Cornerstone Real Estate Advisers has completed the sale of a retail property on the Alter Markt, Elmshorn, Germany to Real I.S. for €24.5 mln following extensive asset management initiatives to reposition the property.
Cornerstone Real Estate Advisers has completed the sale of a retail property on the Alter Markt, Elmshorn, Germany to Real I.S. for €24.5 mln following extensive asset management initiatives to reposition the property.
The asset, which comprises 8,179 m2 of net lettable area, is located in a prime location on the main retail street in Elmshorn and is owned by the Cornerstone German Retail Fund.
Cornerstone Europe acquired the then vacant former Hertie department store for €7.7 mln in 2012 and subsequently invested €12 mln to refurbish the asset, for a total investment of €19.7 mln.
Following completion of the works in 2013, Cornerstone finalised a number of long-term lettings, including H&M, C&A, and Deichmann and Kik, along with other small office tenants. The asset is 98% let with all retail units fully occupied.
Cornerstone Europe took over the management of the closed-end German Retail Fund on behalf of a client in 2008. During this time, Cornerstone has acquired six assets and disposed of three which, combined with extensive asset management, has enabled it to grow the fund’s gross asset value from €35 mln to €90 mln. The vehicle, which is now fully invested, targets opportunistic and value add retail assets in Germany between €10 mln and €30 mln.
Calum Barclay, director of Fund Management at Cornerstone said: 'Cash generated from the disposal will be used in a number of other high capital expenditure activities which the Fund is currently undertaking.'
