Real estate manager Sonae Sierra has acquired seven supermarkets for its German food retail investment fund.
The manager said the latest transaction lifts the Sierra German Food Retail Income Fund I fund’s total portfolio to 12 assets.
The fund’s assets are spread across nine different states, including North Rhine-Westphalia, Hesse, Bavaria, Saxony, and Rhineland-Palatinate.
The German food retail fund, targeting an investment volume of around €200m, was launched in October 2021 with a focus on pure-play food retailers across Germany, in particular stable stand-alone properties. The fund targets assets with long-term leases.
Christoph Billwiller, investment management director at Sierra, said: “This stable long-term income fund offers exposure to a resilient real estate sector, capitalising on Sierra’s experience and track record, built with multiple blue-chip partners for over three decades.
“We are very pleased with the acquisitions made in little over a year, and the fact that we can offer our investors an above-par yield, proving our credentials as a first-class investment management partner in Europe. This growth is the result of our commitment to the investment management business and our ability to identify and deliver attractive investment opportunities for different pools of investors.”
Luis Mota Duarte, CFO and executive director of investment management at Sierra, said: “We are very pleased with the progress made so far with the German Food Retail Income Fund I.
“The German market is of strategic importance to Sonae Sierra and one where we believe we can bring to bear our long-standing distinctive investment and asset management capabilities. The progress in Germany is consistent with Sierra’s Investment Management performance across Europe in 2022.”
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