GLOBAL – A joint venture between a fund managed by CBRE Global Investors and US pension fund Teacher Retirement System of Texas has acquired Leine Centre, a shopping centre in Germany, for €117m.
The shopping centre, which has an initial yield of around 6%, was acquired from LaSalle Investment Management, ADLER Immobilien Investment Gruppe, Fay Projects and THI Holding & Co.
The shopping centre is located in Laatzen, a suburb of Hanover in Germany.
It was originally opened in 1973 and then recently extended in 2011.
The acquisition of the Leine Centre brings the number of investments in the CBRE Global Investors fund to four and represents its first acquisition in Germany.
According to Florencio Beccar, fund manager at CBRE Global Investors, Germany is among the most stable and strongest economies in Europe.
"This acquisition provides exposure to a country where we anticipate economic growth will continue to be above trend," she said.
"Germany is the largest retail market in Europe in terms of sales, but it is under-retailed in terms of shopping centre gross lettable area (GLA), which contributes to high occupancy and rent sustainability."
Beccar added that the asset met the fund's investment strategy, providing a high income yield with rental growth potential as lease renewals are implemented within the hold period.