AEW Europe is taking a US investor into Germany’s retail property sector in a €300m opportunistic drive.
The investment manager said it was working with its local partner Kintyre Investments to source and structure investments in Germany.
The strategy will initially look to build a €150m portfolio, buying assets worth €5m-15m.
Investment capacity for the partnership is expected to be around €300m, depending on opportunity.
AEW Europe said contracts had been signed for a first acquisition, with eight other assets under offer.
Russell Jewell, head of private equity funds at AEW Europe, said the sector represented “good value at present”, with “potential upside through asset management and a demonstrable pipeline of deals”.
Kintyre Investments, which will develop a pipeline of potential investments, will avoid major cities.
Paul Shiels, co-founder of Kintyre, said the company saw considerable value at the moment in smaller transactions, located away from the large German cities.
“Retailers continue to trade strongly in these areas, and this creates attractive asset management opportunities,” Shiels said.”