24 June 2024
Frankfurt, 5 December 2022 – Peakside Capital Advisors AG („Peakside“) has bought Hessischer Hof, a luxury hotel with an adjacent office building, in Frankfurt from Hessische Hausstiftung, a foundation of the House of Hesse. The property will become part of the Peakside Real Estate Fund IV.
The luxury hotel at Friedrich-Ebert-Anlage 40 was built in 1952, replacing the former city palace of Prince Wolfgang of Hesse-Kassel. The property with 12.330 sq.m. of GLA has been comprehensively refurbished by the seller over the past ten years. Previously operated as a 5-star hotel, the building includes 121 rooms and suites, a 180 sq.m. presidential suite, eleven event and meeting rooms, a restaurant, a bar, four terraces, a winter garden, a spa and fitness area with a view over Frankfurt’s rooftops and 80 parking spaces.
The adjacent office building in Beethoven Strasse 5 encompasses 560 sq.m. leased to two tenants. It will be fully refurbished and re-let after their contracts expire.
Boris Schran, Managing Partner at Peakside, says: “Hotel Hessischer Hof iconic in Frankfurt’s luxury hospitality market – and it will be reinstated as such. We are convinced that the established hotel location close to the Trade Fair and Festhalle, a multi-purpose arena, makes the property an exceptional investment for our PREF IV fund. We are planning to refurbish the asset and reposition it with a new operator.”
Simon Lutz, Partner at Peakside, adds: “We have been talking to several potential operators and received very positive feedback on our plans for Hessischer Hof. Additionally, we are planning a timely revival of a Frankfurt night life icon, Jimmy‘s Bar.”
Peakside had secured the first investment for PREF IV in February with the acquisition of a 5,400 sq.m. office building in Frankfurt’s Westend-Nord district. The company targets a full investment volume of €1.2bn for the fund. The focus lies on German properties with value-add potential across all asset classes. Ticket sizes range from €30m to €200m.
The current transaction was brokered by Colliers International. The seller was advised by HauckSchuchardt (legal & tax); the buyer by Baker McKenzie (legal & tax), FPS (public law), KVL (technical due diligence) and Treugast (commercial).
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About Peakside
Peakside Capital Advisors AG is a European investment manager. The private-equity company manages assets worth over EUR 1.4 billion on behalf of institutional investors. Peakside implements differentiated investment strategies tailored to specific investor needs, ranging from core to value-add and opportunistic investments in commercial and residential assets and has in total acquired assets worth EUR 4.1 billion. Peakside’s investment spectrum includes single properties, developments as well as portfolios, distressed debt and real estate operating companies. The firm employs a team of more than 30 professionals in its offices in Frankfurt, Zug, Warsaw, Prague and Luxembourg.
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Media contact
Marie-Noëlle Sbresny
Feldhoff & Cie. GmbH
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