European real estate investment manager Redevco has acquired a majority stake in Redos, the Hamburg-based large-scale retail and urban logistics property investment specialist.
The acquisition strengthens Redevco’s market position, especially in the retail park segment and boosts its assets under management (AuM) from €6.7 bn to approximately €9.7 bn.
Founded in 2004, Redos has a strong reputation in Germany as an operator of retail warehouse parks and convenience retail sites. In addition, Redos has a growing urban logistics business which allows for an integrated approach to servicing urban areas.
Andrew Vaughan, CEO of Redevco said: 'Through the acquisition of redos, we are significantly growing our assets under management and the ability to realise our mission to help cities and urban areas become more sustainable and liveable.
'The acquisition of such a stellar performer in Germany provides Redevco with an excellent foundation to create a pan-European retail warehouse park platform, and a springboard into urban logistics.'
Redos will retain its operational independence and experienced senior leadership, including CEO Oliver Herrmann, who remains as minority shareholder, and CFO Carsten Wimmer.
Oliver Herrmann, CEO of Redos said: 'We are delighted to team up with Redevco as we share the same vision and values. Both companies put sustainability at the forefront of our strategies to be a driver for positive change in the respective areas we focus on.
'Joining forces by combining our expertise in large-scale retail and urban logistics properties in the German market with Redevco’s international scale, long-term approach, and financial power, significantly strengthens our leading position in the retail park arena and provides a solid basis for future growth in close cooperation with our existing investor clients.'
Diversification plan
In 2020 Redevco embarked on an expansion programme to grow and diversify its portfolio to around €10 bn with a focus on sustainable urban schemes.
Herman Jan Faber, head of business development at Redevco said: 'Our acquisition of Redos is an important first milestone in our growth strategy, focused squarely on cities and urban areas.
'Through Redos’ complementary capabilities we can extend our investment offering across different sectors. Redevco’s acquisition of Redos is just the first step, and we are actively looking at potential joint venture opportunities and further acquisitions, in line with our strategy and mission.'
Redevco was advised on the transaction by financial advisor PWC and legal and tax advisor Clifford Chance. redos was supported by M&A advisors Pestlin & Co., and legal advisor Reius Rechtsanwälte, Hamburg.
