Dutch listed retail specialist Corio has secured a rental guarantee from developer Multi Corporation for its newly acquired Berlin Boulevard.
Dutch listed retail specialist Corio has secured a rental guarantee from developer Multi Corporation for its newly acquired Berlin Boulevard.
The Boulevard Berlin occupancy in terms of GLA currently stands at 88%. Multi has provided a rental guarantee that covers any vacancy up to an amount of €15.25 mln for a period of three years. The rental guarantee also covers the remaining vacancy in Königsgalerie in Duisburg and Arneken Galerie in Hildesheim.
Corio released the deals of the agreement in an announcement that it has acquired Boulevard Berlin from Multi for €366 mln or a net initial yield of 6%. The acquisition was part of the Multi transaction announced between the two Dutch retail giants on 25 March 2010.
In September, Corio announced total writedowns of €140 mln on its portfolio for the first nine months of 2012 including a €52 mln writedown on its German assets. The bulk of the writedown - or €40 mln - related to Corio's Dresden mall.
Following the handover of Boulevard Berlin, Corio and Multi have ended their cooperation in Germany and will continue their activities independently, the company said in a press release. Nevertheless, Corio still aims to grow its presence in Germany, CEO Gerard Groener said.
'With the handover of Boulevard Berlin, the Corio portfolio in Germany reaches the size of a strong platform. Near future goals are to enhance this relatively young portfolio by increasing footfall and sales for our tenants, creating shareholder value.'
Boulevard Berlin is one of the largest shopping centres in Berlin with 86,000 m2 GLA and 850 parking spaces, located in the popular shopping destination Schloßstraße. Boulevard Berlin will add to Corio's result as of 15 January 2013.
Corio is targeting an annual footfall of at least 13 million per year at the Berlin mall after stabilisation.
Corio currently has five operational shopping centres in Germany, bringing the total value of Corio's portfolio in Germany to over €1 bn or approximately 14% of the total portfolio (based on 30 September 2012 value).
