Henderson Park has acquired the Rathaus Galerie shopping centre in Essen, Germany for an undisclosed sum.
The pan-European private equity real estate investor said it has bought its first shopping centre asset in a joint venture with German property group HBB who will manage the asset.
Henderson Park is the majority partner in the 31,000sqm shopping centre.
Rathaus Galerie is 80% let and Henderson Park said the joint venture’s turnaround strategy includes a comprehensive refurbishment, improving the tenant mix to concentrate on convenience retail, as well as an enhanced food and beverage and leisure component.
Nick Weber, founding partner of Henderson Park, said: “This transaction increases our exposure to the highly attractive German market through the acquisition of a proven retail asset at a competitive price point alongside our experienced local partner, HBB.
“The decision to make our first shopping centre acquisition was driven by the Rathaus Galerie’s dominant status and the latent value we believe can be captured; we intend to implement an asset management strategy that focuses on the introduction of retail and leisure amenities that are most appropriate for the local demographic and which capitalise on the centre’s strong location and surrounding infrastructure.”
Harald Ortner, managing director of HBB, said: “Rathaus Galerie Essen offers a unique location in one of Essen’s busiest hubs. This “natural” footfall presents a great opportunity to create sustainable value for our new joint venture with Henderson Park and to capitalize on our strengths as a developer.
“We look forward to this promising collaboration with the entire Henderson Park team and to further joint investment in Germany.”