Patrizia acquires German retail property portfolio from Savills IM

Patrizia has bought a German retail real estate portfolio from Savills Investment Management for €320m.

The investment manager bought the assets for a German occupational pension fund separate-account client.

Patrizia bought the 25 properties in the Länder region in an off-market deal.

The 183,000sqm portfolio includes all assets from Savills IM’s German Retail Fund CSGRF, which focused on shopping centres and retail warehouses.

The low-risk, core-plus fund, launched in 2007, has been wound down.

Thomas Gütle, managing director at Savills IM in Germany, said the sale would allow the company to launch a German retail fund

“We have closed the fund and repaid investors in the promised timeframe,” he said. 

Daniel Herrmann, head of retail fund management at Patrizia, said: “The shopping centres and retail parks are located in regions with strong economies and are usually the dominant retail trade destinations in their respective catchment areas.

“The portfolio has a very attractive return/risk ratio already now. In spite of the usually above-average quality of the real estate and locations, however, we see additional opportunities to add value by means of an active management approach.”

Tenants include Edeka, Rewe, Media Markt, Wöhrl, DM, Deichmann or Toom.

Around 75% of the portfolio’s value is in Bavaria, Baden-Württemberg and Hamburg.