UK investment manager Hermes has teamed up with Redevco, the pan-European retail real estate specialist, to acquire €250 mln of retail assets in the largest markets of western continental Europe and the Nordic region.

UK investment manager Hermes has teamed up with Redevco, the pan-European retail real estate specialist, to acquire €250 mln of retail assets in the largest markets of western continental Europe and the Nordic region.

The joint venture was announced by the two companies at a press conference during EXPO REAL in Munich.

The partnership will pursue a core+/value-add investment strategy with a moderate risk profile. Amsterdam-based Redevco will advise on acquisitions and manage the assembled portfolio.

Commenting on the deal, Chris Taylor, head of private markets at Hermes IM, said the fundamental changes and ongoing developments in retailing present interesting opportunities for a core+/value-add strategy.

‘Teaming up with Redevco gives us a partner that is a like-minded, long-term investor with the intense retail insight locally to deliver the added value from our target markets. I spend a lot of time scouring the world for partners and we feel very aligned with Redevco.’

The two parties expect to make the investments over the next 12 to 24 months, Redevco’s CEO Andrew Vaughan added. ‘It is a tough market and finding the right opportunities is tough,’ he conceded. ‘But we are already looking at some opportunities this year and we both have a long-term horizon. It’s about doing good deals, not just about putting the money out there.'