Peakside Capital, a specialist European real estate private equity firm, has sold the Diamond Business Park on behalf of Polonia Property Fund.
The 60,800 sq m, modern warehouse is situated in Lodz, Poland’s third largest city, and benefits from its central location and proximity 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 strategic asset management programme including a successful leasing-up and project refinancing of the asset.
Following a week in which the company appointed Otis Spencer as the new president of Peakside Polonia Management (PPM) 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 successful acquisition of PPM from Allied Irish Bank in August 2012, will continue to be responsible for sourcing Peakside’s investments in the CEE region.
In addition, following an extensive consultation period with investors, the company has successfully secured the extension of the term of Polonia I to ensure an orderly disposal process of the fund’s assets with the aim of maximising investor returns, a process that is anticipated to be completed by July 2016. The extension received strong support from investors, with over 85 per cent of the investors voting in favour of Peakside’s proposals.
Stefan Aumann, founding partner of Peakside Capital, says: "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.
“We are delighted to welcome Boris to the board of PPM. His extensive track record and experience in the CEE region will be invaluable as we look to grow the business into one of the pre-eminent fund and asset management platforms in Poland and other selected CEE markets.”