Activum SG, the Jersey-based opportunity fund founded and run by former Cerberus Europe MD Saul Goldstein, has acquired its second property in Germany, an 8,800 sq.m. office building in Frankfurt, from WestFonds, a wholly owned subsidiary of restructuring landesbank WestLB. The two sides agreed not to release price details. The building known as Michelangelo is located in Frankfurt-Sachsenhausen and was completed in 2003. “This is a well-located, modern office building. It requires an active owner and aggressive marketing plan,” Goldstein said. “We can attract tenants because we will offer excellent space for a rent less than half of that for comparable space in the banking district. In today’s economic climate tenants want high quality space and flexibility, yet cannot afford to pay premium rents.”
Commenting on the German real estate market, Goldstein added: “Our focus is to acquire buildings requiring active asset management. Germany is one of the few real estate investment markets offering solid risk-adjusted returns for value-added investments. As a cash buyer in this environment our strategy requires patience and perseverance.”
Activum SG Capital Management focuses on turnaround situations in commercial real estate, and expects to invest some €500m during the next three years. Founded in 2007, it capitalises on opportunities to reposition ‘stressed’ and distressed real estate in Europe.
The group says its team’s experience in development, leasing, financing and running large companies enables them to find solutions for real estate companies and funds in Europe.