Peakside Capital has completed the disposal of the last properties from the portfolio of 72 small retail assets, located across the entire Czech Republic. The subject portfolio, comprising 177,000 m² of GLA, was acquired by Peakside back in January 2015. It consisted mainly of convenience retail assets, leased to tenants such as Albert, Penny Market, TETA Drogerie or Lidl.
Over the last six years, the properties were managed by the local Czech AM team, supported by the investment management specialists based in Peakside Warsaw office. Peakside implemented a number of value-add initiatives, including lease-up, refurbishments, redevelopments and acquisition of additional land plots allowing to secure freehold land ownership.
The properties were sold between 2015-2021 via 38 independent transactions concluded with 35 buyers, including both institutional real estate players as well as private individual investors. The total disposal proceeds from the transactions exceeded €90 million. Peakside can not reveal the exact returns generated on this investment, but it’s understood to be above 25% IRR.
“Our strategy for this portfolio was based on a “wholesale to retail” approach - we prepared a detailed business plan for each single asset, allowing to maximize its value and achieve our strategic goals. Execution of this deal clearly confirms a strong management and transaction capabilities of Peakside team. Czech Republic in our view is still very attractive market for new investments, similarly to Poland, where we currently focus on the industrial & logistics sector,” commented Michał Nawrot, Principal at Peakside Capital Advisors, responsible for management of this investment on behalf of Peakside.