Baar-Zug, 8 July 2010
Partners Group, the global private markets investment manager, continues to identify a significant number of attractive private real estate investment opportunities. On behalf of its clients, Partners Group - with its investment partner Corestate - recently made two preferred equity investments in portfolios of German residential assets with a combined value of EUR 230 million.
Both underlying property portfolios enjoy downside protection from stable rental income and offer potential to reduce vacancy rates. Partners Group added further downside protection by investing through preferred equity, which at the same time provides upside potential through profit participation.
The two portfolios became available to Partners Group and Corestate as a consequence of the global financial crisis. The acquisitions were privately negotiated with the sellers, and in both cases, long-term senior financing was secured on attractive terms. The entry value of the portfolios reflect the broader market's recent valuation falls.