KD Funds and Peakside Capital, an international real estate investor, have launched the KD Adriatic Value Fund, the first regulated real estate alternative investment fund in Slovenia.
The new fund will leverage the combination of Peakside’s real estate market knowledge with KD Funds’ experience in managing institutional real estate investments offered by the two firms joining forces.
To date, the fund has raised commitments from regional institutional investors giving it a buying power in excess of €50 million.
Investors are expected to benefit from the yield gap in Slovenia’s markets, relative to other European real estate markets.
The fund has already made its first acquisition, with the purchase of the Tivoli Center, an office building in Ljubljana for €13 million, reflecting a net initial yield well in excess of 8 percent.
The property, located in prime downtown Ljubljana, provides a gross lettable area of around 8,000 square metres across two connected buildings.
Current tenants include international law firms, as well as small- and medium-sized enterprise firms.
Luka Podlogar, the president of the management board of KD Funds, said: "We are pleased to have closed the first acquisition of a commercial real estate asset for our new real estate fund, proving ourselves as the pioneers of development in the real estate fund sector in Slovenia, too.”
Stefan Aumann, managing partner and founder of Peakside Capital, commented: "This acquisition is an excellent start for the Adriatic Value Fund. This is a stepping stone in establishing a larger portfolio in the region that will offer attractive returns to the Fund’s investors."
