Tristan invests €1bn in Summit mixed commercial portfolio

London-based pan-European investor Tristan Capital Partners’ Episo 5 opportunistic fund is buying a 69-property strong commercial property portfolio in Germany from Israeili group Summit Real Estate Holdings, along with a 77% interest in the listed GxP German Properties platform, in a huge deal valued at €1bn.

The large, diversified portfolio is comprised of a total of 630,812 sqm, around 60% of which is office space, 30% is warehouse/industrial space and the remainder is made up of food-anchored retail parks and mixed-use assets. The assets are strategically located in and around Germany’s ‘Top 7’ cities and strong B-locations.

The assets have a diversified occupational profile, with over 300 tenants, many within knowledge industries and resilient sectors. Tristan said the portfolio offers significant value creation opportunities, including the potential for development across residential, office and industrial sectors, in markets where Tristan has a strong track record, including Berlin, Heidelberg and Cologne. The portfolio will be co-managed by local operating partners, including DWRE, Rockspire and Sonar.

Following the acquisition of the Summit assets, Episo 5 is considering making a voluntary public offer to acquire all the remaining shares outstanding in Summit-controlled GxP German Properties for €5 cash per share to provide the existing shareholders with liquidity before a potential de-listing. The Berlin-based GxP owns twelve office buildings with a lettable area of 106,000 sqm. A final decision on whether to launch a voluntary public offer, the offer price and the potential de-listing has not yet been made.

Dr. Constantin Plenge, managing director at Tristan Capital Partners, said: ‘This was a rare opportunity to acquire a diverse mix of attractive assets across strategic locations in Germany. Robust economic performance throughout the crisis continues to underpin resilient occupational markets in Germany, making it a frontrunner in the European economic recovery story. This portfolio offers a breadth of value creation opportunities, which we can work with our partners to advance into a strengthening market.’

Episo 5 was advised by Clifford Chance, Colliers, BNP, PwC, Rothschild & Co, CBRE Valteq and Eastdil Secured.