AXA RE sells food store portfolio in Germany

AXA Real Estate Investment Managers has completed the sale of a portfolio of 21 food retail assets located across Germany to Fairvesta Real Estate Fund for an undisclosed amount.

The portfolio comprises around 40,000 m2 of space and its 21 units range in size from 1,200 m2 to 2,600 m2. The assets are located across Germany but predominantly in Northern Germany, Saxony, Bavaria and Rhineland Palatinate.

The portfolio is currently 98% let to major European and national food retailers and has a weighted average unexpired lease term of six years.

DTZ acted as agent on behalf of AXA Real Estate.

'The requirement for many investors to seek strong and resilient income flows has led to significant demand for well-located food-based retail let to retailers with strong covenants, particularly in Germany as one of Europe’s top performing economies,' said Matthias Leube of AXA Real Estate.

This is the second food store portfolio sold by AXA Real Estate in recent months. In February 2013, the French investment manager sold a portfolio of 72 food retail assets to Swedish state-owned pension fund Tredje AP-fonden (AP3).

The portfolio comprises 129,000 m2 of food retail space located across Sweden, with more than 80% of the portfolio’s income secured by domestic food retailers with good covenants.