The European investment manager Peakside Capital Advisors AG (Peakside) has successfully completed several large-volume transactions with a total of around 850 units in recent months. Together with the Reneo Group (Reneo) as operating partner, Peakside is thus continuing its "Develop-to-Green" strategy.
The core of the strategy is to identify existing residential properties with high renovation or ESG potential and to modernise and densify them through standardised renovation packages. Comprehensive measures to reduce CO₂ emissions are planned, including the energy-efficient renewal of the building envelope, the modernisation of the building services and the integration of renewable energies. This significantly reduces the energy consumption of the properties, which leads to considerable savings for the residents as well as a sustainable increase in value. Subsidies from KfW and other institutes are also used for financing.
The acquisitions that have now been completed include the acquisition of a portfolio of ZBI in Berlin and Cologne, as well as the purchase of several MEAG properties in Hamburg. In addition, Peakside has taken over other properties in Berlin. The financing was provided by Hamburger Sparkasse and a green loan from Unicredit. On the brokerage side, Engel & Völkers and Grossmann & Berger, among others, were involved.
"These acquisitions for our PREF IV fund underline the goal of making the German residential real estate portfolio fit for the future, both ecologically and economically," says Boris Schran, Managing Partner at Peakside. "We invest in residential real estate with substantial value appreciation prospects. Our approach combines profitability with a clear focus on sustainability and neighborhood development."
Simon Lutz, Partner at Peakside, adds: "We started with the acquisition and renovation of apartment buildings because we are convinced of the need to improve the CO2 balance of the German housing stock." Through its cooperation with Reneo, Peakside relies on the implementation of structured, digitized processes. These include the evaluation, planning, management and quality assurance of the projects. "Together with Reneo, we are very well positioned to successfully implement the complex projects in the coming years," says Lutz.
"With our proprietary technology platform, we are identifying the potential of stranded assets and developing renovation and densification concepts that benefit both tenants and investors," said Lennart Börner and Alexander Graubner-Müller, founders and co-CEOs of Reneo. "Together with Peakside, we are launching a develop-to-green strategy with real added value."
With the completed acquisitions, Peakside and Reneo are continuing their joint strategy of making targeted investments in German metropolitan regions and actively developing residential real estate with ESG potential there. The transactions are part of a long-term partnership initiated by both parties as part of the Develop to Green strategy. A total of around half a billion euros in equity and debt capital is to flow into the implementation of this programme in Germany's top 7 cities.
