PINNACLE - real estate innovation

Pinnacle is wholly owned and managed by its founders. It was established in Prague in 2001 as an independent real estate development and asset management business. Building on the expertise of the founders, and their senior management team coupled with the development of relationships with key institutional funders the business grew into a leading developer, owner and manager of logistics assets in Central and Eastern Europe.

In parallel, by working with major funds, Pinnacle developed an excellent asset management franchise securing long term contracts to manage three of Prague’s most prominent mixed use retail and commercial assets which aggregate to € 350 million in gross asset value.

Precipitating the desire to move towards a fund management model in the fourth quarter of 2007, Pinnacle founders, together with their partners, Merrill Lynch, attracted an institutional buyer for their logistics assets, being a major Gulf based investment bank, Arcapita. Due to the unique footprint of the assets and the attraction of an embedded management team, the founders were able to negotiate pricing at the premium cap rate of 6.5%. The sale, which closed in April 2008, encompassed an enterprise value of € 380 million, 500,000 sqm of prime logistics space and a further 2 million sqm of land bank, representing the biggest real estate deal in Eastern Europe in 2008. This sale achieved the founders’ objective to move away from development as well as harvesting additional capital for the continued growth and evolution of Pinnacle.

The management has a long and broad experience of operating commercial real estate in Central and Eastern Europe from 1992. Much of the management experience has been in growing multi territory businesses focussed on the acquisition, ownership and management of institutional quality investments.

Key highlights of managements experience in the region include: