Paris-based fund manager AEW Europe has acquired the German 'Sidewalk portfolio' in the latest example of institutional-grade capital flowing into high street retail property.
The 60,000 m2 Sidewalk portfolio comprises 20 properties and was purchased from London-based BMO Real Estate Partners for a price in the 'three-digit million range', AEW Europe said.
Concentrated in the states of Bavaria and Baden-Wurttemberg, the assets are located in large and medium-sized cities, as well as some retail parks across Germany.
AEW Europe said the portfolio will be held by a Spezialfonds managed by German asset manager Hansa Hanseatische Investment, on behalf of an unnamed pension fund northern Germany.
'The acquisition of this high profile retail portfolio demonstrates our ability to successfully identify and execute significant cross-border retail transactions, leveraging our expertise in this sector following the merger between Ciloger and AEW last year,' said Isabelle Rossignol, head of the retail division at AEW Europe.
'We will continue to focus on growing our existing retail portfolio - €9 bn including institutional and private clients across Europe - maximizing the value of assets for the benefit of our institutional and private investors, while looking to further strengthen our position in the German market where we have an exciting pipeline of opportunities,' Rossignol added.
AEW Europe was advised by Greenberg Traurig and Duff & Phelps REAG. BMO Real Estate Partners Deutschland was advised by Jebens Mensching. Ralph Hagedorn – Estate of the Art, formerly Cityjung Essen, acted as broker.
Shopping on the high street
While the Specialfonds behind this deal was established in 2010, the pace and sale of institutional investment into high street retail property has accelerated markedly in recent months.
For instance, AEW Europe announced in March this year that it had raised more than €415 mln in equity from international institutional investors for the Europe City Retail Fund, exceeding the initial target of €400 mln. The fund has already invested €200 mln across Europe, including in prime high street assets on Via del Corso, Rome and on the Østergade in Copenhagen.
Earlier this month, German fund manager Triuva has sourced a €120 mln portfolio of Italian high street retail properties on behalf of a Dutch institutional client of CBRE Global Investment Partners (CBRE GIP).
Bayerische Versorgungskammer (BVK), Germany's largest pension fund investor, is particularly keen on the property type and has awarded a €1.3 bn high street mandate to US property company Hines and Germany's Universal-Investments. In April, Hines and Universal-Investment deployed €190 mln in two high street property transactions in Spain on behalf of the mandate. In mid-January Hines and Universal acquired five Copenhagen retail assets for €119 mln. These two investments were the eighth and ninth transactions for the mandate.
