Patrizia buys €400m German portfolio from AP3 and PGIM for insurer

Patrizia Immobilien has bought a portfolio of 85 retail properties located in western and southern Germany in an off-market transaction on behalf of an unnamed “large German insurance company” for €400m.

The seller is a joint venture between AP3 — Sweden’s third national pension fund — and PGIM Real Estate.

Patrizia said: “The portfolio was acquired for an individual mandate of a large German insurance company, one of a number of such acquisitions for this client which has been pursuing a strategy to further expand its retail portfolio with Patrizia.”

The properties in the portfolio collectively have around 236,000sqm of lettable space. Lidl, Aldi, EDEKA and REWE are among the main tenants.

The remaining average lease term for the portfolio is around six years.

Daniel Herrmann, head of fund management retail at Patrizia, said: “While the properties are already at a high quality, we have been able to identify numerous optimisation measures which will further increase the value of the asset for our clients.”

The portfolio has a regional focus on Bavaria, Hessen and Rhineland-Palatinate.