Generali Real Estate and ECE Real Estate Partners funds have acquired the Pep Shopping Centre in southeastern Germany.

The Generali Shopping Center Fund (GSCF) and the ECE Progressive Income Growth Fund will each hold a 50% stake in the shopping centre sold by Nuveen Real Estate on behalf of the TIAA-CNP partnership.

Back in 2013, Nuveen’s parent TIAA and French insurer CNP Assurances co-invested $1.2bn to buy a portfolio of three German shopping centres which included the Pep Shopping Centre. 

Earlier media reports had indicated that the 70,000sqm shopping centre was being sold for around €500m.

Located in Neuperlach, Pep generates more than €250m a year in turnover. The shopping centre was modernised and expanded between 2016 and 2018, and has been managed by ECE Marketplaces for over 30 years.

Aldo Mazzocco, CEO at Generali Real Estate, said: ”A second important investment for our pan-European Shopping Centre Fund, the Pep acquisition is fully in line with the investment strategy we have set for the retail asset class five years ago: investing very selectively and with prudence in shopping centres which well represent the so-called Dominant, Destination, Diversified segment.

“Pep makes a strong central-European addition to our international portfolio, next to Puerto Venecia in Zaragoza and CityLife Shopping District in Milan.”

Volker Kraft, managing partner at ECE Real Estate Partners, said: “We are delighted to make the investment in Pep shopping centre jointly with our partner Generali Real Estate. The asset stands out as a winner in the increasingly polarising shopping centre landscape.

“This makes it a great fit for our ECE Progressive Income Growth Fund that comprises a €2bn portfolio of outstanding shopping centres in Europe.”

Myles White, the head of retail, Europe at Nuveen Real Estate, said: “We are extremely proud of what we have accomplished with the Pep shopping centre.

”Through active management and prudent investment, we believe we have curated a best-in-class asset in a strategic location in Munich and we believe this deal demonstrates the continued investor demand for high-quality retail assets that can continue to meet evolving consumer demands and trends.”

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