UK celebrity-backed fund AAIM has bought 51 German retail assets from Luxembourg-based EPI Orange Holdings for EUR 700 mln. The purchase price for the 34 DIY stores let to Praktiker and 17 department stores let to Sinn Leffer reflects a net initial yield of 5.5%. Last month AAIM was involved in the purchase of three shopping centres in Germany, the Czech Republic and Hungary for EUR 500, bring the company's deal tally in recent weeks to more than EUR 1.2 bn. AAIM Europe’s overall property holdings are valued at EUR 3 bn.
UK celebrity-backed fund AAIM has bought 51 German retail assets from Luxembourg-based EPI Orange Holdings for EUR 700 mln. The purchase price for the 34 DIY stores let to Praktiker and 17 department stores let to Sinn Leffer reflects a net initial yield of 5.5%. Last month AAIM was involved in the purchase of three shopping centres in Germany, the Czech Republic and Hungary for EUR 500, bring the company's deal tally in recent weeks to more than EUR 1.2 bn. AAIM Europe’s overall property holdings are valued at EUR 3 bn.
Robert Whitton, chief executive of AAIM and its European subsidiary, AAIM Europe, said: 'We are delighted with the acquisition of these portfolios, which offer strong long-term cash flows underpinned by prime High Street and out-of-town retail property. Germany is in a period of recovery, ten years of rental decline has ended and created a low base for rents and producing an outstanding property investment opportunity.'
The Praktiker stores are located across Germany and have an average lease length of 10 years. Praktiker's head office building in Kirkel is also included in the portfolio. The properties have a total of 247,957 m2 of lettable area arranged over a total land area of 648,159 m2. The Sinn Leffers department stores are situated in prime locations in Western Germany with average lease lengths of 16 years. The total floor area is some 138,000 m2.
Curzon/AEW Europe.was advisor for the transaction.
