GPEP and Universal Investment have acquired 12 retail centres across Germany with discount store Netto Marken-Discount as anchor tenant, plus a retail park with a different food anchor.
The 14 properties in total, at 13 different locations with a gross lettable area of 20,000 m2, were sold by a project developer. The transaction volume was not disclosed.
'The market for supermarkets and retail parks still offers attractive properties in the core or opportunistic segment. However, given the comparatively high prices for real estate in rural areas with long-term leases, and the associated deterioration of the risk/return profile, we perceive a growing interest in urban locations with shorter residual terms and upside potential,' commented Herwart Reip, managing director of GPEP.
The 12 discount markets were partially extended during 2016 and modernised for improved energy use. The leases for the Netto Marken-Discount stores have 15-year terms, while those for the retail park have terms from five to ten years. The locations are spread across Bavaria, Lower Saxony, Rhineland-Palatinate, Saxony and Saxony-Anhalt.
The deal follows GRR's acquisition last week of 10 newly built retail assets operated by Netto Markt-Discount with a lettable area of 14,000 m2.
The vendor was advised by JenAcon. The buyers were legally represented by Mayer Brown LLP, Düsseldorf.
