(Ljubljana, 31 January 2019) KD Adriatic Value Fund, Special Investment Fund, the first regulated real estate alternative investment fund (AIF) in Slovenia, managed by KD Funds in partnership with Peakside Capital, an international real estate consultancy company, has finalised the acquisition of the Austria Trend Hotel. This transaction represents the fourth commercial real estate acquisition in Slovenia by the KD Adriatic Value Fund, with the first acquisition completing in April 2018.
Located in the Slovenian capital of Ljubljana, Austria Trend Hotel offers 214 rooms and its amenities include a restaurant, spa and wellness centre, with sauna and gym, as well as 11 conference rooms. The hotel is conveniently positioned in the immediate vicinity of the Ljubljana ring road, with motorway access and excellent transport connectivity.
The investment objective of KD Adriatic Value Fund is to generate returns for investors from rental income and capital growth through investments in real estate in Slovenia, Croatia and Serbia, with a special focus on office and retail properties. The three target countries offer a relatively undeveloped real estate sector and attractive returns, whilst the long-term success of the fund is further supported by strong economic growth in the region.
Luka Podlogar of KD Funds said: “With the acquisition of the Austria Trend Hotel, KD Adriatic Value Fund is strengthening its core business and expanding its real estate investment portfolio to include the hospitality sector. This is in line with our strategy of offering SEE real estate as an attractive asset for institutional investors.”
Tomasz Niezgodzki, Peakside Capital, said: “The hotel is well recognised by tourists and business guests in Ljubljana. With its excellent location, visibility and building structure it has a great potential for further growth together with the whole Slovenian hospitality sector.”
“We are pleased with the four initial investments we have secured on behalf of the Fund, and the speed at which we have managed to deploy capital.”
Notes to editors:
KD Adriatic Value Fund is a special investment fund established by KD Funds, one of the largest and oldest asset managers in South-East Europe (SEE), in partnership with Peakside Capital, an independent real estate investment manager firm. This is the first regulated real estate alternative investment fund in Slovenia. To date, it has raised commitments from regional institutional investors, giving it a buying power of over EUR 50 million.
Founded in 1994, KD Funds is one of the largest and oldest asset managers in SEE. Together with its subsidiaries, it manages around EUR 700 million in 34 funds and 13 investment mandates across the SEE region, including the oldest mutual funds in Slovenia and Croatia.
Peakside Capital is a specialist European Investment Manager, owned by its management. It manages real estate assets currently totalling over EUR 1 billion in gross asset value with a focus on CEE and Germany. The company has offices in Frankfurt, Munich, Zug (CH), Warsaw, Prague and Luxembourg.
Peakside Capital provides fund management and investment advisory services for managed portfolios that include its four real estate funds and a significant number of separate account investments.
The investment strategies it pursues serve the individual requirements of its investors, and range from core to opportunistic across the office, residential, hotel and retail sectors. The investment spectrum comprises investments in single assets and portfolios through to distressed debt and investments in real estate operating companies.