German-focussed food retail real estate investment manager GPEP has acquired 50 stores from Patrizia for an undisclosed sum.
Patrizia said the 144,000sqm portfolio, comprises stores located in 11 different German states, mostly in small to middle-sized towns in West Germany.
The portfolio was acquired by Patrizia in 2015 as part of the company’s ongoing strategy of investing in food-anchored retail.
Following extensive asset management activities, the portfolio now generates over €15m per year in rental income, has a 98% occupancy rate and a weighted average lease expiry of over 8 years, Patrizia said.
Daniel Herrmann, the head of fund management retail at Patrizia, said: “Our asset management plan was successfully executed and the fund reached the end of its lifetime. So this is the perfect time for us to crystalise the value we have generated for our clients since the acquisition of the assets in 2015.
“Not only have our assets delivered strong and stable returns for our clients, but we now have extra firepower to invest in new accretive opportunities.”
Patrizia manages more than €6.5bn in the retail sector throughout Europe with €3.5bn invested in the German food retail sector.
Herrmann said core investors continue to have a strong appetite for food-anchored retail as it continues to offer an attractive risk/reward ratio.
“That’s why we will continue to source these opportunities for our clients and add them to our existing portfolios whenever we find them.”
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