German retail REIT Deutsche Konsum has purchased the Elster Center shopping centre in Brandenburg for €23 mln, or an initial yield of 8.3%.
'The initial yield of 8.3% is quite low by our acquisition standards. However, we believe there is significant potential for development and rental growth in the medium-term future in order to make this a very accretive acquisition for our shareholders,' said CEO Rolf Elgeti.
The 1991-built centre has a total rental space of 36,000 m2 and was modernised completely in 2012. Anchor tenants include Rewe, Aldi, DM, toom, Medimax, AWG Mode and a furnishing supplier. The centre is fully let and has an annualised rent of €1.9 mln.
Including its latest acquisitions, Deutsche Konsum's portfolio now comprises 86 retail properties with an annualised rent of €33.9 million. The convenience shopping-focused REIT said it planned further acquisitions in the near term.
The deal is expected to complete on 1 June 2018.
