Nuveen Real Estate has expanded its German retail platform with the acquisition of a 9,124sqm retail park.
The $128bn (€114bn) global investment manager has paid an undisclosed amount to buy the newly developed asset in Hagen on behalf of its core German retail platform from HD Investitions- und Verwaltungs.
The retail park consists of trade and office space, as well as a fitness studio. It has a diverse tenant mix and is almost fully let.
The latest acquisition is the third property for Nuveen’s German retail platform and adds to the €3.5bn of managed assets across the country, the manager said.
Marcus Mack, senior director in charge of Nuveen Real Estate fund management, said: “The quality of the centre is underscored by the new construction and long-term rental leases.
“The high proportion of key services tenants, who expect low competition from the e-commerce sector, will also provide consistent income for the platform.”
Stefan Wundrak, head of European research at Nuveen Real Estate, said: ”For a long time, we have been debating what retail parks should look like in order to ensure their success today while also future proofing them. Those parks that have a high proportion of food retailers, as well as drugstores, pharmacies and other goods for daily use, are the most appealing.
”Many of these products are not suitable for online retailers, either because they do not have the necessary delivery capacity, shipping costs are too high compared to the value of the goods, or they require an expensive and complex cold supply chain.
”Our market observation has confirmed that local centres are irreplaceable for the purchase of daily necessities and will only be exposed to minor pressure for change from online retailers over the long term.”
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