AEW Europe has bought a German retail portfolio for a €150m opportunistic strategy it is managing on behalf of a US institutional investor.
The investment manager acquired eight assets, taking total investments to €56.3m.
AEW Europe and local partner Kintyre Investments are seeking to build an initial portfolio of up to €150m, through single asset investments of between €5 and €25m – or larger portfolio investments where the composite individual assets do not exceed €25m.
They are targeting assets in regional cities and towns in Germany with populations of between 20,000 and 200,000. Assets should have existing cash flows, but typically short-dated lease profiles and offer the opportunity to add value through refurbishment, repositioning or redevelopment.
Paul Shiels of Kintyre said: “This portfolio provides all the attributes we are seeking through this venture, being well spread, with a diverse tenant line-up along with providing the ability to add significant value through active asset management.”
The portfolio primarily comprises six multi-let retail parks, located at Magdeburg in Saxony Anhalt, Bad Staffeistein and Muhldorf Am Inn in Bavaria as well as Schwalmstadt Treysa and Herborn in Hesse.
The 55,000sqm portfolio also includes a standalone retail unit at Bischoffen in Hesse, a DIY store in Herten and a community shopping centre in Schwelm, both in Nord Rhine Westphalia.