Union Investment and Redos Group’s second institutional fund, which targets German retail assets, has bought a portfolio with eleven retail parks and hybrid centres from TH Real Estate.

Hamburg-based asset manager Redos said the Redos Einzelhandel Germany II fund - set up for institutional investors in 2017 together with Union Investment under a third-party alternative investment fund manager mandate - has acquired the Olymp portfolio for an undisclosed sum.

The 141,000sqm Olymp portfolio consists of ten retail assets in western Germany and one in Berlin. The properties include the Durlach Center in Karlsruhe, Norder Tor in Norden near Emden and the Allende Center in Berlin-Köpenick.

The portfolio has an occupancy rate of more than 98%.

Frank Eckervogt, a managing director and the head of acquisition at Redos, said: “With Olymp, we have acquired one of the most attractive and best quality retail portfolios currently on the market for the Union Investment special AIF.”

“All the locations are well established with high footfall and stable cash flows. We have plenty of core tenants of good credit standing, which lends this investment a high level of planning security.”

Eckervogt said the company expects potential for rental and value growth in spite of the very low vacancy rate.

“We intend to target and leverage this potential in close dialogue with the retailers, for example by developing cutting-edge, customer-oriented shop-floor concepts,” Eckervogt said.

Marcus Mack, a fund manager at TH Real Estate, said: “We have steadily developed this outstanding portfolio over the past eight years with strategic repositioning, and we have already generated added value for the properties.

“With our many years of expertise, we, for example, established the Durlach Center in Karlsruhe as the dominant shopping destination in the region and gave the location a boost by broadening the sector mix and building a specific centre brand.”