German retail specialist Global Property Executive Partners (GPEP) has acquired 49 mixed retail properties across Germany in a joint venture with Universal-Investment from an international investor group.
Financial details were not disclosed.
Representing a total rental space of about 175,000 m2, the assets were purchased for an institutional real estate fund. 90% of the portfolio are retail real estate properties with appreciation potential, according to GPEP. The remaining 10% comprises office, storage and residential space.
'This transaction, which is the largest and most complex in the company's history, offers a good mix of opportunistic and conservative properties located at mostly long established sites,' commented Herwart Reip, managing director of GPEP GmbH. 'It is therefore ideally suited to complement the portfolio, resulting in the further geographic diversification of the overall risk.'
'Against the backdrop of a market environment that remains challenging, we expect a very good performance, particularly from those properties that are
currently regarded as having an opportunistic approach,' Reip added.
60% of the portfolio properties are located in the former West German federal states, while 40% are located in the Eastern federal states, including Berlin. Overall, the geographic focus is on Bavaria, Berlin, Lower Saxony and North Rhine-Westphalia. The occupancy rate of the 200 or so rental units is 95%, with the tenants being predominantly German food retailers and complementary non-food outlets, as well as some DIY superstores and retail centres for home furnishings. The weighted average lease term (WALT) is about 6.4 years.
'The real estate market continues to be characterised by high demand while the supply of attractive real estate portfolios is limited,' said Marcel Fuhr, managing firector of GPEP.
In total, GPEP has acquired around €800 mln of retail centres and retail parks since the beginning of 2015, representing around 270 properties covering some 685,000 m2.
The purchase is a combination of an asset and a share deal. GSK Stockmann advised the buyers on legal and tax matters.
