CBRE Global Investors has purchased two Karstadt properties in Düsseldorf on behalf of a German seperate account client. The price was not disclosed.
The acquisitions include a centrally located department store, comprising 33,600 m2 of retail space over five floors, including one basement. The building was originally constructed in 1954 and refurbished in 2012.
The Karstadt sports store is situated on a neighbouring street to the department store and was built in 1993. It has approximately 4,000 m2 of space, across five floors. Both properties are fully occupied and are linked via a basement walkway.
'Both the Karstadt department store and its sports store are in prime locations in one of the most affluent markets in Germany. With the department store being recently renovated and both stores in a highly accessible location, we have acquired two assets that we believe will meet our clients’ objectives and will perform strongly,' commented Harald Floer, fund manager, CBRE Global Investors.
According to CBRE, Düsseldorf is one of Germany's largest retail markets with a consumer base expected to grow by approximately 5% by 2025. Karstadt and the stores are also expected to benefit from the planned expansion of the pedestrian zone in the city.
'Rental growth of retail units in Düsseldorf has been strong over the last decade and our research suggests this will continue to be solid as demand for German retail property remains high,' said Ulrich Oppermann, head of transactions in Germany, CBRE Global Investors. 'An increase in consumer consumption presents an attractive basis for retail investment and an increasingly affluent consumer base will bring further benefits to Düsseldorf's retail space.'
