Swiss investor Corestate has a acquired a portfolio of 35 retail properties in various mid-sized cities in Germany for €370 mln.

Swiss investor Corestate has a acquired a portfolio of 35 retail properties in various mid-sized cities in Germany for €370 mln.

The portfolio comprises more than 170,000 m2 and is let to a range of tenants including C&A, Deutsche Bank, H&M, Peek & Cloppenburg, Rewe and Saturn.

Tobias Gollnest, executive director commercial real estate of Corestate Capital, said: ‘Our local knowledge is the key factor for successfully finding these opportunities asset by asset. This type of approach needs a lot of detailed work on the ground and Corestate benefits from its 16 subsidiaries across Germany which makes this possible.

‘The appetite for higher risk adjusted returns in secondary cities is definitely growing. We notice that large players are currently looking into this segment. Higher returns based on top covenants are very rare in today's market environment. We see high potential in this market and will continue to pursue this strategy.’