Corestate Capital's CIO Thomas Landschreiber has said that its strategy of investing in high street properties in German B-cities is starting to pay off.
'Early on, we recognised the trend towards B-cities,' notes Landschreiber. 'Our high street investment strategy is aimed at assembling an extensive and highly diversified portfolio of top retail properties.'
Corestate's portfolio has recently grown to 100 retail properties, representing a total volume of €850 mln. The assets, which the group holds alongside other investors, are situated in prime city-centre locations in mid-sized German cities. This includes eight shopping centres.
'Due to our excellent local market knowledge, we have access to a wide range of promising properties,' explains Landschreiber. 'This allows us to offer a stable alternative investment opportunity for investors who expect secure income combined with high quality covenants.'
Corestate has been focusing on the secondary high street segment since 2014. Anchor tenants in its holdings now include fashion chains C&A, H&M, New Yorker and TK Maxx; technology and entertainment store Saturn; optician brand Fielmann; as well as drugstore chains dm and Rossmann. The investments represent a total lettable area of around 370,000 m2.
The group expects the volume of its portfolio to exceed €1 bn by the end of 2016.
