ASG fund hits the high street in Halle, the up-and-coming German city, as it heads towards full investment by 2nd half of 2019
Jersey (UK), July 2nd, 2018 – A fund run by ActivumSG Capital Management Ltd. (ASG), the turnaround specialist in European real estate, has hit the high street in Germany with the acquisition of a 22,000 square meter mixed-use building in one of the best retail locations of Halle, the up-and-coming university city.
ActivumSG Fund V has acquired the Ritterhaus building on Halle’s pedestrianized Leipziger Strasse, from an international real estate investment management company. The purchase price is not being disclosed. The property’s lower, ground and first floors form a shopping arcade, while the upper five levels are in office use or rental apartments. About 10% of the building’s commercial space is vacant.
The acquisition is the 11th investment in Germany and Spain by Fund V, which has committed around two-thirds of the €489 million amassed by December’s final close of capital-raising.
Saul Goldstein, ASG Founder and Managing Partner, said: “Our pipeline of investments and the pace of our capital deployment mean the fund is on course to be fully invested by the second half of 2019.”
Constructed in 1996-1997, Ritterhaus is one of the few newer buildings in this central location of Halle, while its underground garage is the area’s only parking amenity for occupiers, shoppers and visitors.
The city is the second-largest in the state of Saxony-Anhalt in Eastern Germany and part of the Halle-Leipzig metropolitan area, with a catchment of more than 1 million inhabitants. It is a major terminus for Germany’s high-speed passenger rail service, benefiting from reduced journey times to Berlin, Munich and Frankfurt as a result of substantial investment in new or upgraded track.
Richard Wartenberg, Head of Real Estate at ActivumSG Advisory GmbH, said: “Halle offers good fundamentals with its historic university and young population, vibrant business sector and improving high-speed rail connections. We will draw on our retail experience to reposition Ritterhaus for institutional owners, who we expect to look increasingly outside Germany’s Big Six markets for prime, income-producing properties which offer a better value.”
Advising the fund on the purchase were Greenberg Traurig LLP, acht+ Baumanagement + Immobilienberatung GmbH, while JLL and Hogan Lovells International LLP advised the vendor.
ASG is a Jersey-based real estate investment manager focused on Germany and Spain. The group was founded in 2007 by Saul Goldstein after he left Cerberus, where he held a variety of senior roles. ASG currently has five discretionary closed-end real estate funds under management with a combined initial equity commitment of €1.5 billion. ASG funds invest in high quality properties and real estate-backed businesses with significant unrealized potential. Through handson asset management by its local teams, ASG repositions properties so that they generate the stable cash flows that appeal to prospective institutional buyers. ASG is regulated by the Jersey Financial Services Commission. For more information, visit the website at www.activumsg.com
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