Park Street Advisors, a private equity fund advisor focused on structured and distressed European commercial real estate, has completed the first closing of $100m for its maiden fund from a large US private equity firm.
The fund, called Panther Capital I LP, is targeting an overall raise of $500m equity in 2016.
The fund is targeting off-market income-generating real estate, typically stressed through complex capital structures at between €20m to €100m across UK, Germany, Southern Europe and the Nordic countries. Panther Capital operates an opportunistic approach to all real estate asset classes.
Park Street Advisors, the exclusive investment manager for Panther Capital I LP, has notarised its debut investment with the proceeds from the first capital raising.
The fund has acquired 14 retail discount stores across Germany, anchored by tenants including Lidl, Rewe and Edeka, from Mount Street, the special servicer for the H&B2 loan in the Morgan Stanley issued ELOC 28 CMBS.
Park Street acquired the underlying retail property portfolio through pre-pack administration after the restructuring of securitised loan earlier last month. The assets – dubbed the Lego Portfolio – was acquired for over €20m. Park Street Advisors negotiated with Mount Street to inherit the remaining 18 month loan.
Park Street was founded by former EMEA Head of Mortgage and Credit Markets at RBS, Pradeep Pattem in March 2014. The team is comprised of 12 real estate professionals including 10 from RBS.
Pattem spent eight years at RBS latterly heading a 200-strong team of traders, structurers, researchers and sales. Christian Mathews who was at RBS for 17 years in various relationship lending roles is head of deal origination at Park Street.
In a statement, Pradeep Pattem founder of Park Street Advisors said: “The first transaction exemplifies our approach of coming into transactions early: sourcing quality income producing assets and simplifying complex capital structures.
“Mount Street played a proactive role together with Park Street Advisors in concluding a restructure in the best interests of maintaining asset value for the existing note holders while facilitating new capital injection.”
Estama has been appointed as the property and asset manager for the portfolio and these efforts are being led by Andrew La Trobe, head of asset management at Park Street Advisors.