Universal Investment has joined forces with GPEP to acquire a 108,000 m2 retail-led portfolio in Germany from an unnamed international special servicer.
The package, which includes various retail centres and retail parks as well as a petrol station, generates an annual rental income of around €7 mln.
The parties agreed to keep financial details confidential.
WM Treuhand & Steuerberatungsgesellschaft mapped out the tax structure for this portfolio. The buyers were legally advised by Mayer Brown.
The newly acquired properties are located throughout Germany, with a focus on Northern Bavaria, Southern Saxony and North Rhine-Westphalia. Most of the properties are situated in business parks, and about half the space is leased to food retailers, including Aldi, Edeka and Lidl.The average remaining lease term is 3.5 years.
Although the majority of the properties require renovation, the locations are very good, the buyers said. 'These types of opportunistic retail centres and retail parks are the ideal value and return driver in a largely conservative portfolio. This hinges on access to these opportunities as well as many years of experience in terms of assessing locations and developing this particular asset class,' said Marcel Fuhr, managing director of GPEP, responsible for acquisition as well as asset and property management.
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Want to know more about the German market and how top German investors see the market developing for the rest of this year?
Outlook Europe H2: Germany Investment Briefing
22 June 2016
Union Investment Real Estate GmbH, Valentinskamp 70 / EMPORIO, Hamburg, 20355, Germany
Our upcoming Investment Briefing on Germany is part of our annual European Outlook series. An expert panel will examine key investment trends, both in Germany and continental Europe. How do investors see the activity in the first half of 2016 and what is the likely scenario for the second half of the year. Will we see a bounceback for Europe after the referendum in the UK? What are the strategies best suited for investors at this point in the cycle? Which sectors are likely to outperform?
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