Corestate, Sistema invest €105m in German high street retail property

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Sistema Capital Partners and Corestate Capital have invested €105m in German high street retail property.

The private equity platform was launched late last year for a club of co-investors, anchored by Sistema’s parent company, London and Moscow-listed Sistema JSFC.

Corestate and Sistema jointly invested an initial €120m in March.

Corestate is co-investing in and co-managing the platform.

Sascha Wilhelm, chief executive at Corestate, said: “Retail in mid-sized German cities often serves a large catchment area as a magnet for an entire region, and properties in pedestrian zones in these centres are particularly attractive investments.”

The latest assets, in Flensburg and Lübeck, will be 70% debt-financed and take the joint venture’s total volume of retail real estate deals in Germany for the club of investors to €350m.

Marjorie Brabet-Friel, SCP’s chief executive, said: “SCP and Corestate were early to spot the opportunities in high street retail in mid-sized German cities, and the latest investments are larger and more prime in character than those previously transacted by our joint venture.

The properties are in dominant retail destinations and offer scope for active asset management.

SCP was established by Russia’s listed diversified holding company Sistema JSFC in 2015 to invest Sistema’s own capital.

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