Deutsche EuroShop has acquired the Herold-Center in Norderstedt, on the northern outskirts of Hamburg. The investment volume is around EUR 187 mln, reflecting an initial yield about 6.1%.
Deutsche EuroShop has acquired the Herold-Center in Norderstedt, on the northern outskirts of Hamburg. The investment volume is around EUR 187 mln, reflecting an initial yield about 6.1%.
The listed German shopping centre investor will take possession of the 55,000 m2 shopping centre from West Register PRIME Norderstedt at the beginning of 2013. The acquisition will increase Deutsche EuroShop's portfolio to 20 shopping centres, with a market value of EUR 3.8 bn.
Deutsche EuroShop carried out a capital increase and bond issue last week to fund the transaction.
'The Herold-Center is a mature, well-established shopping centre which is well suited to our portfolio,' comments Claus-Matthias Böge, executive board spokesman of Deutsche EuroShop. 'It is our third shopping center in the greater Hamburg area and our 16th in Germany.'
Built on two levels, with a retail space of around 26,000 m 2, the Herold-Center houses some 130 specialist shops, all of which are let to well-known retailers.
The Center's key tenants are three clothing stores (P&C, C&A and H&M) and a supermarket (REWE). A Karstadt department store, which is third-party owned, is also connected to the Center. In addition, the Center features around 14,000 m 2 of residential space spread over 256 apartments and 5,000
m2 of office space. The Herold-Center has a total leasable space of 55,500 m2 . Parking facilities for visitors offer space for 850 cars and 300 bikes.
The Herold-Center was opened in 1971 and underwent extensive restructuring and expansion in 1995. The shopping center is managed by ECE Projektmanagement since 1981, and some 481,000 people live in its catchment area.
On peak days the Herold-Center is visited by up to 40,000 customers.
The seller was advised by CBRE and Clifford Chance Partnergesellschaft.
