Successful TRIP exit + reshaped equity story; PT UP

Periskop Partners, new cornerstone investment.Periskop Partnersis an independent investment and asset management platform focused on structurally driven real estate strategies across Europe. The firm develops and manages specialized investment verticals along the entire real estate value chain, with a particular focus on land development, senior living, and logistics and light industrial assets. Assets under management stand at over € 2bn. Here, 029 purchased a 5% stake with a call option to increase its stake to 10% at a similar valuation.

Reshaped 029 Group. Periskop Partners and Limestone Capital form the new core of 029, accounting for roughly 97% of the fair NAV (eNuW). With this, 029 sharpened its positioning as global investment platform at the intersection of real estate, hospitality and lifestyle. Going forward, we would expect 029 to either invest into increasing the Periskop stake (due to favourable conditions) or purchase stakes in similar business models. Mind you, 029 still owns stakes in hotelbird (4.8%), Brother’s Bond (1.6%) and fjör (11.3%), with a cumulative fair NAV of a mere € 4m (eNuW). Taking into account the relatively low fair NAV share, we would not rule out additional divestments during the near future.

Limestone continues to develop strongly. The Swiss real estate private equity firm with some € 1bn assets under management has broadened its set up (next to direct real estate investments) with brands such as aethos (hospitality brand), Eterniti (vacation rental operator), MYNE (luxury vacation rental co-ownership platform) and Loisium (hospitality brand focused on wine retreats). Last year, Limestone successfully opened its 5-star hotel on Mallorca and the former Nobu location in London, increasing its locations to ten.

Valuation update. We adjust our sum of-the-parts valuation, reflecting the divestment of TRIP Drinks and the reallocation of funds towards the stake in Periskop Partners (incl. 5% option) and arrive at a new € 25 PT (old: € 22) with an unchanged HOLD recommendation.