Develica acquires retail properties for EUR 48 mln

AIM-listed German property company Develica Deutschland has exchanged contracts to acquire a fully-let retail investment portfolio for a total of
EUR 48.6 mln, including costs. The transaction price reflects a current yield of 6.7%.

The portfolio comprises 21 suburban retail premises, predominately supermarkets, totalling 32,426 m2, with parking facilities for 1,725 vehicles. Anchor tenants include nationally recognised brands such as Rewe, Edeka, Netto and Plus.

This is Develica's second major retail portfolio in Germany. In December the company acquired a fully-let mainly retail portfolio for EUR 108 mln. As a result of this latest acquisition Develica now owns approximately 1million square feet of retail space.

Develica's chairman Derek Butler commented: ' Not only does [this acquisition] increase our exposure to the retail sector, at an attractive yield of 6.7%, but it also diversifies us within that sector. Importantly it also increases our invested and committed funds to over EUR 630 mln which together with our strong pipeline of further potential acquisitions moves us steadily towards our target of being fully invested by the middle of the year.'