EXPO 2013: Peakside Capital, the specialist European real estate private equity firm, has sold Diamond Business Park in Lodz on behalf of its Polonia Property Fund.
The modern 60,800 m2 warehouse, in Poland’s third-largest city, is close to several major transport links.
The disposal is in line with Polonia I’s investment strategy to dispose of stabilised assets and follows the completion of the fund’s asset management programme including leasing-up and refinancing of the asset.
Following a week in which the company appointed Otis Spencer as the new president of Peakside Polonia Management in Poland, Peakside has strengthened the management team by appointing Boris Olujic, a principal at the company, to the board of PPM, joining Stefan Aumann, a founding partner of Peakside Capital.
Olujic, who led the acquisition of PPM from Allied Irish Bank in August 2012, will continue to be responsible for sourcing Peakside’s investments in central and eastern Europe.
In addition, following consultation with investors, the company has secured the extension of the term of Polonia I to ensure an orderly disposal process of the vehicle’s assets with the aim of maximising investor returns, a process that is expected to complete by July 2016.
The extension received strong support from investors, with over 85% of the investors voting in favour of Peakside’s proposals.
Aumann said: “The high level of support we have received from Polonia I investors to lengthen the fund’s life highlights their confidence in our team’s ability to secure optimal value for the assets going forward and thereby protect and enhance the value of their investments.
“As such, we will continue to manage, lease and refinance assets in order to maximise value, but, as demonstrated by the successful disposal of the Diamond Business Park, will simultaneously look to make well-priced realisations according to the agreed plan we have in place to end the life of the fund in three years’ time.”
