehicle, Tristan has also purchased a mixed-use building adjacent to the Karstadt department store in Munich for €62.2 million from Credit Suisse’s CS Euroreal open-ended real estate fund, which is also in liquidation. Tristan plans to convert the upper floor office space into a 175-room hotel in a joint venture with the German-based Freo Group, a private equity real estate investment manager. Freo has pre-let the planned hotel on a 25-year lease to the “25hours Hotel” operator and will continue to act as asset manager and co-investor.
“Germany’s economic resilience has been a key theme in Europe for Tristan funds as has been the focus on neighbourhood shopping centres that have a dominant position in local city catchment areas,” said Ali Otmar, managing director of investments at Tristan Capital, in a statement.
The busy start to 2015 for Tristan builds on an active 2014 when the firm made €1.1 billion of purchases. EPISO 3 accounted for more than four-fifths of last year’s acquisitions.
Chief executive of Tristan, Ric Lewis, said that he doesn’t anticipate Tristan to slow down either, adding that the European Property Investors Special Opportunities 3 fund will soon be fully invested and a successor fund is expected to launch later this quarter.