Degi buys Andernach Shopping World for EUR 40m

German property company Degi said on Wednesday it has acquired the Andernach Shopping World centre in the western town of Andernach for around EUR 40mln. The property will be added to Degi's German Business fund, which focuses on commercial properties in Germany and which now has a portfolio of around EUR 400mln.

The 67,000 m² scheme comprises three separate buildings, constructed between 1998 and 2007, and is fully let. Anchor tenants are Kaufland, Lidl and Plus.

Separately, Degi has bought the Iris retail complex in Titan, Romania, for approximately EUR 140mln in a deal brokered by CBRE|Eurisko.

The site covers a total area of around 100,000 m². It features the first Auchan supermarket outlet in the country with a selling area of more than 16,000 m² and a commercial centre of approximately 30,000 m² due to open this summer, both contributing to a total built area of 60,000 m².

Commenting on the transaction, Alexandra Dimofte, head of capital markets at CBRE|Eurisko said: 'This acquisition demonstrates the ongoing appeal of the Romanian market amidst the more challenging financial market conditions. Investment funds are turning to rapidly growing economies such as Romania as an attractive investment option.'

The deal is the second to be completed on the Romanian market by Degi since last August, when it entered the Romanian market for the first time with the purchase of an office property portfolio in Bucharest for an investment sum of EUR 111mln. That deal was also brokered by CBRE|Eurisko.