German asset manager Hahn Group has acquired a portfolio of 13 retail properties from a fund managed by German investor Patrizia.
Financial details were not disclosed.
The assets were purchased for the newly-launched institutional real estate fund Hahn German Retail Fund III.
The portfolio comprises retail parks, hypermarkets, DIY stores and hypermarkets, with anchor tenants including Edeka, Kaufland, Real and REWE. The total rental space amounts to around 154,000 m2.
The assets are distributed throughout Germany, with a focus on the federal states of Baden-Württemberg, Lower Saxony and North Rhine-Westphalia. Further locations include Rhineland-Palatinate, Brandenburg and Saxony-Anhalt.
Thomas Kuhlmann, Hahn Group's CEO said: 'With this transaction we were able to secure a very attractive portfolio for the newly designed Hahn German Retail Fund III.'
The core portfolio is 99% let, and characteried by a long-term secured cash flow, and a good combination of risk, according to Hahn. In addition to the broad regional diversification and the diversified tenant structure, around 75% of the rental income is generated by operators in the fast-growing food retail sector. The average residual lease term exceeds 12 years.
Hahn's latest retail fund, an open-ended specialist alternative investment fund, invests exclusively in large-scale retail assets.
The deal was brokered by Savills, Berlin, with law firm McDermott Will & Emery advising on the transaction. Purchase financing was provided by Berlin Hyp. Brand Berger carried out the technical consultation.
