Benson Elliot has paid Brack Capital Properties (BCP) €175m for a portfolio of three German convenience retail assets.

The UK-based private equity real estate fund manager said BCP has retained a minority stake in the 100,600sqm portfolio.

The centres, which are currently 99% let on long and seasoned leases, serve markets outside the cities of Dortmund, Hanover and Rostock.

Modulus Real Estate will manage the three assets.

Benson Elliot said the asset management strategy for the properties will focus on optimising lease terms and space usage, as well as an enhancement of the tenant mix.

Joseph De Leo, a senior partner at Benson Elliot, said this acquisition reflects the firm’s continued confidence in market dominant, needs-based retail formats.

“While there is much debate around the challenges facing the retail sector, these properties are established anchor points for daily shopping needs, resilient to e-commerce growth and of a scale that would make them difficult to replicate today.”