Scheme or dream? It might already be too late to get interested in the value-add story
In the fourth quarter of 2013, Peakside Capital, a specialist real estate private equity firm, acquired a 75 percent majority stake in a Frankfurt office building. It was the first investment for the company’s new opportunistic fund, Peakside Real Estate Fund II. Although located in Frankfurt’s financial district, the building was less than 60 percent occupied, a perfect situation for a value-add buyer: good location, good building and, with new investment and better management, good upside.
Last year was a breakthrough year for value-add real estate investing in Europe. “If you asked me two years ago, I would say the market was closed for noncore capital markets within established markets. Now it is wide open,” avers Paul Boursican, head of capital markets EMEA for DTZ. “Back then, when you put a building w